The release of company results and some sharp price movements shook up the ICTOP10 listing this week, resulting in several changes in the top 10. Caribbean Assurance Brokers (CAB) topped the week, reporting record first quarter profit cheered by investors who pushed the price up by 44 percent to $2.88 and cleared the market of just about all supplies under $3. The stock sits in the number 7 spot, with potential for gains of 250 percent over the next twelve months.
CAB has been at the top of the TOP10 for several weeks going back to mid-March and now sits at the number 6 spot in spite of the substantial price gains, with ICInsider.com raising EPS to 50 cents from 45 cents. Taking over the number one spot is baker Consolidated Bakeries with Image Plus, that is in demand at number 2.
At the same time, ICInsider.com’s projection for Transjamaican Highway puts the stock into the Main Market TOP10 with projected earnings of 31 cents and a targeted price in the $6 region by early 2024 and replaces NCB Financial that got an earnings downgrade following the release of half year results showing earnings falling behind that for 2022, with a sharp fall in foreign exchange trading gains and increase loan loss provision.
Transjamaican headed the Market Watch list on April 29 this year. Then the price was at $1.77, with ICInsider.com indicating projected earnings of 24 cents per share and a short term price target of $2.40 and now the stock price is $1.85. The company released first quarter results on Friday, with profit of US$6 million.
Caribbean Assurance Brokers selling at a PE of just 7 based on historical earnings.
ICInsider.com has since adjusted earnings to 0.02 US cents per share or 31 Jamaican cents.
While the ICTOP10 Junior Market stocks had solid gains at the end of the week, the Main Market suffered several losses, with seven stocks declining.
Iron Rock Insurance jumped 22 percent to $2.29, Jamaican Teas rebounded from the previous week’s low by climbing 11 percent to $2.19 and dropped out of the TOP10 along with Everything Fresh having posted robust gains in revenues and profit for the March quarter, with investors welcoming the positive development by driving the stock up 14 percent to $1.89, with more to come. The company reported a profit of $35 million compared to just $7 million for the 2022 March quarter. IC Insider.com has since revised EPS for 2023, down to 25 cents from 30 cents previously, the combination of both of the above moves resulted in the stock moving out of the TOP10, but it still has more room for gains ahead. Lasco Distributors, one of the most undervalued stocks on the market, rose 4 percent to $2.68 but is trading at less than 6.4 times 2023 earnings of 42 cents per share and much lower based on earnings of 70 cents for fiscal 2024 has already started. After the March 2023 results are out, the EPS will switch over to the figure for 2024 and that would result in the stock holding the number 1 spot with likely gains above 400 percent. Image Plus rallied 4 percent to $2.20 and holds the number 3 spot on the TOP10.
Tropical Battery is the third stock to move out of the TOP10 with an earnings downgrade to 20 cents per share, following the release of half year results, showing a profit of $50 million, up from $30 million in the March quarter and from $87 million to $94 million for the half year. Dolla Financial, Edufocal and Dolphin Cove are this week’s new entrants to the Junior Market IC TOP10. Dolphin sits at the number 2 spot, with projected earnings of $3, following the 2022 full year results of 0.76 US cents or J$1.17 and will benefit from a sharp rebound in cruise ship arrivals, with the first 10 months last year being a fraction of what it was 2019 and the first quarter of 2020. This is in addition to increased stopover arrivals that will be greater than last year for a large part of the year.
The price of Main Market listed Key Insurance rose 8 percent to $3.40 to be the only stock of notable gains while Caribbean Producers dropped 8 percent in closing at $9.71, following release of nine months’ results that suggest that full year earnings from ongoing operations should end up around J$1.30 per share. Jamaica Broilers slipped 5 percent to $33.95 and Berger Paints fell 4 percent to $8.
Stocks are being prepped to rally, with signals that interest rates will be declining across the board sooner. Interest rates fell below eight percent on BOJ CDs and Treasury bills this past week, paving the way for a cut in the Bank of Jamaica overnight rate. That will provide more invigoration for the Jamaica stock market, with the Junior Market posting gains for a third consecutive week, even as the Main Market suffered another week of a mild decline.
