IPO closure lifts ICTOP10

The Jamaica Stock Main Market recorded gains to close out the past week on a positive note, but the performance only resulted in moderate changes in prices of ICTOP10 Main Market stocks, the Junior Market Index was flat compared with the prior week but resulted in some sizable price changes with one stock dropping out of the TOP10 as the Initial Public offer of Regency Petroleum shares was oversubscribed and closed and liquidity started returning to the market.
Access Financial dropped out of the Junior Market TOP10 after rising 11 percent for the week in making way for Medical Disposables to return.
Unlike last week when seven Junior Market TOP10 stocks declined between 3 percent and 20 percent, with only one rising this week. Rising stocks dominated, with five gaining 3 percent or more while three declined. CAC2000 ordinary share fell 15 percent to $7.06, Iron Rock Insurance was down 5 percent to $2.18 and Dolphin Cove lost 3 percent to close at $13.13. In the Junior Market, Paramount Trading recovered some of last week’s loss by rising 13 percent to $1.71, Lasco Financial popped 11 percent to close at $3, while Elite Diagnostic rose 4 percent to $3.49.
The Main Market 10 had just two stocks rising for a second week and six declining between four and nine percent last week. This past week, four rose 2 percent and 3 percent.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.7, well below the market average of 13.4. At the same time, the Junior Market Top 10 PE sits at 5.9 versus the market at 12, an important indicator of the level of undervaluation of the ICTOP10 stocks. The Junior Market is projected to rise by 246 percent and the Main Market TOP10, an average now of 269 percent, to May 2023.
The Junior Market has 12 stocks representing a third of the market, with PEs from 15 to 35, averaging 20 compared with the above average of the market. The top half of the market has an average PE of 17. This data shows the extent of potential gains that the TOP 10 stocks possess. The situation in the Main Market is similar, with the 16 highest valued stocks priced at a PE of 15 to 73, with an average of 24.7 and 21.7 excluding the highest valued one and 19 for the top half excluding the highest valued stock.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Regency IPO opens on Thursday for a $1

Regency Petroleum Co. Limited a company based in Westmoreland is offering up to 287,157,354 Ordinary Shares for sale at $1 each. The offer opens on Thursday, November 24 and should bring the total Junior Market listings to 48 and the number of companies to 47. Only 115,196,354 shares will be available to the public.
The company reported revenues of $332 million in the half year results to June this year, up from $248 million in 2021, with profit after tax of $51 million compared with $35 million in 2021, putting the earnings per share for this year at 98 cents, with the PE at 10 times this year’s pretax earnings versus the Junior Market average of just over 12, but below the peak of recent new issues of approximately 20. ICInsider.com expects the offer to close quickly after opening and the price to soar into the $2 range after listing.
Revenues for the 2021 fiscal year were $607 million a big jump from $194 million in 2020 and just $45 million in 2019, with a profit of $59 million in 2021, after taxation of $18 million, up from $14 million with taxation of $3 million in 2020.
The company’s operations span Jamaica as a petroleum marketing company licensed to distribute bulk petroleum products. The company was founded by Andrew Williams, Chief Executive Officer. Revenues are currently generated from sales of LPG Cooking Gas, Automotive Petroleum and Transportation of gasoline.
Revenues are set to climb in 2023 with the ongoing construction of two service stations which should be open to the public by the end of the March quarter of next year, the company stated in its prospectus. A service station to be opened in Negril, which Regency will lease, is located upon entering the town from the east, will increase the visibility of the brand and generate additional revenues and profit. In addition, the company is likely to see increased business due to the exposure from the IPO and trading in the shares after listing on the exchange.
The company states that it has purchased delivery vehicles to reduce costs and improve efficiency and create greater economic value in the future. Currently, only 90 Octane Fuel and Diesel are sold at the service station, the opening of the new service stations will see the introduction of ULSD and 87 Octane Fuel at the pumps. The new products should attract added demand and provide a more inclusive retail market product line.
Expansion plans call for the purchase of additional cylinders to supply increased demand for its cooking gas to reduce cost of sales and improve efficiency, the Company will also acquire a fuel tank trailer, the prospectus states.
Of the total issue 171,961,000 shares are reserved as follows – 55.5 million for Employees & Key Strategic Partners, 100 million for GK Investments to convert loan balance and 16.46 million for Associates Loan Conversion.
The company is relatively small, with Shareholders’ Equity of $111 million at the end of June this year, accordingly, there is much room for growth going forward.
The directors of the company are Dr André Foote, Andrew Williams, Andrew Cocking, Radcliff Knibbs and Edgar Bennett.

