Barita could spike higher this week

Barita last traded on the JSE as high as $20 on Friday.

The main market of the stock exchange ended the week at another record close with a number of individual stocks hitting new highs but this coming week could well be more challenging, investors have to bear in mind that the supplies for several stocks are very limited and could result in big price movements as happened last week.
Technical chart shows NCB Financial heading to $155 but it traded at new high of $134 during the past week which is not very far from the target of potential resistance. Whether it goes higher during the coming days is anyone’s guess but it is worth watching. Caribbean Cream moved up to $7.90 from $6.16 at the end of the previous week. The company posted better profit results in the August quarter but with less gains than in the first, as administrative cost rose to negate some of the top line growth. Those results may be unlikely to move the stock forward in the short term.
The Junior Market continues to inch forward as it appears that investors are waiting on results. They got Caribbean Cream and Paramount Trading at the end of week, but no major upward price movement is expected.

Caribbean Cream sales & profit slowed in Q2.

The indicators point to continued increased interest in the main market stocks with a number of them are high on the list to watch for this week with less indications that Junior Market stocks will move upwards in droves anytime soon. Stocks of interest this week are Grace Kennedy, Barita Investments with limited supply and technical indicators pointing to a price of $22.50 initially before going on to $27.50. Berger Paints, Jamaica Producers has very little stock offered for sale and that could result in a sharp spike in price at any time, Mayberry Jamaican Equities (MJE), Mayberry Investments that will benefit from increased profit of MJE, NCB Financial, Wisynco Group that has gone back above the $10 price level, CAC2000 that is very scarce, Main Event and Stationery and Office Supplies that seem to have exhausted selling at $09.50 with $10 being the possible next level. A number of these have limited supplies for sale.
With the average PE of the market now at a comfortable 16 times 2018 earnings, stocks valued less than the market average could see increased interest as investors look for bargains.
Grace Kennedy seems ready to break out of the $60 range as there is no big supply on offer now and during the past

Caribbean Cement price is stuck in the mud for now.

week, it traded as high as $75. Caribbean Cement keeps trading between $46 and $50, but there appears no real desire to move the price forward, this one could be negatively affected by foreign exchange losses in the September quarter. Kingston Wharves has always had limited supply, so it could move higher going forward, even the valuation is rich. Supply of JMMB Group has dried up and that could create the environment for the price to continue to move higher, it is also one of the lower valued stock in the main market. Investors need to bear in mind that the price is currently at a resistance level at $37, so it may move sideways with an upward bias for a while, unless strong buying pushes over this level.
An overall view of stocks indicates that the main market continues to be steered higher by an upward sloping support line as well the 45 and 125 day moving averages, lending support just below. The Junior Market is being guided by an upward rising long-term support line and a golden cross. The golden cross is a very strong bullish long-term signal, but market needs fuel of rising profits.

Watch NCB & Kremi this week

NCB Financial could be a winner this week.


The main market of the stock exchange closed the week with two of the highest daily increases in the market index ever, a clear sign that investors want stocks to buy and the supply remains very limited and putting the bulls in control.
The moves last week in the main market and since the start of August has set the stage for several stocks to be on the move this week.
The Junior Market continues to inch forward as it appears that investors are waiting on results. They should get Caribbean Cream this week and that should be a strong set of results as the company benefits from lower raw material cost compared to the first quarter when profits jumped 59 percent.
The indicators point to continued increased interest in the main market stocks with a number of them are high on the list to watch for this week. Stocks of interest this week are Grace Kennedy, Barita Investments, Berger Paints, Mayberry Jamaican Equities, NCB Financial, Wisynco, Caribbean Cream, CAC 2000, Main Event and Stationery and Office Supplies, many of these have limited supplies for sale.
With the average PE of the market now approaching a comfortable 16 times 2018 earnings, stocks valued less than the market average could see increased interest as investors look for bargains.
NCB Financial went sideways for around two weeks but bids started building close to the closing prices last week and that could help it move higher this week. Barita had a relatively strong day on Friday with 261,000 shares trading, leaving only a minute amount of 6,200 units on offer at $25.

Caribbean Cream should post big gains in profit in Q2 this week.