The Junior Market’s long history of rising around a month before the release of quarterly results and declining shortly after results are released seems to be starting with a rise of 108 points in the market index in the previous week with more this past week, with the supply of some stocks continuing to fall sharply.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.8, well below the market average of 13.5. The Main Market TOP10 is projected to have an average of 259 percent, by May 2024, based on 2023 forecasted earnings.
The 15 highest valued Main Market stocks are priced at a PE of 15 to 110, with an average of 27 and 19 excluding the highest PE stocks and 19 for the top half excluding the stocks with the highest valuation.
The Junior Market Top 10 PE sits at 5.8 compared with the market at 10.8. There are nine stocks, or 19 percent of the market, with PEs from 15 to 26, averaging 19 are well above the market’s average. The top half of the market has an average PE of 15, suggesting that this may currently be the lowest fair value for Junior Market stocks. Junior Market is projected to rise by 248 percent to May 2024.
The differences between the average PE ratio of the Main and Junior Markets and the overall market valuation are important indicators of the likely gains for ICTOP10 stocks.
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, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
Investors traded 8,921,791 shares for $66,764,856 up from 6,187,825 units at $24,579,359 on Thursday.
The All Jamaican Composite Index lost 2,547.79 points to close at 369,575.13, the JSE Main Index fell 776.23 points to 333,707.63 and the JSE Financial Index lost 1.10 points to settle at 75.37.
Guardian Holdings popped $7.99 to $480 while exchanging 1,445 units, Jamaica Broilers shed $3.33 in closing at $33.95 with 980,603 shares clearing the market, Kingston Wharves rose $2.47 to $32.99, with investors trading 1,000 shares, Margaritaville dropped $4.40 to $14.60 in an exchange of 32 stocks, Mayberry Jamaican Equities rallied 49 cents to $10.50 with shareholders swapping 22,988 stock units, MPC Caribbean Clean Energy rose $7 to close at $90 while 123 shares passed through the market, NCB Financial dipped $3.48 to end at $71.50 in trading 171,711 units, 138 Student Living advanced 39 cents to $5.40 after a transfer of 25,247 shares, Scotia Group fell 38 cents in ended at $34.62, with 34,830 units changing hands, Seprod dipped 96 cents in closing at $71 with an exchange of 12 stocks, Supreme Ventures gained 70 cents and ended at $27.70 after investors were involved in trading 28,660 stock units, Wisynco Group advanced 93 cents to close at $17.50 after an exchange of 46,863 stock units.
In the preference segment, Eppley 5% preference share rose $3.97 in closing at $22, with 100 units crossing the exchange, Jamaica Public Service 7% rallied $15.65 to $95 after exchanging 2,001 stocks, Jamaica Public Service 9.5% increased $20 to end at $3000 and closed with just one share changing hands and Productive Business Solutions 9.75% preference share popped $10.90 to close at $106.93 with investors transferring 87 units.
Trading sank to low levels on the Jamaica Stock Exchange Main Market on Thursday, with the volume of stocks traded declining 18 percent and the value 11 percent lower than on Wednesday, resulting in 6,187,825 shares being traded for a mere $24,579,359, from 7,575,200 units at $27,742,615 on Wednesday following trading in 55 securities compared with 59 on Wednesday, and resulting in prices of 19 rising, 19 declining and 17 ending unchanged.
Transjamaican Highway with 1.42 million units for 22.9 percent of the day’s trade, with the stock closing at a 52 weeks’ high and Sagicor Select Financial Fund with 334,064 units for 5.4 percent market share.
