Stationery & Office Supplies – Montego Bay office.
Investors got a serious dose of a new set of company results and they liked a number of them, driving up prices of some up, following results that surprised positively. Many of the surprising ones matched the ICInsider.com forecast. Stationery & Office Supplies that was in the ICTOP10 up to last week reported earnings in line with ICInsider.com projections of $1 and investors pushed the price to a 52 weeks’ high of $9.50, with a gain of 109 percent for the year so far, with more gains ahead.
tTech is another company reporting earnings in line with the ICInsider.com forecast, with the stock jumping to $5.91 to be up 41 percent for the year. Berger Paints another TOP 10 stock up to last week, seems well on the way to earn $1.50, ICInsider.com forecasted, the price closed the week at $15, pushing it out of the TOP10. There are only 4,852 units on offer up to $17 thereafter, just over 154,000 between $18.99 and $19.86, Grace Kennedy reported a 26 percent rise in profit for the quarter, a continuation of good growth it enjoyed in 2020, but the market is yet to reward it with a price rise.
Access Financial and Key Insurance have moved into the TOP10 to fill the space left by the two stocks that fell out at the end of the week.
When ICInsider.com embarked on the 2021 profit forecast, it was a most difficult time due to the turbulence in the economy and businesses of many listed companies. Nevertheless, we boldly made our forecast and the first fruits are now showing and investors like them in driving up nine of 15 Junior Market stocks selected in January, bettering the gains for the year of 26 percent. Two stocks more than doubled and one is up 96 percent after more than doubling in trading for the year to date, earlier this week, before some profit taking set in. One stock rose 64 percent, one gained 43 percent, two 35 percent and two with 29 percent gain. Added to this is Future Energy Sources that was a part of the TOP10 listing starting at the end of February and has since gained 35 percent.
The ICTOP15 stocks in continuing an outstanding performance saw, Stationery & Office Supplies jumping 109 percent for the year to date, Lumber Depot 104 percent, Jamaican Teas 96 percent, Main Event 64 percent, Lasco Financial rose 43 percent, Caribbean Cream and Caribbean Producers up 35 percent, Lasco Distributors and MailPac a rise of 29 percent each.
The JSE Main Market is only up 4 percent year to date, but ICTOP15 stock selection saw Carreras and Grace Kennedy rising 37 percent, QWI Investments and Caribbean Cement up 29 percent, Seprod up 20 percent, Jamaica Producers 19 percent and Jamaica Broilers up 15 percent.
The bullish tone of both markets continues, but the Junior Market had hit the top line of an upward sloping channel that could act as resistance and is worth watching. The Main Market is a few thousand points away from its channel top, but those resistance points should be only temporary barriers if they, in fact become that.
The top three stocks in the Junior Market are headed by Elite Diagnostic followed by Medical Disposables and Jetcon Corporation, with the potential to gain between 245 to 283 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by Jamaica Broilers and PanJam Investment, with expected gains of 165 to 385 percent.
The targeted PE ratio for the market averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Stocks and 19 times for the Main Market. With interest rates on government paper below 5 percent and likely to remain there for a few years, the likelihood is for the average PE ratios to climb higher during the next twelve months.
The Junior Market, with an average PE 12.3 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17. This represents another 39 percent rise in the market that would equate to a rise of 60 percent to March 2022. The Junior Market Top 10 stocks average a mere 6.4 at just 52 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 16.5, some distance from the 19 the market ended March, suggesting a 15 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.8 or 47 percent of the PE of that market and well off the potential of 20.
