26 JSE stocks rise & 11 fall – Wednesday

February 8, 2017 by

Jamaica Stock Exchange jumped to a 52 weeks’ high of $12 on Wednesday.

Stocks climbed more moderately on Wednesday to new record high on the Jamaica Stock Exchange than it did on Tuesday, in continuation of a comfortable ride to 265,000 points mark, the next area of potential major resistance for Jamaica’s main market.
The market closed Wednesday, as 49 securities changed hands in the overall market, ending with 26 stocks rising and 11 falling, including 16 stocks gaining and 3 declining, in the junior market while 14 securities ended at new 52 weeks’ closing highs.
The All Jamaica Composite Index gained 714.88 points to close at record 249,482.23, the JSE Market Index rose 639.22 points to finish at record close of 227,455.97 and the JSE combined index increased by 601.83 points, to close at new closing high of 242,075.11. The movement of the main market, for the year to date, resulted to gains of 18.5 percent, for the all Jamaica Composite Index, with the JSE Market Index up 18.7 percent. The moves in the indices are subject to change as the stock exchange daily postings indicate that there are errors in the reports since the new trading system was activated on Monday.
At the close, 20,631,314 units valued at $265,917,085 changed hands, compared to 10,455,555 units valued at $80,043,145 changing hands on Tuesday. Of the stocks traded, the junior market accounted for 11,553,647 units, valued at $90,755,608.
The average trade for the day in the main market ended at 355,210 shares compared to an average of 265,989 units on Tuesday. For the month to date, an average of 176,182 shares compared to an average of 188,966 units up to the prior trading day. January ended with an average of 592,602 units.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 12 stocks with bids higher than their last selling prices and 3 with lower offers.
In market activity, Barita Investments gained 20 cents to close at a 52 weeks’ high of $7.70 with trades of 5,000 units, Berger Paints slid $1.25 trading 12,851 shares to close at $10.25, Cable and Wireless traded 387,604 units, losing 2 cents to close at $1.17, Caribbean Cement closed at $32 with an exchange of 49,185 shares. Carreras traded 8,310 units, gaining 45 cents and closed at $66.75, investors pushed 1834 Investments 20 cents higher to close at $1.70 while trading 299,625 shares, Grace Kennedy closed at $40.65 with trades of 71,840 units. Jamaica Broilers advanced 50 cents trading 57,050 shares, to close at 52 weeks’ high of $16, Jamaica Producers gained $1, closing at a 52 weeks’ high of $19.50 with 83,700 units changing hands, Jamaica Stock Exchange jumped to a 52 weeks’ high of $12 for a gain of $4 with 700 shares traded. JMMB Group climbed $2.20 to close at a 52 weeks’ high of $20 with 2,713,535 units traded, Kingston Wharves fell to $30, losing $4 with trades of 6,829 units, Mayberry Investments exchanged 167,236 shares at $5.90, National Commercial Bank advanced $2.80, closing at $65, after swapping 11,046 shares.

Jamaica Broilers closed at a 52 weeks’ high on Wednesday

138 Student Living traded 5,400 units at $4.50, Pulse Investments lost 9 cents to close at $7 with 76,800 units changing hands. Radio Jamaica exchanged 469,076 units at $1.50, Sagicor Group gained $2 and closed at $33 with trades of 30,375 units, Sagicor Real Estate fund lost 3 cents to close at $10.20 with an exchange of 3,600,00 units and Scotia Group ended trading with a loss of $2 to close at $44, having traded 241,678 shares. Scotia Investments gained 50 cents, after trading 3,000 units and closed at a 52 weeks’ high of $36. Supreme Ventures lost 20 cents to close at $5.50 with 100,349 shares traded, Proven Investments traded 552,539 ordinary shares to close at 31 US cents, after trading at a 52 weeks’ intraday high of 35 US cents, JMMB Group 7.5% preference share, closed at $1.10 with 90,600 units being exchanged and JPS 9.5 preference share traded 33,242 units at $1,276.50 after falling by $6.50.

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Juniors break 3,000 points barrier – Tuesday

February 7, 2017 by

Knutsford Express traded $26 after rising $1.49.

