Market activity ended on Monday, with the market declining for a fifth consecutive day after fewer stocks moved higher than declining, with an exchange of 93 percent fewer shares valued by 59.5 percent less than on Friday at the close of the Jamaica Stock Exchange Main Market.
The All Jamaican Composite Index lost 2,254.61 points to settle at 452,118.35, the JSE Main Index lost 1,907.97 points to settle at 412,453.13 and, the JSE Financial Index dropped 1.12 points to settle at 101.18.
Trading ended with 47 securities compared to 51 on Friday, with 17 rising, 19 declining and 11 remaining unchanged. The PE Ratio averages 15.6 based on ICInsider.com’s forecast of 2021-22 earnings.
The market closed with 11,076,496 shares trading for $563,895,212, sharply down from 148,849,986 units at $1,392,050,084 on Friday. NCB Financial led trading with 31.3 percent of total volume, after an exchange of 3.46 million shares, followed by Radio Jamaica 15.2 percent, with 1.69 million units, Wigton Windfarm accounted for 12.2 percent, from 1.35 million units and Pulse Investments ended with 9.5 percent after trading 1.05 million shares.
Trading averaged 235,670 units at $11,997,770, compared to 2,918,627 shares at $27,295,100 on Friday. Trading month to date, averages 553,812 units at $9,013,810, in contrast to 576,923 units at $8,797,046 on Friday. Trading month to date, exceeds July, with an average of 322,932 units at $15,201,099.
Investor’s Choice bid-offer indicator reading has 11 stocks ending with bids higher than their last selling prices and eight stocks with lower offers.
At the close, Barita Investments lost 50 cents to close at $93, after 33,403 shares crossed the exchange, Berger Paints spiked 59 cents to $13.60 in exchanging 10,682 stocks, Caribbean Cement popped $3.57 to end at a 52 weeks’ high of $97 after trading 18,596 units, Eppley gained $1.80 to end at $41.80, with 655 stock units changing hands, Eppley Caribbean Property Fund dropped 63 cents to $39.41 with the swapping of 4,015 units. GraceKennedy shed $1 to close at $100 after exchanging 663,004 shares, Guardian Holdings declined $5 ending at a low of $605, since listing this year, trading 4,191 shares. JMMB Group rallied 99 cents to $38.99 in switching ownership of 69,677 stocks, Mayberry Jamaican Equities climbed 39 cents to $9.39 after exchanging 4,002 stocks, MPC Caribbean Clean Energy spiked $16 to $136, with 731 shares crossing the market, NCB Financial fell $1.47 to $131.54, with 3,464,932 units clearing the market. 
Palace Amusement shed $63.99 to $961.01 while exchanging 171 stock units, Proven Investments rose $2.55 to $32.60 in trading 69,166 units, Sagicor Group rose 25 cents to $57.25 in an exchange of 169,719 shares, Scotia Group climbed $1.20 to $40 while exchanging 27,735 stocks, Seprod declined 50 cents to close at $67.50 after exchanging 5,025 units. Supreme Ventures shed 50 cents to $18.50, 7,932 stocks changing hands, Sygnus Credit Investments spiked 98 cents to $15 in switching ownership of 47,248 stock units and Wisynco Group rallied 19 cents to $15.84, with 35,271 shares clearing the market.
In the preference segment JMMB Group 7.25% dropped 25 cents in ending at $1.25, with an exchange of 40,106 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
RJR down to 7 spot, Dolphin joins ICTOP10
Dolphin Cove returns to the ICInsider.com TOP10 list after a very long absence. The company’s half year results show a major upturn in fortunes, with prospects of good full year results. The stock replaces CAC2000 that slipped out of the top list.
Dolphin Cove reported a profit of US$1.24 million in the June quarter or 49 cents in Jamaican currency, thus wiping out the first quarter loss of US$155,000 and seems on target to generate around $3.3 million in profit for the year.
Last week’s number one Main Market stock – RJR, dropped to position 7 this week, with the price jumping to $3.50 from $2.25 last week. It could be out of the TOP10 next week if buying interest continues to come into the market, with the stock gaining 60 percent for the week and a respectable 91 percent for the year to date. That is not a bad performance for a stock sold for $1.10 in December last year and one that not many investors looked at until recent results were released. Interestingly, while many investors looked elsewhere, the smart money was laser focused on the future and the boom in revenues that was to come from growth in various areas of the economy that would increase advertising spend and push quarter profits to record levels. 
