The Trinidad and Tobago Stock Exchange pulled back this week with the All Trinidad Index closing 1.1 percent lower for the week and the Composite index dropping 2.8 percent, with prices of 5 stocks rising and 10 declining, compared with 6 declining and 11 rising last week.
The average PE ratio of the market, slipped to 7.9, compared to 5.25 based on the current year’s earnings. The difference between the two graphically illustrates the market’s current undervalued level and by extension the upside potential ahead.
Winning stocks of note for the week are, Agostini’s with a gain of $3 to close at $68, Ansa Merchant Bank up 50 cents to $40 and Guardian Holdings gaining 55 cents to end at $14.95.
Falling stocks of notes are, Ansa McAl with a drop of $3.10 to $59.80, First Citizens Bank falling $1.46 to close at $40.54, Republic Holdings ended with a fall of $2.45 to $112.50, CIBC Caribbean down $1.05 to close at $7.70 and West Indian Tobacco falling 51 cents to $5.04.
Stocks with the potential to gain more than 100 percent when the market comes back to life, include CIBC Caribbean Bank with a possible gain of 220 percent, the highly undervalued Guardian Holdings, a stock, with a 4350 percent potential, Republic Holdings at 120 percent, Massy Holdings remains at 100 percent, Trinidad Cement with 350 percent. Earnings for Eric Solis are revised down based on the company’s six-month results, even as the numbers suggest that the reduction in management fees paid to the parent company does not appear to be reflected in the cost to date, accordingly the earnings revision now results in a 100 percent potential gain for the stock and One Caribbean Media with 300 percent.
Investors should keep an eye on Prestige Holdings with the potential to gain 80 percent and Trinidad and Tobago NGL with potential gain of 240 percent.