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.
With Barita Investments climbing to a record high of $115.04 on the Jamaica Stock Exchange Main Market on Friday after 6.5 million of the company’s shares were traded leaving only two lots on offer at the end of trading with the lowest offer, 7,200 shares at $140 and the other just 50 units at $200 and three bids at $115 and $115.04 to buy over 400,000 shares, this ought to be watched to see what investors respond.
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.
Investors reacted the first chance they had and drove the prices of both stocks higher on Friday.
The Main Market ended the week with 138 Student Living jumping 23 percent to $5 and is likely to rise further, with the company posting solid results after the market closed, with earnings of 21 cents for the June quarter and 58 cents per share for the nine months to June. Berger Paints rose 8 percent to $11.93, VM Investments popped 4 percent to $5.20 and Guardian Holdings reversed most of the previous week’s gain by dropping a sharp 22 percent from $650 to $506.
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 to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.