Jetcon & CWJ set for 2017 top spots

January 7, 2017 by

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

By the end of 2017, the two top stocks on the Jamaica Stock Exchange is forecasted by IC Insider to be the 2016 listed Jetcon Corporation and previously battered Cable and Wireless that should be reporting good profits for the year.
In the just concluded week, Caribbean Cream (Kremi) and Lasco Financial that entered the IC Insider’s TOP 5 at the end of December, only spent one week in the list. Both stocks climbed during the past week with Lasco Financial moving up 18 percent to $3.67 and Caribbean Cream gained 14 percent to $8.55. Key Insurance rose 14 percent during the week and General Accident was up 7 percent.
Entering the TOP 5 for the first time, is Dolphin Cove, and returning is Jetcon Corporation at 4th and 5th spot, respectively. Investors have lost confidence in Dolphin Cove even as the company continues to produce decent results and having good prospects, with the major expansion in the tourism industry. Profit to September last year, was up 11 percent to $1.17 per share, exceeding the results for the entire 2015.
Jetcon reported in their September quarterly

Dolphin Cove moved into the IC Insider’s TOP 5 junior market stocks.

report that they “had another quarter of strong results with revenues climbing 86 percent over the September 2015 quarter, to $267 million and climbed 61 percent to $610 million for the nine months. Profit grew 275 percent to $35 million from $9 million in the September quarter, compared with the similar period in 2015 and is up 141 percent for the nine months period over the same period in 2015.” Profit for the nine months ended at $67 million and had exceeded the $40 million after tax, earned for the full year of 2015. In mid-September the company also reported that “subsequent to the Quarter, revenues continue be ahead of the same period for 2015 by approximately 70 percent,” suggesting that the final quarter should continue to reflect the robust performance seen in the earlier months. Jetcon is poised to be IC Insider’s top junior market stock for 2017, followed by ISP Finance, based on IC Insider’s forecast.
There were not much movement in the main market stocks during the week. Radio Jamaica moved out of the TOP 5, having gained in price during the week and is replaced by National Commercial Bank, at the number 5 position. The banking group is still selling cheaper than Scotia Group with earnings for the 2017 year to be released by the end of January. IC Insider is forecasting $8 per share earnings for 2017 with increased dividend payments around $3 per share, suggesting the stock has much room for growth. The number 1 main market stock is projected to be Cable & Wireless followed by Barita Investments. Last year this publication stated that Barita was the best main market stock back in September, it is now up by 93 percent since but has much more gains ahead with projected earnings of $1.75 for 2017.

Note: One of our writers is a director of two junior companies, Jetcon Corporation and Jamaican Teas. Connected parties to IC Insider.com may hold shares in companies commented on from time to time.

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Majors surge 3,247 points to record close

January 6, 2017 by

Bulls pushing Jamaican stock to new highs.

The value of stocks, on the main market of the Jamaica Stock Exchange, climbed sharply on Friday, as the market closed with 40 securities changing hands of which 23 gained and 8 declined in the overall market, including 9 stocks rising and 3 falling, in the junior market.
At the close the All Jamaica Composite Index surged 3,246.81 points, to close at 213,648.57. The JSE Market Index leapt 2,903.22 points to finish at 195,414.38. The JSE combined index jumped 2,748.82 points to close at 208,184.36.
At the close with 10,710,157 units valued at $359,865,498 changed hands, compared to 2,993,596 units valued at $27,027,397 changing hands on Friday. Of the stocks traded, the junior market accounted for 491,934 units changing hands, valued at $2,672,851. Grace Kennedy with 7,729,745 units valued at $316,822,639 accounted for the bulk of the trades with the price rising 59 cents to close at $40.99.
The average trade for the day in the main market ended at 378,453 shares compared to an average of 84,869 units traded on Thursday. The average for the month to date is 235,343 versus 132,234 units on the previous trading day, well below the average of 549,379 units, December ended with.
IC bid-offer Indicator| At the end of trading in the main and junior markets, the Investor’s Choice bid-offer indicator reading shows 13 stocks with bids higher than their last selling prices and none with a lower offer.
In market activity, Berger Paints rose 20 cents while trading 1,875 shares to close at $6, Cable & Wireless gained 4 cents to close at 89 cents with 101,180 units trading, Caribbean Cement ended with a $1 rise while trading just 1,000 shares at $34. Carreras gained 75 cents and closed at $66.75 with 12,920 shares changing hands, Ciboney traded 87,962 units and rose 4 cents to end at 20 cents, Investors traded 443,934 shares of 1834 Investments to close at $1.20. Jamaica Broilers fell 10 cents and closed at $14.50 with 11,679 shares changing hands, Jamaica Producers rose 45 cents to end at a 52 weeks’ high of $9.85 with 3,700 units trading, Jamaica Stock Exchange gained 4 cents in trading 20,360 shares, to end at $5.56. JMMB Group traded 53,329 units and added 30 cents to end at $15, Kingston Properties lost 95 cents in trading 13,795 units to close at $8.05, Kingston Wharves jumped by $1.81 in trading 26,062 shares at $21.81, Mayberry Investments ended at $4.80 with 4,270 shares changing hands. National Commercial Bank traded 202,254 shares with a fall of 49 cents to close at $51.01. Pan Jam Investment traded 3,893 shares at $26.50. Pulse Investments lost 30 cents in trading 53,383 shares at $3.70, Radio Jamaica rose 9 cents to close at $1.35 after 44,324 shares changed hands, Sagicor Group closed with 42,635 shares changing hands at $29.04. Sagicor X Fund ended with 57,375 units trading at $10.50. Scotia Group with 587,294 shares changing hands and closed with a rise of $3.01 at $38.01, Scotia Investments gained $1.02 with 16,000 units trading, to end at $31.02, Seprod rose $2 to $30 with 24,088 units changing hands, after trading at an intraday high, of $30.50, Supreme Ventures had just 7,213 shares trading and gained 9 cents to end at $5.10 and Proven Investments ordinary share traded 667,533 units at 20.5 US cents.