The smart money bought 52 million shares on April 6 last year, at an average of $1.33. On April 13, 95.4 million units were picked up and 67.7 million on April 27 at $1.26. The next big buy was August 17th, with 10 million units at $1.30 and 0n October 19 with 20 million units.
Outside the Junior and Main markets TOP10, investors should watch AMG Packaging and Sterling Investments.
After more than a year and a half at the top of the ICTOP10 listing Radio Jamaica finally broke lose this week, with the price hitting new daily 52 weeks’ highs and ended at $3.50 on Friday. The top three Main Market stocks are now headed by Berger Paints, with the potential to gain 277 percent, followed by JMMB Group and Guardian Holdings, with expected gains of 202 to 277 percent for the three, versus last weeks’ 200 to 300 percent.
The top three stocks in the Junior Market are Elite Diagnostic, followed by Stationery and Office Supplies that fell on Friday to $5.75, from $7.43 last week and General Accident, with all three having the potential to gain between 221 percent and 295 percent, compared to 256 and 336 percent, last week.
Last week, a few companies’ profit results were highlighted; one that was not and came out with less than exciting profit numbers is Elite that is top of the Junior Market listing. The company came to the market with much promise but has failed to deliver on its promise. A close assessment of the June results shows an increase in revenue in each quarter in the last fiscal year over the prior quarter, suggesting that if the trend continues, the current fiscal year should see a big rise in revenues and profits. The paying of a dividend that is greater than the reported profit for the last fiscal year is an indication that things are likely to be better in the current year. The other factor is that EBITA is strong with a fairly stable depreciation charge of 20 percent of revenues.
This past week the average gains projected for the Junior Market moved from 193 percent to 207 percent and Main Market stocks from 180 percent to 172 percent.
The Junior Market closed the week with an average PE of 11.4 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 and the recent historical average of 17 for the period to March this year, based on 2020 earnings.
The JSE Main Market ended the week with an overall PE of 15.6, a little distance from the 19 the market ended at in March, suggesting a 17 percent rise at a PE of 19 and 23 percent at a PE of 20 from now to March 2022. 
The Main Market TOP 10 trades at a PE of 7.6, with a 41 percent discount to the PE of that market, well off the potential of 20.
The TOP10 stocks are not always the best in the market but are likely to be the best winners within a fifteen-month period. IC ranked stocks to filter out the big winners, allowing investors to focus on potentially big winners and help to keep out emotional attachments to stocks.
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, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. 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.
Trading spikes on Friday for JSE majors
Market activity ended on Friday with a fourth consecutive day of decline after three stocks falling for every two that rose, with volume traded and value surging 567 percent and 650 percent higher than on Thursday at the close of the Jamaica Stock Exchange Main Market.
The All Jamaican Composite Index slipped 158.71 points to 454,372.96, the Main Index dropped 804.45 points to settle at 414,361.10 and the JSE Financial Index dipped 0.08 points to end at 102.30.
A total of 51 securities traded compared to 53 on Thursday, with 16 stocks rising, 24 declining and 11 remaining unchanged one stock closed at a 52 weeks’ high and three at 52 weeks’ lows. The PE Ratio, a measure that computes appropriate stock values, averages 15.6 based on ICInsider.com’s forecast of 2021-22 earnings.
The market closed with 148,849,986 shares trading for $1,392,050,084 versus 22,302,736 units at $185,523,053 on Thursday. Mayberry Jamaican Equities led trading with 86.6 percent of total volume after exchanging 128.94 million shares followed by Wigton Windfarm 4.3 percent, with 6.4 million units, JMMB Group with 2.8 percent for 4.11 million units, Transjamaican Highway with 1.9 percent after 2.87 million units traded and Radio Jamaica with 1.8 percent for 2.73 million shares.
Trading averaged 2,918,627 units at $27,295,100, compared to 420,806 shares at $3,500,435 on Thursday. Month to date Trading averages 576,923 units at $8,797,046, in contrast to 376,542 units at $7,214,159 on Thursday. July ended with an average of 322,932 units at $15,201,099.
Investor’s Choice bid-offer indicator reading has twelve stocks ending with bids higher than their last selling prices and six with lower offers.