The junior market shoot over the 3,000 mark in the index by gain nearly 50 points to close at yet another record high, in trading on Tuesday, to close at 3,029.93 points after gaining 48.91 as 22 securities changed hands, compared to 15 on Monday. Prices of 11 stocks rose and 7 declined.
The market closed ending with 3,635,936 units, valued at $9,626,139 passing through the market, compared to 871,696 units, valued at $5,334,946, on Monday. At the close, 7 stocks had bids higher than their last sale prices and 3 with a lower offer, than the last sale while 7 stocks closed at new 52 weeks’ high.
An average of 165,270 units with an average value of $437,552 traded, compared to of 58,113 units with an average value of $355,663 on the previous trading day. The average volume and value for the month to date ended at 100,163 units and $477,950 compared to 83,886 units and $488,049 to the previous day. The average volume and value for January, ended at 165,547 units and $884,749.
At the close of trading, AMG Packaging rose $1 to close at $25 with 8,774 units changing hands after trading at a high for the day of $27.60, Blue Power closed with 894,181 shares changing hands at $50, CAC 2000 traded 869,262 shares and fell 10 cents to $6. Cargo Handlers climbed by $1 while trading 11,577 units, to close at 52 weeks’ high of $24, Caribbean Cream rose 35 cents in trading 3,150 units to end at $7.60, Caribbean Producers fell 10 cents in trading 18,050 units at $4.35, Consolidated Bakeries traded 65,346 shares with a rise of 20 cents, for a 52 weeks’ closing high $3.80. General Accident closed trading with 16,050 shares at while gaining 36 cents to end at a new high of $3.80 Honey Bun closed with 13,480 shares changing hands to end at $7.66, Jamaican Teas traded 13,751 shares to close at $9.50 after rising by 85 cents. Jetcon Corporation closed trading with 212,260 shares, to end at $10.50. Key Insurance traded 3,872 units to close at 52 weeks’ closing high of $3.70, after rising by 20 cents, KLE Group ended with 10,000 units changing hands at $3,

The ttech team, from Left: Mr. Hugh Allen, Resolution Manager and Executive Director; Mrs. Natalya Petrekin, Service Desk

Knutsford Express traded just 4,000 shares and gained $1.49 in closing at $26, Lasco Distributors ended trading with 97,322 units changing hands but fell 56 cents to close at $7.40. Lasco Financial rose 46 cents with 430,196 shares changing hands to end at $3.96, Lasco Manufacturing with 29,740 units changing hands, closed with a loss of 3 cents at $5.21, Medical Disposables added 27 cents and closed at 52 weeks’ high of $6.37 with 14,875 shares changing hands. Paramount Trading rose 5 cents and closed at $3.10 with 90,000 shares changing hands, tTech closed trading with 6,850 units changing hands to end at 52 weeks’ high of $8.05 after rising 60 cents and Derrimon Trading preference share lost 5 cents ending with 815,000 units changing hands to close at $2.

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JSE blast past resistance on Tuesday

February 7, 2017 by

Stocks jump to new records in trading on Tuesday with the All Jamaica Composite Index blasting pass resistance around the 243,000 level in decisive fashion. The market should have a comfortable rise to 265,000 points mark, the next area of resistance.
The market closed on Tuesday, as 51 securities changed hands in the overall market, ending with 27 stocks rising and 13 falling, including 11 stocks gaining and 7 declining, in the junior market while 9 securities ended at new 52 weeks’ closing highs.
The All Jamaica Composite Index jumped 5,829.59 points to close at record 248,767.35, the JSE Market Index climbed 5,212.68 points to finish at record close of 226,816.75 and the JSE combined index shot up by 5,336.51 points, to close at new closing high of 241,473.28. The movement of the main market, for the year to date, resulted to gains of 18.4 percent, for the all Jamaica Composite Index, with the JSE Market Index up 18 percent.

PanJam Investment jumped $3 in trading on Tuesday..

