It’s Wisynco, Wigton, NCB & Scotia

Wisynco Group hits a new of $19.50 on Friday, up from $16.50 at the end of the prior week as supply remains light and demand picked up considerably, the stock continue on the watch list this week.
Based on full year results Wisynco trading around a PE of 20, may be considered high priced by some but with interest rates so low in the country, investors should be focusing on the more than $1.50 earnings per share expected for the new-year that starts in July. At the close on Friday, demand was building strongly at $18 and above.
Wigton Windfarm is slowly crawling its way back into the 80 cents range with the stock trading at 80 cents on a number of occasions on Friday, as selling and supplies below 80 cents eased sharply.
NCB Financial seems to be hovering around the $173 level but has a lot of appeal for many investors as they view the future positively. Last week IC Insider.com added Scotia Group as one stock that should be on everyone’s watch list with the release of second quarter results to April.

Scotia Group hiked dividend.

The banking group announced a big dividend increase that included a special dividend of $1.94. Profit performance was nothing write about but the company later reported that cost included more than $1 billion in onetime expenses as they seek to reduce cost and provide customers with a more friendly banking experience.
Barita Investments continues to enjoy strong buying interest as the price firms up around the $45 level and could yet move higher in coming days or weeks. Eppley seems to have demand that should push the price higher during the week as the company is getting set to launch an IPO for the Eppley Property Fund. The announcement that Sygnus Credit Investments borrowed $600 million and plans on raising more, coupled with good third quarter results continue to drive interest in the stock.
CAC 2000 reported profit for the April quarter that shows marked improvement over the previous quarter, suggesting that business is returning to more normal levels from disruption to the operations caused by major road works, in the area of the business. Elite Diagnostic pulled back to $3.85 during the past week but continues to find buying interest around $4 with the promise of earnings of more than 60 cents for the next fiscal year starting in July, that is likely to be the catalyst for more interest in the stock. Fosrich remains on the Watch List along with Lasco Financial that has seen buying interest over $5. Lasco Manufacturing posting of strong full year results with impressive fourth quarter numbers is driving new interest in the stock. Main Event posted good second quarter results with profit rising 29 percent in the quarter and promise of good 2019 results that should encourage increased investors interest. Watch.

Main Event revenues profit growing nciely.

Investors’ interest continues for the Medical Disposables with prospects for continued strong growth in its operations. Paramount Trading stock has been on the back foot for more than a year, with the start of the new financial year, the prospects for vastly improved profit, that IC Insider.com preliminarily places at 15 cents per share, will start to influence the stock price. Demand for Stationery and Office is not aggressive currently, but then supply is very short, suggesting it is only a matter of time before the price moves higher.
Investors should continue to keep eyes on Fontana, Honey Bun, Jamaica Producers and Sagicor Group.

More watching for NCB Financial

NCB Financial Group still in strong demand.

Investors continued to push both the stocks higher in the main and Junior markets this past week as results for a number of companies encouraged increased buying.
Last week IC Insider posited that NCB Financial seems to have broken through resistance at the $150 level. The $165 region where the stock trades is also a resistance area but the strong buying at this price point, suggests it is poised to move higher, with $190 being the next point of resistance. Investors pushed the price to an all-time high of $184.85 on Thursday before it pulled back to $169 and closed the week at $170.02. A lot of focus is on this stock with the closing bid and offer suggest it is one to continuing watching. One stock that should be on every one’s watch list is Scotia Group that will release second quarter results to April this week.
Barita Investments continues to enjoy strong buying interest as the price firms up around the $45 level and could yet move higher in coming days or weeks. Eppley seems to have demand that should push the price higher during the week as the company is getting set to launch an IPO for the Eppley Property Fund. The announcement that Sygnus Credit Investments borrowed $600 million and plan on raising more, coupled with good third quarter results is driving new interest into the stock.

Wisynco hit a new high last week as supply of the stock dried up.