The average projected gain for the Junior Market IC TOP 10 stocks is 220 percent and 168 percent for the JSE Main Market, based on 2021-22 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
At the close, Barita Investments dropped $3.05 to $83 with 33,408 shares changing hands. Berger Paints advanced $1.35 to close at a 52 weeks’ high of $15 after exchanging 30,727 stock units, Caribbean Cement slid $4.98 to $81.02 with 96,636 shares crossing the exchange. Eppley Caribbean Property Fund shed 98 cents to close at $44 trading 11 units, First Rock Capital fell 40 cents to $16.50 in exchanging 50,337 shares, Grace Kennedy slipped 19 cents to close at $88.66 in switching ownership of 161,912 stocks. Jamaica Broilers ended $1 lower at $34.50 in exchanging 30,864 units, Jamaica Stock Exchange gained 24 cents to close at $17.99 with 11,600 stock units crossing the market, JMMB Group rose $1.05 to $33.05 in trading 33,966 units, Kingston Wharves advanced $1 to end at $48 in an exchange of 3,152 stocks, NCB Financial declined $1.50 to $138.50 after transferring 39,781 units, 138 Student Living gained 30 cents to end at $5.30 in exchanging 2,129 stocks. PanJam Investment rose $1 to close at $66.50 in trading 594,688 units, Proven Investments rose 94 cents to $37.95 in trading 26,800 shares, Sagicor Group closed 54 cents higher at $50.55 in an exchange of 35,406 stocks. Salada Foods rose 86 cents to $7.66 in switching ownership of 116,542 stock units, Scotia Group shed 50 cents to end at $41 in trading 20,188 units, Supreme Ventures picked up 50 cents to close at $19.50 with the swapping of 10,037,859 shares, 
Victoria Mutual Investments declined 78 cents to $6.30 in trading 154,338 stock units and Wisynco Group gained 30 cents to close at $15.90, with 240,532 shares crossing the exchange.
The All Jamaican Composite Index advanced 1,110.77 points to 451,625.91, the Main Index rose 732.14 points to 427,434.05, and the JSE Financial Index inched 0.15 points up to settle at 106.89.
Trading averaged 308,990 units at $1,775,357, compared to 231,986 shares at $2,914,778 on Wednesday. Trading month to date averages 289,678 units at $3,227,079, in contrast to 287,442 units at $3,395,135 on Wednesday. April averaged 234,200 units at $1,772,561.
138 Student Living fell 30 cents to close at $5 with 3,999 stock units crossing the market, Pan Jam Investment rose $2 to close at $65.50 in exchanging 11,859 stocks, Proven Investments fell 89 cents to $37.01 in the swapping of 17,979 stock units, Pulse Investments gained 30 cents to $4.60 in switching ownership of 345,178 shares. Sagicor Group declined $1.99 to $50.01 in an exchange of 200,381 units, Salada Foods lost 20 cents to finish at $6.80 with a transfer of 117,419 stocks, Seprod gained 88 cents to close at $77.88 in trading 12,866 shares, Supreme Ventures gained 49 cents to settle at $19 with the swapping of 48,842 stock units and Wisynco Group lost 40 cents in ending at $15.60 after trading 197,460 stocks.
The JSE Main Index gained 314.36 points to 426,701.91 and the JSE Financial Index lost 0.05 points to settle at 106.74.
Investor’s Choice bid-offer indicator reading has nine stocks ending with bids higher than their last selling prices and three with lower offers.
Pulse Investments lost 40 cents in closing at $4.30 in an exchange of 411,205 units, Sagicor Group climbed $2.51 to $52 with 2,279,348 shares crossing the market, Salada Foods dropped 20 cents to $7 in transferring 206,193 stock units, Seprod slid 88 cents to end at $77 in switching ownership of 4,451 shares, Supreme Ventures fell $1.44 to $18.51 with 73,026 units changing hands and Wisynco Group rose 50 cents to $16 after exchanging 45,650 units.
Trading activity led to a nice rise in the All Jamaican Composite Index that climbed 2,013.60 points to settle at 449,734.73. The Main Index gained 1,725.03 points to 426,387.55 and The JSE Financial Index inched 0.10 points higher to 106.79.
Investor’s Choice bid-offer indicator shows 11 stocks ending with bids higher than their last selling prices and one with a lower offer.
Stanley Motta shed 30 cents to close at $5.85 with 1,392 units changing hands, Sterling Investments gained 23 cents to end at $2.98 in switching ownership of 20,900 stocks, Supreme Ventures rose $2.64 to a 52 weeks’ high of $19.95 in exchanging 113,998 shares. Sygnus Credit Investments lost 24 cents in ending at $14.65 with the swapping of 15,776 stock units and Wisynco Group lost 50 cents at $15.50 in an exchange of 107,145 stock units.
At the close, the All Jamaican Composite Index fell 1,335.19 points to 447,721.13, the Main Index dropped 4,869.78 points to 424,662.52 and the JSE Financial Index shed 1.85 points to settle at 106.69.
Investor’s Choice bid-offer indicator shows eight stocks ending with bids higher than their last selling prices and one with a lower offer.