Regency, Lasco Financial &138SL Stocks to Watch

Regency Petroleum is added to the Stocks to Watch following the release of its prospectus On Thursday with an issue price of $1, with the possibility of the price hitting over $2 initially. Palace Amusement is dropped for the time being with the company reporting improved results in the September quarter but still ending with a loss, but investors should be on the lookout for good things from the stock in the future as it continues to make headway to recovery.
Barita Investments and Consolidated Bakeries are removed from the list at this time with recent results suggesting that they are unlikely to move higher in the short term.
ICInsider.com watch list comprises Access Financial, Caribbean Assurance Brokers, Dolphin Cove, Caribbean Producers, Elite Diagnostic, Everything Fresh, General Accident, Guardian Holdings, Jamaica Broilers, Key Insurance, Knutsford Express, Lasco Distributors, Lasco Financial, Lasco Manufacturing, Medical Disposables, NCB Financial, 138 Student Living, One on One, Paramount Trading, Regency Petroleum, Scotia Group, Stationery and Office Supplies and Wisynco.
Major factors to consider going forward. The rebound in tourist arrivals only came back to 2019 levels since June. Providing there are no reversals, then companies who are highly dependent on the sector will enjoy a big bounce for the next nine months compared to the lower business generated since last year to April this year. The same applies to the entertainment industry as the sector only opened up after March this year. Banks will make a fortune from increased interest rates.

Persons who compiled this report may have an interest in securities commented on.

Lasco Financial & 138SL now Stocks to Watch

Add your HTML code here...

Lasco Financial and 138 Student Living are added to the Stocks to Watch list following release results recently showing increasing profits over 2021, both stocks are on the ICInsider.com TOP10 list.
ICInsider.com watch list comprises Access Financial, Barita Investments, Caribbean Assurance Brokers, Consolidated Bakeries, Dolphin Cove, Caribbean Producers, Elite Diagnostic, Everything Fresh, General Accident, Guardian Holdings, Jamaica Broilers, Key Insurance, Knutsford Express, Lasco Distributors, Lasco Manufacturing, Medical Disposables, NCB Financial, One on One, Palace Amusement, Paramount Trading, Scotia Group, Stationery and Office Supplies and Wisynco Group
Major factors to consider going forward. The rebound in tourist arrivals only came to 2019 levels since June. Providing there are no reversals, then companies who are highly dependent on the sector will enjoy a big bounce for the next nine months compared to the lower business generated since last year to April this year. The same applies to the entertainment industry as the sector only opened up after March this year. Banks will make a fortune from increased interest rates.

Persons who compiled this report may have an interest in securities commented on.