Wisynco Group posted a new high of $16.50 on Friday as supply dried up. Some selling came in towards the close, but this one is heading higher over the next few weeks as investors start to focus on the more than $1.50 earnings per share expected for the new-year that starts in July.
Elite Diagnostic is finding interest now at $4 with the take out of supply below after March quarter results send positive message about future profits. While the current year that ends in June should realize earnings of 25 cents, it is the promise of more than 60 cents for the next fiscal year that is likely to be the catalyst for more interest in the stock. During the past week, Fosrich jumped to a record high of $6.50 but pulled by the close on Friday to end at $5.20, but with an offer to sell 32,166 shares at $4.98. Lasco Financial has seen buying coming in that drove the price over $5, and could move higher this week with the promise of increased profit for the current 2020 fiscal year. Lasco Manufacturing posted strong full year results with impressive fourth quarter numbers. The company’s profit performance encouraged more buying during the past week, with 6.75 million shares trading on Friday. Investors still wanted more, with the bid closing at $3.98 versus the last traded price of $3.91. Investors may find the $8 price for the Medical Disposables stocks on offer, pricey, but the full year’s results telegraphed a powerful message about profits to come that makes the stock still attractive at this price level. Expect demand to pick up in the future for this stock as the company continues to grow attractively.

Paramont trading could surprise.

Paramount Trading stock has been on the back foot for more than a year, with the start of the new financial year, the prospects for vastly improved profit, that IC Insider.com preliminarily places at 15 cents per share, will start to influence the stock price. At the close on Friday, the stock that traded at $2.29 has a bid of $2.10 with the offer at $2.50 and may be signaling that selling is mostly exhausted at these levels. Demand for Stationery and Office is not aggressive currently, but then supply is very short, suggesting it is only a matter of time before the price moves higher.
Investors should continue to keep eyes on Jamaica Producers, Sagicor Group and Honey Bun.

NCB Financial could hit $190 soon

NCB Financial stock could hit $190

There are not many stocks to watch this week, as earnings season is almost over, with just a few more reports to be released.
Investors responded well to companies reporting good profit gains and in the case of NCB Financial, to the increased holdings in Guardian Group. The stock seems to have broken through resistance at the $150 level. The $165 region where the stock trades at now is also a resistance area but the strong buying last week at this price point, suggests it is poised to move higher with $190 being the next point of resistance.
Lasco Manufacturing posted strong full year results during the past week with an outstanding fourth quarter that led investors to pick up almost 1.4 million shares resulting in rise of 60 cents on Friday. Barita Investments is enjoying buying interest as the value of stock prices rise and the Jamaican dollar value remains lower than at the end of March, both will likely give a big boost to profit in the June quarter.
Eppley seems to have demand that should push the price higher during the week as the company is getting set to launch an IPO for the Eppley Property Fund. Medical Disposables’ full year’s

SOS expect to maximize profits from all business lines in 2019.

results just inched higher over 2018 but closer examination indicates that the results telegraphed a powerful message about profits to come. Expect demand to pick up in the future for this stock as the company continues to grow attractively.
Stationery and Office reported good first quarter results, weeks ago driving renewed interest in the stock. The demand left supply very short, suggesting it is only a matter of time before the price moves higher. Wigton Windfarm hit a low of 72 cents during the past week but closed at 79 cents on Friday and could move back into the 80 cents range in the coming week.
Investors should keep eyes on Jamaica Producers, Sagicor Group and Honey Bun.

Wigton price dreamers

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Wigton stock price could top out soon.