At the close, Barita Investments fell 49 cents to $93.50 in exchanging 11,172 stocks, Berger Paints shed 69 cents to close at $13.01 in trading 7,316 units, Caribbean Cement spiked $2.43 to $93.43 after 15,013 stock units crossed the exchange, First Rock Capital popped 30 cents to $12.87 in swapping 32 shares, Guardian Holdings fell $10 to at $610, the lowest price since listing earlier this year in switching ownership of 1,503 units, Jamaica Stock Exchange gained 24 cents to finish at $17.24 with a transfer of 1,529 units, JMMB Group shed $1.85 to $38 after exchanging 4,105,538 shares. MPC Caribbean Clean Energy declined $17.80 to $120 with 326 stock units crossing the market, NCB Financial shed 99 cents in closing at $133.01 after transferring 212,348 stock units, Palace Amusement dropped $115 to $1,025 with 26 shares changing hands.
PanJam Investment advanced $3.18 to $65 with the swapping of 1,559 units, Portland JSX dived $2.20 to $7, with 4,824 stocks crossing the market, Proven Investments declined $3.97 to end at a 52 weeks’ low of $30.05 with an exchange of 56,205 shares. Pulse Investments shed 21 cents to close at a 52 weeks’ low of $3.09 in trading 628,045 stocks, Radio Jamaica rose 7 cents to end at a 52 week’s closing high of $3.57 in trading 2,732,191 units, Scotia Group shed 90 cents to $38.80 in trading 7,235 stock units. Seprod popped $6.80 to $68 with the swapping of 52,385 shares, Stanley Motta rose 67 cents to $5.90 in switching ownership of 2,079 units, Sygnus Credit Investments lost 93 cents to end at $14.02 in an exchange of 56,400 stocks and Victoria Mutual Investments rallied 41 cents to $5.76 after exchanging 13,647 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
JSE Main Market down again
The Jamaica Stock Exchange Main Market slipped moderately for a third consecutive day when market activity ended on Thursday with declining stocks outnumbered rising ones, after an exchange of 127 percent more shares valued 98 percent higher than on Wednesday.
The All Jamaican Composite Index lost 916.98 points to settle at 454,531.67, the JSE Main Index shed 587.19 points to 415,165.55 and the JSE Financial Index added 0.19 points to end at 102.38.
Trading ended with 53 securities compared to 52 on Wednesday, with 12 stocks rising, 27 declining and 14 remaining unchanged. The PE Ratio, a measure that computes appropriate stock values, averages 15.4 based on ICInsider.com’s 2021-22 earnings forecast.
A total of 22,302,736 shares were traded for $185,523,053, up from 9,829,573 units at $93,904,028 versus 9,829,573 units at $93,904,028 on Wednesday. Wigton Windfarm led trading with 57.3 percent of total volume for an exchange of 12.76 million shares, followed by Mayberry Investments 9.2 percent with 2.04 million units. JMMB Group 7.5% preference share accounted for 6.5 percent with 1.46 million units and Transjamaican Highway 5.3 percent with 1.19 million units changing hands.
Trading averaged 420,806 units at $3,500,435, compared to 189,030 shares at $1,805,847, on Wednesday. Trading month to date averages 376,542 units at $7,214,159, in contrast to 372,221 units at $7,576,640 on Wednesday. July ended with an average of 322,932 units at $15,201,099.
Investor’s Choice bid-offer indicator reading has 12 stocks ending with bids higher than their last selling prices and six with lower offers.
At the close, Barita Investments dropped $3.89 to $93.99 after exchanging 48,170 shares, Caribbean Cement fell $2.99 to $91 with a transfer of 806,615 stock units. First Rock Capital lost 39 cents to end at $12.57 with an exchange of 31,470 stock units, GraceKennedy fell $2.05 to $101 in trading 71,940 shares. Guardian Holdings dropped $30 in closing at $620 in exchanging 1,176 stock units, Jamaica Broilers lost 57 cents to finish at $35.03 trading 66,111 shares, Jamaica Stock Exchange lost 24 cents in ending at $17 after crossing the exchange with 52,694 stocks. JMMB Group rose $1.85 to $39.85 with the swapping of 599,245 shares, Kingston Properties rallied 25 cents to $10.25, with 8,265 stock units crossing the market, Margaritaville advanced $1.77 to $15.17 with 1,630 stocks changing hands. Mayberry Jamaican Equities slipped 29 cents to $9.10 in transferring 328,458 units, Proven Investments shed 51 cents to $34.02 in exchanging 29,546 shares. Pulse Investments lost 26 cents to close at $3.30 in switching ownership of 261,421 units, 
Radio Jamaica spiked 52 cents to end at 52 weeks’ closing high of $3.50, after hitting a new intraday high of $3.85 in the morning session, in completing an exchange of 669,972 stock units, Salada Foods rallied 28 cents to $7.39, with 2,552 units crossing the exchange, Scotia Group fell 30 cents to end at $39.70, with an exchange of 261,002 shares. Seprod declined $4.80 in closing at $61.20 in trading 21,923 stocks and Victoria Mutual Investments dipped 35 cents at $5.35 with 126,154 units clearing the market.
