CAC & Broilers back in TOP 10

Jamaica Broilers returns to the main market TOP 10 list with a fall in the price to $22.10 by the end of the week from $26.30 last week and CAC 2000 returns after a last been in December.
CAC replaced Medical Disposables while JMMB Group moved up to $29.45 to be replaced by Jamaica Broilers.
During the week the main market traded at a record close on two days but closed the week below the record high. The main market saw new buying interest coming in for a number of stocks, at the same time that supply for them have dried up. Interest rates on Treasury bills fell in the June auction and inflation remains negative for the year to May. With those developments the main market seems poised to move to more records in the weeks ahead. Strong upward movement is also being signaled by the fact that, the market is breaking out of a wedge formation.
The junior market broke through a declining resistance line during the early part of the week but retreated by week end. Technical indicators are pointing to a strong upward movement, with a golden cross approaching, with the long term moving average line set to cross over the medium and short term lines not too far away.
The past week was very eventful for the Jamaica Stock market as the main market surged to new all-time highs and the Junior Market surged more than 100 points in the early part of the week and broke through resistance before pulling back.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6.2 compared to an average PE for the overall main market of 11, based on 2018 estimated earnings. The main market PE is 7.7 for the top stocks, compared to a market average of 12.7.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 44 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 41 percent to the market.
Stocks to Watch CAC 2000 reported strong half year results during the past week, with the second quarter more than doubling even after accounting for cost associated with issuing new preference shares. NCB Financial sits just below the TOP 10 list and has good growth prospects for patient investors, during the week the price moved to $100 where there is some selling but that level could be taken out during the coming week and pave the way for more gains. PanJam Investment could move higher this week has there is very limited supply. Investors should also keep an eye out for Sygnus Credit shares list on Monday and should see a slight bounce in the price. Others worth watching include Caribbean Cement, Berger Paints and Grace Kennedy for which there was increased demand by the end of the week. In the Junior Market, Stationery and Office Supplies could decline further during the week but could find support in the mid $6 to low $7 region before rebounding. Jamaican Teas came in for buying in the week but supply has been limited and could result in more gains for the stock that traded at a record close of $5.50 during the week.

Grace & Carib Producers back in TOP 10

the past week was very eventful for the Jamaica Stock market as the main market surged to a new all-time high and the Junior market surges more than 100 points in the early part of the week and broke through resistance before pulling back.
Importantly, although the results for the first quarter of 2018 for many companies did not show strong gains while some showed declines compare with 2017, both the junior and main markets are at points to break out of a wedge formation. The moves are bias to the upside.
Medical Disposables jumped to $5 from $4.30 last week and was eased out of the top stocks and replaced by Caribbean Producers. Stationery and Office Supplies fell by the end of the week to $7.80, moving up on the list in the process, the order book of the stock suggest further decline before it bottoms out. Jamaican Teas price moved to $5.25 during the latter part of the week as demands picks up and supplies appear to have been declining, but by the end of the week it closed at $5.
In the main market, Jamaica broilers jumped to a record close of $26.30 on Friday, up from $21 at the end of the prior week and moved well outside the top 10 list, replaced by Grace Kennedy that slipped 50 cents in price by week end.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6,2 compared to an average PE for the overall main market of 11, based on 2018 estimated earnings. The main market PE is 7.6 for the top stocks, compared to a market average of 13.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 44 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 41 percent to the market.
Stocks to watch. Scotia Group reported half year results during the past week, but there was nothing about them for investors to be excited about, as they showed lower profits in the April quarter than a year ago period. The stock price pulled back sharply on release of the results. The stock yields a dividend of 4 percent which is higher than treasuries and this could be an attraction for some investors while they await return to profit growth. NCB sits just below the TOP 10 list and has good growth prospects for patient investors. PanJam Investment that IC Insider.com reported on in a separate article last week caught the eyes of some investors who moved the price up to $51.98 and it could go higher this week has there is very limited supply for this one. Investors should also keep an eye out for Sygnus Credit that could have its shares listed by next week.