“Buy now, Ride the $3 wave”. That’s a stunning advice by an online stock market investor to another, regarding the likely performance of the Wigton Windfarm stock after trading, on the first day of listing.
Wigton shares closed trading on the Jamaica Stock Exchange on Friday at 83 cents, with a PE of 14, placing the value  in the upper half of the most valued main market stocks. The premium over net asset value, another measure of valuation, is 291 percent above the net asset value. Few stocks in the main market are selling at such a premium.  At $3, the stock would trade at a stunningly high PE ratio of 50 times 2019 and 2020 earnings. The only main market stock close to that valuation is Kingston Wharves (KW) at 35 times 2019 earnings and that is coming down from more than 50 times 2018 earnings in 2018, when investors traded it at $85, now its trading around $70 even as profit for 2019 is up in the first quarter of this year.
Unlike KW, that has less than 10 percent of the shareholding amounting to a few million units, that trade, Wigton has billion of shares that will trade. The high liquidity of Wigton shares almost ensures that the stock will not become overvalued and if so, will not remain that way for a prolonged period.
The bulk of investors who would be buying the vast quantity are more professional than not and are versed on the valuation levels of stocks. Accordingly, they are unlikely to be buying a stock that has doubtful expansion credentials at an inflated value. The most popular valuation tool, the PE ratio does not support a price much higher than $1.20, with EPS of 6 cents per share. A price of $1.20 equates to a relatively high PE ratio of 20. Only a few stocks are valued close to this multiple and many of them have prospects for profits to grow. Wigton has no immediate prospects for growth in earnings, pricing it at 20 times EPS would therefore be unwise. The market will speak but the heavy selling on Friday is more in line with the thinking that the top is not far off. Investors who buy shares above the accepted market norm will likely get crushed, unless than have a long term investment horizon on their minds. PE ratios are there to give a sense of where appropriate values, when investors try to break away from where the bulk of investments funds place a value of a stock at they usually end up regret the move.
In the investment world staying close to the crowd with pricing is a prudent investment practice that tends to be less costly than trying to predict lofty heights for a stock to reach.

 

Wigton star attraction to watch

Wigton stock could double soon.

Wigton Windfarm is will be on a large group of local investors this week as the stock makes trading debut on the Jamaica Stock Exchange on Wednesday.
While the new main market listing will most likely be the star attraction, investors who left Junior Market stocks to languish while they drove main market to several new highs as they waited for Junior Market company, 2019 first quarter results are again looking for gains in the Junior Market.
A number of the Junior Market results were strong, in fact very strong and some prices were driven up, in response. More gains are expected in the coming weeks as investors pile funds into a number of companies with limited supply of stocks for sale.
Good numbers for the 2019 first quarter came from, Derrimon Trading with revenues rising 63 percent to $3.15 billion and profit jumping 33 percent to $69 million. Elite Diagnostic with strong growth in profits for the March quarter that more than doubled the $6.7 million reported in 2018 March quarter to $16 million.  Fontana grew pretax profit by 51 percent to $30 million with earnings per share of just 2 cents will not provide the fire for much more price gains for a while.

Honey Bun doubles Q2 profit.

General Accident was mildly up but FX losses disguised the strong gains in operating results, smart investors will see this and lend support to the stock price. Honey Bun grew revenues by 15.5 percent but profit blasted off by 104 percent. Jamaican Teas second quarter profit rose 45 percent before tax to end at $65 million from $45 million in the 2018 March quarter but profit after tax rose 38 percent to $55 million from $40 million, for the six months profit after tax rose 27.5 percent from $91 million to $116 million. ISP Finance an IC Insider.com TOP 10 listing last week, saw profit rising by 75 percent to $16 million in the quarter to help lift demand for the stock and Stationery and Office Supplies that posted a 30 percent jump in profit to reach $58 million jumped in price since releasing results but could go higher after taking a break.
Caribbean Cement has fallen in price below $70 making it extremely attractive. The company’s managing director, speaks at Mayberry’s monthly forum on Wednesday and that could provide more information to fuel increased demand for the stock.

