Buy Rated — Page 47

TOP 10 – main market to shine

September 10, 2017 by IC Insider.com

Sagiocr Group returns to TOP 10 list

IC Insider.com said last week, the main market sits just below the critical 290,000 point mark and seems headed to break through that level, based on the shortage of supply for Scotia Group shares.
During the past week the All Jamaica Composite Index (AJI) surged to 296,779.53 during trading on Thursday.
The AJI high of the past week is just shy of the 298,000 points the report stated the cut in BOJ’s bench mark rate would translate to. Having broken through the critical 290,000 points resistance level it looks like the main market is free to move to the next resistance level around 370,000 points. The junior market on the other hand raced ahead of the main market earlier this year and is struggling currently as a number of the stocks were pushed to values well ahead of the rest of the market and have been undergoing downward adjustment. The other factor is that many investors are not looking ahead as to what earnings could be. The recent trading of Stationery and Office Supplies is a case in point. Demand fell away ahead of the release of half year results, only to climb after the company released strong growth in profit, suggesting it could be just slightly ahead of IC Insider.com’s original forecast of 40 cents per share. This is not the only case of investors currently miss pricing stocks, but time usually takes care of it.
Buying came in for Barita Investments that returned to the top list last week pushing it out of the list once more, as some buying came in for the stock even with increased selling and Sagicor Group returned to the listing having been pushed out in the prior week.
The average PE ratio for the Junior Market Top stocks is at 7.3 and the PE for the main market TOP 10, ends the week at 6.9. The average PE for the overall main market trades at 13.2 and 13.2 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 45 percent to the average of the market for Junior Market Top stocks and it remains at 48 percent for the main market.

Filed Under: Buy Rated Tagged With: Barita Investments, Berger Paints, Caribbean Cement, Caribbean Producers, Emerging market, Emerging market stocks, General Accident, Jamaica Broilers, JMMB Group, Key Insurance, Lasco Financial, Medical Disposables, Radio Jamaica, Sagicor Group

2 new entrants to TOP 10

September 4, 2017 by IC Insider.com

“The biggest change to stocks this coming week may well be guided by the recent cut in interest rates, with Treasury bill rates falling and Bank of Jamaica cutting its overnight rate by 25 basis points.” That was part of last week’s opening statement for the TOP 10 stocks report by IC Insider.com.
During the week main market stocks surged to record levels on 3 days with Friday closing with the third highest daily gain in the market’s history. The main market sits just below the critical 290,000 point mark and seems headed to break through that level, based on the shortage of supply for Scotia Group shares on Friday with a closing bid of $52. The cut in BOJ’s bench mark rate would translate to the all Jamaica Composite Index climbing to 298,000 points.
At the close of last week, there were no changes to the TOP 10 Junior list but two new companies swapped places in the main market with Barita Investments returning, as investors cooled on the stock following a run up in the price following news out of the company that the directors were considering a bid to acquire majority shares. Based on the third quarter results showing unrealized investment gains more than doubling the level at the end of September last year to $1.1 billion at June, the company should see major gains going forward in this area, with falling interest rates and rising stock prices. Salada Foods fell in price to $8.50 and along with Barita pushed out Sagicor Group and Pan Jam Investment, both of which rose in price during the week.
The average PE ratio for the Junior Market Top stocks is at 7.3 and the PE for the main market TOP 10, ends the week at 6.9. The average PE for the overall main market trades at 13.4 and 13.3 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 45 percent to the average of the market for Junior Market Top stocks and it remains at 48 percent for the main market.

NCB’s eye-popping $1,200 in 5 years

August 28, 2017 by IC Insider.com

$100,000 invested in NCB would be worth $1.3 million in 5 years if price rose to $1,200 per share.

