The Junior Market of the Jamaica Stock Exchange recorded solid gains during the past week as the Main Market declined, resulting in three solid gains for the ICTOP10 Junior Market stocks and just one notable move in the performance of the ICTOP10 Main Market as General Accident added 18 percent to its value to be the best performing stock for the week.
General Accident selling supply of stocks is down sharply.
The Junior Market had one change in the TOP10 as Honey Bun moved out for a second time in weeks with a rise of 8 percent, allowing Dolla Financial to come in at number 10. Dolla is likely to enjoy a doubling in profit for the current year, having expanded the loan portfolio dramatically since taking on the billion dollar loan. Investors in the stock can look forward to healthy gains in the stock price during the year.
Main Event, one of the previous week’s top performers that exited the Top 10 with a 6 percent gain to close at $12.95, keeps on rolling on and climbed another 13.5 percent this week to $14.70, up 63.5 percent for the year to date as investors continue to applaud the company’s performance by buying up the stocks as they see more profits to come this year, with the economy fully opened up for entertainment.
The other major price movements during the week were a 9 percent rise for Lasco Distributors, that ended at $2.36 and Honey Bun, up 8 percent to $6.57. There are only two stocks with losses of two percent or less.
In the Main Market, only three stocks recorded declines, but Berger Paints was the only stock with a meaningful move, gaining 8 percent to $8.30.
Interest rates on Bank of Jamaica CDs dipped again at this past week’s auction that, which saw the average rate slipping to 8.21 percent from 8.41 percent at the previous week’s auction. Over the past five months, inflation has been running at less than one percent per annum, which has set the stage for BOJ to act quickly to slash interest rates, a positive development for the market.
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 this past week, with the supply of some stocks falling sharply.
Honey Bun’s fall from the TOP10 Junior Market list is not the end of the road for this outstanding performer with increased investors’ interest with an expected jump in revenues and profits for the first quarter with the Easter coming at the beginning of April versus the 17th of April last year as well as improvement of gross profit margin that slipped previous year. ICInsider.com expects the price to increase by up to 200 percent this year.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.5, well below the market average of 13.7, while the Junior Market Top 10 PE sits at 5.9 compared with the market at 11.6. The differences are important indicators of the level of likely gains for ICTOP10 stocks. The Junior Market is projected to rise by 246 percent and the Main Market TOP10 by an average of 273 percent, by May 2024, based on 2023 forecasted earnings.
The Junior Market has 13 stocks representing 27 percent of the market, with PEs from 15 to 27, averaging 19, well above the market’s average. The top half of the market has an average PE of 16, suggesting this may be the current lowest fair value for Junior Market stocks.
The 16 highest valued Main Market stocks are priced at a PE of 15 to 114, with an average of 31 and 21 excluding the highest PE stocks and 20 for the top half excluding the stocks with the highest valuation.
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 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 3,670,324 shares for $9,384,503 down from 6,971,908 units at $15,464,261 on Thursday.
The PE Ratio, a measure of computing appropriate stock values, averages 11.6. The PE ratios of Junior Market stocks are computed using the last traded stock price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
EduFocal climbed 14 cents to $2.19 in switching ownership of 3,000 units, Elite Diagnostic fell 6 cents to end at a 52 weeks’ low of $2.40 with the swapping of 221,031 stock units, Honey Bun gained 32 cents in closing at $6.57, with 33,555 units crossing the market, Iron Rock Insurance increased 6 cents to end at $2.26 trading 3,932 stocks, Jamaican Teas rose 6 cents to $2.09 with investors transferring 132,792 shares, Lasco Financial lost 9 cents to close at $2.40 with an exchange of 2,247 stocks, Main Event increased 80 cents after ending at a record closing high of $14.70 with 51,499 shares changing hands, MFS Capital Partners climbed 23 cents to $3.19 after a transfer of 466,106 stock units, 
Stationery and Office Supplies gained 50 cents to close at $15 while exchanging 9,020 units and Tropical Battery rallied 6 cents to $1.94 after an exchange of 224,231 shares.
Investors exchanged a total of 6,971,908 shares for $15,464,261, compared to 11,018,178 units at $34,448,601 on Wednesday.