Grace Kennedy seems ready to break out of the $60 range as there is no big supply on offer now and during the past week, it traded as high as $75. Caribbean Cement keeps trading between $46 and $50, but there appears no real desire to move the price forward, this one could be negatively affected by foreign exchange losses in the September quarter. Kingston Wharves has always had limited supply, so it could move higher going forward, as can be seen from the big jump on Friday to $83 at 52 times 2018 earnings the valuation is rich. Supply of JMMB Group have dried up and that could create the environment for the price to continue to move higher, it is also one of the lower valued stock in the main market. Investors have gradually sucked out most of the supply of Stationery and Office Supplies, below $10 and the price could move to the $10 level during the course of the week.
An overall view of stocks indicates that the main market continues to be steered higher by an upward sloping support line as well the 45 and 125 day moving averages, lending support just below. The Junior Market that traded recently at an all-time high, is being guided by an upward rising long-term support line and a golden cross. The golden cross is a very strong bullish long-term signal.

Watch Grace this week

Grace Kennedy could move up this week.

The main stocks of interest this week are Grace Kennedy, Stationery and Office Supplies, CAC 2000, NCB Financial, Caribbean Cream, Main Event, Wisynco and Berger Paints, most of these have limited supplies.
With the average PE of the market now exceeding a comfortable 15 times 2018 earnings and rising, stocks valued less than the market average, could see increased interest as investors look for bargains.
Bulls continue to push the Jamaican stock market, to new heights last week as low interest rates and good profits help push investors into stocks against the back ground of limited selling.
The supply of several of the main market stocks are extremely scarce and that is working in market favour to move much higher, before too long. There are several stocks priced well below the market’s average and that could encourage buying interest in them as well.
NCB Financial went sideways for around two weeks but bids started building close to the closing prices last week and that could help it move higher this week.
Grace Kennedy seems ready to break out of the $60 range as there is no supply on offer now. Caribbean Cement

keeps trading between $46 and $50, but there appears no real desire to move the price forward. Kingston Wharves has always had limited supply, so it could move higher going forward. Supply of JMMB Group have dried up and that could create the environment for the price to move higher.
An overall view of stocks indicates that the main market continues to be steered higher by an upward sloping support line as well the 45 and 125 day moving averages, lending support just below, but the 400,000 points resistance could likely stall the rally in the main market for a while. The Junior Market that traded recently at an all-time high, is being steered by an upward rising long-term support line and a golden cross. The golden cross is a very strong bullish long-term signal.

Several stocks to watch this week

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NCB Financial stock closed at $110 after hitting $125 on Friday.

The main stocks of interest this week are Stationery and Office Supplies, CAC 2000, NCB Financial, Caribbean Cream, Main Event and Wisynco, most of these have limited supplies.
Barita Investments that was highlighted as a stock with main stock to watch this past week, moved $12.95, to end at $18.50 after it traded as high as $19.50. The movement in the price resulted in Cornerstone more than doubling their investment in the company within a short time frame. While it is not listed as a lead stock to watch this week, the stock has much more room to grow over the coming months as demand increases and supplies decline as the potential for much increased profit unfolds.
Bulls pushed the Jamaican stock market, to new heights last week, with the main market having 12 straight days of record highs and the Junior Market moving to new highs as well.
The main moved within 1,600 points of the All Jamaica Composite Index 400,000 points last week but pulled back from what is a major resistance point. The supply of several of the main market stocks are extremely scarce and that is working in market favour to move much higher, before too long. There are several stocks priced well below the market’s average and that could encourage buying interest in them as well.
Investors should keep their eyes on a number of stocks as some may move and others may trade in a narrow band. NCB Financial closed on $110, could move higher but there is a big gap between the offer prices and the bids and this seems likely to maintain volatility in the price for a while.
Grace Kennedy may not be ready to break out of the $60 range as yet but it’s a stock to keep an eye on. Caribbean Cement keeps trading between $46 to $50, but there appears no real desire to move the price forward. Kingston Wharves has just 9,700 units on offer up to $75, with 200,000 on the bid at $68.51, so it could move back to the $75 price this week. Supply of JMMB Group have dried up and that could create the environment for the price to move higher.
An overall view of stocks indicates that the main market continues to be steered higher by an upward sloping support line as well the 45 and 125 day moving averages, lending support just below, but the 400,000 points resistance could likely stall the rally in the main market for a while. The Junior Market that traded recently at an all-time high, is being steered by an upward rising long-term support line and a golden cross. The golden cross is a very strong bullish long-term signal.

Main Event & Stanley Motta in IC TOP 10

Main Event returns to IC TOP 10.

