Jam Teas, Blue Power & Wisynco in TOP 10

In a week of big price movements in the market three new stocks moved into the TOP 10 at the close of the last week. Wisynco that IPO debut this week just makes it into the main market TOP 10, suggesting there should be some gains ahead.
The bulk of Wisynco’s gain should come in the latter part of 2018 based on current operations that should deliver earnings of 70 cents for the current year and $1 for the next fiscal. Blue Power slipped in price to re-enter the top Junior Market list while Jamaican Teas rose based on fall in price and estimated earnings for 2018 fiscal year. Out of the TOP 10 Junior Market, are Derrimon Trading and Main Event that rose to $6. Wisynco pushed Pulse Investments out of the main market TOP 10.
At the close of Friday, the average PE ratio for Junior Market Top stocks dropped sharply from 9.2 last week to at 8.1 and a PE at 8.5 for the main market TOP 10. The average PE for the overall main market is 14.3 and 12.9 for Junior Market, based on 2017 estimated earnings.
At the close of the week, discount for both the main and Junior markets have virtually merged, with the IC Insider.com’s TOP 10 stocks now trading at an average discount of 42 percent to the average of the market for Junior Market Top stocks and 43 percent for the main market.
Market Watch| The two markets retreated sharply and broken through support levels with some individual stocks pulling back and pushing the market index down markedly. This week the focus could be on the three IPOs that opening in days.
Investors should still keep a keen eye on Caribbean Cement for which supply seems to be declining fast, Cable & Wireless that appears scarce under $1, NCB Financial, Berger Paints, JMMB Group, Main Event, Lasco Financial, Paramount Trading and Stationery and Office.

Kremi & Jamaican Teas in TOP 10

Main Event rose in price and Medical Disposables (Meds) dropped out of the TOP 10 and were replaced by Caribbean Cream and Jamaican Teas.
Main Event rose from $5.50 to $5.75 on Friday, enough to lift them out of the Top list. Earnings at Meds were lowered with the release of the 6 months results with a 21 percent increased sales, in the September quarter but a reduction in profit margin and net profit.
JMMB Group rose from $29.50 to a record close of $30.50 and is sitting at the lower end of the main market list. Grace Kennedy reported good September quarter results, excluding one off gains while Berger Paints‘ six months results show revenues for the September quarter rising 21 percent and profit is up approximately 70 percent when the cost associated with the offer from Ansa Coatings offer is taken out. Berger traded to close on Friday at $15 and is one to watch in the week.
This coming week should see a raft of company results that could shake up the top 10 in both markets. On Friday Lasco Financial, a former TOP 10 stock, reported profit that more than doubled in September quarter to $100 million and up 63 percent to $167 million for the six months. These results could encouraged increased buying in the stock.
At the close of Friday, the average PE ratio for Junior Market Top stocks is at 9.1 and a PE at 7.3 for the main market TOP 10. The average PE for the overall main market trades at 14 and 13.7 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 39 percent to the average of the market for Junior Market Top stocks and 48 percent for the main market.
Market Watch| Investors should keep a keen eye for Caribbean Cement, Cable & Wireless that is expected to post improved profit in the latest quarter from increasing revenues, NCB Financial, Berger Paints, Jamaica Broilers, JMMB Group, Access Financial, General Accident that is expected to benefit from a rise in premium rates, Lasco Financial, Paramount Trading and Stationery and Office.

Stationery & Office Supplies back in TOP 10

Stationery & Office Supplies back in IC Insider.com TOP 10

There is just one change in and out of the IC Insider.com TOP 10. Lasco Distributors dropped out, resulting from the Judge’s ruling in their claim against Pfizer, suggesting that damages will be substantially lower than the amount claimed.
Lasco is replaced by Stationery and Office Supplies returning after just one week out of the top list. The company should report results for the nine months during the coming week. BUY RATED Caribbean Cement that was expected to exit the top list during the past week remains with the price retreating to close the week at $31 as investors failed to follow through on the pick up in price in the prior week in response to the third quarter results to September. Berger Paints also slipped back, with the price falling from $17 last week to end at $14 this past week, but it traded during the week as high as $18.
At the close of Friday, the average PE ratio for Junior Market Top stocks is at 8.4 and a PE at 7.3 for the main market TOP 10. The average PE for the overall main market At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 43 percent to the average of the market for Junior Market Top stocks and 48 percent for the main market.
Market Watch| Investors should keep a keen eye for, Cable & Wireless that is expected to post improved profit in the latest quarter from increasing revenues, NCB Financial, Berger Paints that should release September results early this week, Jamaica Broilers, JMMB Group, Access Financial, General Accident that is expected to benefit from a rise in premium rates, Paramount Trading after the company announced new expansion into chlorine and bleach production and Stationery and Office with September results early this week.