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Junior market climbs to highest ever

January 6, 2017 by

Blue Power rose $1 to close at a new all-time high of $31.

The junior market, pushed to close above the 2,600 points on Thursday for the first time, moved even higher at the close on Friday as advancing stocks out did declining ones, three to one. The market index rose just 5.51 points to end at a record 2,624.32, on lower volume than on Thursday.
At the close, a large number of securities, 13, ended with bids higher than their last selling prices and none ending with lower offers. Some of the securities with bids higher than their last selling prices have no offer and may not trade. At the close, the securities closing with large gaps between bids and last sale prices, include Access Financial with the $24.01 versus the last sale of $22, with no stocks on offer. Cargo Handlers had a bid at $19.11 with the last trade at $18.60 and an offer at $19.70 and Eppley that ended with a bid of $8.01, compared to a last sale of $4.90.
The prices of 9 stocks rose, 3 declined with 13 securities trading, compared to 16 trading on Thursday. Volume of stocks traded fell 37 percent, from Thursday’s low level, ending with just 491.934 units changing hands, valued at $2,672,851, down by 32 percent from $3,954,032 on Thursday.
An average of 37,841 units with an average value of $205,604 traded, compared to 49,187 units with an average value of $247,127 on the preceding trading day. The average for the month to date is, 70,258 units with an average value of $$341,603 versus 81,063 units with an average value of $386,936 on Thursday. The average for December is 131,147 units, at an average of $672,488.
At the close of trading, Blue Power jumped $1 and closed at a 52 weeks’ high of $31 with 10,979 units traded, Caribbean Cream jumped $1.15 with 21,100 units being exchanged to end at $8.55. Caribbean Flavours lost 80 cents while trading 2,900 shares to close at $11.20, Caribbean Producers gained 50 cents in trading 2,000 units at $3.75. Derrimon Trading gained 5 cents to close at a 52 weeks’ high of $5.80 with 10,000 shares changing hands, General Accident rose 1 cent and closed trading with 3,200 units at $3, Jamaican Teas ended at $4.25 with 54,784 shares being exchanged. Jetcon Corporation gained 6 cents, to close at a new all-time high of $6.07, with 141,959 shares being exchanged by investors, KLE Group climbed 30 cents and closed with 76,000 shares trading at $2.20, Knutsford Express traded just 200 shares and gained 50 cents in closing at $23. Lasco Distributors ended with 21,000 units trading with a loss of 9 cents to close at $7.01, Lasco Financial rose 15 cents and closed with 50,362 shares changing hands, at $3.65 and Lasco Manufacturing fell 20 cents to end at $4.80, with 97,450 units trading.