“Unless something changes, NCB Financial Group is the best buy on the Jamaica Stock Exchange and will be for the next 5 years. My exit price? $1,200!” That is a recent quote from a seasoned financial analyst.
That is astounding, for a stock that traded on the Jamaica Stock Exchange just below $90 this past week and around $95 on the Trinidad market and was selling at $19 at the start of 2015. To reach $1,200 in 5 years, would require growth in profits averaging close to 30 percent per annum and the PE ratio rising to match that growth rate. If that were to happen it would mean that $100,000 invested now in the stock, would be worth $1,348,314 in 5 years.
How possible is that? First with interest rates receding to lower levels than they have been recently and seems poised to fall some more, PE ratios for stocks will increase. Not only will they increase but demand will increase for good quality stocks that are enjoying robust growth.
NCB delivered net profit of $14.7 billion for the nine months to June, this year, an increase of 48 percent over the prior year’s nine months profit of $9.9 billion. In the June quarter, profit grew 33 percent over 2016. Loans, the major fuel for growth in profits, increased a very strong 18 percent, year over year, in an economy that is probably growing around 2 percent in real terms.

Sagicor should be watched for strong gains over the next 5 years.

If growth were to pick up, and that seems likely, with several major projects on the drawing board to commence sooner than later, with some already started, then lending could picked up even more, boosting profit in the process.
In this regard, investors should not ignore Sagicor Group that reported profit jumping 31 percent to $5.65 billion, for the six months to June this year over 2016, with a 5 percent rise in revenues to $30.36 billion and was negatively affected by realized losses on securities that were sold. In the June quarter revenues slipped to $15.1 billion from $15.29 billion in 2016, as net investment income dropped from $5.55 billion to $4.24 billion, but net profit increased from $2.4 billion to $3.06 billion. While growth in insurance premium is important to fuel continued gains in profit, it is the ability to manage the investment funds effectively that will generate the growth that will make the stock price move.
Sagicor not only has the life assurance arm, but a commercial bank as well, health insurance and manages pension and other funds and a property development and management division.
Interestingly, these two companies are heavy dividend payers, investors stand to gain from sharply higher dividend income if the profit continue to grow close to current levels.

Filed Under: Buy Rated, Company News, General Business News Tagged With: Emerging market stock, Jamaica Stock Exchange, NCB, NCB Financial Group, Sagicor Group, Trading Activity

Watch impact of interest rate cut

August 28, 2017 by IC Insider.com

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Lower interest rates make real assets more valuable than before, as such the biggest change to stocks this coming week may well be guided by the recent cut in interest rates, with Treasury bill rates falling and the Bank of Jamaica cutting its overnight rate by 25 basis points.
At the close of last week, Caribbean Cream closed at $6.20 and helped to return it to the TOP 10 list, replacing Lasco Financial with its price rising to $4 from $3.40.
There were no other change to the two listings at the close of the week, even as the main market of the Jamaica Stock Exchange closed to week at record new high. For the coming week the cut in interest rates by Bank of Jamaica as well as a fall in the most recent Treasury rates could well positively impact prices.
The average PE ratio for the Junior Market Top stocks is at 7.5 and the PE for the main market TOP 10, ends the week at 7.3. The average PE for the overall main market trades at 13.6 and 13.3 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 44 percent to the average of the market for Junior Market Top stocks and it remains at 46 percent for the main market.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: Bank Of Jamaica, Emerging market, Emerging market stocks, Jamaica Stock Exchange, Jamaican Stock, Jamaican stocks, Kremi, Lasco Financial, TOP 10 stocks, Top 10 stocks to buy, Treasury bill rates

JMMB pretax profit up 16%

August 22, 2017 by IC Insider.com

JMMB Group profits up 16% before tax to June.