In the preference segment, Eppley 5% popped 25 cents to close at a record $20.25 in switching ownership of 5,000 stocks and 138 Student Living preference share, fell $2.57 to $5.43 after exchanging 1,576 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Trading spikes on Junior Market – Thursday
Trading closed on Thursday with the index gaining as the volume of stocks traded surge 255 percent, with the value spiking 83 percent above Wednesday levels at the close of the Jamaica Stock Exchange Junior Market.
A total of 37 securities traded compared to 35 on Wednesday and ended, with 17 rising, 15 declining and five closing unchanged. The Junior Market Index popped 9.02 points to 3,298.84. The PE Ratio, a measure used to compute appropriate stock values averages 11.2 based on ICInsider.com’s 2021-22 earnings forecast.
A total of 24,561,305 shares were traded for $37,976,789 compared to 6,920,986 units at $20,719,685 on Wednesday. Paramount Trading had the largest block of shares trading, accounting for 70.2 percent after an exchange of 17.25 million shares, followed by Future Energy Source 10.4 percent, with 2.55 million units and Caribbean Flavours 4.6 percent, with an exchange of 1.12 million units.
Trading averaged 663,819 units at $1,026,400, up from 197,742 at $591,991 on Wednesday. Trading month to date averages 261,187 units at $754,295, up from 221,141 units at $727,231 on Wednesday. July closed with an average of 163,918 units at $481,755.
Investor’s Choice bid-offer indicator shows one stock ending with the bid higher than its last selling price and three with lower offers.
At the close, Access Financial shed 36 cents to end at $20.64 with 1,670 shares changing hands, AMG Packaging fell 7 cents to $1.54 with a transfer of 22,984 stocks, Blue Power rallied 20 cents to $3.30 with investors switching ownership of 1,200 units. CAC 2000 popped 5 cents to $9.30, exchanging 737 stock units, Caribbean Cream climbed 22 cents to $5.72 with 20,563 shares traded, Consolidated Bakeries rose 10 cents to $1.70 with 5,617 units changing hands. Express Catering climbed 44 cents to $5.40 after transferring 794,317 stocks, Fontana declined 26 cents to $5.82 with 59,832 stock units passing through the market, Fosrich advanced 21 cents to $8.31 with an exchange of 400 shares. Future Energy Source rose 13 cents to close at a 52 weeks’ high of $2.23 trading 2,549,247 units, Honey Bun gained 7 cents to finish at a 52 weeks’ high of $8.15 with 22,951 stocks changing hands, Jamaican Teas popped 17 cents to $3.70 with a transfer of 136,856 shares. Jetcon Corporation dropped 22 cents to $1 with investors switching ownership of 17,000 stock units, Knutsford Express advanced 25 cents to $7.90 with an exchange of 4,134 stocks, Lasco Manufacturing jumped 40 cents to $5.20 with 9,984 units traded. Limners and Bards slipped 5 cents to $3.05 with 104,086 shares changing hands. Lumber Depot rose 5 cents to $3 with a transfer of 458,251 units, Mailpac Group fell 10 cents to $3.65 with investors switching ownership of 254,402 stocks.
Main Event dropped 50 cents to $4.50 with 85,117 stock units traded, SSL Venture advanced 17 cents to 80 cents with 10,000 units passing through the market and Stationery and Office Supplies rallied 35 cents to $7.40 with 3 shares crossing the exchange.
In the preference segment, CAC 2000 9.5% rose 10 cents to $1.10 with 39 units changing hands.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Junior Market sheds 62 points on Wednesday
Stocks tumbled towards the close of trading, with the market index sinking 62.30 points to settle at 3,289.82 after the market opened higher, but a sharp cut in prices of several stocks placed pressure on the Jamaica Stock Exchange Junior Market on Wednesday when declining stocks overpowered those rising.
