Movement in the Junior Market this past week just about wiped out all of 2023 losses and resulted in most ICITOP10 stocks rising, with four recording double digit gains as the Junior Market consolidates around the 3,900 points level before breaking into the 4,000 points level. The Main Market enjoyed five out of 6 days of gains since the previous Friday and delivered four stocks with double digit gains.
Gains for the Junior Market this week occurred even as the price of Stationery and Office Supplies dropped $4.52 from $28 to $23.48 on Friday and former Caribbean Assurance Brokers ICTOP10 stock that fell out of the top tier the prior week pulled back in price to close at $3.30 from $4 as sellers offered stocks for sale below $4, with still more selling at the close of the week. History points to many investors buying into stocks after the split takes effect, usually at far higher prices than if they bought before, as such, it would not be surprising that investors will push the stock to a record valuation post-split. Accordingly, the stock now selling at a PE of 12.4 times current year’s earnings is a compelling buy at Friday’s price of $23.48.
The Junior Market ended the week with eight stocks rising and one declining, with Iron Rock Insurance the top stock, with a gain of 30 percent, followed by iCreate, up 21 percent to $1.10, and Caribbean Cream, up 18% to $4.70, but the company will be benefitting from lower input cost of some raw material, especially the price of milk solids that have fallen sharply by about 33 percent from peak prices last year March, Consolidated Bakeries popped 15% to end the week at $2.51, with very few stock offered for sale in the market at the close. The gains in Consolidated Bakeries propelled it out of the TOP10 and replaced by Edufocal, while OneonOne seems to be coming into its own with a rise of 9 percent to $1.22. In comparison, Dolphin Cove rose 6 percent to $16.90 but seems to have a seller with an undisclosed amount at that price. Dolla Financial is the only loser, with a decline of 4 percent to $2.25.
The Main Market had Caribbean Producers (CPJ) rising 15 percent to $10.95, JMMB Group climbing 14 percent to $33, with Berger Paints and Transjamaican gaining 11 percent each to close at $8.11 and a record close of $2.48, respectively. Guardian Holdings was the only declining stock, falling 7 percent to $420.
It is worth noting that Transjamaican US dollar denominated stock traded at 1.93 cents or almost $3 per share on Friday, putting well ahead of the local based issue at $2.48. The gap will close sooner or later, the question will the Jamaican dollar based stock move up to the $3 level or the US based one fall back to match the Jamaican dollar one. There is minimal selling in the US dollar market and much more in the Jamaican market.
CPJ sits at the number 10 position in the Main Market TOP 10, but it has a June year end, with the changeover to earnings per share for the 2023/4 fiscal year of $2.50 by August that will change the outlook for the price markedly above the current level, with the PE ratio at just 4.4.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 6.3, well below the market average of 13.7. The Main Market TOP10 is projected to have an average of 242 percent, to May 2024, based on 2023 forecasted earnings.
The 15 most highly valued Main Market stocks are priced at a PE of 15 to 110, with an average of 29 and 20 excluding the highest PE stocks, 24 for the top half and 19 excluding the stocks with the highest PEs.
The Junior Market Top 10 PE sits at 5.8 compared with the market at 11.7. There are 11 stocks representing 23 percent of the market, with PEs from 15 to 44, averaging 21, well above the market’s average. The top half of the market has an average PE of 17, possibly the lowest fair value for Junior Market stocks currently. Junior Market is projected to rise by 245 percent to May 2024.
The divergence 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.
In the market generally, Investors continue to nibble away at a number of stocks and, in the process, gradually reduce the supply of several stocks that are attractively priced as the market moves toward the summer months, the start of the stock market year.
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 will likely deliver the best returns up to the end of May 2024 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.
Trading ended with the volume of stocks traded declining 80 percent and the value 71 percent lower than on Thursday, after trading in 46 securities compared with 47 on Thursday and ended with 23 rising, 14 declining and nine closing unchanged.