New stocks to watch

Image courtesy of suphakit73/FreeDigitalPhotos.net

Listed companies are releasing results with a number of them reporting strong increase in profits.
It now looks like the Junior Market‘s time to shine having been in the shadow of the main market form  last year. Investors should be on alert for the following, Stationery and Office Supplies that posted a 30 percent jump in profit, Elite Diagnostic with strong growth in profits for the March quarter of $16 million versus $6.7 million in 2018. Jamaican Teas second quarter rose 45 percent before tax to end at $65 million from $44.7 million in the 2018 March quarter but profit after tax rose 38 percent to $55 million from $40 million, for the six months profit after tax rose from $91 million to $116 million. ISP Finance supply dried up completely after having stock being offered doown to $12 last week. Keep an eye open for Derrimon Trading, General Accident, Honey Bun, Jamaica Producers and Victoria Mutual Investments.

Watch NCB but Cement not finished

NCB the top stock to watch following inforamtion that they got go ahead to acquire Guardian Holdings majority shares.

NCB Financial is the main stock to watch this week with group having sealed the deal for majority shares in Guardian Holdings but Caribbean Cement (CC) is still in the stock to watch list. 
Fresh from posting record first quarter profit of $1.13 billion or $1.33 per share, from only $348 million in 2018, the shares of CC started right out of the blocks on Monday gone, with a jump of $13.87 to $77.99 and moved higher thereafter during the week.
Cement now sits at $80 and should move higher in the weeks ahead with potential earnings of $7 per share for 2019. The stock price reached $100 briefly during the past week. NCB Financial Group came in for increased buying with the announcement of approval granted for the group to acquire majority shares in the Trinidad based Guardian Holdings, thus returning it to it Jamaican roots. Guardian was previously majority by Mutual Life but the majority shares were sold to Trinidadians, when Guardian had cash flow problems in the 1990s.
Sagicor Group moved up from $44 at the start of the week to close at $46.50 and should move higher with 2018 results showing gains and pointing to a brighter 2019. Wisynco traded as high as $15 during the past week but some selling came in leaving the stock at $14.40 at the close on Friday. The stock is selling at 15 times projected earnings for the for the fiscal year to June 2019, but with strong earnings

Grace Kennedy could suprise.

growth investors could still pile into the stock in anticipation of greater profits in the 2020 fiscal year.  RJR and Seprod remain attractive buys and continue on the watch list along with Barita Investments that posted very strong second quarter results. More company results should be flowing this week and investors should be watchful for their release to identify any important message of future earnings. Other stocks of interest in the main market, include Berger Paints, Grace, Jamaica Producers, Jamaica Stock Exchange and PanJam Investment that seems headed to $100, with very few stocks on offer for sale.
The Junior Market rose last week as it starts the recovery from the impact that the recently closed Wigton IPO had on the market. At its recently held annual general meeting, Honey Bun directors pointed to continued improved revenues, created by expansion of the factory providing added capacity

SOS anticipates maximising profits from every business line in 2019.

to meet demand for their products, resulting from the expansion and new products lined up to come. Stationery and Office Supplies released their annual report with the directors stating that the outlook for 2019 and beyond is positive, given the increase in business and consumer confidence locally and regionally. “The economy is continuing to show positive signs with increased foreign and local investment in the island, particularly in the business outsourcing sector. For the export market, we are supplying a project in Barbados during the first quarter of 2019, and have another project planned for the second quarter in 2019.

Honey Bun should be watched.

We anticipate to realise at least six containers of exported products during the year including both the SEEK products and our lines of Torch and Image furniture.  With the purchase of SEEK and six months of learning, planning and making adjustments, we now anticipate maximising profits from every business line in 2019.”
Fontana came in for increased buying this past week with trading as high as $4.20 with supply of the stocks declining, General Accident saw improved results last year and this should continue into 2019 but the company is scheduled to release results for quarter one, next week.  tTech grew revenues 30 percent in 2018 and 28 percent in the December quarter. More growth is expected for 2019 to boost profit for the year. Derrimon Trading took over the distribution of of Juiciful, Busta and other products for Trinidad-owned SM Jaleel & Company and acquired Woodcats International, late last year. First quarter results should show above normal increase in revenues as a result of the acquisitions in 2018. It will be interesting to see how the new lines, impact first quarter profit.