Market activity led to 35 securities trading compared to 33 on Tuesday and ended, with 10 rising, 17 declining and eight closing unchanged. The PE Ratio, a measure used to compute appropriate stock values, drops to an average of 10.9 from 11.5 on Tuesday, based on ICInsider.com’s 2021-22 earnings forecast.
Future Energy Source dominated trading, with 60.7 percent of the total volume of 4.2 million shares, as the price hit a new record high. Lumber Depot followed, with 6.3 percent after an exchange of 438,325 units and Dolphin Cove cleared 6.2 percent, with 431,935 units.
At the close, 61 percent more shares were traded, with 46 percent greater value than on Tuesday as 6,920,986 shares changed hands for $20,719,685, up from 4,285,931 units at $14,189,500 on Tuesday. Trading averaged 197,742 units at $591,991 versus 29,877 at $429,985 on Tuesday. Trading month to date July closed with an average of 163,918 units at $481,755.
Investor’s Choice bid-offer indicator shows four stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, Access Financial advanced 36 cents to $21 with 500 shares traded, AMG Packaging rose 6 cents to $1.61 with 2,000 stocks changing hands, Consolidated Bakeries dropped 25 cents to $1.60 with a transfer of 3,121 units after the company posted increased losses for the June quarter compared with the similar period in 2020. Dolphin Cove shed 50 cents to close at $9 with an exchange of 431,935 stock units, Elite Diagnostic spiked 5 cents to $3.08 with 253,468 shares passing through the market, Express Catering dropped $1.19 to $4.96 with 102,013 stocks traded. Fontana advanced 26 cents to $6.08 with 225,655 stock units changing hands, Fosrich fell 32 cents to $8.10 with a transfer of 9,898 units, Future Energy Source gained 28 cents to finish at an all time high of $2.10 with an exchange of a market leading 4,198,648 shares. General Accident fell 14 cents to $5.56 with 228,438 stocks traded, Honey Bun rose 8 cents to a 52 weeks’ high of $8.08 with 67,947 units changing hands, iCreate slipped 7 cents to 80 cents with a transfer of 1,700 stock units. 
Iron Rock Insurance shed $1.09 to finish at $3.10 with investors switching ownership of 14,925 shares, Jamaican Teas dropped 27 cents to $3.53 with an exchange of 287,024 stocks, KLE Group slipped 6 cents to $1.17 with 1,100 stock units traded. Lasco Distributors lost 9 cents to close at $3.95 with 28,000 shares changing hands, Lasco Financial fell 14 cents to $3.01 with a transfer of 34,500 units, Lasco Manufacturing shed 40 cents to end at $4.80 with an exchange of 17,189 stocks. Main Event advanced 20 cents to $5 with 505 stock units passing through the market, Medical Disposables lost 12 cents to end at $4.83 with 18,107 units changing hands, Paramount Trading declined 22 cents to $1.03 with investors switching ownership of 21,372 stocks and SSL Venture dropped 17 cents to 63 cents with 10,800 shares crossing the exchange.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Barita Main Market dominant trade
Barita Investments was the dominant traded at the close of market activity on Monday, with an exchange of just over 19 million shares with a value of $1.6 billion as the market ended with modest rises in the indices after the number of shares exchanged climbed 88 percent carrying a value 2021 percent higher than on Friday on the Jamaica Stock Exchange Main Market.
Barita Investments headquarters
The All Jamaican Composite Index squeezed out a rise of 230.52 points to settle at 456,748.77, the Main Index eked out a 95.36 points rally to 416,824.11 and the JSE Financial Index popped just 0.09 points to 102.59.
Trading ended with a total of 49 securities changing hands compared to 46 on Friday, with 19 stocks rising, 22 declining and eight remaining unchanged. The PE Ratio, a measure that computes appropriate stock values, averages 15.8 based on ICInsider.com’s forecast of 2021-22 earnings.