Main Event fell to $5.50 on Friday and climbed back into the Junior market IC TOP 10 stock listing, while Recently listed Stanley Motta climbed on board the main market list.
Moving on out of the top 10 are JMMB Group with a rise in the bid price to $32.70 and Caribbean Cream that closed the week at $7.90, from $6.50 last week. Both are worth watching for more gains in the coming week. Barita Investments and Berger Paints long time TOP 10 listees, moved up in price during the week but still remain in the list but could be out by the end of the coming week if current demand continues.
During the past week, the main market of the Jamaica Stock Exchange, racked up more record closes but pulled back on sharply on Thursday and Junior market hit new highs during the week but dropped sharply on Friday due mainly to Lasco Distributors falling to $3.35 and Express Catering dropping to $6.40 before rebounding at the close.
Gains in the two markets are driving the PE ratio of the market higher with the overall PE for the Junior Market rising to 14 and the main market to 14.5 as the valuation multiple grows with historically low interest rates and high liquidity abounding.
The PE ratio for Junior Market Top 10 stocks average 9.3 up from 8.9 last week, as the market continues to revalue the multiple higher and the main market PE is now 9.1, up from 8.8 last week, for the top stocks.
The TOP 10 stocks now trade at an average discount of 35 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings. The main market stocks trade at a discount of 38 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis based on new information received that can result in changes in and out of the list as well.

Barita is stock to watch this week

The main stock of interest this week is Barita Investments that came into buying interest this past week leading the price to move to $12.95, this one seems headed higher in the short term as the supply that  is on the market has been taken out with few stocks on offer now.
Bulls pushed the Jamaican stock market, to new heights last week, with the main market having 11 straight days of record highs and the Junior Market cleared the historical high reached in 2017, in the past week as well.
NCB Financial that was in the spotlight for the past two weeks, still has buying interest but seems to be having most bids around the $120 mark and may find it tough to break over the $130 mark where it traded during the past week.
While the stock is trading close the $130 mark in Jamaica, it is trading in Trinidad around J$115 and that may hold back the price from moving much higher locally until the price in the twin island state picks up. Scotia Group reported profit that showed gains, some of it was non-recurring income and exceptional foreign exchange gains that seems unlikely to repeat anytime soon.
While the supply of several of the main market stocks being scarce, the main market is just under 15,000 points from a major resistance level at 400,000 points and that could stymie much more movement in the short term, with some prices having moved quite a bit recently. There are several stocks priced well below the market’s average and that could encourage buying interest in them.

NCB stock closed at $129 on Friday.

Investors should keep their eyes on a number of stocks this week. NCB Financial that closed on $115, should move higher this week as demand continues to build and with limited supply on offer.
Grace Kennedy may not be ready to break out of the $60 range as yet but it’s a stock to keep an eye on. Caribbean Cement keeps trading between $46 to $50, but there appears no real desire to move the price forward. Kingston Wharves traded at a record high of $75 on limited volume in the past week but pulled back slightly to $72 at the close with a PE ratio of 46 is compared to a market average of 14.6. Supply of the stocks remain low, but some investors keep on buying. Sygnus Credit Investments picked up last week and moved back within a cent of the IPO price, buoyed by full year results of US$1.4 million. The PE ratio is 11.4, well below the market average of 14.6, that will encourage more interest in the stock. Jamaica Producers has very limited volume on offer and that could help buying at higher prices in spite of a PE of 28, twice the market average. Stanley Motta with a PE of 11 based on 2019 earnings has been recovering for the recent decline and is one to watch.
In the Junior Market, Indies Pharma, came in for continued buying that pushed the price to a record high of $4.10 on Friday against very limited supply. Some selling came into the market on Friday to ease the buying pressure on the price which could stick around the current level of $4 for a while. Bulls came in and bought out a big parcel of Access Financial that was on offer for weeks but the $50 level seems a barrier in the short term. Demand is building for Elite Diagnostic while supply has waned.

Jamaica Producers stock in demand in spite of high price.

General Accident could move higher as more demand comes in for it with limited selling, but investors may not want to be more aggressive with this stock at this time. If the company were to announce expansion into the Eastern Caribbean it may well make a difference.
Stocks with scarce supplies that could spring surprises include, Grace Kennedy, NCB Financial, Berger Paints, Caribbean Cement, Kingston Wharves, PanJam Investment, Sagicor Group, Salada Foods, Seprod and Scotia Group.
The Junior Market supplies continue to be limited for many of the listings. The list includes, Caribbean Flavours, Cargo Handlers, Derrimon Trading, Express Catering, General Accident, ISP Finance and Medical Disposables.
An overall view of stocks indicates that the main market continues to be steered higher by an upward sloping support line as well the 45 and 125 day moving averages, lending support just below, but the 400,000 points resistance could likely stall the rally in the main market for a while. The Junior Market now at an all-time high, is being steared by an upward rising long-term support line and a golden cross. The golden cross is a very strong bullish long-term signal.