At the close, 10,455,555 units valued at $80,043,145 changed hands, compared to 4,099,498 units valued at $80,043,145 changing hands on Monday. Of the stocks traded, the junior market accounted for 1,530,168 units, valued at $11,104,756.
The average trade for the day in the main market ended at 176,182 shares compared to an average of 188,966 units on Friday. For the month to date, an average of 176,769 shares traded, versus an average of units 250,588 units up to the prior trading day. January ended with an average of 592,602 units.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 10 stocks with bids higher than their last selling prices and 2 with lower offers.
In market activity, Berger Paints gained 10 cents to close at $11.50 trading 131,209 shares, Cable and Wireless traded 3,845,588 units, adding 4 cents to close at $1.19, Caribbean Cement lost $1 to close at $32 with an exchange of 21,613 shares. Carreras traded 576,857 units, losing 45 cents and closed at $66.30, while 1834 Investments traded 125,543 shares, gaining 5 cents to close at $1.50, Grace Kennedy added 1 cent, closing at $40.65 with trades of 129,462 units. Jamaica Broilers gained 2 cents trading 597,464 shares to close at $15.50, Jamaica Producers traded 107,150 units, losing 50 cents to close at $18.50, Jamaica Stock Exchange closed at $8 for a gain of $1.79 with 1,600 shares changing hands, JMMB Group dropped 19 cents to close at $17.80 with 3,888 units traded. Kingston Properties exchanged 1,500 shares at $10, Kingston Wharves closed at $34, gaining $1 with trades of 4,050 units, Mayberry Investments exchanged 20,400 shares with gains of 5 cents to close at $5.90, National Commercial Bank declined $2.70 in closing at $62.20, after swapping 22,435 shares. 138 Student Living traded 10,765 units at $4.50, Pan Jamaican gained $3 to close at $34 with 12,850 shares traded, Portland JSX closed at $10 after trading 500 units, Pulse Investments closed at $7.09 with 10,000 units changing hands. Radio Jamaica gained 20 cents, closing at $1.50 with 154,800 shares changing hands, Sagicor Group traded 20,442 units at $31, Sagicor Real Estate fund gained 3 cents and closed at $10.23 with an exchange of 907 units, Salada rose $1.25 in trading 20,000 shares at $9.25. Scotia Group ended trading with gains of $1.01 to close at $46, having traded 88,515 shares, Scotia Investments gained 43 cents, after trading 7,135 units and closed at a 52 weeks’ high of $35.50, Sterling added 5 cents to close at $15.65 with trades of 500 units. Supreme Ventures closed at $5.70, for a gain of 15 cents with 66,814 shares traded, JMMB 7.25 closed at $1.50, with 430 units exchanged and JMMB Group 7.5% preference share traded 2,650 units at $1.10.

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10 TOP JSE main market stocks for 2017

February 7, 2017 by

It is not always that main market stocks are more attractive buys than those in the junior market, but that is what is happening currently. Strong gains, in 2016 to end of January this year, in junior market companies, resulted in Jamaica Stock Exchange main market having stocks with better values than in the junior market.
The end result is that unlike other years when the junior market stocks tended to outperform those of in the main market by a ratio of 2 to 1, this year could see both markets gaining roughly the same.
The big question, of course, is what will be the accepted PE of the market? Currently, while the average for 2016 is 17 for the main market and the ratio based on 2017 estimated earnings is 11, with 11 stocks selling above this level, Jamaica Producers and Kingston Wharves have PE ratios over 30 times 2017 earnings.
The main market faces turbulence currently as the market is sitting just below a major resistance level around 243,000 points on the All Jamaica Index. If it can overcome this level, then it will encounter resistance around the 265,000 mark.
The TOP 10 list includes 4 financial sector stocks, two communication stocks and two from the manufacturing sector.
Cable & Wireless has made considerable progress in recent years, moving from major annual losses to a stage where they reported a small profit in fiscal year 2016 to March and should break even for the nine months to December, the new financial year end. Revenues have been climbing at double digit pace and should increase even more with the upturn in economic activity and with more persons being employed. The company recently raised rates on a number of its services that should help move revenues upwards. They have also made considerable recovery in their cellular customer base and have expanded it, generating increased revenues as a result. IC Insider.com forecast calls for a profit in 2017 with growth in 2018 as well.
On this basis, the stock is set to make solid gains. The only factor preventing that is a strong possibility that the parent company may move with an offer for the minority shares that would place a cap on the upside.
Radio Jamaica is under selling pressure as investors ignore the fundamentals and an improving economy that could result in increased profits and growth in the stock. The merger with the Gleaner was predicated a great deal on cost cutting. The group is doing just that and should benefit from a stronger marketing team and from increased advertising as businesses augment their advertising spend.
Caribbean Cement cut cost sharply in 2016 and saw growth in local sales for the first six months. However, closure of the plant for upgrading resulted in lost sales in the third quarter but sales recovered in the fourth quarter. Going into 2017, the cost savings should reduce operating cost and boost gross profit margins. Increased economic activity and lower cost of capital is leading to an uptick in the construction sector and consequently, an increase in demand for cement. The stock remains highly undervalued and has room for major gains ahead.

Barita is one of the top IC Insider’s stock for growth over the next 12 months in the main market.