Lasco Financial heads Junior Market TOP10

Iron Rock Insurance rose 23 percent for the past week after closing at $2.72. It exited ICInsider.com TOP10 of Junior Market stocks while Lasco Financial climbed back into the top list to be the stock likely to gain the most into the first half of 2023, with 268 percent, at the same time, Key Insurance gained 8 percent to close the week at $3.76, enough to push it from the TOP10 to be replaced by Radio Jamaica that dropped to $1.81 on Friday.
Following Lasco Financial half year results, with profit up 26 percent in the September quarter, earnings for the full year were raised from 40 cents to 50 cents, with the company resuming growing the loan portfolio. Lasco Manufacturing released six months of results to September that rose 23 percent in the quarter, an improvement over the first quarter and retains earnings previously projected.
The past week ended with the Junior Market moving modestly higher, as it continues to consolidate ahead of a break that is poised to move it sharply higher, with third quarter results to start hitting the market in droves this week and next. The Main Market also closed marginally higher at the week’s end than the previous one.
The Junior Market rise during the week benefitted from three of the top 10 stocks gaining between 5 percent and 23 percent with only one decline of note. The Main Market’s highest loser fell 4 percent, while four stocks gained 4 to 8 percent.
Other notable price changes during the week include Dolphin Cove, with an increase of 8 percent to $14 and Paramount Trading, up 5 percent to $1.99, while Lasco Manufacturing declined 9 percent to close the week at $3.85 in the Junior Market and in the Main Market, Productive Business Solutions rose 6 percent to $1.38, Guardian Holdings jumped 5 percent to $519 following the release of impressive nine months results and VVM Investments popped 5 percent to $4.80 while Caribbean Producers slipped 4 percent to $13.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 13.6. At the same time, the Junior Market Top 10 PE sits at 5.9 versus the market at 12.6, an important indicator of the level of undervaluation of the ICTOP10s tocks. The Junior Market is projected to rise by 243 percent and the Main Market TOP10 by an average of 256 percent by May 2023.
The Junior Market has 14 stocks representing a third of the market, with PEs from 16 to 38, averaging 22 compared with the average of the market. The top half of the market has an average PE of 18.5. This data shows the extent of potential gains that the TOP 10 stocks possess. The situation in the Main Market is similar, with the 15 highest valued stocks priced at a PE of 15 to 80, with an average of 25 and 22 excluding the highest valued one and 21 for the top half excluding the highest valued stock.
ICTOP10 focuses on likely yearly winners. Accordingly, the list includes some of the best companies in the market but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Medical Disposables now a Stock to Watch

One on One Education climbed 11.4 percent during the past week to close at $1.66 following addition to the Stocks to Watch list while Knutsford Express climbed back to close at $9.10 from $8 at the end of the previous week and hit a new 52 weeks’ high of $9.75 on Thursday.

Medical Disposables

Medical Disposables dropped out of the ICTOP10 into the Stocks to Watch, but this publication gathers that the half year results due out by next week will continue to reflect increased cost outpacing the rise in sales. ICInsider.com forecast is for increased profits for the year to March 2023 at 75 cents per share which is likely to eventually push the stock price higher and trigger a stock split in 2023.
Buffetted by the closure of the entertainment business in 2020, Palace Amusement had another tough two years, with the 2022 fiscal year ending with a loss of $257 million, down from a loss of $383 in 2021. The improved result was mainly occasioned by a small profit of $12 million in the final quarter as revenues climbed to $275 million in the fourth quarter bettering the $106 million generated in all of the 2021 fiscal year. Revenues in the fourth quarter were well up on the third quarter with $142 million. The much improved June quarter revenue is still some distance from the $338 million generated in the June 2019 quarter, with a profit then of $36 million, but the 2022 results suggest that the company is not far from getting back to normal levels and if so could boost the stock price, currently in the $800 range and by far the highest priced ordinary share on the market currently.
ICInsider.com watch list comprises Access Financial, Barita Investments, Caribbean Assurance Brokers, Consolidated Bakers, Dolphin Cove, Caribbean Producers, Elite Diagnostic, Everything Fresh, General Accident, Guardian Holdings, Jamaica Broilers, Key Insurance, Knutsford Express, Lasco Distributors, Lasco Manufacturing, Medical Disposables, NCB Financial, One on One, Palace Amusement, Paramount Trading, Scotia Group and Stationery and Office Supplies.

Palace Portmore cinema

Based on recent releases of quarterly results Caribbean Assurance Brokers should be releasing nine months’ results this week that should reflect record earnings, which could move the stock price. The same goes for Lasco Distributors and Lasco Manufacturing and Stationery and Office Supplies should report nine months’ results around November 11.
Major factors to consider going forward. The rebound in tourist arrivals only came back to 2019 levels since June. Providing there are no reversals, then companies who are highly dependent on the sector will enjoy a big bounce for the next nine months compared to the lower business generated since last year to April this year. The same applies to the entertainment industry as the sector only opened up after March this year. Banks will make a fortune from increased interest rates.