JMMB Group posted a 16 percent increase in pretax profit, for the June 2017 quarter over 2016, but increased taxation left shareholders with a much smaller 4 percent increase to $617 million, as taxes climbed from $264 million to $381 million.
Net revenues jumped 19.4 percent to $4.1 billion from $3.44 billion in 2016, operating expenses rose even faster at 20.5 percent to $3.1 billion. Net interest income improved noticeably, moving from $1.55 to $1.9 billion as interest income grew to $1.96 billion, from $3.62 billion and cost fell modestly to $2.04 billion. Gains from securities trading rose to $1.54 billion from $1.1 billion but with revaluation of the Jamaican dollar, the group earned $238 million in the quarter, down from $443 million as the group also benefited from one off gains in 2016.
The Jamaican operations contributed 23 percent to growth in operating revenues, putting it at 75 percent of overall group revenues while Trinidad with its economic challenges, remained flat with just a one percent increase and Dominican Republic generated an increase of 18 percent.
Growth in managing pension funds, unit trust and money market funds, with assets under management moving from $89.5 billion in June 2016 to $114.75 billion helped in moving fee income up from $298 million to $364 million over the same period.
The group gained commercial banking license approval in Jamaica, in the September quarter, started to convert some branches to accommodate the new thrust and were also preparing for the roll out of their pension fund management in the Dominican Republic.
Total assets grew from $252 billion to $268 billion between March this year and June, shareholders’ equity moved from $25.9 billion to $26.8 billion including $2 billion in investment revaluation reserves at June this year, lending was almost static at $48 billion versus $47 at March. Investment in resale agreements stood at $173.8 billion versus March’s $172.5 billion. Customers’ deposits rose to $50.87 billion from $49 billion in March, while securities sold under repurchase agreements stood at $169.5 billion, up from $156.6 billion as of March, representing a fairly significant increase of $14 billion in just one quarter.
On Monday, JMMB Group closed at $21.50 on the Jamaica Stock Exchange and TT$1.20 (J$22.80) in Trinidad on Monday. IC Insider.com projects earnings of $3 for 2017 up from $2.03 as of March this year, putting the PE at 7 times the March 2018 earnings. The stock continues to be IC Insider.com BUY RATED.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Emerging market stock, Jamaica Stock Exchange, Jamaican Stock, JMMB, JMMB Group, Trading Activity

Two financial stocks return to TOP 10

August 20, 2017 by IC Insider.com

Unlike last week when there were several changes to the TOP 10 lists, this past week had just two changes, with Lasco Financial returning to the junior market and Sagicor Group to the Main market lists.
CAC 2000 dropped out of the Junior Marketlisting, allowing for the return of Lasco Financial that dropped sharply in price, to close the week at $3.40. Mayberry Investments was edged out by Sagicor Group, dropping from $34.35 to $31.75 at the close of the past week.
Former TOP main market value stock, Barita Investments moved up from $9.40 during the previous week to close at $11.60 for a gain of more than 273 percent since September last year. The most recent Initial Public Offering, Stationery and Office Supplies that exited the TOP 10 after listing in the prior week, is fluctuating between $4 and just over $5, and should undergo some amount of wide price movements until demand and supply find some balance. JMMB Group climbed to $23 on Friday before closing back at $21.45, supply has dried up for this stock and it seems to be readying to make an early exit in the next few weeks.
The average PE ratio for the Junior Market Top stocks is at 7.5 and the PE for the main market TOP 10, ends the week at 7.2. The average PE for the overall main market trades at 13.3 and 13.2 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 42 percent to the average of the market for Junior Market Top stocks and it remains at 46 percent for the main market.

Filed Under: Buy Rated, JSE Combined, Stock Market Tagged With: Barita Investments, Berger Paints, CAC2000, Caribbean Cement, Caribbean Producers, Emerging market, Emerging market stocks, General Accident, Jamaica Broilers, JMMB Group, Key Insurance, Lasco Financial, Medical Disposables, Radio Jamaica, Sagicor Group, SOS, Stationery & Office Supplies