The PE Ratio, a measure of computing appropriate stock values, averages 11.6. The PE ratios of Junior Market stocks are computed based on the last traded price and ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
GWest Corporation declined 10 cents in closing at 93 cents 4,088 shares changing hands, Indies Pharma rose 28 cents to $3.53 with an exchange of 1,708,274 stocks. Iron Rock Insurance rallied 20 cents to end at $2.50 with investors transferring 32,831 units, Jamaican Teas climbed 12 cents to close at $2.47 in an exchange of 688,299 stocks, JFP Ltd rose 10 cents to close at $1.80 in trading 803,665 shares, Knutsford Express climbed $1.09 to $11.90, with 32,063 stock units crossing the market. Lasco Distributors shed 13 cents in closing at $3.50 in an exchange of 103,906 stocks, Lasco Manufacturing dipped 37 cents to end at $4.52 after 16,800 stock units were traded, Limners and Bards gained 9 cents to end at $2.20 with a transfer of 53,521 shares, Main Event rallied 80 cents in closing at a 52 weeks’ high of $17 while exchanging 70,020 units. 
Medical Disposables increased $1.80 and ended at $6 with 20,000 units changing hands, ONE on ONE Educational advanced 12 cents to $1.22 with trading of 5,909,534 stock units, Regency Petroleum popped 32 cents to close at $2.92 with stakeholders exchanging 2,438,959 stocks and Spur Tree Spices climbed 15 cents to end at $2.55 in switching ownership of 4,461,610 shares.
A total of 22,306,090 shares were traded for $206,410,617 compared to 22,105,112 units at $190,093,496 on Wednesday.
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 traded prices and earnings forecasts by ICInsider.com for companies with the financial year ending up to August 2024.
Kingston Wharvesadvanced $1 and ended at $30 after a transfer of 1,215 stock units, Massy Holdings fell $1 to end at $99 with investors exchanging 8,362 units, Mayberry Investments popped 80 cents in closing at $9 after 100,627 shares passed through the market, MPC Caribbean Clean Energy shed $10 in ending at $61 as investors exchanged 605 stocks. NCB Financial declined 88 cents to close at $66.10 with 85,211 stocks clearing the market, Pan Jamaica dropped $4.83 to $49.12 with shareholders swapping 45,432 stock units, Proven Investments declined 78 cents in closing at $25 while exchanging 47 units, Sagicor Group rose 49 cents to $50.50, with 26,001 shares crossing the market. Scotia Group gained 73 cents to $34.74 after an exchange of 122,644 stock units, Seprod dipped 40 cents to end at $75.10, with stakeholders exchanging 7,450 units, Supreme Ventures dropped 97 cents to close at $27.50 with investors transferring 2,313,937 stocks, Sygnus Credit Investments lost 42 cents to end at $12.65, with 353,391 shares changing hands.
In the preference segment, Eppley 7.50% preference share increased 61 cents and ended at $6.70 with an exchange of 83 shares, Jamaica Public Service 7% advanced $7.50 to $57.50 after just 2 units crossing the exchange and JMMB Group 7% preference share gained 39 cents in closing at $2.39 in an exchange of 5 stock units.
939 percent and the value 228 percent higher than on Wednesday after trading took place in 47 securities compared with 43 on Wednesday and ended with 28 rising, seven declining and 12 closing unchanged.
At the close, the Junior Market Index rose 53.19 points to settle at 3,960.19 to be down 0.7 percent for the year to date and up 10.2 percent since this year’s low in mid-March.
Blue Power rallied 75 cents to end at $3.05, with 43,155 stock units crossing the market, CAC 2000 advanced 43 cents to close at $7.07 in an exchange of 638 stocks, Cargo Handlers popped $1.99 in closing at $21 with 13 units clearing the market, Caribbean Cream climbed 20 cents to $4.70 after an exchange of 68,819 stocks, Consolidated Bakeries rose 9 cents and ended at $2.51, with 90,000 stock units changing hands, Express Catering gained 10 cents in closing at $5.50 with shareholders swapping 35,146 units, Future Energy Source rose 18 cents to $3.98 with a transfer of 336,638 shares, but only after sinking to a 52 weeks’ intraday low of $3.33. ISP Finance popped $2.04 to end at $22.04 while exchanging 806 units, Lasco Financial advanced 32 cents to close at $2.67 and closed with 402,641 shares changing hands, Lumber Depot gained 9 cents to close at $2.19 after trading 228,666 stock units. 
