Six Main Market ICTOP15 stocks raked between 23 and 37 percent year to date and seven of the Junior Market picks produced gains from 22 percent to 111 percent for the first four months of 2021.
Jamaican Teas stock price is up 1115 for 2021 and up 234% in just under a year.
The only top performing Main Market stocks for the period not captured by the TOP15 are Ciboney, up a stunning 121 percent at 53 cents, even after the price move up to just over $2 earlier this year, followed by Salada Foods with an incredible rise of 147 percent, Eppley Property Fund with an increase of 46 percent and Proven Investments gaining 28 percent.
The top performing Junior Market stocks to date that were not in the ICTOP15 are Fosrich with a gain of 86 percent, Blue Power 56 percent, Express Catering up 29 percent, Caribbean Flavours at 33 percent and Lasco Manufacturing with a 35 percent increase.
The highlight of the stock market this past week was the 216 percent surge in Carib Cement’s profit, from record revenues that jumped 31 percent for the 2020 first quarter. As expected, the stock jumped to a 52 weeks’ high of $95.50. The company was one of ICTOP 15 listings at the start of the year and is up 40 percent so far and still has much more gains ahead of it. The other notable development is the Main Market recording of gains for 14 days unbroken.
Other stocks in the TOP15 list that have gone on to do well are Carreras up 37 percent, Grace Kennedy with a rise of 35 percent, Jamaica Producers up 33 percent, QWI Investments up 25 and Seprod 23 percent in the Main Market. In the Junior Market, the winners are Caribbean Cream with a gain of 34 percent, Caribbean Producers up 41 percent, Stationery and Office Supplies with a gain of 25 percent. Now out of the top listings are Jamaican Teas with a 111 percent gain for the year to date, Lumber Depot up 88 percent, Lasco Distributors with a rise of 22 percent and MailPac up 25 percent. Future Energy Source that was added to ICTOP 10 earlier this year has a gain of 28 percent, but much more is expected for these stocks in the rest of the year.
There are no changes to companies on the ICTOP10 listings this week. The bullish tone of the Junior Market and the Main Market continues, with more gains expected in the coming week supported by strong technical signals and fundamentals of stocks and the overall market.
Watch these stocks over the next few weeks, Barita Investments, Caribbean Cement, Grace Kennedy, Jamaica Producers, PanJam Investment and Sagior Group, MailPac, Access Financial, Lasco Financial, Lasco Distributors, Caribbean Cream, ISP Financial.
The top three stocks in the Junior Market are headed by Elite Diagnostic, followed by Main Event and Medical Disposables, with the potential to gain between 261 to 293 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by PanJam Investment and Jamaica Broilers, with expected gains of 181 to 410 percent.
This week’s focus: Fosrich reported a 22 percent rise in revenues to $549 million, up from $449 million in the prior year with gross profit rising 13 percent to $192 million, from $170 million in 2020 with net profit surging 697 percent to $38.4 million, from only $4.8 million in the 2020 first quarter. Earnings per share jumped to 8 cents from one cent in 2020. Administrative expenses fell slightly to $144 million, from $146 million in 2020 and finance cost slipped to $24.8 million compared to $26.2 million in the 2020 quarter.
The targeted PE ratio for the market averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Stocks and 19 times for the Main Market. With interest rates on government paper below 5 percent and likely to remain there for a few years, the likelihood is for the average PE ratios to climb higher during the next twelve months.
The Junior Market, with an average PE 13 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17; this represents another 31 percent rise in the market that would equate to a rise of 50 percent to March 2022. The Junior Market Top 10 stocks average a mere 5.8 at just 44 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 16.5, some distance from the 19 the market ended March, suggesting a 20 percent rise from now to March 2022.
The Main Market TOP 10 trades at a PE of 7.7 or 46 percent of the PE of that market and well off the potential of 20.
The average projected gain for the Junior Market IC TOP 10 stocks is 248 percent and 175 percent for the JSE Main Market, based on 2021-22 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