Barita Investments has more than doubled in price since the start of September 2016, partly due to the 2016 results, but more on prospects of improved results for the 2017 fiscal year. The quality of the earnings improved markedly with fees and commission income tripling while net interest grew sharply from $118 million to $158 million for the September quarter, heralding healthy growth in these areas in 2017. Barita is set to benefit from appreciation in the value of the assets of unit trusts, especially in the equity-linked unit that will boost fee income. The company will also benefit from increased value to its equity portfolio that should grow sharply, allowing the company to realise investment gains that should add to profits. The equity linked unit trust fund should also enjoy healthy inflows from new investors as local stocks record gains and encourage new investors to use the unit trust as a viable vehicle for their investment funds.
Pulse Investments reported earnings of $1.35 last year and 32 cents for the September quarter that places the stock in the undervalued category even as the price climbed to $7.10 recently. It could go higher, but a bit of the earnings flow from revaluation surplus on property and that may cause some investors to discount the earnings. In a very bullish market, that may not matter much, for many investors. One positive, is that the cash flow statement shows cash inflows growing at a much higher level than in 2015.

Keith Duncan, Group Chief Executive Officer of JMMB.

JMMB Group is undervalued, period. The group is expanding and recording increasing profit and should end with earnings around $3 for the 2018 fiscal year with the eps for 2017 looking like $2.50.
Berger Paints had a very good run to December last year, with strong gains in profit as revenues grew attractively. Growth should continue into 2018 fiscal year, helped by increased building activity and an improving economy. Dividend payment should be high, thus boosting yields.
Scotia Investments should benefit in much the same way as Barita Investments. The investment bank reported earnings of $1.27 for the October quarter and IC Insider.com forecast is $4.96 for 2017. The increase should benefit from widening net interest income, as interest rates soften and more funds generated are added to the pool of interest earning pool as well as from growth in unit trust funds that will engender higher fee income, in addition to robust stock market activities that will also enhance fee income for the brokerage arm. On the negative side, the revaluation now taking place in the local currency could negatively affect earnings from trading in this area.
Carreras is one of the few stocks that have languished at the old price while many others have recorded active gains. The company just announced an interim payment of $2.20 bringing the payment since August last year to $5.40. The full year’s amount is likely to be in the order of $7.60 for a yield on the current price of 11.5 percent. This yield will not last as investors are going to eventually push it downward by bidding the price up as an income substitute. IC Insider’s forecast is for earnings of $9 per share for the 2018 fiscal year. The stock may well languish at current levels for a while. The longer it stays the better for those investors who may want to add it to their portfolio.
National Commercial Bank reported impressive profit results for their December quarter with a jump of 49 percent to $3.56 billion with earnings per share ending at $1.45, up from 96 cents in 2016. IC Insider.com forecast earnings of $8 per share for the current year. NCB declared an increase in its interim dividend payment from 50 cents in 2016 to 60 cents per ordinary stock unit payable in February. The payment represents 42.76 percent of the first quarter profits and is an indication of future payment.

Persons associated with this article may have an interest in the companies commented on.

Filed Under: Buy Rated, Feature Stories, JSE Main Market, Stock Market Tagged With: , , , , , , , , , , , , , , , ,

New trading platform slows trading – Monday

February 6, 2017 by

Scotia climbs $4.99
on Monday to close at $44.99.