The market closed with 32,951,304 shares trading worth $1,845,967,733 versus 17,455,607 units at $87,019,322 on Friday. Barita Investments led trading with 58.8 percent of total volume for an exchange of 19.38 million shares and accounting for 58.8 percent of total volume, followed by Transjamaican Highway with 10.1 percent for 3.33 million units, Jamaica Broilers cornered 9.2 percent, with 3.02 million units, Wigton Windfarm had 6.3 percent for 2.08 million units and Radio Jamaica ended with 3.5 percent after trading 1.15 million units.
Trading averaged 672,476 units at $37,672,811, compared to 379,470 shares at $1,891,724 on Friday. Trading month to date averages 245,797 units at $5,512,406, in contrast to 192,325 units at $1,482,074 on Friday. July ended with an average of 322,932 units at $15,201,099.
Investor’s Choice bid-offer indicator reading has 12 stocks ending with bids higher than their last selling prices and three with lower offers.
At the close, Barita Investments spiked $7.24 to $90.24 with an exchange of 19,379,347 shares, Berger Paints gained 22 cents in ending at $13.74 after trading 54,600 stock units, Caribbean Cement fell $3.49 to $90.50, with the swapping of 7,931 stocks. Caribbean Producers dipped 36 cents $4.64 in transferring 13,326 units, Eppley rose $1.42 to $41.86 with 4,938 stock units crossing the market, First Rock Capital shed $1.50 to $12 with 29,541 stocks clearing the market, GraceKennedy fell $2 to $101 in switching ownership of 637,615 shares. Guardian Holdings slid $5 to $615 in trading 766 units, Jamaica Broilers lost 26 cents to end at $36.20 with 3,023,439 shares changing hands, Jamaica Producers rallied $1.98 to $23.48 in trading 6,300 stock units. JMMB Group declined $2.25 to $37.75 with 280,003 stocks crossing the exchange after trading at an intraday high of $43.47, Kingston Properties popped 20 cents to $9.50 after exchanging 1,301 stocks, Margaritaville popped $1.67 to $15.27 in an exchange of 5,047 shares, Mayberry Investments rose 45 cents to $6.20 in transferring 64,783 stock units. MPC Caribbean Clean Energy dropped $17.80 to $120 with an exchange of 2,500 units, NCB Financial spiked $7.50 to $139.50 after 35,309 stocks crossed the exchange, PanJam Investment shed 58 cents to $62.42 with 14,151 stock units clearing the market. 
Proven Investments slipped $1.10 to $34.40 in exchanging 16,665 shares, Radio Jamaica gained 36 cents to close at a 52 weeks’ high of $2.61 with the swapping of 1,149,429 shares, Sagicor Group lost 40 cents t close at $57.50 with an exchange of 46,317 stock units, Salada Foods rallied 30 cents to $7.50 with the swapping of 21,230 shares, Scotia Group rose 70 cents to $40.30 with 7,222 stocks crossing the exchange. Seprod advanced $3 to $69 with 6,412 units changing hands, Stanley Motta dipped 58 cents to $5.41 in transferring 4,000 stock units and Supreme Ventures dipped 43 cents to $18.56 with 19,369 shares changing hands.
In the preference segment, Productive Business Solutions 9.75% preference share plunged $24.50 to $80.50 with 510 shares clearing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
CAC hits ICTOP10 as RJR stuns market
The leading Main Market ICInsider.com TOP10 listed Radio Jamaica stuns the market this week with blow out first quarter profit of $110 million that compares well with $171 million reported in the last fiscal year, profit could be higher but for a near $70 million provision for bad debt and would have put the result close to our first quarter profit forecast of it beating 2021 full year results.
The bad news is that many persons ignore ICInnsider.com’s forecast of great things to come from the company, with many chasing after it on Friday after the release of the results on Thursday. Some readers bought into the vision but not all. The good news is that, with projected earnings of 45 cents per share, there is much room for this stock to run. The other good news is that there is much more to be gained by owning the stock as the company completes projects that will boost revenues and grow profits in the years to come.
The last dividend paid was 2 cents in July of 2019; before that, 2 cents in September 2016 and 10 cents in September 2015, although profit was only 9 cents per share. A dividend seems due for September this year, and with profits up in the 2021 fiscal year and year to date, shareholders could be looking at an early Christmas present.
The RJR results came close to the end of earning season for the June quarter and stimulated strong buying in the stock, with 9.2 million shares changing hands on Friday, the highest since 8.25 million units were traded on the 19 of July, the second trading day after the company released full year’s results to March. Interest has been building in the stock from the full year release and could get stronger as ICInsider.com gathers that there is good buying interest in it.