Main Event climbed 95 cents in closing at a 52 weeks’ high of $16.20 in switching ownership of 66,869 stocks, Medical Disposables increased 10 cents to $4.20, with 52,711 stock units crossing the market, MFS Capital Partners declined 9 cents and ended at $2.92 in trading 86,519 shares. Regency Petroleum rallied 11 cents to end at $2.60, with 556,398 stocks crossing the exchange, Stationery and Office Supplies rallied 11 cents to $23.50 as 95,854 units passed through the market and tTech gained 15 cents in closing at $2.25 after a transfer of 10 stocks.Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Investors traded 11,405,529 shares for $63,776,052 versus 7,980,472 units at $32,399,094 on Tuesday.
At the close, Access Financial lost $2.80 and ended at $22.50 trading a mere 116 shares, AMG Packaging popped 16 cents to close at $2.45 in an exchange of 200,834 stock units, CAC 2000 declined 45 cents to $6.64, with 184 stocks crossing the market. Cargo Handlers fell $2.49 in closing at $19.01 with 6,517 units changing hands, Caribbean Cream gained 59 cents to end at $4.50, with just 350 stocks crossing the exchange, Consolidated Bakeries rose 17 cents to close at $2.42 while exchanging 11 stock units. Elite Diagnostic dipped 8 cents in closing at $2.22 with a transfer of 10,644 shares, Fontana advanced 49 cents to $10.50 after a transfer of 4,106,488 units, Fosrich shed 12 cents to end at $2.22 as investors exchanged 263,109 units. Future Energy Source dropped 11 cents to a 52 weeks’ closing low of $3.80 after exchanging 244,167 stocks, 
iCreate climbed 10 cents to end at $1.10 with an exchange of 143,299 stock units, ISP Finance dipped $4.99 in closing at $20 after investors exchanged 1,108 shares. Jamaican Teas rallied 25 cents to $2.35 in switching ownership of 669,921 shares, Knutsford Express lost $1.09 to close at $10.81 after an exchange of 11,313 stock units, Lumber Depot dropped 8 cents to $2.10 as 5,853 stocks passed through the market. Main Event increased 20 cents and ended at a record close of $15.25 in an exchange of 26,375 units, Medical Disposables shed 72 cents to end at $4.10 with investors transferring 4,153 shares, MFS Capital Partners advanced 12 cents to $3.01 and closed with an exchange of 44,286 stocks. ONE on ONE Educational rose 9 cents in closing at $1.12 in trading 1,198,565 units, 
Stationery and Office Supplies declined 52 cents to close at $23.39, with 238,565 stock units changing hands and tTech fell 14 cents in closing at $2.10, with 589 shares crossing the market.
Investors traded 7,980,472 shares for $32,399,094 up from 6,499,546 units at $18,510,251 on Monday.
The PE ratios of Junior Market stocks are computed using the last traded price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
Dolphin Cove dipped 87 cents and ended at $16.10 with stakeholders exchanging 18,605 stock units, Fosrich rose 15 cents to end at $2.34 in an exchange of 857,118 stocks, Future Energy Source declined 11 cents in closing at $3.91 after an exchange of 229,536 shares. Honey Bun popped 10 cents to $6.65 as investors traded 2,966 stocks, Iron Rock Insurance increased 20 cents to close at $2.30 with a transfer of 1,000 units, Knutsford Express dipped 9 cents in closing at $11.90 with an exchange of 4,126 shares, Lasco Distributors rallied 18 cents to end at a 52 weeks’ high of $3.58 with shareholders swapping 464,970 stock units. Lasco Manufacturing advanced 36 cents and ended at $4.88 in trading 81,749 units, Mailpac Group dropped 9 cents to close at $1.85, with 126,290 stocks crossing the market, 
Main Event gained 15 cents to close at a 52 weeks’ high of $15.05 in trading 610,521 shares, Medical Disposables rose 57 cents to end at $4.82, with just one stock crossing the market and Stationery and Office Supplies declined $1.59 to $23.91 in switching ownership of 344,146 stock units.
At the close, 6,499,546 shares were traded for $18,510,251, down from 8,041,831 units at $30,510,717 on Friday.