Major changes to TOP 10 stocks

August 14, 2017 by IC Insider.com

Barita jumps TOP 10 with more than 200% gain since September 2016

Investors pushed the price of Barita Investments to $9.40 during the week and drove newly listed Stationery and Office Supplies to $5.10 after it was listed on Thursday moving both out of the top flight of stocks. In addition, four others changed places with new listings.
Barita entered the list when we started the TOP 5 back in September last year, at $3.11 and has gained more than 200 percent since then while SOS is up 154 percent from its IPO price. Both stocks have more room for growth.
tTech reported lower profit in the second quarter to June with lower revenues resulting in a lower earnings forecast for 2017 and dropped out of the top list. CAC 2000 having slipped out of the listing the prior week returned this past week and was joined by Dolphin Cove to replace the two that exited the listing.
Main market stock, Berger Paints fell during the week from $19 to trade at $16 and moved back into the listing. Moving in are Grace Kennedy, Mayberry Investments and PanJam Investment. Stocks graduating from the top flight are Seprod as the price rose during the week to $33.33 from $30, Sagicor Group moving from $31.50 to $34.35 and Salada Foods that closed at $9.50, up from $9.
The average PE ratio for the Junior Market Top stocks is at 7.6 and the PE for the main market TOP 10, ends the week at 7.2. The average PE for the overall main market trades at 13.2 and 12.9 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 41 percent to the average of the market for Junior Market Top stocks and 46 percent for the main market.

Filed Under: Buy Rated Tagged With: Barita Investments, Berger Paints, Cable & Wireless, CAC2000, Caribbean Cement, Caribbean Producers, Carreras, Emerging market, Emerging market stocks, General Accident, Jamaica Broilers, Jetcon Corporation, JMMB Group, Key Insurance, Lasco Financial, Medical Disposables, NCB Financial, Radio Jamaica, Sagicor Group, SOS, Stationery & Office Supplies, tTech

Will Barita jump TOP 10?

August 8, 2017 by IC Insider.com

Barita closed at $8 on Friday.

News emerged during the past week that directors at Barita Investments was considering a bid to purchase the majority of its shares.
Investors responded immediately by removing just about all offers that were posted on the trading platform of the Jamaica Stock Exchange, the stock climbed to $8 and only require a small increase to leave the top list.
Main market Berger Paints rose during the week from $18 to trade at $19 and was edged out of the top list by Pulse Investments that fell sharply in price to close with a bid of $1.75 after the price fell during the week.

Recent TOP 10 billing, NCB Financial Group that recently fell out of the top list closed the week at $94.99 in response to continued demand flowing from strong increase in nine months profit against a back drop of minimal selling of the stock.
Stationery and Office Supplies (SOS) will start trading on Wednesday, August 9, when the price is expected to surge, based on the heavy over subscription at the initial public offering, with more than 1,200 applications for shares. This stock could be out of the top listing very soon.
Other junior market stocks activity, CAC 2000 fell out of the top listing and Lasco Manufacturing returned to the top listing.
The average PE ratio for the Junior Market Top stocks is at 6.7 and the PE for the main market TOP 10, ends the week at 7.4.

The average PE for the overall main market trades at 13.3 and 12 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 44 percent to the average of the market, leaving stocks with room for growth in the months ahead.
Stocks to watch|The stocks that investors should keep an eye on this week include, Barita Investments, JMMB Group, Stationery & Office Supplies, NCB Financial, Jetcon Corporation.

Filed Under: Buy Rated Tagged With: Barita Investments, Berger Paints, CAC2000, Caribbean Producers, Emerging market, General Accident, Jamaica Broilers, Jamaica Stock Exchange, Jamaican stocks, Jetcon Corporation, JMMB Group, junior market, Key Insurance, Lasco Financial, Medical Disposables, NCB Financial, Radio Jamaica, Sagicor Group, SOS, Stationery & Office Supplies, tTech

NCB & Express Catering drop out

July 31, 2017 by IC Insider.com

NCB Financial Group jumped to $80 on Friday & exited the top 10.