With those strong results and the promise of 45 cents per share to be earned for this year and 80 cents in the next year, one would be forgiven if they felt that RJR should be dislodged from the ICTOP10 listing. Well, the top three Main Market stocks are headed again by Radio Jamaica, but the potential gains rose from 296 percent to 300 percent, even as the price moved up to a 52 weeks’ closing high of $2.25 from $2.02 last week, due to upgrading in the earnings to 45 cents per share or $1.1 billion. RJR is followed by Berger Paints, with earnings per share upgraded to $2.45 and JMMB Group, with expected gains of 200 to 300 percent for the three, versus last weeks’ 191 to 296 percent.
CAC2000, a stock with little focus from investors replaces Jetcon Corporation in the Junior Market ICTOP10. Investors should keep watch on CAC2000, with the strong growth in the construction sector that could benefit them.
The PE Ratio of the TOP 10 Junior Market stocks trade at a 44 percent discount to the market average and Main Market stocks 54 percent, indicating the potential gains in these stocks compared with many of those outsides of them.
The top three stocks in the Junior Market, are Elite Diagnostic, followed by General Accident and Medical Disposables, with the potential to gain between 221 percent and 295 percent compared to 256 and 336 percent, last week. Medical Disposables reported vastly improved revenues and profit for the June quarter even without reporting any income from acquiring the 60 percent majority ownership in Cornwall Enterprises. The price of General Accident has languished from last year, even as expansion pointed to improved results for them. They reported a profit of $166 million for the June quarter and $202 million for the half year with EPS of 16 cents and 20 cents respectively, putting them in line to exceed 60 cents for the full year with the last quarter usually the period with highest profits. Caribbean Brokers recorded increased revenues as well as increased expenses, some to promote products. Losses increased in the June quarter and half year, but late 2020 was the period that profit was reported. JMMB Group reported improved June results that more than doubled over 2020 even as cost rose faster than revenues.
This past week, the average gains projected for the Junior Market moved from 218 percent to 193 percent and Main Market stocks to 180 percent from 175 percent.
The Junior Market closed the week with an average PE 12.6 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 and the recent historical average of 17, for the period to March this year based on 2020 earnings.
The JSE Main Market ended the week with an overall PE of 16.3, a little distance from the 19 the market ended at in March, suggesting a 17 percent rise at a PE of 19 and 23 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.5, with a 46 percent discount to the PE of that market, well off the potential of 20.
For the Junior Market to trade at the historical average, the PE Ratio would have to rise 38 percent and requires a rise of 63 percent to reach the targeted PE of 20 by March 2022. Main Market stocks would have to rise by 17 percent to hit a PE of 19 and 23 percent to get to the target of 20. 
The Junior Market Top 10 stocks average PE is a mere 6.9, just 54 percent of the market average, indicating substantial gains ahead.
The TOP10 stocks are not always the best in the market but are most likely to be the best winners within a fifteen-month period. IC ranked stocks to filter out the big winners, allowing investors to focus on potentially big winners and help to keep out emotional attachments to stocks.
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, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. 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.
Radio Jamaica grabs market share
Media house RJR traded most shares on Friday.
Market activity ended on Friday with Radio Jamaica finishing as the leading stock with 53 percent of volume traded after investors gobbled up 9.21 million shares, following the release of the June quarter results and pushing the price to a 52 weeks’ high, with the overall volume and value of shares traded climbing 87 percent and 103 percent respectively over Thursday’s out turn on the Jamaica Stock Exchange Main Market.
The All Jamaican Composite Index fell 518.74 points to 456,518.25, the Main Index slipped 312.91 points to 416,728.75 and the JSE Financial Index added 0.39 points to end at 102.50.
Trading ended with 46 securities compared to 50 on Thursday, with 14 stocks rising, 20 declining and 12 remaining unchanged. The PE Ratio, a measure that computes appropriate stock values, averages 15.5 based on ICInsider.com’s forecast of 2021-22 earnings.
The market closed with 17,455,607 shares traded for $87,019,322, up from 9,341,446 units at $42,964,627 on Thursday. QWI Investments was the second leading trade, with 11 percent after an exchange of 1.92 million units, Transjamaican Highway chipped in, with 8.4 percent for 1.46 million and Wigton Windfarm ended with 8 percent for an exchange of 1.39 million units.