Medical Disposables & CPJ back in TOP 10

Medical Disposables in TOP 10

Lasco Financial rose to $5.99 by the end of the week, while IC Insider.com downgraded earnings for Caribbean Flavours to $1.22 for the 2019 fiscal year, with both moving out of the Junior Market TOP 10.
Medical Disposables that suffered a fall in price to $4.50 and Caribbean Producers moved into the TOP stocks listing for the Junior Market. There were no new addition to the TOP 10 main market stocks at the close of the past week. There were some changes in the rankings, most noticeable was Radio Jamaica, with a rise in price to $1.35 from $1.25 at the close of the previous week, as the stock moved closer to exit the top list. Salada Foods rose in sympathy to good half year results, to close at $13.10 from $11.26 at the start of the week, but it pulled back after trading at an all-time high of $15. Caribbean Cement moved down to $37.50 from $40.05 and Barita Investments rose to $12.53 from $11.50 while Berger Paints saw increased selling in light of the company’s posting increased sales but lower profits in the March quarter due to a number of factors, some of which are not likely to be repeated, in the other quarters of the year.
The past week was characterized by some sharp price fluctuations and index movements in both markets, with the ending to the release of most first quarter results. Interest rates fell to their lowest levels on Treasury bills and the central bank cut the overnight rate by 25 basis points during the past week, seem to have little effect on the market so far. That will change as the weeks roll on, it may be that investors are now taking a break for May, this coming week could have the answer.
Former TOP 10 Junior Market stock Stationery and Office Supplies, closed at a new record high of $9 last week after positing good first quarter results with earnings per share up 70 percent to 17 cents and looking as if $1 is possible for the full year, with the commencement of the production of plain paper books.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6.2 compared to an average PE for the overall main market of 10, based on 2018 estimated earnings. The main market PE is 7.3 for the top stocks, compared to a market average of 13.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 38 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 45 percent to the market.
Stocks to Watch this week include, Barita, Grace Kennedy, PanJam Investment, Radio Jamaica, Salada, Jamaica Stock Exchange ordinary share, Stationery and Office Supplies. Although not yet listed, investors should keep an eye open for Sygnus Credit that saw its IPO more than twice oversubscribed.

Sagicor Group & Wisynco back in TOP 10

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Salada Foods reported earnings of 78 cents for the half year and is now no 2 on the TOP 10.

Sagicor Group fell out of TOP 10 of main market stocks in the previous week, is back, with the price falling from $42 to $38 and Salada Foods surges to the number 2 spot with half year results.
Wisynco joins the TOP 10 after a very long absence as the price dipped to $10 on Friday. The two new listings replaced Grace Kennedy and PanJam Investment, with the latter jumping to a new 52 weeks’ high of $46.01. In the Junior Market there was only one change with Stationery and Office Supplies (SOS) climbing to a new record high of $7.50 after positing good first quarter results with earnings per share up 70 percent to 17 cents. Lasco Financial moved back into the TOP 10, replacing SOS that still have much more room to grow this year as profits should hit close to $1 per share for the year and investors could well see a stock split as a result of the rising profit and stock price.
Other changes of note, were the fall in price of Berger Paints to $20 from $22 at the end of the previous week, Caribbean Cement moved to $40.05 from $38.60 and Barita Investments rose to $11.50 from $10.49 as selling by investors dried up. Second quarter results may not be good enough to push the stock much higher but when the growth in other comprehensive income is factored in, the stocks is still extremely cheap.
On Thursday, a number of company results were released with some having the potential to help prices to move forward. On Friday, more results were released with Salada Foods and tTech posting good gains in profit. Salada earnings suggest full year results of $1.80 per share and pushed the stock to the number 2 choice in the TOP 10. Others will come on Monday and Tuesday, investors should be alert to news that they may provide that could impact prices in the short term.
The main market pulled back from record highs reached at the close of the previous week but is now sitting just below that level on Friday, as that market continues to grind its way slowly upwards ahead of the big breakout that is coming.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6.2 compared to an average PE for the overall main market of 10 based on 2018 estimated earnings. The main market PE is 7.2 for the top stocks, compared to a market average of 13.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 38 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 44 percent to the market.
Stocks to Watch this week include, Stationery and Office Supplies that should go higher based on the first quarter results that were released on Thursday. It should be interesting to see how investors treat with the lack of supply of Barita and Berger shares while Palace that jumped $300 on Friday could be pushed when the company’s third quarter results are released this coming week that should see very positive impact of the Black Panther movies now still being shown, although less frequently than previously, with Avengers seems to have taken over from it. NCB Financial pulled back to $95 during the past week and should be another interesting stock to watch as it is undervalued. Grace Kennedy posted decent first quarter results that should encourage more buying of the stock and PanJam Investment is very scarce. Increasing interest in Radio Jamaica pushed the price to $1.20 and is another that could move higher during the week.