The stock markets in Jamaica, Trinidad and Barbados switch over trading to a new electronic trading platform on Monday and seem to have negatively affected trading levels in Jamaica as brokers get comfortable with it, even as the South African developers have staff in Kingston trying to resolve issues on the spot.
The end result is that trading reports were late and included errors some of which were sorted out and some have not. The market closed on Monday, as 42 securities changed hands in the overall market, ending with 19 stocks rising and 8 falling, including 6 stocks gaining and 2 declining, in the junior market while 5 securities ended at new 52 weeks’ closing highs.
All major market indices rose moderately compared with the sharp increase for the past 7 trading days. The all All Jamaica Composite Index jumping 2,645.20 points to close at record 242,937.76, the JSE Market Index climbed 2,365.27 points to finish at record close of 221,604.07 and the JSE combined index grew 2,425.63 points, to close at new closing high of 236,136.77. The movement of the main market, for the year to date, resulted to gains of 15.6 percent, for the all Jamaica Composite Index.
At the close, 4,099,498 units valued at $80,043,145 changed hands, compared to 7,100,472 units valued at $124,253,097 changing hands on Friday. Of the stocks traded, the junior market accounted for 1,530,168 units, valued at $11,104,756.
The average trade for the day in the main market ended at 104,123 shares compared to an average of 198,939 units on Friday. For the month to date, an average of 177,355 shares traded, versus an average of units 250,588 units up to the prior trading day. January ended with an average of 592,602 units.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 11 stocks with bids higher than their last selling prices and 4 with lower offers.
In market activity, Barita Investments traded 20,000 units at $7.50, Berger Paints advanced 33 cents to close at $11.40 with trades of 9,610 shares, Cable and Wireless traded 967,561 units at $1.15, Caribbean Cement lost 1 cent to close at $33 with an exchange of 17,621 shares. Carreras gained 75 cents and closed at $66.75 with 20,627 units changing hands, Grace Kennedy added 14 cents, closing at $40.64 with trades of 28,845 units. Jamaica Broilers lost 2 cents trading 4,414 shares to close at $15.48, Jamaica Producers traded 99,258 units, rising $1 to end at a 52 weeks’ closing high of $19, Jamaica Stock Exchange closed at $6.21, and a gain of 61 cents with 20,000 shares changing hands, JMMB Group gained 49 cents, to close at 52 weeks’ closing high of $17.99 with 87,666 units traded. Kingston Properties exchanged 9,400 shares at $10 for a gain of 50 cents, Kingston Wharves closed at $33 with trades of 9,017 units, National Commercial Bank closed at $64.90, after swapping 23,719 shares. [Read more…]

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New trading system stymied trading – Monday

February 6, 2017 by

Honey Bun traded at a new high on the Junior market on Monday.

The junior market made more gains in trading on Monday, in a market affected by the stock exchange switching over to a new trading system that had brokers being cautious with a system still being worked on. At the close the market hit a new high of 2,981.02.
Trading resulted in 15 securities traded compared to 24 on Friday, with the prices of 6 rising, down from 19 on Friday and 2 declining
The market closed ending with 871,696 units, valued at $5,334,946 passing through the market, compared to 1,530,168 units, valued at $11,104,756, on Friday. At the close, 6 stocks had bids higher than their last sale prices and 2 with a lower offer, than the last sale.
An average of 58,113 units with an average value of $355,663 traded, compared to of 63,757 units with an average value of $462,698 on the previous trading day. The average volume and value for the month to date ended at 83,886 units and $488,049 compared to 92,477 units and $532,178 to the previous day. The average volume and value for January, ended at 165,547 units and $884,749.
At the close of trading, Access Financial Services ended $30 in trading traded 270 units, Blue Power closed with 1,500 shares changing hands at $50, Cargo Handlers climbed by $1 while trading 10,000 units to close to end at 52 weeks’ high of $23. Consolidated Bakeries traded 102,946 shares to close at $3.60 but only after it traded at a 52 weeks’ intraday high of $4, General Accident closed trading with 2,800 shares at $3.50. Honey Bun rose 41 cents and closed with 16,000 shares changing hands to end at 52 weeks’ high of $7.66, Jamaican Teas traded 1,320 shares to close at $8.65 after rising by 5 cents, Jetcon Corporation closed trading with 89,544 shares, to end at $10.50. Key Insurance traded 37,193 units to close at $3, after falling by 50 cents, KLE Group ended with 189,950 units changing hands at $3, Lasco Distributors ended trading with 257,389 units changing hands and gained 66 cents to close at $7.96. Lasco Financial shed 36 cents with 1,229 shares changing hands to end at $3.50, Lasco Manufacturing with 47,216 units changing hands, closed with a rise of 4 cents at $5.24, Medical Disposables added 10 cents and closed at $6.10 with 66,063 shares changing hands. Paramount Trading closed at $3.05 with 50,000 shares changing hands, tTech closed trading with 64,339 units changing hands to end at 52 weeks’ high of $7.45 after rising 55 cents.

Filed Under: Feature Stories, JSE Junior Market, Stock Market Tagged With: , , , , , , , , , , , , , , ,

10 TOP Junior market stocks for 2017

February 5, 2017 by

tTech, one of ICI Insider.com top selections for 2017.