The PE Ratio, a measure of computing appropriate stock values, averages 11.5. The PE ratios of Junior Market stocks are computed based on the last traded stock price and ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
Fontana rallied 17 cents to end at $8.32 in trading 34,738 units. Fosrich dropped 9 cents in closing at $2.64 after trading 346,736 stocks, Honey Bun lost 7 cents to end at $6.25 in switching ownership of 2,208 shares, iCreate rose 7 cents to close at $1.59 after exchanging 165,128 shares. Knutsford Express rallied 69 cents after ending at $11.69 in an exchange of 12 units, Lasco Distributors climbed 21 cents to close at $2.40 as investors exchanged 12,727 stock units, Lasco Manufacturing increased 14 cents in closing at $4.14 in an exchange of 388 stocks. Limners and Bards declined 12 cents to end at $2.22, with 33,460 units crossing the market, Lumber Depot declined 8 cents after ending at $2.41 while exchanging 13,855 stocks, Main Event rallied 63 cents to $13.90, with 26,278 stock units changing hands. 
MFS Capital Partners dropped 35 cents to $2.96, with 874,948 shares crossing the exchange and Regency Petroleum shed 8 cents to close at $2.41 but only after hitting an intraday 52 weeks’ high of $2.58, with a transfer of 577,333 stocks.
Investors traded 11,018,178 shares for $34,448,601, up from 7,029,208 units at $15,932,727 on Tuesday.
The PE Ratio, a measure of computing appropriate stock values, averages 11.5. The PE ratios of Junior Market stocks are computed using the last traded price in conjunction with earnings projected by ICInsider.com for the financial years ending between November 2023 and August 2024.
General Accident gained $1.31 in closing at $6 after an exchange of 35,881 stocks. GWest Corporation popped 12 cents to $1.04 with 2,001 stock units clearing the market, Honey Bun dropped 15 cents to end at $6.32 after a transfer of 3,088 stocks, KLE Group rallied 19 cents to close at $2.06 with investors trading 101 units. Knutsford Express shed 70 cents to $11 with 18,214 shares crossing the market, Lasco Distributors lost 21 cents after ending at $2.19 in an exchange of 569,604 stock units, Lasco Manufacturing declined 15 cents to close at $4 with trading in 25,306 stocks. Main Event rose 47 cents to $13.27 in switching ownership of 53,571 units,MFS Capital Partners fell 18 cents to end at $3.31, with 3,074,181 stocks crossing the exchange. 
Regency Petroleum increased 19 cents in closing at a record high of $2.49 after exchanging 728,168 shares, Spur Tree Spices climbed 17 cents to $2.80 with the swapping of 1,205,767 stock units and Stationery and Office Supplies dropped 65 cents after ending at $14.50 in an exchange of 594 shares.
Investors traded 7,029,208 shares for $15,932,727 compared with 5,812,729 units at $12,880,143 on Monday.
The PE ratios of Junior Market stocks are computed using the last traded stock price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
GWest Corporation shed 12 cents to end at 92 cents in trading 7,176 units, Honey Bun gained 17 cents after ending at $6.47, with an exchange of 2,398 stocks, iCreate increased 16 cents to close at $1.59, with 118,218 stocks changing hands, ISP Finance rose $1.49 in closing at $21 with the swapping of 200 units, Jetcon Corporation rallied 24 cents to $1.30 as 102,293 shares passed through the market, KLE Group gained 17 cents to close at $1.87 with 159 stock units clearing the market, Knutsford Express price increased 70 cents in closing at $11.70 after 26,178 stocks were traded, Lasco Distributors dipped 18 cents in ending at $2.40 after a transfer of 59,283 shares, Lasco Manufacturing fell 15 cents to $4.15 in an exchange of 57,213 stock units, 
Main Event shed 25 cents after ending at $12.80, with an exchange of 19,904 units and Stationery and Office Supplies advanced 85 cents to end at $15.15 as investors exchanged a mere 140 shares.
Investors traded 5,812,729 shares for $12,880,143 down from 12,592,410 units at $30,723,595 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 stock price in conjunction with ICInsider.com’s earnings projections for the financial years ending between November 2023 and August 2024.
Fontana declined 9 cents to end at $8.10, with 69,877 stocks crossing the market, Future Energy Source climbed 7 cents in closing at $4.17 with the swapping of 124,884 units, Honey Bun gained 19 cents to close at $6.30 after trading 81,172 stock units, Indies Pharma rallied 23 cents in ending at $3.33 after a transfer of 31 units, ISP Finance lost $1.69 to close at $19.51 after 1,510 shares passed through the market, KLE Group declined 25 cents to end at $1.70 as investors exchanged 15,173 stocks, Knutsford Express fell 50 cents in closing at $11 with investors trading 23,143 stock units, Lasco Distributors popped 41 cents after ending at $2.58 with an exchange of 105,353 stock units, Lasco Financial rose 10 cents to $2.50, with 6,358 shares crossing the market, Lasco Manufacturing advanced 19 cents to close at $4.30 in trading 10,118 units, Limners and Bards increased 13 cents to close at $2.34 with 50 stocks crossing the exchange, Lumber Depot climbed 27 cents to end at $2.50 closed with an exchange of 678,357 stocks, 
Main Event rallied 10 cents to $13.05 in an exchange of 35,706 units, Spur Tree Spices shed 7 cents in ending at $2.63 after an exchange of 88,262 shares and Stationery and Office Supplies dropped 70 cents in closing at $14.30 after switching ownership of 150 stock units.