Watch these stocks

Stationary & Office Supplies – Montego Bay office.

IC Insider Buy Rated Stationery and Office Supplies that listed last year August gained 250 percent when the stock hit a new high on Thursday.
It seems set to jump when trading resumes on Friday, with a 70 percent increase in earnings to 17 cents for the March quarter. SOS posted profit of $44.5 million versus $24.5 million after tax for the quarter, flowing from a 27 percent increase in revenues to $279 million. With added earnings to come from the acquisition of the book manufacturing business earnings for the full year could be in the 90 cents to $1 range.
Cargo Handlers posted a 20 percent increase in earnings with EPS of 12 cents for the March quarter and a flat 23 cents for the nine months. Profit in the March quarter was $45.6 million, up 19 percent over $38.4 million generated in 2017 and for the nine months $86 million was earned versus $84.6 million. Revenues grew 7 percent in the quarter to $101 million and was up 3 percent to $188 million for the half year.

Wisynco’s popular product.

Wisynco Group reported lower profit in the March quarter but that was due to the booking of insurance claim of around $600 million in 2017, excluding that inflow
profits would have been up sharply from a normalised $340 million to $505 million for the quarter and from $1.4 billion to $1.7 billion for the nine months period. Earnings per share for the quarter was 14 cents and 47 cents for the nine months and seems ion track for around 70 cents.
Wisynco generated an attractive 13.5 percent growth in revenues in the quarter to $5.8 billion and an increase of 14.7 percent in the nine months to $18 billion.
Grace Kennedy posted an 18 percent increase in earnings with EPS of $1.20 for the March quarter with profit rising to 19 percent to $1.2 million in the quarter from revenues that rose 5 percent to $24.9 billion. The results suggest earnings for the full year should top $5 per share.

Sagicor Group out of TOP 10 stocks

Sagicor Group profit climbed just 7% for 2017.

Sagicor Group out of TOP 10 stocks this past week as the price jumped to $42 and is replaced by Salada Foods and are the only two major change to the TOP 10 listings this week.
Other changes of note were the rise in price of Berger Paints to $22 from $19 at the end of the previous week, Caribbean Cement move to $38.60 from $36.50 and Barita Investments moving to $10.49, more importantly, selling by investors dried up towards the end of the week. Most importantly, the main market continues to hit new record highs during the week and ending the week at a record high level with signs of more gains during the coming week as more company results are released this week and the effect of falling interest rates and a stable Jamaican dollar playing big roles in increasing interest in the market.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6 compared to an average PE for the overall main market of 10 based on 2018 estimated earnings. The main market PE is 7.3 for the top stocks, compared to a market average of 13.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 40 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 44 percent to the market.
The Stocks to Watch this week are Stationery and Office Supplies that should release first quarter results early this week with profits that could double over the 2017 first quarter. It should be interesting to see how investors treat with the lack of supplies for Barita and Berger while Palace could jump in price with continued success of movies now being shown. NCB Financial could be another interesting stock to watch.