With just over one month of 2017 slipping by, the junior market is up more than 14 percent in a relative short time. Market movement delivered some stunning gains with five stocks rising between 54 percent and 77 percent up to Friday.
The PE ratio, the best measure of valuing stocks, for this market is at 10.5 times 2017 estimated earnings and 16 times 2016, with 9 stocks selling above this level, including Cargo Handlers selling at a rich 51 times 2016 and 40 times 2017 earnings. The top 10 stocks have PE ratios for 2017 between 4.3 and 7.4 times estimated earnings compared to the average of 10.5. Nine socks are priced higher than the average.
Technical indicators show the junior markets braking through major resistance levels at 2,600 points and seem poised to reach new highs around 3,400 points before the next level of resistance is met, that is 15 percent away from the close on Friday.
What makes junior market stocks attractive, is their size, relative to the majority of main market stocks and their ability to grow at a much faster pace, from existing business or expansion into new ventures, delivering superior profits and greater growth in the stock prices.
ISP Finance has very limited supply of stocks available for sale, this should ensure that the price should surge to match seller and buyers. The company could see a sharp rise in profits if the $145 million raised in a bond issue last year is invested in new loans. Based on its interim results to September last year, interest income works out at 100 percent per annum. At these levels and with the infusion of cash from the bond and the cash to flow from profits, the stock could enjoy and explosive blast, if they are able to put the funds into profitable loans.
tTech revenues for this technology company grew strongly by 34.3 percent for the nine months to September and stronger 43 percent for the September quarter, with very good demand for its services. A negative is that cost has been growing just as fast, as they add personnel to service customers need. At September 2016, the company had 33 full-time employees compared to 24 at the same period in 2015. While staffing grew 57 percent between September 2015 and September 2016, the growth in the September quarter was only 7 percent over the June quarter. The sharp growth in cost slowed growth in profits, from a relatively small base. The slowdown in staffing in the September quarter, should allow more revenues to flow into profits in 2017 onwards.

Lasco Manufacturing

Lasco Manufacturing has enjoyed very strong demand for its new drinks, resulting in major expansion of the factory. Total revenue to September 2016 was $4 billion, an increase of 28 percent over the same period last year, resulting from increased production volumes brought to market, as part of the expansion of the manufacturing plant.
The company indicated that production at the liquid plant continues to grow steadily. The plan is for increase capacity to meet strong market demand for the iCool line of beverages, by ramping up production with the installation of additional equipment by the end of the financial year. The new Dry Plant at White Marl is fully operational together with the existing Red Hills Road Dry Plant. New products will be introduced by the end of 2016 to enhance the product line which is projected to continue to realize significant sales and profits, the company stated.
Main Event is the latest public issue to hit the market. The issue was heavily oversubscribed. The price is set to enjoy a big bounce when it list this week Wednesday with the PE ratio of just 7, based on 2016 earnings and less based on estimated 2017 profit. The funds raised will be used to expand its operation, including setting up a branch in Montego Bay.
Medical Disposables focussed on increasing the product line it represents in 2016, reflecting in a strong 38 percent sales growth for the first six months of the financial year, but at lower margins. Increased cost associated with the expanded sales has so far kept profit from growing a great deal in 2016. That should change in 2017, as sales growth, out pace cost increases. With the focus on rapidly expanding products and sales, this is clearly a stock for investors to keep a keen eye on.

Caribbean Flavours traded at $9.50 on the junior market last week

Caribbean Flavours is a company with much promise for growth, with potential for increased exports and new product lines for sale, locally and with the Caribbean region. The stock is selling below many other in the junior market currently, and the price has room to run, having fallen to $9.50 with the confusion investors faced, with the acquisition majority shares by Derrimon Trading.
Access Financial is undervalued based on a number of factors but the stock is extremely scarce. Earnings for the fiscal year ending March, should be in the order of $2.80 and based on this and with 10 junior market companies selling at more than 17 times 2016 earnings, the stock should be trading over $45. As the company makes profit, most of the funds are reinvested in its operation to expand loans, this in turn fuels strong increased profit. Access seems set to generate earnings of $4.35 per share for the 2018 fiscal year, which will push the price much higher than its current level.
Key Insurance nine months profit ended at $66 million compared to $68 million for the 2015 period and seems set to reach $120 million for the full year, for earnings per share of 35 cents. The company should benefit from the lowering of restriction on investments that insurance companies could undertake which should free up funds for more profitable investments as the companies see fit. Investing in general insurance companies can be riskier than for many other companies, in the short term.