Persons who compiled this report may have an interest in securities commented on.

Promise for Junior Market TOP10

In a week when Junior Market made a modest move higher, as it looks well positioned to break sharply higher, with third quarter results hitting the market in droves beginning this week, the Main Market closed at its lowest level since the year of covid-19, at the start of September 2020, but may not be far from bottoming.

Junior Market with wedge formation that looks poised to break sharply higher.

NCB Financial dropped to a 52 weeks’ low of $80 during Friday’s trading and was the main factor in the market two year low.
This week, Medical Disposables earnings were downgraded to a respectable 75 cents, which is inadequate to keep it in the ICTOP10 but remains a strong buy for investors to enjoy growth. Lasco Manufacturing rejoins the Junior Market ICTOP10.
Even as the junior market rose during the week, three of the top 10 stocks declined between 5 percent and 11 percent with no increases of note. The Main Market’s highest losers fell 7 percent, with no significant gains in the market listing.
Price changes worth noting include iron rock insurance, with an 11 percent fall to $2.22, followed by  General Accident with a decline of 10 percent to $4.55, Paramount Trading lost 7 percent to $1.90. Caribbean Cream declined 6 percent to close the week at $3.86 in the Junior Market and in the Main Market, VVM Investments fell 7 percent to $4.60 while Productive Business Solutions slipped 6 percent to $1.30. JMMB Group was down 5 percent to $36.20.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of13.5, while the Junior Market Top10 PE sits at 5.6 versus the market at 12.9 , important indicators of the level of undervaluation of the ICTOP10stocks. The Junior Market is projected to rise by 243 percent and the Main Market TOP10 by an average of 256 percent to May 2023.
The Junior Market has 15 stocks representing a third of the market, with PEs from 15 to 39, averaging 22 compared with the above average of the market. The top half of the market has an average PE of 18.5. This data shows the extent of potential gains that the TOP 10 stocks possess. The situation in the Main Market is similar, with the 14 highest valued stocks priced at a PE of 16 to 76, with an average of 26 and 22 excluding the highest valued one and 21 for the top half excluding the highest valued stock.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

CPJ drops to 3rd on Main Market TOP10

In a week when Junior Market made a modest move higher, the Main Market closed lower, and resulted in no new entrants into the IC top 10 lists, in a week when three stocks gained 10 percent or more and one with a 6 percent increase, with no significant declines.
Price changes worth noting include, Medical Disposables with a 12 percent rise to $5.79, Paramount Trading up 10 percent to $2.04 and Caribbean Assurance Brokers rising 6 percent to close the week at $2.59 in the Junior Market and Caribbean Producers gaining 11 percent to close the week at $13.93, to move from number one spot last week to third this week and Key Insurance rising 4 percent to $3.64 in the Main Market. Caribbean Cream earnings per share were reduced to 70 cents for the year to February from 80 cents previously.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 13.7. At the same time, the Junior MarketTop 10 PE sits at 5.8 versus the market at 12.5, essential indicators of the level of undervaluation of the ICTOP10 stocks. The Junior Market is projected to rise by 248 percent and the Main Market TOP10 by an average of 247 percent by May 2023.
The Junior Market has 14 stocks representing a third of the market, with PEs from 15 to 36, averaging 21 compared with the above average of the market. The top half of the market has an average PE of 18. This data shows the extent of potential gains that the TOP 10 stocks possess. The situation in the Main Market is similar, with the 15 highest valued stocks priced at a PE of 16 to 78, with an average of 26 and 22 excluding the highest valued one and 18 for the top half excluding the highest valued stock.
Currently, the Junior Market reflects a positive positioning and is poised to move higher in the weeks ahead. The recent negative clouds that hang over the main markets seem to be lifting, with the market index slowly bouncing off recent lows.
ICTOP10 focuses on likely yearly winners. Accordingly, the list includes some of the best companies in the market but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Dolla & OneonOne added to Stocks to Watch

Caribbean Producers gained 11 percent in the past week and slipped to the number 3 spot in ICInsider.com top 10 Buy Rated stocks list. Knutsford Express climbed to a 52 weeks’ high of $9.50 during the week but closed at $8 on Friday and Paramount Trading 10 percent to $2.04.