Kremi in tTech out of TOP 10 stocks

 

Caribbean Cream outlet in Kingston.

Caribbean Cream jumped into the Junior Market TOP 10 replacing tTech that reentered last week but enjoyed a bounce in price to be edged out for this week.
There was no new entrant to the main market list, even as that market recorded three days of record close during the shortened week. Market activity in the main market is pointing to a big break out for stock prices while the Junior Market is flexing to rise having hit a one year low in early December last year.
The most notable change was the $250 fall in the price of Palace Amusement down to $750 from $1,000 last week even as the big money making movie Black Panther continues to draw large crowds after nearly two months of showing and seems set to ensure that revenues and profit for the year to June is the highest by far in the company’s history.
Berger Paints made gains and Barita Investments slipped in price and swapped the top two positions by the end of the week. In the Junior Market, Jamaican Teas moved up to $5.30 from $4.75 at the end of the prior week but still sits in at number 4 on the list.
Caribbean Cream recorded strong revenues gain in the year to February but enjoyed lower profit up to November as input cost rose negated the revenues rise. A major part of the input cost well sharply in price since peaking in 2017 and should help restore gross profit margin going forward. This is one to be watched going forward along with Radio Jamaica where reports are that advertising picked up nicely for the March quarter, from a slow December quarter and may be pointing to improvement for 2018 onwards, with increasing economic activity taking place, leading to increased sales and profits for many of the advertisers.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6.2 compared to an average PE for the overall main market is 10 based on 2018 estimated earnings. The main market PE is 6.5 for the top stocks compared to a market average of 12.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 38 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 47 percent to the market.

tTech, LasFin & Blue Power in TOP 10

The Junior Market is up 7.5 percent for the year to date, helped considerably by three new listings since late December and recovery in the prices of three Lasco companies and a few others.
Investors pushed Treasury bill rates sharply down by 22 percent from 4.63 in December to 3.593 percent in February, while the central bank cut their overnight rates in sympathy to 2.75 percent. On the other hand profit results of companies have been mixed with some showing strong gains and others no so strong. So far stocks prices have yet to move to factor in the lower interest rates.
One company that had good 2017 results was ISP Finance but increased bad debt provisioning curtailed the growth in profits to just one percent after tax, but 20 percent ahead of the net 2016 profits with a 25 percent rise in revenues. The results for 2017 resulted in earnings per share being reduced to $1.20 for 2018 and with a rise in the stock price to $11.05 it is no longer in the TOP stocks. Also going out are, Access Financial and Paramount Trading. Access earnings have been reduced following their third quarter 2017 results.
Entering the TOP 10 Junior Market list are tTech, Lasco Financial and Blue Power. While Lasco Financial had lower profit in the December 2017 quarter than in 2016 that was due to added cost associated with the acquisition of Credi Scotia. The company will see a big jump in profit as a result of the acquisition. tTech is said to be seeing strong growth in clientele following a few years of soliciting new clients business. General Accident had a temporary setback in profit in 2017 due to a major claim but rising premium income margin should help boost profit in 2018 barring any major catastrophic claims. Key Insurance despite incurring cost associated with staff separation amounting to close to $50 million reported improved results for 2017 over 2016 and should go on to record the highest levels of profit in 2018 with expected better margin on insurance underwriting barring any unusually large claims. Stationery and Office had a record 2018 performance and is expected to show improve results in 2018 that will move the price upwards.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6.3 compared to an average PE for the overall main market is 10 based on 2018 estimated earnings.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 39 percent to the average for the Junior Market Top stocks but its less than 50 percent of what the average PE for the year is likely to be, of 15 to 20 times earnings.