Jetcon Corporation revenues enjoyed strong growth for 1st nine months of 2016

Jetcon Corporationlisted at $2.25 in 2016, is shot to $10.50 for a rise of 366 percent. An announcement of a stock split and dividend gave the stock added push as investors bought more shares at higher prices. The company more than doubled profits to September last year over results for 2015 for the same period. Jetcon benefitted from the capital injection of the public share issue. It helped boosts inventory, and in turn grew sales by 61 percent to $610 million for the nine months to September and 86 percent for the September quarter. The publicity from the listing seems to have enhance the company’s image in the minds of potential customers which has also helped sales. The trend of increased sales for the past two years suggest that sales growth may continue to be strong in 2017 and should be helped by the continued attractive financing terms available in the market, strengthening of the economy and reduction in PAYE that some workers will enjoy, when the tax threshold increases in April thus increasing take home pay.
Dolphin Cove was the darling of the investing public when the company was listed but seems to have lost its lustre as profit growth slowed sharply. With continued growth in the tourism industry and more cruise ships coming to the country, the company should get a boost in revenues and earnings for this undervalued stock.

Persons associated with this article may have an interest in the companies commented on.

Filed Under: Buy Rated, Feature Stories, JSE Junior Market, Stock Market Tagged With: , , , , , , , , , , , , , , , ,

10 TOP stocks for 2017 back ground

February 5, 2017 by

C&W could be 2017 top stock from the main market.

Technical indicators show that both the main and junior markets broke through major resistance levels and seem poised to reach new highs with the all Jamaica composite index seeming poised to hit 290,000 points and around 3,400 points for the junior market index before the year is out.
Projected earnings for 2017, and what now appears to be rising PE ratios, suggest the possibility of a much bigger move ahead for the local stocks.
While the junior market seems to be in the clear to move on to 3,400 before any major resistance, the same is not the case for the main market. The latter is only a few thousand points from a major resistance that has it genesis in 1992 with the major resistance in 2005. This coming week will be a big test. Friday’s initial pull back in the morning session and push back of National Commercial Bank, Scotia Group and PanJam Investment may be early signs that we may be at a tough region presently.
Treasury bill rates are set to decline this year, against the background of stability in the Jamaican dollar, with strong inflows of foreign currency into the system and low inflation. Here technical indicators are pointing to 192 Treasury bill rates going to 4.5 percent, with it reaching around 5 percent late this year or early next year and the lower level in 2018.
With low rates, more funds would be flowing into the stock market driving up valuations, with indications that the current prices for a number of stocks suggest could put PEs around 20 time earnings. Added to this, a look at orders for the majority of stocks indicates a chronic shortage of supply of stocks for sale. The implications, with the majority of stocks priced around 10 times 2017 earnings or less should result in a sharp increase in prices that would take both markets well beyond where technical indicators suggest, in the next few months.
Company expansion| The best rate of growth in the economy for years is expected to continue, with prospects of 2.5 to 3 percent seemingly on the cards for 2017. Against this background, most companies appear set to benefit with increased sales. The real big gainers should come from those companies that are undergoing expansion. They will have a double benefit, that from the pickup in economic activity and from the expansion.
Then there are those companies that will benefit from lower interest rates and pick up in stock market activity. Investors would be wise not to see bullishness in stock prices as a prelude to increased instant profits in all cases. An example is the Jamaica Stock Exchange, while the market is exhibiting a high level of bullishness, it is not translating into high volumes and value in the daily trades as yet. In the peak of the market in 2014, the JSE traded $50 billion currently, the level is running around $35 billion annualised. Last year in the first quarter, the JSE earned a big increase in fees as a result of the Desnoes & Geddes share trade. This year, there is no such a transaction expected in the quarter. Later on, the stock exchange is likely to benefit from increased trading levels as well as increased listings in 2017, with the latter also helping to increase the volume of stocks trading.
There are companies that will benefit considerably from cash provided by operations that will be used to generate increased business. This is most applicable for the smaller junior market companies. For a detail look at the Top 10 stocks for the rest of 2017 in the junior and main market, see Top 10 junior stocks and Top 10 main market stocks.

Filed Under: Feature Stories, JSE Combined, Stock Market Tagged With: , , , , , ,

33 Jamaican stocks rose on Friday

February 3, 2017 by

Jamaica Producers rose $1 to new record high of $18.