The PE Ratio a measure of computing appropriate stock values, averages 11.2. The PE ratios of Junior Market stocks are computed using the last traded price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
Consolidated Bakeries gained 23 cents to close at $2.42 after 3,344 shares crossed the exchange, Dolphin Cove rose 97 cents in closing at $16.97 as 11,757 units passed through the market. Elite Diagnostic climbed 13 cents to $2.35 in an exchange of 208,580 stocks, GWest Corporation advanced 10 cents to close at $1.03 after 86 stock units changed hands, Honey Bun dipped 14 cents to end at $6.55 in switching ownership of 12,480 stocks. iCreate popped 14 cents and ended at $1.05 after a transfer of 389,514 stock units, Iron Rock Insurance increased 10 cents to end at $2.10 and closed with 2,954 units being trading, Knutsford Express climbed $1.16 to $11.99 with investors transferring 270 shares. Lasco Manufacturing declined 38 cents in closing at $4.52, with stakeholders exchanging 5,357 shares, Limners and Bards shed 9 cents to close at $2.11, with 3,794 stock units crossing the market, Main Event dipped 10 cents and ended at $14.90 in an exchange of 23,047 stocks. 
Medical Disposables popped 19 cents in closing at $4.25, with 4,596 units crossing the market, MFS Capital Partners dropped 15 cents to $2.85 as investors exchanged 17,000 shares and Stationery and Office Supplies fell $2.50 to $25.50 with shareholders swapping 188,272 units.
Elsewhere, 
At the end of the week, the average PE for the JSE Main MarketTOP 10 is 5.8, well below the market average of 13.1. The Main Market TOP10 is projected to have an average of 253 percent, by May 2024, based on 2023 forecasted earnings.
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.
Investors traded 8,041,831 shares for $30,510,717 compared with 5,875,457 units at $28,016,001 on Thursday.
The PE Ratio, a measure of computing appropriate stock values, averages 11.3. The PE ratios of Junior Market stocks are computed using the last traded price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
General Accident fell 25 cents to $5 after 2,501 units changed hands. GWest Corporation dipped 10 cents to end at 93 cents with an exchange of 51,347 stocks, Honey Bun shed 21 cents in closing at $6.69, with just 854 stock units crossing the market, iCreate lost 24 cents to close at a 52 weeks’ low of 91 cents as 927,345 units passed through the market. Indies Pharma rallied 9 cents and ended at $3.10 with shareholders swapping 13,685 stocks, Iron Rock Insurance declined 15 cents to close at $2 as investors exchanged 17 shares, ISP Finance climbed $5.09 to $25 after exchanging a mere 2 stock units. JFP Ltd popped 10 cents and ended at $1.65 with stakeholders exchanging 53,472 units, Knutsford Express dropped 17 cents to end at $10.83 with investors transferring 201 stock units, 
Lasco Manufacturing rallied 40 cents in closing at $4.90 after trading 200,915 shares. Main Event climbed 15 cents in closing at a 52 weeks’ high of $15 with 126,139 stocks clearing the market, MFS Capital Partners increased 20 cents to $3 with a transfer of 32,928 stock units. Paramount Trading shed 10 cents to $2.08, with 146,947 units crossing the exchange and Stationery and Office Supplies dipped $5.89 to close at $28 after an exchange of 491,029 shares.
Investors traded 5,875,457 shares for $28,016,001 compared to 10,079,171 units at $43,487,229 on Wednesday.
The PE Ratio, a measure of computing appropriate stock values, averages 11.1. The PE ratios of Junior Market stocks are computed using the last traded price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
Consolidated Bakeries declined 23 cents in ending at $2.19 with a transfer of 2,234 shares. Dolphin Cove rose 57 cents in closing at $15.85 after an exchange of 37,263 stocks, Future Energy Source gained 9 cents to end at$4 with 281,377 stocks changing hands, General Accident climbed 45 cents to end at $5.25, with 14,774 stocks crossing the market. Jamaican Teas fell 9 cents to close at $2.07 after exchanging 475,361 shares, JFP Ltd lost 9 cents in closing at $1.55, with investors trading 401,657 stock units, KLE Group popped 13 cents to end at $1.76 after a transfer of 20,000 units. Lasco Distributors rallied 17 cents to $3.38 in an exchange of 2,684 units, Main Event climbed 10 cents to $14.85 as investors exchanged 86,704 stocks, 
MFS Capital Partners fell 20 cents to close at $2.80 in switching ownership of 102,790 shares and Stationery and Office Supplies declined $1.09 to close at $33.89, with 397,867 stock units clearing the market, ahead of the announcement of a split of each share into 9 effective July 25 subject to approval at the annual general meeting on the same day.