Cement to head out of TOP 10

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Caribbean Cement increased sales by 14% in Q3 2017.

IC Insider.com BUY RATED Caribbean Cement that showed all the signs of a big pay day is set to break out of the TOP this coming week as investors belated respond to this year’s results.
The company posted earnings of 88 cents for the September quarter, from a 15 percent increase in volume sales and should earn over $3 per share for 2017 and seems set to earn more than $4 in 2018 as it benefits from an upsurge in construction activity that will accelerate next year. The stock climbed to trade at a 52 weeks’ high of $40 on Friday, but closed at $36.10, a strong 33 percent ahead of the close of the previous week. Berger Paints is up 21 percent from last week’s close and is heading higher with very good prospects for increased profits this fiscal year and the next, as construction activity continues to benefit from increased demand, helped by falling interest rates that will make home ownership less costly than before.
Pulse Investments dropped out of the Top tier and Cable and Wireless has returned, the next set of results should help to move this stock higher. The Junior Market saw one change with Main Event entering, just edging out Stationery and Office Supplies.
The main market enjoyed the fourth consecutive weekly record close, driving the All Jamaica Composite Index to a record 321,000.17. The market is well clear of resistance around 300,000 points on the all Jamaica Index and continues heading to the next major resistance at the 360,000 points range, on its way to the 500,000 points mark in 2018.
At the close of Friday, the average PE ratio for Junior Market Top stocks is at 8.3 and a PE at 8 for the main market TOP 10. The average PE for the overall main market trades at 14.2 and 13.8 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 40 percent to the average of the market for Junior Market Top stocks and 44 percent for the main market.
Market Watch| Investors should keep a keen eye for Caribbean Cement, Cable & Wireless, NCB, Berger Paints, Jamaica Broilers, JMMB Group, Access Financial, General Accident, Paramount Trading and Stationery and Office.

NCB jumps TOP 10

NCB Financial Group closed at a record $107 on Friday.

 NCB Financial returned to the main market list last week, but with a jump of $16 to $107 during the week, it ii no longer in the top list.
Barita Investments traded up to $9 and is now out of the listing. Pulse Investments and Seprod replaced NCB and Barita as the main market of the Jamaica Stock Exchange closed at new record high on Friday, the third consecutive week of record close, driving the All Jamaica Composite Index 313,990.54.
While the main market is making new highs, with gains of 49 percent for 2017, the junior market with gains of just 12 percent at the end of the previous week is now up 17 percent as the market moved higher for the past week helped by strong results by Paramount Trading, Express Catering and increased buying of Stationery and Office Supplies that pushed the price to $5.50 to sit at 10th spot and could well be off the list by the end of the coming week.
The Junior Market list had no movement in or out in the past week. Trading in Berger Paints shares recommenced on Tuesday, after just 6.6 million units were sold by investors in response to the buyout offer by Ansa Coatings at $10.88 per share with the price closing at $14 on Friday and seemingly poised to rise further during the coming week as investors attempted to trade it at $17 which was outside the daily price limit of 30 percent above the last price. The stock has much room to climb, with the March 2018 full year’s earnings that should hit $2.30 per share.
The main market blast well clear of resistance around 300,000 points on the all Jamaica Index and heading much higher to the next major resistance at the 360,000 points range.
At the close of Friday, the average PE ratio for the Junior Market Top stocks is at 8.1 and a PE at 7.5 for the main market TOP 10. The average PE for the overall main market trades at 13.9 and 13.8 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 41 percent to the average of the market for Junior Market Top stocks and 45 percent for the main market.
Market Watch| Investors should keep a keen eye for NCB, Berger, Jamaica Broiler, General Accident, Paramount Trading and Stationery and Office.

Access & NCB in TOP 10

NCB Financial Group enters TOP 10

The main market of the Jamaica Stock Exchange closed at new record high on Friday, the seond week in a row that it doing so and in the process the all Jamaica Composite Index broke the 300,000 mark for the first time.
While the main market is making new highs, with gains of 43 percent for 2017, the junior market with gains of 30 percent at its peak this year, is now up just 12 percent for the year to date. Access Financial returned to the Junior Market list and NCB Financial to the main market list even as the latter price moved back to $91 at the end of the week and with just 33,603 units being offered for sale.
Suspension of the trading in Berger Paints shares is expected lifted on Tuesday, October 17. At the time of this report, no information was available on the level of take up of the buyout offer for the minority of the company’s shares by Ansa Coatings. The stock that traded at $11.25 when trading was suspended, should climb with the March 2018 full year’s earnings should hit $2.30 per share.
Investors continue to switch attention from Junior Market, to main market stocks, with the latter having pierced resistance around 300,000 points on the all Jamaica Composite Index could now be heading much higher as it moves on to the next major resistance at 360,000 point range on or before the end of the year.
At the close of Friday, the average PE ratio for the Junior Market Top stocks is at 7.9 and a PE at 7.1 for the main market TOP 10. The average PE for the overall main market trades at 13.5 and 13.1 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 40 percent to the average of the market for Junior Market Top stocks and it remains at 47 percent for the main market.