Salada Foods dipped 30 cents to close at $9, trading 144,058 stock units, Scotia Group fell $1.29 to $40.51 in exchanging 61,843 shares, Seprod declined $4 to close at $71 after 17,111 units crossed the exchange. Supreme Ventures shed 49 cents to settle at $17.31 after an exchange of 136,667 stock units, Sygnus Credit Investments gained 29 cents to end at $14.89 with 34,847 units changing hands.
The Junior Market had some major shakeup in some of the listings this past week as investors keep their eyes solidly on opportunities in this market, having slowly eating away at the above-average gains available in the market and driving prices of many stocks up and pushing the market back to early January 2020 level. 
Medical Disposables dropped from the third position with a gain of 19 percent to $5.28, Stationery & Office rose from $5.71 to $6.45 and taking it from 5th to 7th position, while Lasco Financial moved up to 6th position from 9th last week, with no price change, Caribbean Producers moved up from 8th last week to 3rd this week and Caribbean Cream shifted from 7th to 2nd this week.
The bullish tone of the two markets continues, with technical indicators and fundamentals of many companies keep on powering prices higher with many investors looking to the future with the recovery of the economy in mind and the impact that it will have on stocks.
The targeted PE ratio for the market averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Stocks and 19 times for the Main Market. With interest rates on government paper below 5 percent and likely to remain there for a few years, the likelihood is for the average PE ratios to climb higher during the next twelve months.
The JSE Main Market ended the week with an overall PE of 16.5, some distance from the 19 the market ended March, suggesting a 15 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.7 or 47 percent of the PE of that market and well off the potential of 20.
At the close, the All Jamaican Composite Index rose 1,717.09 points to 449,056.32, the Main Index advanced 6,789.24 points to 429,532.30 and the JSE Financial Index gained 2.78 points to settle at 108.54.
Investor’s Choice bid-offer indicator shows seven stocks ending with bids higher than their last selling prices and two with lower offers.
Proven Investments rose $1.01 to $38.78 with the swapping of 112,652 units, Sagicor Real Estate Fund slipped 25 cents to close at $7.95 with the transfer of 3,366 stocks, Salada Foods lost 40 cents in closing at $9.30 in trading 145,990 units, Seprod dropped $3 to finish at $75 with 105,935 shares changing hands, Supreme Ventures rose 56 cents to end at $17.80 in switching ownership of 98,891 stock units and Sygnus Credit Investments lost 39 cents ending at $14.60 in trading 39,721 units.
Trading ended with 51 securities compared to 50 on Wednesday and closed with prices of 21 stocks rising, 16 declining and 14 remaining unchanged. The PE Ratio, based on ICInsider.com’s forecast of 2021-22 earnings, averages 16.5.
Investor’s Choice bid-offer indicator reading has ten stocks ending with bids higher than their last selling prices and one with lower offers.
PanJam Investment rose $1.25 to $63.50 in exchanging 22,174 units, Proven Investments gained 75 cents to finish at $37.77 trading 7,198 stock units, Sagicor Group rose 99 cents to end at $49.49 after crossing the market with 50,855 units. Salada Foods lost 28 cents in closing at $9.70 in transferring 261,746 stock units, Stanley Motta gained 20 cents to close at $6.20 with an exchange of 3,100 shares. Supreme Ventures lost 26 cents to end at $17.24 after crossing the market with 69,748 stock units and Wisynco Group gained 52 cents to close at $15.90 with the swapping of 134,365 stock units.
In the private bond market, Guardian Holdings 2025 Bond traded 104,000 units at $101.28 each.
Wigton Windfarm was the second major trading stock with 11.5 percent for 1.65 million units, Mayberry Investments followed with 10.6 percent for 1.52 million units, Transjamaican Highway controlled 8.2 percent, with 1.18 million units and Sagicor Select Financial Fund ended with 7.9 percent after 1.14 million units change hands.
Proven Investments shed 98 cents to close at $37.02 after exchanging 40,040 shares, Salada Foods gained 48 cents to end at a 52 weeks’ high of $9.98 in switching ownership of 352,739 stock units. Scotia Group picked up 20 cents in closing at $42 after clearing the market with 670,305 shares, Seprod fell $2 to $78 in transferring 340,678 stock units, Supreme Ventures shed 45 cents to close at $17.50 in an exchange of 67,054 stocks.