Cement is primed to watch

Caribbean Cement is the clear leader as the stock to watch for this week, with the company posting blowout first quarter profit of $1.13 billion or $1.33 per share up from only $348 million in 2018.
The sharp rise in profit resulted mainly from the removal of lease of equipment cost and cost of imported cement. The result is a tad below what IC Insider.com forecast of $7 per share for 2019would suggest, but is in keeping with that forecast on the basis of expected pick up in sales as the year rolls on.
The head of one of the country’s largest brokerage houses, advised his team about the results. “Please make sure all CCC on the sell side are cancelled before market opens on Monday. All clients must be informed of the results before any sales orders can be placed.” The coded message here is that the stock price will jump sharply in trading on Monday. Keep on watching this one.
Sagicor Group had buying up to $44 on Friday and should continue to attract investors’ interest. NCB Financial Group came out with a fall in profit for the March quarter and is unlikely to see buying coming in to move the price even if they announce the closure of the Guardian acquisition of majority shares. Supreme Ventures released flat March results that may put pressure on the stock price that is selling close to 30 times 2019 earnings.

Wisynco, most attractively priced main market stock.

Continue to keep an eye on Wisynco that closed at $12 on Friday with increased buying interest during the past week as the company continues to expand the volume of products it represents that augurs well for increased profit going forward. The stock remains one of the most appealing main market buys currently. RJR and Seprod remain attractive buys and continue on the watch list along with Barita Investments that seems set to post very strong second quarter results.
The picture for the Junior Market is unclear but with Caribbean Cream full year results to February, are now due and will provide information in directing the stock price. Added to the list are Honey Bun that holds its annual general meeting on Monday that may provide price sensitive information and Stationery and Office Supplies.

Watch Sagicor & NCB

Sagicor Cayman

Sagicor Group closed the shortened Easter week at $45 up from $38.15 at the close of the prior week following release of 2018 full year results.
The price could move higher this week with limited supply for sale on the market, below $50.
Helped by the sharp rise in the price of Sagicor, the main market climbed more than 8,000 points for the week, with the biggest move coming on Thursday of just under 7,000 points, while the Junior Market had no clear direction.
Trading for the week suggests that investors are over the impact on the market of the Initial Public Offer of Wigton Windfarm that opened on the 17 of April.
The release of some of the 2019 first quarter results are due late this week and are worth watching. Chief amongst them will be Caribbean Cement, NCB Financial Group and Supreme Ventures. While NCB’s results are due on Thursday and investors could react to them on Friday, others may not comeuntil after trading on Friday, as such may not have any impact until the following week.

NCB Financial traded at $145 on the JSE on Thursday.

Investors should keep an eye on, Wisynco that continues to hold just under $12. The company continues to expand the volume of products and companies it represents that augurs well for increased profit going forward. The stock remains one of the most appealing main market buys currently. RJR and Seprod remain attractive buys, continue on the watch list and are joined by Barita Investments.
The picture for the Junior Market is unclear but with Caribbean Cream full year results to February, due by the end of the week, it will be interesting how investors treat with it.

Watch Cement and Sagicor

Image courtesy of suphakit73/FreeDigitalPhotos.net


The past week saw stocks prices moving up and down with the announced initial Public offering of Wigton Windfarm, a pattern is likely to continue for a while.
The release of 2019 first quarter results could change the pattern for some stocks, with a few due for release before the end of April. Last week there was increased buying interest in Caribbean Cement, NCB Financial Group and Sagicor Group on Friday with the release of full year results for 2018. Investors should keep an eye on these, Wisynco, RJR, Seprod that remain attractive buys.
The Junior Market is being shaken up following the release of the prospectus for Wigton, as such there are no clear security to watch in this market during the week.