JSE main market dropped on Wednesday

Trading on the Main Market of the Jamaica Stock Exchange ended on Wednesday as the JSE All Jamaican Composite Index fell 701.49 points to 314,200.56 and the JSE Index declined by 639.13 points to 286,272.26.
Main and US market activities ended with moderate trading levels leading to prices of 9 securities rising, 10 falling, 11 trading firm as 30 securities traded, including 1 from the US market versus 29 on Tuesday.
Main market activity ended with 8,750,362 shares valued at $150,223,412 changing hands, in contrast to 1,619,946 shares valued at $24,684,399 trading on Tuesday.
The US market closed with Proven Investments exchanging 538,360 ordinary shares, at 22.95 US cents, with a value of US$124,579 and leading to the JSE US Equities Index falling 2.99 points to close at 171.11.
Market activity ended with an average of 312,513 shares valued at $5,365,122, in contrast to just an average of 57,855 shares valued at $881,587 on Tuesday. The average volume and value for the month to date amounts to 175,215 units valued at $3,541,807 and previously, 138,250 units valued at 2,267,631. January closed with average of 239,900 units valued at $5,158,193 for each security traded.
IC bid-offer Indicator| At the end of trading in the main and the US dollar markets, the Investor’s Choice bid-offer indicator reading shows 8 stocks ended with bids higher than their last selling prices and just 1 closed with a lower offer.
Major price changes at the close of the market are, Kingston Wharves gained $1 to a 52 weeks’ high of $36.50, Jamaica Broilers lost $1 to $18, Sagicor Group rose $1.25 to $36 and Sterling investments lost 90 cents to close at a low of $9.10. Dominating trading, are Ciboney that traded 1.295 million units, PanJam Investment 1.5 million shares and Sagicor Real Estate Fund clearing 3.26 million units.

For more details of market activities see – 9 JSE stocks rose 10 fell – Wednesday.

Junior Market makes strong gains – Monday

The Junior Market made further gains at the close on Monday with the index climbing 36.88 points to close at 2,800.41 as the prices of 9 securities advanced, 6 declined and 7 remained unchanged.
At the close of market activities, trading ended with an exchange of 4,267,682 units valued at $16,140,258 with 22 securities changing hands, compared to 3,500,362 units valued at $13,179,651 from 22 securities changing hands, on Friday.
For the month to date an average of 107,450 shares valued at $423,942 and previously, an average of 102,949 shares valued at $407,835. December closed with an average of 568,732 units valued at $3,447,957 for each security traded.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 3 stocks ending with the bid higher than the last selling price and 5 with lower offers.
At the close of the market, Access Financial closed at $42.10, with 641 shares, AMG Packaging ended at $2.40, with 26,311 stock units, Cargo Handlers settled 45 cents higher at $10.50, with 5,300 shares, Caribbean Cream ended trading 41 cents higher at $5.50, with 112,841 shares, Caribbean Producers finished trading and rose 27 cents to $4.57, with 10,000 units. Derrimon Trading fell 10 cents to end at $7, with 4,663 shares, Express Catering ended trading at $4.50, with 60,621 shares, FosRich Group traded with a loss of 1 cent at $2.60, with 11,869 shares, General Accident finished trading with a fall of 13 cents at $2.72, with 20,000 shares. GWest Corporation closed 30 cents higher at $3.20, with 110,020 stock units, Honey Bun ended 18 cents higher at $4.50, with 19,200 units, Jamaican Teas settled at $4.60, with 10,518 shares, Jetcon Corporation ended trading with a loss of 25 cents at $4.25, after 51,030 stock units changed hands. KLE Group finished trading 28 cents higher at $2.53, with 87,602 shares, Knutsford Express closed at $15, with 1,500 shares, Lasco Distributors ended 10 cents higher at $3.60, with 3,366,216 shares, Lasco Financial concluded trading with a loss of 16 cents at $5.24, with 294,996 stock units. Lasco Manufacturing finished 17 cents higher at $4.17, with 68,811 units, Main Event settled with a loss of 70 cents at $5.50, with 4,363 shares, Medical Disposables ended trading 5 cents higher at $5, with 150 shares, Paramount Trading traded at $3.45, with 930 shares and Stationery and Office finished trading at $5, with 100 stock units.

Prices of securities trading for the day are those at which the last trade took place.