NCB Financial still key stock to watch

NCB closed $2 higher on Friday.

Bulls pushed he Jamaican stock market, to new heights last week, with more gains expected this week with the strong likelihood that the Junior Market will clear the historical high reached in 2017..
NCB Financial played an important role in the market movement last week for the main market and Derrimon Trading chipped in for the Junior Market, these were not the only contributors to the gains in in the market last week.
Investors should keep their eyes on a number of stocks this week. NCB that closed on $115, should move higher this week as demand continues to build and with limited supply on offer. Scotia Group last trade was at $59.50 but the price could pull back before they release results for the July quarter on Wednesday. Those results could set the stage for price movements over the next few weeks. With PE ratios rising even a modest increase in profits could see the price moving into record territory.
Grace Kennedy may not be ready to break out of the $60 range as yet but it’s a stock to keep an eye on. Caribbean Cement keeps trading between $46 to $50, but there appears no real desire to move the price forward. Kingston Wharves closed the past week at a record high of at $68.50 and seems poised to move higher but the PE ratio of 44 is compared to a market average of 14, is scary. Supply of the stock remains low, with just two offers of 6,813 shares are displayed. Sygnus Credit Investments picked up last week buoyed by full year results in line with expectations of US$1.4 million. Demand should carry over into the current week and could lift the price further. Jamaica Producers has very limited volume on offer mostly in the higher $20 region while demand is building at $19 and just below.
In the Junior market, Indies continue with strong demand existing for the stock, with news of potential acquisition and new products, the stock is worth watching for more gains. Demand is building for Elite Diagnostics while supply has waned. General Accident could move higher as more demand comes in for it with limited selling, but investors may not want to be more aggressive with this stock at this time. If the company were to announce expansion into the Eastern Caribbean it may well make a difference.
Caribbean Flavours continues to slowly move higher and could do the same this week. There is no certainty the Derrimon Trading will rise any higher now that the price is in the mid three to four dollar level but must be watched. Medical Disposables, should be on the watch list for investors.
Stocks with scarce supplies that could spring surprises include Grace Kennedy, NCB Financial, Berger Paints, Caribbean Cement, Kingston Wharves, PanJam Investment, Sagicor Group, Salada Foods, Seprod and Scotia Group.
The Junior Market supplies continue to be limited for many of the listings. The list includes, Caribbean Flavours, Cargo Handlers, Derrimon Trading, Express Catering, General Accident, Caribbean Cream, Medical Disposables and Stationery and Office Supplies.
An overall view of stocks indicates that the main market continues to be steered higher by an upward sloping support line as well the 45 and 125 day moving averages, lending support just below. The Junior Market now at a 15 months’ high, is being steered by an upward rising long-term support line and a golden cross. The golden cross is a very strong bullish long-term signal.

3 new additions to IC TOP 10 stocks

Main Event is back in TOP 10.

The main market of the Jamaica Stock Exchange, racked up 6 consecutive days of record close on Friday, while the Junior market closed the week just 63 points short of the record close in 2017.
The gains in the two markets is driving the PE ratio of the market higher with the overall PE for the Junior Market rising from to 13 and the main market from 13.7 last week to 13.7 and 14 respectively, this week. Recent movement in the PE suggest that average PE for the market will end 2018 around 18 and 20 by the end of January as conditions continue to favour stocks as the preferred investment of choice along with real estate.
The Top 10 has three changes at the end of the week as movement in prices was the sole factor influencing the change. Caribbean Producers and Main Event dropped sharply in price on Friday and reentered the top list. While Caribbean Producers declined due partially to lower full year’s profit than was expected butt should recover as improved results for the 2019 fiscal year should be enhance with efficiency improvements, the sharp decline in the price from $7 to $5.20 of Main Event on modest volume of less than 7,000 shares is unclear, except for a bid gap between where some demand was and the offers. Access Financial and Fosrich Group dropped out of the Junior Market TOP 10 after rising in price and Sygnus Credit Investments having risen by 50 cents to $12.50 regained enough ground to be pushed out of the top list and allowed Berger Paints to return to the list.
The PE ratio for Junior Market Top 10 stocks average 8.7 up from 8.5 last week, as the market continues to revalue the multiple higher. The latest valuation compares to an average PE for the overall market of 13.7, based on 2018 estimated earnings. The main market PE is now 8.5 and is the same level as last week, for the top stocks, compared to a market average of 14.
The TOP 10 stocks now trade at an average discount of 36 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 39 percent to the market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis based on new information received that can result in changes in and out of the list as well.