Jamaican stocks shooting for the stars

NCB could push JSE into breakout territory soon.

The JSE All Jamaican Composite Index raced to a record close of 300,363.16 on Friday, just around resistance level.
The market seems poised to break through the above level sooner than later.
This resistance is a short term one, going back to 2014, when the market started to move up within the channel shown in the accompanying chart. The market made a number of attempts to break out but was constrained by the upper resistance line. It is now making the second attempt to do so within a month and could finally do that, this coming week if NCB Financial makes its final attempt to really move higher in line with its fundamentals, with full year results that should at least reach $9 per share and the announcement of a big final dividend payment, just a few weeks away. Supporting the upward move is the shortage of the stock with only 33,603 units offered for sale at the close of the market on Friday. At the same time the stock trades in Trinidad at J$100.

Th all Jamaica Composite Index trades jsut at resistance and is itching to break out of the channel going back to 2014.

The market decisively broke through the long term resistance of 280,000 points, starting in Mid-September. The resistance line can be traced back to late 1994 and the then 2015 peak, signaling that a big move is ahead as there are no major resistance until the 360,000 market and then 505,000 depending on the pace of the market move.
The technical indicators point to a market that is clearly heading higher with the fundamentals lending support to the technical. The all Jamaica Composite Index has decisively broken through the long term resistance of 280,000 points, starting in Mid-September and heading to higher highs.
The fundamental factors include and growing economy, interest rates that are declining, low inflation, business and consumer confidence that are at record highs, employment on the rise, construction, tourism and the mining sectors growing and likely to have some direct impact on listed companies.

The market decisively broke through the long term resistance of 280,000 points, starting in Mid-September and now has no long term barrier to push much higher.

Bank leading is climbing well above the rate of inflation a good indicator for pickup in economic activities. Government fiscal operations are running with a surplus currently. The wayward Jamaica dollar seems to be tamed with the currency now at a slightly lower value than at the end of 2016. Importantly, there are few areas that can now compete well with the stock market.
Also supporting the rise higher is the fact that the average PE ratio of the main market is over 13, with the top half selling at 16.5, with more than half of the market priced 11 times and below, suggesting big gains ahead for underpriced stocks. The list includes big capitalized stocks such as Caribbean Cement, Grace Kennedy, Jamaica Broilers, JMMB Group, Sagicor Group, NCB Financial and Scotia Group.

Big run for Jamaican stocks coming

JSE Main market showing next major resistance around the 360,000 point level on the al Jamaica Index

The current state of the Jamaican stock market in one of contrast with the main market hitting 5 days of record close and with gains of 40 percent for the year to date and Junior Market that was up 31 percent in May is now up just 14 percent.
With stability present in the forex market for the Jamaican dollar, lower interest rates being paid on money market funds and with business confidence at record high levels, funds are now moving into the main market stocks with less interest being shown in the Junior Market.
Prices in the US dollar market have come off, after the index was up 63 percent at 268.73 points in February, up from 164.50 at the start of the year, but it is only up 12 percent now with the index at 184.86 points at the close of trading on Friday.

Jamaica Main market stocks itching to break out of channel that stretches back to 2014

The Junior Market was driven up by excessive buying that drove a number of the stocks to excessive valuations which the market has been correcting for, resulting in the sharp pull back from the all-time high, even then there are some that are still overvalued based on the average valuation of other stocks. The market still has several undervalued stocks but the focus on the bigger and more liquid main market is sucking some energy from the junior ones.
Based on estimated 2017 earnings, the average PE of the junior and main markets are just over 13 times earnings. The main market has more than half of the market trading below this level. Included in the list are Berger Paints with a PE of just 5, Caribbean Cement at 6, Jamaica Broilers 7, JMMB Group at 8, Grace Kennedy, NCB Financial and Sagicor Group at 10. The market has Jamaica Producers selling at 32 times 2017 earnings and Kingston Wharves at 27 times earnings with Kingston Properties at a rich 36 times and are clearly overvalued currently. Jamaica Stock Exchange and 138 Student Living at 22 are well ahead of the market average.