Trading averaged 379,470 units at $1,891,724, up from 186,829 shares at $859,293 on Thursday. Trading month to date averages 192,325 units at $1,482,074, in contrast to 167,373 units at $1,427,454 on Thursday. July ended with an average of 322,932 units at $15,201,099.
Investor’s Choice bid-offer indicator reading has seven stocks ending with bids higher than their last selling prices and two stocks with lower offers.
At the close, Barita Investments advanced $2.96 to $83 with 900 shares crossing the market, GraceKennedy spiked $1.05 to $103 after 271,057 shares cleared the market, Guardian Holdings climbed $4 to $620 in switching ownership of 978 stock units. Jamaica Producers declined $2 to $21.50 in trading 138 units, JMMB Group popped $1.80 to $40 with an exchange of 216,175 stocks, Margaritaville lost 35 cents to finish at $13.60 in exchanging 7,270 stock units. Mayberry Jamaican Equities fell 40 cents to $8.80 with a transfer of 13,763 stocks, NCB Financial declined $3.49 to $132 with 21,781 stock units crossing the exchange, Proven Investments spiked $1.09 to $35.50 in switching ownership of 8,102 stock units. 
Pulse Investments fell 40 cents to $3.50 with the swapping of 679,437 shares, Salada Foods lost 59 cents in ending at $7.20 in an exchange of 52,240 stock units, after posting results that exceeded that of 2020 but well below amounts required to support the stock at recently elevated prices, Scotia Group shed 20 cents in closing at $39.60 and trading 72,819 stocks and Seprod fell $2.90 to $66 with 5,713 shares clearing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
More changes in ICTOP10 picks
Scotia Group headquarters
Scotia Group’s stock price slipped during the week from $42 at the end of the previous week and closed trading at $39.50 Friday and pushing it back into the Main Market ICTOP10 listing and in the process displaced Sterling Investments that reentered the list last week, these were the only changes in and out of the ICTOP10.
More mid-year results were released during the week but had little or no effect on prices as the markets seemed to have suffered from mediocre demand by investors, but there appears some added interest in Caribbean Cement and GraceKennedy.
The PE Ratio of the TOP 10 Junior Market stocks trade at a 47 percent discount to the market average and Main Market stocks 54 percent, indications of the potential gains in these stocks compared with many of that are outside.
The top three stocks in the Junior Market, continue to be Elite Diagnostic, followed by Caribbean Assurance Brokers and Medical Disposables, with the potential to gain between 256 percent and 336 percent compared to 221 and 287 percent, last week. Medical Disposables continues the addition of new products to its portfolio that will add revenues and profit going forward. The acquisition of the 60 percent majority ownership in Cornwall Enterprises, will result in economies of scale and an expanded portfolio to market nationally to an expanded clientele.
The top three Main Market stocks are Radio Jamaica in the number one spot, followed by JMMB Group and Guardian Holdings, with expected gains of 191 to 296 percent, versus last weeks’ 184 to 296 percent. 
The Top10 Main Market leader Radio Jamaica continues to enjoy buying interest that is whittling away the supply of stocks on offer in the market. A barrage of new results are due this coming week as the final reporting day for the period will be Saturday this coming week.
This past week the average gains projected for the Junior Market, moved from 207 percent last week, back to 218 percent and Main Market stocks moved to 175 percent from 173 percent.
The Junior Market closed the week with an average PE 12.3 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 as well as the recent historical average of 17, for the period to March this year based on 2020 earnings.
The JSE Main Market ended the week with an overall PE of 16.3, a little distance from the 19 the market ended at in March, suggesting a 17 percent rise at a PE of 19 and 23 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.5, with a 54 percent discount to the PE of that market, well off the potential of 20.
For the Junior Market to trade at the historical average, the PE Ratio would have to rise 38 percent and requires a rise of 63 percent to reach the targeted PE of 20 by March 2022. Main Market stocks would have to rise by 17 percent to hit a PE of 19 and 23 percent to get to the target of 20. The Junior Market Top 10 stocks average PE is a mere 6.5, just 53 percent of the market average, indicating substantial gains ahead.
The TOP10 stocks are not always the best stocks in the market but ones that are most likely to be the best winners within a fifteen months period. 
IC ranked stocks to filter out the big winners, allowing investors to focus on potentially big winners and help to keep out emotional attachments to stocks.
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.
