Trading closed on Monday, with the volume of stocks declining 95 percent and the value 94 percent less than on Friday on the Jamaica Stock Exchange Junior Market, but the day ended with more stock prices rising than declining.
Market activity led to 34 securities trading as was the case on Friday and ended with 15 rising, 11 declining and eight, closing unchanged.
The Junior Market Index suffered another decline at the close, falling 16.63 points to 3,320.84.
The PE Ratio, a measure used to compute appropriate stock values, averages 14.3. The PE ratio of each stock is shown in the chart below, is based on earnings forecasted by ICInsider.com for companies with their financial year ending up to August 2022.
Overall a total of 6,562,086 shares traded for $21,893,075 down sharply from 143,917,891 shares at $397,668,745 on Friday. Lumber Depot, for a second day, led trading with 4.08 million shares for 62.2 percent of total volume, followed by Caribbean Assurance Brokers with 717,376 units for 10.9 percent of the day’s trade and Mailpac Group with 290,554 units and 4.4 percent market share.
Trading averaged 193,003 shares at $643,914 in contrast to 4,232,879 shares at $11,695,894 on Friday with the month to date, averaging 1,101,032 units at $3,175,448 down from 1,386,894 units at $3,972,320 on Friday. November closed with an average of 160,358 units at $581,730.
Investor’s Choice bid-offer indicator shows six stocks ending with bids higher than their last selling prices and four with lower offers.
At the close, Access Financial popped 50 cents to $20 in swapping 3 shares, Blue Power dropped 33 cents to $3.30 after trading 9,438 stock units, Cargo Handlers rose 97 cents to end at $7.98, with an exchange of one share. Caribbean Assurance Brokers fell 37 cents to $2.61 in trading 717,376 stocks, Caribbean Cream increased 10 cents to close at $5.80 with an exchange of 710 shares, Consolidated Bakeries rallied 5 cents to $1.50 after clearing the market with 10,000 stocks. Dolphin Cove fell 50 cents to $12.50 in an exchange of 89,323 stock units, Elite Diagnostic climbed 13 cents in closing at $3.10 in switching ownership of 10,785 units, Express Catering shed 5 cents to close at $5.65 while exchanging 22,069 stock units. Fontana declined 6 cents to end at $7.24, trading 117,190 units, General Accident gained 13 cents to close at $6.13, trading 1,130 shares, Honey Bun popped 5 cents to end at $9.70 in exchanging 21,564 stocks. iCreate fell 5 cents in closing at 86 cents, with 100,948 stocks changing hands, Lasco Distributors spiked 5 cents to $3.10, with 60,310 stock units crossing the market, Limners and Bards lost 18 cents in ending at $3.37 after trading 136,434 units. Lumber Depot increased 57 cents in closing at $3.32 in an exchange of 4,083,632 shares, Mailpac Group declined 32 cents to $3.12 after exchanging 290,554 shares and Medical Disposables advanced 40 cents to end at $6.70, trading 19,149 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
ICTOP10 CaribAssurance jumps 21%, AMG drops 16%
Caribbean Assurance Brokers rose 21 percent to close at a 52 weeks’ high of $2.98 for the week, while AMG Packaging fell 16 percent in closing at $1.90, with most Junior Market stocks declining for the week. Main Market stocks were pretty steady, with movements not exceeding 4 percent for the week even as the market indices fell just over 6,500 points or 1.5 percent. On the other hand, the Junior Market gave up 31 points or one percent.
The other notable large TOP10 movers this week are; AMG Packaging, with a loss of 16 percent in closing at $1.90 from $2.25 at the previous week’s close after it fell from $2.40 at the end prior week and Caribbean Cream rose 2 percent to $5.70. Access Financial Services slipped 6 percent to $19.50, Elite Diagnostic dropped 7 percent on top of the 8 percent fall last week to $2.97 and General Accident lost 9 percent in closing at $6, Lasco Distributors and Lumber Depot lost 5 percent each. On Friday, the latter declined as Mayberry Jamaica Equities sold off their holdings to Stony Hill Investments.
In the Main Market, Caribbean Producers added another 3 percent to the 15 percent increase last week to close at $10.36 and Proven Investments was up 4 percent. PanJam Investment dropped from $73 9 to $68 to reenter the TOP10, with Carreras dropping out of the Main Market TOP10. In the Junior Market, the price of Medical Disposables slipped from $6.72 last week to $6.30 this past week and swapped back its spot with Dolphin Cove, with the price of the latter closing at $13, up marginally from $12.90.
The top three Main Market stocks are Guardian Holdings, Caribbean Producers and JMMB Group, projected to gain between 213 to 253 percent expected versus last weeks’ 214 to 254 percent.
The top three stocks in the Junior Market are AMG Packaging, followed by Access Financial Services and Lasco Distributors. All three can gain between 162 and 268 percent, up from 150 percent and 211 percent previously.