Jamaica Broilers rallied 53 cents to $37.28 in switching owners for 28,412 stock units, Kingston Wharves dropped $2.47 to end at $30.52, with 1,436 units clearing the market, Margaritaville popped $1.92 in ending at $19 as 34 stocks passed through the market, Massy Holdings dipped $3.50 in closing at $96 with an exchange of one share. 138 Student Living declined 34 cents to $5.01 after 20,642 units crossed the exchange, Proven Investments 39 cents to close at $25.80 after exchanging 41 stock units, Sagicor Group rallied $2.81 to $51 and closed after 1,340 stocks changed hands. Seprod climbed $1.85 and ended at $71.96 after a transfer of 12,501 shares, Sygnus Real Estate Finance increased $1.20 in closing at $13, with 3,775 stocks passing through the market and Wisynco Group fell 38 cents to end at $16.57 trading 111,075 shares.
In the preference segment, Productive Business 10.50% preference share lost $5 to close at $1,215, with 150 stock units changing hands, Jamaica Public Service 7% rose $19.35 to close at $79.35 while exchanging 684 units and Jamaica Public Service 9.5% shed $20 to end at $2980 with investors transferring one stock unit.
Only 7,575,200 shares were traded for just $27,742,615 compared with 10,763,695 units at $65,931,590 on Tuesday.
The All Jamaican Composite Index fell 511.59 points to 368,714.93, the JSE Main Index popped 437.53 points to finish at 334,568.02 and the JSE Financial Index inched 0.07 points higher to 75.61.
GraceKennedy rallied 50 cents to $77.99 after a transfer of 6,403 stock units, Guardian Holdings gained $28 to end at $500 while exchanging one stock, Jamaica Stock Exchange advanced 60 cents in closing at $14, with 7,050 shares crossing the exchange, JMMB Group dropped 97 cents to close at $29.02 as investors exchanged 11,918 units. Margaritaville climbed $3.37 in ending at $17.08 with shareholders swapping 750 units, Massy Holdings popped $1.50 to $99.50 as 30,226 units passed through the market, Mayberry Investments dipped 39 cents to close at $7.50, with 13,778 stocks changing hands, Mayberry Jamaican Equities lost 50 cents and ended at $10 with a transfer of 81,450 shares. MPC Caribbean Clean Energy increased $10.75 to end at $83 in trading 25 units, NCB Financial advanced $3 in closing at $75 after an exchange of 28,214 stocks,Proven Investments fell 59 cents to $25.41 in an exchange of 6,630 shares, Sagicor Group dipped $1.19 to close at $48.19 with 8,437 stock units changing hands. Scotia Group popped 50 cents to $35 in switching ownership of 21,437 shares, Seprod lost $1.89 and ended at $70.11 after an exchange of 2,282 units, Stanley Motta dropped $1.20 in closing at $4.95 after shareholders exchanged 153,530 stock units, Supreme Ventures declined 99 cents to end at $27, with 169,524 stocks crossing the market and Wisynco Group rallied 39 cents in closing at $16.95 with 60,885 stock units clearing the market.
In the preference segment, Productive Business 10.50% preference share rose $20 to close at $1220 in an exchange of 100 shares, Eppley 5% preference share fell $4.95 to $18.03, with 39 units changing hands and 138 Student Living preference share gained $17.81 to end at $150, with one stock clearing the market stock.
The JSE Combined Market Index climbed 708.92 points to 346,203.68. The All Jamaican Composite Index declined 511.59 points to 368,714.93, the JSE Main Index advanced 437.53 points to 334,568.02, as the Junior Market Index jumped 32.84 points to 3,717.39 and the JSE USD Market Index popped 1.03 points to 234.32.
The market’s PE ratio ended at 18.4 on 2022-23 earnings and 12.2 times those for 2023-24 at the close of trading.
Dividends paid or payable and yields for each company are shown in the Main and Junior Markets’ daily report charts along with the closing volume pertaining to the highest bid and the lowest offer for each company.
A total of 10,763,695 shares were traded for $65,931,590 compared to 11,476,890 units at $39,035,763 on Monday.
JSE Financial Index fell 1.08 points to 75.54.
In the preference segment, Eppley 7.50% preference share climbed 70 cents to close at $6.90 with an exchange of 1,726 stock units, 138 Student Living preference share increased $12.02 to close at a 52 weeks’ high of $132.19 while exchanging one stock and Productive Business Solutions 9.75% preference share fell $4 to $96 with a transfer of 14 units.