Shares of Express Catering were in strong demand during the week, with price closing at $5.20 for gains of 247 percent from the initial public issue price of $1.50. At the close of the week the stock was out of the TOP 10 and so was NCB Financial Group with the price climbing to a record $80, at the close on Friday.
Stationery and Office Supplies (SOS) will not start trading until August 9, when it is expected to surge in price based on the heavy over subscription of 3.5 times oversubscribed with more than 1,200 applications.
Trading in the past week returned to a bullish mood, with the Jamaica Stock Exchange main market index hitting new highs on Thursday and Friday. The trend is expected to continue this coming week as investors react to some new results.
Caribbean Flavours and CAC 2000 that fell out of the top listing at the end of the prior week return this week with the exit of Express Catering , Lasco Financial that rose to $3.80 and Caribbean Cream that returned to $7.
The only movement in and out of the TOP 10 in the main market were Salada Foods coming in as NCB dropped out with gains in the price in the past week.
The average PE ratio for the Junior Market Top stocks is down at 7 with SOS in at a PE of 5 times 2017 earnings. The PE for the main market TOP 10, holds at 7.3. The average PE for the overall main market, remains at 13 and 12 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 Junior Market stocks now trade at an average discount of 42 percent to the Junior Market average, while those in the main market are trading at a 44 percent discount, to the average of the market, leaving stocks with room for growth in the months ahead.
NCB Financial and Express Catering the two stocks IC Insider.com listed as our market watch make gains during the past week. NCB has clearly broken out from a triangle of consolidation and seems to be heading higher. Express Catering could possibly rise higher but appears to be fully valued at a PE of 20 currently.

Filed Under: Buy Rated Tagged With: Barita Investments, Berger Paints, CAC2000, Caribbean Cement, Caribbean Producers, Carreras, Express Catering, General Accident, Grace Kennedy, Jamaica Broilers, Jetcon Corporation, JMMB Group, Key Insurance, Lasco Financial, Medical Disposables, NCB Financial, Radio Jamaica, Sagicor Group, SOS, Stationery and Office Supplies, tTech

Lasco Financial setting for profit explosion

July 24, 2017 by IC Insider.com

Lasco Financial enjoyed decent gains in profit for Q1

Revenues at Lasco Financial Services jumped 22.4 percent for first quarter over the similar 2016 period to reach $319 million for an increase of $58.5 million, but importantly trading income climbed 31 percent to $303 million.
According to Managing Director, Jacinth Hall-Tracey “this result represents year over year growth of and is being driven by our strategy of expansion which began in the previous financial year”.
Profit before taxation, moved from $69.7 million in 2016 to $81 million, a 16.5 percent increase with profit after tax increasing 15.8 percent to $66.9 million, compared with the corresponding financial period and resulting in earnings per share of 5.4 cents.
Total Expenses grew 24.6 percent over the 2016 quarter to $238 million with Selling and Promotion cost rising by 31 percent. The increase was “largely driven by increases in Selling and Promotion as we continue to push the LASCO Money consumer facing brand name. This brand has resonated well with our customers and has enabled us to fully explain all our services. Previously, most customers were only aware of our Cambio and MoneyGram services. This brand awareness has been paying off in the increased transactions in all our locations as our customers embrace our more friendly community brand,” Hall-Tracey advised shareholders in a release accompanying the financials.
In the previous financial year, Lasco began the implementation of a strategy to expand the Loans Division by adding a Business Loans Unit. This expansion gave rise to several new loan offices as well as an increase in administrative and sales staff. Increased focus on lending, resulted in 70 percent growth in the loan portfolio that should move the portfolio in the region of $340 million. At the end of March loans amounted to $282 million up 43 percent over the $197 million due at the end of March 2016, no figures for loan is disclosed in the quarterly.
The balance sheet shows assets of $1.54 billion, cash funds of $574 million and stockholder’s equity of $1.22 billion.
IC insider.com is forecasting earnings per share of 30 cents for 2018 and should go on to about double in 2019. Lasco Financial last traded on the Junior Market of the Jamaica Stock Exchange at $3.55.