Honey Bun’s return to the TOP10 Junior Market list this past week should enjoy increased investors’ interest with an expected jump in revenues and profits for the first quarter with the Easter coming at the beginning of April versus the 17th of April last year as well as improvement of gross profit margin that slipped last year.
The above average shows the extent of potential gains for the TOP 10 stocks.
A total of 12,592,410 shares were traded for $30,723,595 compared with 10,803,209 units at $29,542,706 on Thursday.
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 stock price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
ISP Finance climbed 20 cents in closing at $21.20 in trading 3,213 stock units, Knutsford Express shed 28 cents to end at $11.50 after an exchange of 37 shares, Lasco Distributors lost 29 cents after ending at $2.17 with a transfer of 14,107 units, Lasco Financial dropped 13 cents to close at $2.40 after exchanging 10,310 units, Lasco Manufacturing rose 50 cents to $4.11 in switching ownership of 10,154 stocks, Limners and Bards lost 18 cents to end at $2.21, with 1,101 shares crossing the exchange, Mailpac Group popped 14 cents after ending at $1.87 with the swapping of 2,917,967 stock units, MFS Capital Partners rose 10 cents to close at $3.48, with 88,914 units crossing the market, Spur Tree Spices advanced 17 cents in closing at $2.70 as 75,000 shares passed through the market, 
Stationery and Office Supplies advanced 90 cents to $15 and closed after an exchange of 23 stocks and tTech rallied 26 cents to $2.55, with just one stock unit changing hands.
Investors traded 10,803,209 shares for $29,542,706 up from 6,413,927 units at $17,798,049 on Wednesday.
The PE Ratio, a measure of computing appropriate stock values, averages 10.9. 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.
Fontana fell 20 cents to $8.10 and closed with 57,034 shares changing hands, Fosrich popped 15 cents in closing at $2.70 while exchanging 157,464 stock units, Indies Pharma declined 17 cents to close at $3 in an exchange of 121,947 units, ISP Finance shed 20 cents in ending at $21 after switching ownership of 56 units, Knutsford Express gained $1.08 to end at $11.78 with an exchange of 50,517 stocks, Lasco Distributors hit an intraday 52 weeks’ low of $2.15 before advancing 14 cents to close at $2.46 after an exchange of 96,858 stock units, Lasco Financial rose 13 cents in closing at $2.53 with investors transferring 800 shares, Lasco Manufacturing lost 39 cents to end at a 52 weeks’ low of $3.61 in an exchange of 190,085 stocks, Lumber Depot dropped 16 cents after ending at $2.20, with 191,079 shares crossing the exchange, Mailpac Group shed 15 cents to close at $1.73 46,388 with stock units changing hands, 
Main Event gained 59 cents to $12.89 with a transfer of 98,742 units, Paramount Trading popped 20 cents to close at $2.37, with 51 shares clearing the market and Spur Tree Spices dipped 10 cents in closing at $2.53 as investors exchanged 207,356 units.
Investors traded 7,914,653 shares for $21,222,090, up from 6,861,944 units at $15,792,093 on Thursday.
Investor’s Choice bid-offer indicator shows one stock ended with the bid higher than the last selling price and two with lower offers.
General Accident shed 34 cents to close at $4.71, with 7,577 shares crossing the exchange, Honey Bun lost 64 cents to close at $6.11 in trading 38,283 units, Indies Pharma popped 29 cents to $3.19 with investors transferring 7,807 stock units, ISP Finance declined $3.30 to $18.70 after trading 7,961 stock units, KLE Group climbed 17 cents in closing at $1.86 with the swapping of one unit, Knutsford Express advanced 78 cents to $11.78 as investors traded 11,914 stocks, Lasco Distributors dipped 20 cents after ending at $2.43, with 23,512 shares crossing the market, Limners and Bards dipped 28 cents in closing at $2.20 after exchanging 1,298,592 units, Main Event fell 56 cents to close at $11.70 with 9,992 shares clearing the market, 
Stationery and Office Supplies increased 13 cents to $14.15 in an exchange of 3,539 stock units and tTech lost 26 cents to end at $2.29 with a transfer of 13,291 stocks.