Trading ended after the JSE Combined Market Index dropped 3,556.37 points to end at 345,494.75. The All Jamaican Composite Index dumped 3,226.09 points to end at 369,226.52, the JSE Main Index dived 3,014.50 points to 334,130.49, as the Junior Market Index plunged 81.24 points to end at 3,684.54 and the JSE USD Market Index popped 1.10 points to 233.29.
The market’s PE ratio ended at 18.3 on 2022-23 earnings and 12.3 times those for 2023-24 at the close of trading.
Dividends paid or payable and yields for each company are shown in the Main and Junior Markets’ daily report charts along with the closing volume pertaining to the highest bid and the lowest offer for each company.
A total of 11,476,890 shares were exchanged for $39,035,763 versus 11,772,290 units at $54,877,421 on Friday.
The PE Ratio, a formula used to compute appropriate stock values, averages 13.5 for the Main Market. The JSE Main and USD Market PE ratios are computed based on the last selling prices of stocks and earnings forecasted by ICInsider.com for companies with the financial year ending between November 2022 and August 2023.
Key Insurance rose 50 cents and ended at $3.65 after just 1 stock unit was traded, Kingston Wharves increased $2.40 to close at $32.90, with 5,548 stock units changing hands, Massy Holdings rallied $3 to end at $98, with 4,590 shares crossing the market, Mayberry Jamaican Equities dipped 85 cents to $10 after an exchange of 211,881 stocks. 138 Student Living declined 34 cents to $5.01 while exchanging 2,650 units, Sagicor Group fell $1.97 to close at $48.03 after a transfer of 70,552 shares, Scotia Group shed 85 cents in closing at $34 with a transfer of 9,525 units, Seprod rallied 50 cents to end at $70.50 as 9,753 stock units passed through the market. Stanley Motta gained 36 cents to close at $5.56, with 2,081 stocks clearing the market, Supreme Ventures lost 35 cents in closing at $27.65 with shareholders swapping 17,945 stocks and Sygnus Real Estate Finance rose $2.29 to $11.80, with 3,078 shares crossing the market.
Eppley 7.75% preference share advanced $2.21 to $19.75 in an exchange of 84 stock units, Jamaica Public Service 7% fell $15 ended at $60 as investors exchanged 11,187 shares and 138 Student Living preference share jumped $15.67 in closing at $120.17 with investors transferring a mere 4 units.
Trading ended after the JSE Combined Market Index popped 2,137.12 points to 349,051.12. The All Jamaican Composite Index rose 741.69 points to 372,452.61, the JSE Main Index gained 2,274.28 points to settle at 337,144.99, as the Junior Market Index popped 1.65 points to close at 3,765.78 and the JSE USD Market Index dipped 5.57 points to 232.19.
The market’s PE ratio ended at 18.8 on 2022-23 earnings and 12.5 times those for 2023-24 at the close of trading.
Dividends paid or payable and yields for each company are shown in the Main and Junior Markets’ daily report charts along with the closing volume pertaining to the highest bid and the lowest offer for each company.
At the previous week’s close, Image Plus released solid full year results showing profit after tax that jumped 125.6 percent to $213 million or 21 cents per share. Based on those numbers, ICInsider.com revised earnings for the current fiscal year to 35 cents from 30 cents previously. On Monday, the company reported revised results, with the profit being even higher at $252 million, with a reduction in the amount previously booked as professional fees. Based on the revision, projected earnings were raised by the publication to 40 cents per share for the current fiscal year. The stock sits at the number three spot in the ICTOP10. The revision raises some serious questions about how such matters escaped the directors, auditors and the financial controller before the audited financial statements were released.
The Junior Market’s long history of rising around a month before the release of quarterly results and declining shortly after results are released seems to be starting with a rise of 108 points in the market index in the previous week with more this past week, with the supply of some stocks continuing to fall sharply.
The differences between the average PE ratio of the Main and Junior Markets and the overall market valuation are important indicators of the likely gains for ICTOP10 stocks.