Junior Market under pressure, testing support around 2,900 points.

In the Junior Market Medical Disposables is priced at 6 times earnings, General Accident 6, Caribbean Producers 7, Stationery and Office Supplies, Caribbean Cream and Main Event at 10. Just under half of Junior Market stocks are trading blow the market average with about 25 percent well above the average.
Technical reading| The main market broke through major resistance for the second time since September at 290,000 points, that has its genesis in 1992 and connecting in 2005. The market faces some short term resistance around 300,000 points which should be broken through before long ahead of moving to the next sort term resistance around 360,000 points with 505,000 on the all Jamaica Index, the next big stop. The market has been trading in a distinct upward sloping channel from mid-2014 until now and seems set to break out and move higher.
The Junior Market chart is a big contrast to that of the main market.

Wigton Wind farm should list on the JSE main market in early 2017 with a large capitalization

While the latter is clearly heading higher with new highs being created, the Junior Market index is flashing negative signals. The market has formed a head and shoulder pattern which is a negative signal and the short term 45 days moving average has broken through both the medium term 200 days moving average and longer term moving averages. The market has broken through the channel that it has been trading in since late 2015. There appear to be support around the 2,900 points level but it could go down to 2,800 points where the next support is and it will left to be seen 2,900 points will be the floor ahead of third quarter results that could change the course of the movement.
With just over 2 months for the year to end investors should start to have an eye open for major factors that could make big differences to earnings in 2018 when making investment assessment now. Some of these are, more reduction in interest rates, continued strong foreign exchange growth, low inflation, increased construction activity, increased activity in the tourism sector and of course the potential for several new listings to come to market between now and then. IC Insider.com is aware of 8 such potential listings. The list include, Wigton Wind Farm, Jamaica Public Service as a result of Government of Jamaica’s planned sale of its 20 percent share in the company, Neveast Stationery, KIW International, a relatively new business in Montego Bay and a large manufacturing business, operating out of St Catherine.

Watch SOS this week

In the Junior Market activity last week, Stationery & Office Supplies moved back to $5 after the company released impressive results for the year to June. Buying also came in for Barita Investments and Berger Paints while during the week and Scotia Group raced to a record high.
For the coming week investors should continue to keep eyes on NCB Financial Group, Berger Paints, that is priced currently at a PE of 6 times 2018 earnings, Caribbean Producers and Stationery & Office Supplies that IC Insider.com upgraded earnings to 50 cents per share from 40 cents previously, with the initial public offer helping to drive more business subsequent to the June quarter, with reports of sales rising faster than the 25 percent levels experienced in the second quarter.
Caribbean Producers with improved 2017 results over 2016 with profit doubling, moved up to $4 during the week, before closing at $3.11 on Friday, after a big trade and should head back to the $4 range in the coming week.
Last week Insider.com stated, “with cut in BOJ benchmark interest rate by 25 basis and a fall in the August Treasury bill rates, the entire main market is on IC Insider.com’s watch list as the All Jamaica Composite Index could move to the 300,000 points mark before long.”
IC Insider.com also stated, “the most noted move in the Jamaica Stock Exchange last week was Scotia Group racing to a record high of $52 but ending the week without any stock being offered for sale. This stock has to head the stocks to watch list this week.”
The All Jamaica Composite Index rose to 296,779.53 points during the past week and by the end of the week closed at a 291,332.10 up from 289,247.13 at the end of the previous week and Scotia Group ended at a record high of $60.

All Jamaica at 510,000 points in 2018

The main market of the Jamaica Stock Exchange broke through resistance at 290,000 points on the All Jamaica Composite Index this week thanks mostly to a big surge in the price of Scotia Group to a record $57.99.
The All Jamaica Composite Index closed on Thursday at 293,186.46 points having hit 296,779.53 early in the day and technical indicators point to much higher levels in the months ahead and should 510,000 points by the end of 2018 before a great deal of resistance.
The central bank cut interest rates by 25 basis points recently and that seems to be lending support to the market, but apart from the movement in Scotia, there are not much gains evident in most stocks, except for what appears to be some amount of increased trading. The accompanying chart shows the next two levels of resistance, around 370,000 points and 510,000 points on the All Jamaica Composite. Those levels seem some distant away but should be reached in 2018. The first level is 26 percent away and the other 74 percent away.
Stocks to watch as the market ride on, include Barita Investments, Berger Paints, Caribbean Cement, Grace Kennedy, Jamaica Broilers, Jamaica Stock Exchange, NCB Financial Group, JMMB Group, Sagicor Group, Scotia Group and Supreme Ventures.