NCB on high watch alert

The stock worth watching this week is NCB Financial Group that jumped last week to $110, a price last seen last year November. With limited supply for sale and the year-end approaching, this stock seems set for $150 by early 2019, if not before.
NCB Financial Group recorded net profit of $20.9 billion for the nine months ended June, with profit attributable to stockholders of $20.7 billion, for an increase of 40 percent over the prior year. The figure includes one off gains of $4.4 billion from acquisition of a subsidiary. Importantly, third quarter profits rose a strong 30 percent to $6.8 billion over the 2017 quarter.
Grace Kennedy is another of the main market stocks to keep an eye on as it slowly tries to move higher. The price of Caribbean Cement has been seesawing between $45 and $52, but in a bull market one never knows when the break will come. Kingston Wharves close with the bid at $61 to but 58,300 shares and last traded at $53. In the Junior market, Indies Pharma continues to scale new highs with strong demand existing for the stock. General Accident could move higher as more demand comes in for it, with limited selling.
Caribbean Producers has been trading well with an upward bias and could continue in this vein until full year’s results are released. Caribbean Flavours seems to be following it parent, Derrimon Trading and continues to rise on limited selling volume. Medical Disposable sold down during the past week and could recover in the coming days.
Regardless of what happens to individual stocks, there is little doubt that the summer rally is on for Jamaica stocks and is being helped by some good results for a number of the companies. The rally is expected to continue until year end barring any major negative development.

Kingston Wharves stock price sets to hit $61 

Stocks with scarce supplies that could spring surprises include, Barita Investments, Grace Kennedy, NCB Financial, Berger Paints, Caribbean Cement, Kingston Wharves, PanJam Investment, Sagicor Group, Salada Foods, Seprod and Scotia Group. The main market is not the only segment with limited supplies. The Junior Market supplies continue to be limited for many of the listings. The list includes, Blue Power, Caribbean Flavours, Cargo Handlers, Caribbean Producers, Derrimon Trading, Express Catering, General Accident, Caribbean Cream, Medical Disposables, Stationery and Office Supplies and tTech.
An overall view of stocks indicates that the main market continues to be steered higher by an upward sloping support line as well the 45 and 125 day moving averages, lending support just below. The Junior Market now at a 15 months’ high, is being steered by an upward rising long-term support line and a golden cross. The golden cross is a very strong bullish long-term signal.

Just 1 new addition to IC TOP 10

The bullishness continued on Jamaica Stock Exchange, driving the main market to more record highs and hitting more than 352,000 points on Friday, while the Junior Market traded at a 15 months’ high.
Half year earnings season is almost over with only Jamaica Broilers and Scotia Group left to report for the main market. Some results were excellent and most were okay, confirming what was already telegraphed to investors by earlier results. Regardless, with interest rates now under 2 percent for short term government and the central bank’s instruments, the bull market is clearly on. The chronic shortage of many of the stocks continue to put upward pressure on prices and moving the PE ratios higher as well.
Medical Disposables is the only new addition this week, to the TOP 10 coming at the expenses of FosRich Group as the price of the former, dropped to $5.10 from $6.40 at the end of the past week. General Accident has been at the top of the Junior Market list for a long time, enjoyed a bounce in the price to $3.80 by the end of the week, helped by half year results that showed profit rising from $8 million in 2017 to $95 million in the half year, with the quarter up from a loss of $9 million to a profit of $66 after tax. IC Insider.com also down graded earnings for the full year to 45 cents per share and the stock now sits at 6th spot in the list. The PE is just 8.4 and will go higher.
The PE ratio for Junior Market Top stocks averages 8.4 up from 7.9 last week, as the market continues to revalue the multiple higher. The latest valuation compares to an average PE for the overall market of 13, based on 2018 estimated earnings.The main market PE is now 8 for the top stocks, compared to a market average of 13.5, a good indicator of the level of undervaluation of these stocks. Work done by IC Insider.com suggests that the PE ratio is likely to end 2018 around 16 or 17 times earnings, as investors continue to gradually upgrade the multiple they are prepared to pay for stocks, which would lift prices sharply over the next several months from current levels. In addition, the latest Treasury bill offer saw rates dropping to 1.7 percent on the 91 days instrument and 1.88 percent on the 182 days instrument. These rates suggest more funds will be going into stocks as liquidity remains high.
The TOP 10 stocks now trade at an average discount of 35 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 40 percent to the market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis based on new information received that can result in changes in and out of the list as well.