Caribbean Producers

Dolla Financial and One on One are added to the list this week. Although the nine months’ results for Dolla Financial show only 7 cents per share earnings, ICInsider.com expects the company to post a robust fourth quarter to push earnings to 20 cents per share. There are two points of note about the results. They were constrained by cash to increase loans much beyond what they did, but the $1.5 billion bond raise will alleviate this constraint, the troubling issue is that while Interest Income amounted to $453 million for the nine months, they only collected $367 million, a sharp variation from previous periods when the vast majority was contained within the period.
One on One full year results are due soon and it will be interesting to see if they beat the projections they gave at the time of the initial public offer. Regardless, the price is back at $1.50, in line with the lower end of the range ICInsider.com suggested at the time of the IPO. The company projected revenues to hit $334 million by the end of the financial year to August with pretax profits of $105 million, equating to pretax earnings per share of 7 cents. The earnings work out at a PE ratio of 21, just well above the market average of 12.6, but profits going forward for the new fiscal year could result in a fall in the Ratio.
ICInsider.com watch list comprises now Access Financial, Barita Investments, Caribbean Assurance Brokers, Consolidated Bakers, Dolphin Cove, Caribbean Producers, Elite Diagnostic, Everything Fresh, General Accident, Guardian Holdings, Jamaica Broilers, Key Insurance, Knutsford Express, Lasco Distributors, Lasco Manufacturing, NCB Financial, One on One, Paramount Trading, Scotia Group and Stationery and Office Supplies.
Street News has it that Stationery and Office Supplies continues to churn out record revenues and profits during the third quarter of the year. The company is now subject to taxation at 50 percent of the regular rate for the final five months of the year, having been listed for five years to August, accordingly, ICinsider.com revised the forecast for 2022 to $1.35 from $1.50. The company should report nine months’ results around November 11.
Significant factors to consider going forward. Based on recent releases Caribbean Assurance Brokers should be releasing nine months’ results this coming week to reflect record earnings, which could move the stock price. The same goes for Lasco Distributors and Lasco Manufacturing. The rebound in tourist arrivals only came back to 2019 levels since June. Providing there are no reversals, companies highly dependent on the sector will enjoy a big bounce for the next nine months compared to the lower business generated from last year to April this year. The same applies to the entertainment industry,y as the sector only opened up after March this year. Banks will make a fortune from increased interest rates.

Persons who compiled this report may have an interest in securities commented on.

Stocks to Watch backed by strong results

Recent release of company results this past week confirms they are on the stocks to watch list, with Caribbean Producers reporting J$1.05 in earnings per share for the year to June, with tourism traffic at just 78 percent of 2019 for the 12 months to June this year.

Knutsford Express reported 17 cents per share and seems set to reach IC insider.com’s forecast of $1 per share for the current fiscal year and Paramount Trading, with earnings per share of 5.4 cents for the August quarter, is seemingly poised to reach our forecast of 30 cents per share for the fiscal year ending May 2023.
ICInsider.com watch list now comprises Access Financial, Barita Investments, which may be overvalued currently, but it’s a favourate of many investors, Caribbean Assurance Brokers, Consolidated Bakeries, Dolphin Cove, Caribbean Producers, Elite Diagnostic, Everything Fresh, General Accident, Guardian Holdings, Jamaica Broilers, Key Insurance, Knutsford Express, Lasco Distributors, Lasco Manufacturing, NCB Financial, Stationery and Office Supplies, Paramount Trading, now back in ICInsider.com TOP10 and Scotia Group.

Paramount

Significant factors to consider going forward. The rebound in tourist arrivals only came back to 2019 levels since June, with September around 17 percent higher. Providing there are no reversals, companies highly dependent on the sector will enjoy a sizable bounce for the next nine months compared to the lower business generated from last year to April this year. Banks will profit from increased interest rates, and insurance companies will enjoy increased interest revenues. The same applies to the entertainment industry, as the sector only opened up after March this year.

Persons who compiled this report may have an interest in securities commented on.