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Majors pull back for first time in 2017

January 5, 2017 by

Prices of stocks, on the main market of the Jamaica Stock Exchange, pulled sharply on Thursday, as the market closed with 42 securities changing hands of which 15 gained while 15 declined in the overall market, including 7 stocks rising and 5 falling, in the junior market.
At the close the All Jamaica Composite Index fell sharply 2,014.74 points, to close at 210,401.76. The JSE Market Index dropped 1,801.53 points to finish at 192,511.16. The JSE combined index pulled back 1,327.76 points to close at 205,435.54.
At the close with 2,993,596 units valued at $27,027,397 changed hands, compared to 3,784,854 units valued at $25,405,860 changing hands on Thursday. Of the stocks traded, the junior market accounted for 2,710,965 units changing hands, valued at $12,580,140.
The average trade for the day in the main market ended at 84,869 shares compared to an average of 70,171 units traded on Wednesday. The average for the month to date is 132,234 units and December ended with an average of 549,379 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 21 stocks with bids higher than their last selling prices and 2 with lower offers.
In market activity, Barita Investments slipped 50 cents while trading 19,334 shares to close at $6, Cable & Wireless gained 3 cents to close at 85 cents with 268,474 units trading, Caribbean Cement ended with a $1 loss while trading 1,259 shares at $33. Carreras closed at $66 with 6,348 shares changing hands, Investors traded 219,390 shares of 1834 Investments to close with a fall of 2 cents at $1.20, Grace Kennedy fell 9 cents to close at $40.40 with 167,066 shares changing hands. Jamaica Broilers gained 10 cents and closed at $14.6 with 19,700 shares changing hands, Jamaica Producers shed 10 cents to end at $9.40 with 4,490 units trading, Jamaica Stock Exchange gained 4 cents in trading 14,215 shares, to end at $5.56. JMMB Group traded 52,800 units and added 10 cents to end at $14.70, Kingston Wharves slipped $2 and traded 42,898 shares at $20, Mayberry Investments gained 5 cents to end at $4.80 with 1,721 shares changing hands. National Commercial Bank traded 6,836 shares with a gain of $1.25 to close at $51.50. The closest offer for NCB is at $54.80 to sell 18,500 units, PANJAM Investment traded 35,107 shares and shed $1 to close at $26.50. Portland JSX gained 5 cents in trading 45,400 units at $11, Pulse Investments traded 19,715 shares at $4, Radio Jamaica lost 2 cents to close at $1.26 after 388,684 shares changed hands, Sagicor Group closed with 227,944 shares changing hands at $29.04. Sagicor X Fund ended with 250,230 units trading, with a gain of 30 cents to close at $10.50. Scotia Group with 16,835 shares changing hands and closed with a fall of $3.30 at $35, Scotia Investments lost $1.50 with 13,874 units trading, to end at $28, Proven Investments ordinary share traded 74,000 units at 22 US cents and JMMB Group 7.5 percent preference share traded 300,000 units $1.08.

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Junior market first close above 2,600

January 5, 2017 by

The junior market pushed pass the 2,600 points mark at the close for the first time. The market index rose 33.35 points to end at 2,618.81 on much less volume than on Wednesday. Indication at the close, suggests that Friday could be explosive for the stocks in this market, with a large number of securities numbering 14,closing with bids higher than their last selling prices and none ending with lower offers.
Some of the securities with bids higher than their last selling prices have no offer and may not trade. At the close, the securities closing with large gaps between bids and last sale prices, include Access Financial with the $24.01 versus the last sale of $22, with no stocks on offer. Cargo Handlers had a bid at $19.10 with the last trade at $18.60 and an offer at $25.10. Eppley’s bid closed $8.01, compared to a last sale of $4.90 and Knutsford Express traded last at $22.50 and ended with the bid at $23 and an offer at $32.50.
The prices of 7 stocks rose, 5 declined with 16 securities trading, compared to 12 trading on Wednesday. Volume of stocks traded fell 71 percent, from Wednesday’s low level, ending with 786,999 units changing hands, valued at $3,954,032, down by 69 percent from $12,580,140 on Wednesday.
An average of 49,187 units with an average value of $247,127 traded, compared to 169,435 units with an average value of $786,259 on the preceding trading day. The average for the month to date is 81,063 units with an average value of $386,936 versus 97,001 units with an average value of $456,841 on Wednesday. The average for December is 131,147 units, at an average of $672,488.
At the close of trading, AMG Packaging jumped $2.49 and closed at $27 with 2,115 units traded, Cargo Handlers closed at $18.60 with 4,900 units changing hands, Caribbean Cream lost 60 cents with 4,500 units being exchanged to end at $7.50. Caribbean Flavours recovered the 75 cents it lost on Wednesday while trading 1,621 shares to close at $12, Caribbean Producers fell 5 cents in trading 29,490 units at $3.25, Consolidated Bakeries lost 20 cents in trading 79,180 shares to close at $2.15. Derrimon Trading gained 25 cents to close at a 52 weeks’ high of $5.75 with 154,000 shares changing hands, General Accident lost 1 cent and closed trading with 19,318 units at $2.99. Honey Bun had 31,416 shares changing hands to close at $6.05 after rising 55 cents. Jamaican Teas ended at $4.25 with 6,778 shares being exchanged. Jetcon Corporation fell 4 cents, to close at $6.01, with 112,099 shares, Key Insurance climbed 20 cents and closed with 54,033 shares trading at $3, after trading at an intraday all-time high of $3.20, Lasco Distributors ended with 84,557 units trading with a rise of 60 cents to $7.10. Lasco Financial closed with 47,322 shares changing hands, to end at $3.50 and Lasco Manufacturing gained 15 cents and ended at $5, with 1467,670 units trading.

