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 should continue to keep eyes on Fontana, Honey Bun, Jamaica Producers and Sagicor Group.
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.