This week’s focus: Lumber Depot stock was under pressure since the release of the first quarter results in September, with price slipping from $3.18 days after the release to below $3. Now that Mayberry sold off their holdings, the stock may be allowed to move up unless other top holders resume selling. The stocks have the potential to record strong price appreciation and the company has good long term prospects for growth and expansion. With earnings per share projected at 35 cents for the current year and the price under $3 with a PE of just 8, there is much upside potential in the short term.
The average gains projected for the TOP 10 Junior Market stocks moved from 142 percent last week to 151 percent and Main Market stocks moved from 159 percent to this weeks’ 157 percent.
The Junior Market closed the week with an average PE of 14.3 based on ICInsider.com’s 2021-22 earnings and currently well below the target of 20 and the average of 17 at the end of March this year based on 2020 earnings. The TOP 10 stocks trade at a PE of a mere 8.1, with a 43 percent discount to that market’s average PE.
The Junior Market can gain 40 percent to March next year, based on an average PE of 20 and 9percent based on an average PE of 17. Ten stocks representing 25 percent of all Junior Market stocks with positive earnings are trading at or above this level, down from seven last week, indicating that many others will rise towards the 17 mark in the weeks ahead.
The average PE for the JSE Main Market is 15.7, which is 21 percent less than the PE of 19 at the end of March and 27 percent below the target of 20 to March 2022. The Main Market TOP 10 average PE is 8.1, representing a 51 percent discount to the market and well below the potential of 20. A total of 17 stocks or 36 percent of the market trade at or above a PE of 19, with most over 20, for an average roundabout 25, suggesting that the accepted multiple is between 20 and 25 times the current year’s earnings.
ICTOP10 focuses on likely yearly winners, accordingly, the list may or may not include the best companies in the market. ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to stocks that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on the possible 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.
Two changes to ICTOP10 listings
The two major Jamaica Stock Exchange markets meandered all week, closing the past week with the Junior Market rising moderately and the Main Market recovering 5,228 points of the more than 12,000 lost on the last two trading days in the previous week as prices of Caribbean Cement, NCB Financial and Scotia Group rose.
Against the above backdrop, there were few changes to the ICTOP10 stocks at the week’s close. Scotia Group jumped 9 percent to end at $37.97 for the week and gave way to Carreras to return to the Main Market TOP10 after a long absence, with the price at $8.10 and projected earnings at 80 cents. The Junior Market lost Medical Disposables with the price closing at $6.72, up 29 percent for the week, allowing General Accident came in to replace it with the price at $6.60 and just edging out Fontana, with both having similar potential gains of 97 percent.
Big TOP10 movers for the week are AMG Packaging lost 6 percent in closing at $2.25 from $2.40 last week, Caribbean Cream fell 4 percent to $5.60, Elite Diagnostic dropped 8 percent to $3.20, Caribbean Assurance Brokers rose 6 percent to $2.47 and Dolphin Cove rose 3 percent to land at $12.90 after it a 52 weeks’ high of $14 on Thursday, new coronavirus making the news seemed to have induced selling on Friday. In the Main Market, Caribbean Producers jumped 15 percent to close at $10, up from $8.61 and Radio Jamaica gained 8 percent to $3.30.
The top three Main Market stocks are Guardian Holdings, Caribbean Producers and JMMB Group, projected to gain between 214 to 254 percent expected versus last weeks’ 212 to 283 percent.
The top three stocks in the Junior Market are AMG Packaging, followed by Caribbean Assurance Brokers and Access Financial Services. All three can gain between 150 and 211 percent, down from 154 percent and 207 percent previously.
There are many undervalued stocks in the market, with the average gains projected for the TOP 10 Junior Market stocks moved from 145 percent last week to 142percent and Main Market stocks moved from 163 percent to this week’s 159 percent.
The Junior Market closed the week with an average PE 14.5 based on ICInsider.com’s 2021-22 earnings and is currently well below the target of 20 and the March 2020 historical average of 17, based on 2020 earnings. The TOP 10 stocks trade at a PE of a mere 8.4, with a 42 percent discount to that market’s average PE.
The Junior Market can gain 38 percent to March next year, based on an average PE of 20 and 17 percent based on an average PE of 17. Ten stocks representing 25 percent of all Junior Market stocks with positive earnings are trading at or above this level, down from seven last week, indicating that many others will rise towards the 17 mark in the weeks ahead.
The average PE for the JSE Main Market is 16.1, which is 18 percent less than the PE of 19 at the end of March and 24 percent below the target of 20 to March 2022. The Main Market TOP 10 average PE is 8, representing a 50 percent discount to the market and well below the potential of 20. A total of 14 stocks or 30 percent of the market trade at or above a PE of 19, with most over 20, for an average PE of 25.5, suggesting that the accepted multiple could be around 25 times the current year’s earnings.
ICTOP10 focuses on likely yearly winners; accordingly, the list may or may not include the best companies in the market. ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to stocks that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on the possible 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.