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

JSE majors start 2017 with a bang

January 3, 2017 by

Bulls are lurching around the juniors.

Prices surged 2,072.41 points for local companies on the main market of the Jamaica Stock Exchange, to close at an all-time high on the first trading day of 2017.
The All Jamaica Composite Index surged 2,072.41 points, to close at 212,211.90. The JSE Market Index climbed 1,853.11 points to finish at 194,129.75. The JSE combined index jumped 1,592.05 points to close at 206,552.15.
Market activity ended with 36 securities changing hands. At the close, the prices of 13 stocks gained while 15 declined in the overall market, including 2 stocks rising and 5 falling, in the junior market.
At the close with 7,231,425 units valued at $86,467,161 changed hands, compared to 24,274,905 units valued at $227,761,009 changing hands on Thursday. Of the stocks traded, the junior market accounted for 294,809 units changing hands, valued at $1,529,067.
The average trade for the day in the main market ended at 289,026 shares compared to an average of 149,740 units traded on Friday. December ended with an average of 549,379 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 9 stocks with bids higher than their last selling prices and 5 with lower offers.
In market activity, Berger Paints ended with 3,158 units changing hands with the price rising 20 cents to $5.80, Cable & Wireless rose 3 cents to close at 83 cents with 880,269 units trading, Caribbean Cement ended with loss of 95 cents while trading 5,240 shares at $33, Grace Kennedy fell $1 to close at $40 with 6,091 shares changing hands. Jamaica Broilers shed 75 cents and closed at $14.15 with 3,537,153 shares changing hands, Jamaica Stock Exchange rose 10 cents in trading 98,374 shares, to end at $5.60. JMMB Group traded 1,608 units and climbed 49 cents to end at $14.99, Kingston Wharves traded 733 units with a rise of $2.02 to a 52 weeks’ high of $22.03, Mayberry Investments lost 70 cents to end at $4.80 with 3,650 shares changing hands, 138 Student Living traded 1,100,000 and lost 30 cent to end at $4.50. PANJAM Investment traded 18,508 shares and shed 50 cents to close at $27.50. Radio Jamaica fell 5 cents to close at $1.25 after 53,484 shares changed hands, Sagicor Group closed with 17,856 shares changing hands at $29, Sagicor X Fund ended with 9,645 units trading, with a loss of $1.31 to close at $10.50, Scotia Group with 322,000 shares changing hands, closed with a gain of 25 cents at $37. Scotia Investments dropped $3.90 with 440,850 units trading to end at $29.50, Supreme Ventures traded 54,275 shares and gained 23 cents to $5.30 and JMMB Group 6 percent US preference share traded 225,000 units US$2.11.

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Tax break costing far less in year 1

January 3, 2017 by

Minister of Finance Audley Shaw who announced tax break for individuals.

Minister Audley Shaw announced in May last year, an across the board threshold for individual tax payers of just over $1 million per year, effective July 2016, estimated to cost $12 billion in lost revenues this fiscal year. Data in Governments’ fiscal operations to November this year, is now showing that the cost will be far less than originally stated.
According to the inflows of PAYE, the difference between inflows for 2015 amounted to $46 billion to November is only $3 billion more than the intake of $43 billion for the same period in 2016. Revenues lost monthly, since August, the first month that revenues would be affected by the lower tax payments is now running around $1.2 billion lower than in 2015, suggesting that the full impact for the current fiscal year will end up costing $9 billion instead of the $12.5 billion originally stated. The cost for a full year would be in the order of $14 billion.
According to Shaw, 251,000 persons would have benefit from the increased threshold. Revenues for Government of Jamaica fiscal operations to the end of November 2016 are $26 billion ahead of the similar period in 2015. For the current fiscal year, revenues are $13.8 billion ahead of forecast an amount that has already exceeded the amount forgone in income tax.