The Jamaica Stock Exchange enjoyed a day of modest gains on Friday, as 52 securities changed hands in the overall market, ending with 33 stocks rising and 10 falling, including 19 stocks gaining and 2 declining, in the junior market while 14 securities ended at new 52 weeks’ closing highs.
All major market indices rose moderately compared with the sharp increase for the past 7 trading days. The all All Jamaica Composite Index gaining 253.10 points to close at 240,292.56, the JSE Market Index climbed 226.32 points to finish at 219,238.80 and the JSE combined index grew 897.61 points, to close at 233,711.14. The movement of the main market, for the year to date, resulted to gains of 14.3 percent, for the all Jamaica Composite Index.
At the close, 7,100,472 units valued at $124,253,097 changed hands, compared to 10,580,009 units valued at $124,588,506 changing hands on Thursday. Of the stocks traded, the junior market accounted for 1,530,168 units, valued at $11,104,756.
The average trade for the day in the main market ended at 198,939 shares compared to an average of 324,708 units on Thursday. For the month to date, an average of 250,588 shares traded, versus an average of units 302,236 units up to the prior trading day. January ended with an average of 592,602 units.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 11 stocks with bids higher than their last selling prices and 4 with lower offers.
In market activity, Barita Investments gained 80 cents to close at a 52 weeks’ high of $7.50, with 35,000 units changing hands, Berger Paints lost 13 cents to close at $11.07 with trades of 28,948 shares, Cable and Wireless traded 289,624 units at $1.15, Caribbean Cement declined 49 cents in closing at $33.01 with an exchange of 52,713 shares. Carreras slid 75 cents to $66 with 364,096 units changing hands, 1834 Investments traded 10,000 shares at $1.40, Grace Kennedy advanced 51 cents to $40.50 trading 120,777 units. Jamaica Broilers added 1 cent to close at $15.50 with an exchange of 25,069 shares, Jamaica Producers traded 28,163 units, rising $1 to end at a 52 weeks’ closing high of $18, JMMB Group gained 50 cents to close at a 52 weeks’ high of $17.50 with 41,805 units traded. Kingston Properties exchanged 10,000 shares at $9.50, Kingston Wharves added 1 cent to end at $33 with trades of 28,964 units, Margaritaville Turks, traded 52,250 units, adding 4 cents to close at a 52 weeks’ high of 33 US cents, National Commercial Bank recovered $3.88 to close at $64.90, after swapping 28,057 shares. 138 Student Living closed trading with an exchange of 9,205 units at $4.50, Pan Jamaican gained 95 cents to close at $30 with 95,450 shares traded, Portland JSX advanced 90 cents, closing at $10 after trading 4,800 units, Pulse Investments gained 78 cents to close at a 52 weeks’ high of $7.10, trading 17,000 units. Radio Jamaica closed at $1.36, gaining 16 cents trading 105,008 shares, Sagicor Group lost 50 cents to close at $32.50 with 32,656 shares changing hands, Sagicor Real Estate fund closed at $10.20 for a loss of 30 cents with trades of 3,002,738 units, Scotia Group ended trading with a loss of $1 to close at $40, having traded 777,834 shares. Scotia Investments lost 50 cents, after trading 12,000 units and closed at $35, Supreme Ventures gained 20 cents with 23,824 shares traded and closed at $5.70, Proven Investments traded 194,000 ordinary shares, adding 3 cents to close at a 52 weeks high of 29 US cents and JMMB Group 7.5% preference share traded 177,438 units at $1.10.

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BUY RATED stocks set for more big gains

February 3, 2017 by

Scotia Investments was added to BUY RATED stocks

In December last year, Scotia Investments was added to the BUY RATED list and in January this year, Main Event, the latest company that offered shares to the public, in a recent initial public offer, was added to the list.
Main Event is slated to list on the junior market next Wednesday. The strong fourth quarter results for Scotia Investments, and the attractive price, along with good potential growth for Main Event, made them compelling candidates to be placed on the list. The latter was heavily oversubscribed, and the listing opening in a very bullish market, is bound to result in a big increase for the stock price, within days of listing. IC Insider.com lifted the watch from a few of the stocks, based on what is expected of profits in 2017, that will make them attractive buys.
Many of the big winners are expected to grow as profit increases and the Jamaica Stock Exchange PE ratio increases, to better reflect valuations, with the low level of interest rates now in the system. With a number of stocks priced at PE in excess of 20, it is not far fetched to see many others joining this level, which would mean a continuation of the recent bull run on stocks.
The list shows that many of the listings in Jamaica, have done well, with some doing very well. While many are not likely to deliver outside returns, a few on the list, could do exceeding well. Listed among these are, Access Financial, ISP Finance, Lasco Manufacturing, Main Event and tTech from the Junior market and from the main market Barita Investments will be hard to catch while Caribbean Cement, JMMB Group and National Commercial Bank should be delivering gains of 100 percent or close to that level for 2017.
The Trinidad stocks seem mired in recent environment and but for a few cases are best left out of the reckoning for the time being.

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