Filed Under: Economy, Feature Stories Tagged With: , ,

GOJ revenues $26B ahead of 2015

January 3, 2017 by

Minister of Finance Audley Shaw pulling in revenues ahead of target.

Revenues for Government of Jamaica fiscal operations to the end of November 2016 are $26 billion ahead of the similar period in 2015.
For the current fiscal year revenues are $13.8 billion ahead of forecast with nearly $5 billion of the surplus coming in November. Intake for the 8 months to November, came in at $304 billion compared with forecast of $290 billion. In May, Minister of Finance announced tax increases of just less than $14 billion that would mostly take full effect at the start of June, with some from mid-May. Revenues from the new measures to November, would be approximately $10 billion with $4 billion to be collected for the other 4 months of the fiscal year.
While revenues are ahead of forecast expenditure are lower than projected. Total expenditure are running $10.5 billion below target to November, of this amount capital expenditure is running $8 below target. Wages are $3.8 billion short of budget while interest cost is above target by $900 million.
Overall operations incurred a deficit of $11 billion compared with projection of a deficit of $26.6 billion leading to the primary surplus ending $25 billion better that forecast at $$63.6 billion.

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Cargo Handlers top Jamaican stock with 393% gain

January 2, 2017 by

Bulls pushing Jamaican stock to new highs.

2016 will go down in the history of the Jamaican stock market as the year in which stock splits fuelled strong demand for stocks, pushing many to levels not thought possible in recent time.
Cargo Handlers surged with a gain of 393 percent in 2016 to be the top performing stock on the Jamaica Stock Exchange, ending the year at $18.50 after a 10 for 1 stock split earlier in the year. The stock which trades at a PE of 30 times IC Insider’s 2017 estimated earnings, is also one of the most highly priced on the market. Last year the company posted profits that rose from 25 cents per share in 2015 to 42 cents in 2016.
Honey Bun roared along with gains of 325% to close the year at $5.85 after hitting a high of $7.50 in response to a 5 for 1 stock split and rise in profits of 104.7 percent for 2016.
The 2016 listed ISP Finance, jumped 250 percent to close the year at $8.50 on the expectation of strong future profit growth. This is one of the few stocks that grew sharply without the benefit of a stock split.
AMG Packaging climbed to be fourth best performer, benefiting from expectation of profit to flow from their new tissue operation and latterly by an announcement of a 5 for 1 stock split. Interestingly, while AMG last price was $24.51, the bid has been at $26.50 for several days, an indication that it will trade above the last traded price for 2016. Paramount Trading gained a more moderate 233%, helped by its expansion of it lubricant manufacturing in a joint venture arrangement and a 10 for 1

Paramount

stock split that pushed the stock as high as $4.68, the stock close 2016 at $3.
Jetcon Corporation that listed in March at $2.25 per share, jumped 167 percent by the end of the year to $6, propelled by a near doubling in profit over 2015.
Blue Power gained 129% to sit at 7 position then Palace Amusement ended with a gain of 122, tTech that listed in January 2016 ended at tenth spot with gains of 112% just edging out Margaritaville Turks with 111 percent at number 11. Knutsford Express with gains 108% was the only other stock in the overall market to rise by more than 100%.
Data by the Investor’s Choice going back several years to 1980, indicates that on average only 22 percent of stocks in the top 10 repeat in the subsequent year. AMG was the sole stock that was in the top 10 in 2015 to repeat in 2016. These are sobering data investors would do well to ponder.

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Kremi & Lasco Financial in TOP 5

January 2, 2017 by

Investors’ activity in the junior market resulted in changes to the IC Insider’s TOP 5 list from that for December 9. AMG Packaging with gains of 38 percent and Blue Power with gains of 46 percent dropped off the list.
Caribbean Cream and Lasco Financial entered the top listing with potential gains based on fiscal year 2015/16 of 81 and 71 percent respectively.
Derrimon Trading fell back during the period to $3.55 to re-enter the list but has since shot up to $5.50 to be sitting well below the TOP 5 with gains of 77 percent since it entered the top 5 initially. Announcement that the company deposited money to acquire a large block of the shares in Caribbean Flavours spurred the move in the stock price.
In the IC Insider’s TOP 5, the candidates remain unchanged for the main market, with investors’ interest being focussed on other stocks in the main market.
The list comprises potential gains based on current estimated earnings which are likely to drive stock prices before the 2017 earnings start to have a full effect.
The 2017 list based on IC Insider’s earnings forecast is likely to vary quite a bit from those on the current list.

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