Trading closed higher on the Junior Market of the Jamaica Stock Exchange Monday, with the volume of stocks traded rising moderately over Friday with 15 percent lower value and ended 45 securities trading, up from 40 on Friday, with 17 rising, 20 declining and eight closing unchanged.
A total of 8,095,169 shares were traded for $27,277,515 versus 7,385,835 units at $32,179,005 on Friday. Trading averaged 179,893 shares at $606,167 in contrast to 184,646 shares at $804,475 on Friday, with month to date, averaging 1,014,712 units at $5,606,327 compared to 1,163,198 units at $6,495,684 on the previous trading day. June closed with an average of 429,016 units at $1,630,104.
No one security dominated trading on Monday as Dolla Financial led with 1.93 million shares for 23.8 percent of total volume, followed by EduFocal with 701,324 stock units for 8.7 percent of the day’s trade and Lasco Financial with 700,800 units for 8.7 percent of market share.
At the close, the Junior Market Index increased 16.07 points to settle at 4,357.28. The PE Ratio, a measure of computing appropriate stock values, averages 13.2. The PE ratios of Junior Market stocks incorporate ICInsider.com projected earnings for companies with financial year end that falls between November this year and August 2023.
Investor’s Choice bid-offer indicator shows five stocks ended with bids higher than their last selling prices and none with a lower offer.
At the close, AMG Packaging shed 25 cents to $4 and closed with 17,094 shares changing hands, Cargo Handlers gained 55 cents to close at $13.50 with an exchange of 14,831 stocks, Caribbean Flavours declined 12 cents in ending at $1.83 while exchanging 1,104 stock units. Dolphin Cove dropped 40 cents in closing at $16 after an exchange of 4,950 units, EduFocal lost 13 cents to end at $2.55, with 701,324 shares crossing the market, Elite Diagnostic fell 15 cents to end at $3.55 in exchanging 111,590 stock units. Express Catering dropped 63 cents to close at $5.51 after trading 3,020 stocks, Fontana shed 15 cents to $10.30, with 118,398 units crossing the exchange, Fosrich lost 10 cents in ending at $35.90 after 47,266 units crossed the market. Future Energy Source climbed 17 cents in closing at $6.07 in trading 376,019 stock units, GWest Corporation advanced 11 cents to end at $1.16 as 263,717 shares changed hands, iCreate popped 10 cents to $4.20 in an exchange of 505,955 stocks. Iron Rock Insurance fell 33 cents in ending at $2.96, with 600 units clearing the market, ISP Finance jumped $5.47 with the swapping of 500 shares to close at $22.50, Knutsford Express rallied 84 cents to $7.94 trading 5,095 stock units. Lasco Financial declined 27 cents to $2.78 in switching ownership of 700,800 stocks, Main Event increased 45 cents ending at $7.95, with 52,243 stock units changing hands, Medical Disposables rallied 10 cents in closing at $6.85 while exchanging 5,300 shares. Paramount Trading lost 19 cents to $1.71 in trading 23,224 stocks, SSL Venture declined 50 cents to end at $3, after 307,629 units crossed the market, Stationery and Office Supplies popped 10 cents to $13.10 after exchanging 33,866 shares and tTech fell 29 cents in closing at $3.01 and closed after 41,511 stock units passed through the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Big gains for ICTOP10 stocks
The markets bobbed and weaved this past week as investors mostly remained on the sidelines until late this month, ahead of the imminent release of second quarter results. Notwithstanding, there were a few strong moves in both markets.
In the Junior Market, Caribbean Cream climbed 16 percent to $4.66, followed by an 11 percent rise for Access Financial, while Lasco Distributors rose 7 percent to $3.43 and Elite Diagnostic gained 6 percent to close at $3.70. The Main Market saw Key Insurance jumping 23 percent to $4.17.
The Main Market, Radio Jamaica, dropped 15 percent to $2.47 and Berger Paints gave up 10 percent at $11. In the Junior Market, Medical Disposables, CAC 2000 and Lasco Financial fell 5 percent.
The week ended with one new listing in the TOP10 Main market as Key Insurance moved on with the strong gain mentioned above and Jamaica Broilers surged in following a jump in projected earnings after posting full year results.
Keep a careful watch on AMG Packaging, Dolphin Cove, Express Catering, General Accident Lasco Distributors, Lasco Manufacturing and Stationery and Office Supplies. Dolphin Cove, Caribbean Producers, Express Catering will be significant beneficiaries of the strong rebound in tourist arrivals and the supply of General Accident has declined sharply over the past few weeks.
The average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 14.1, while the Junior Market Top 10 PE is 6.1 versus the market at 13.2. The Junior Market TOP10 is projected to gain an average of 235 percent to May 2023 and the Main Market 244 percent.
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 to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotions from selecting stocks that often result in costly mistakes.
IC TOP10 stocks are likely to 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.
Big price rise in ICTOP10
The markets closed with contrasting styles on Friday, with Junior Market listed Caribbean Cream dropping 27 percent to $4.01 and the main market listed Radio Jamaica rising 21 percent to $2.90, with the stock triggering the circuit breaker as investors exchanged 2.9 million units of the company’s shares on Friday.
It is unclear why RJR, a stock that was previously under selling pressure, surprisingly, surged at the week’s close. Caribbean Cream came under pressure after the company reported a loss for the year to February. Investors will have to await the first quarter results in a few days to determine whether the new year will see a return to brighter days.
Five Junior Market ICTOP10 stocks fell and four rose, while in the TOP10 Main Market, six stocks gained and two fell with none exceeding 4 percent, but for RJR.
Elsewhere in the Junior Market, C2000 climbed 11 percent to $10.30. In comparison, Access Financial and Elite Diagnostic gained 5 percent each to close the week at $21.01 and $3.50, respectively. In contrast, Caribbean Assurance Brokers lost 6 percent as Jetcon Corporation and Lasco Financial all fell 5 percent.
The week ended with one new listing in the TOP10 as mild gains by General Accident and a fall in the price of Dolphin Cove resulted in them swapping places.
VM Investments moved out in the TOP10 Main Market and Key Insurance moved into the TOP 10.
It is pretty clear that many investors are investing in the dark with the hope that some overvalued stocks will continue to deliver above average gains into the future, but not many people know that yesterday’s winners may not have tomorrow’s significant gains. They ignore the long established feature of the market going back almost 40 years of the IC 80/20 rule and rule of 72. The IC 80/20 rule is that only two out of ten stocks on average in one year end up in the top 10 the following year. The essence of this is that it is not prudent to invest in the vast majority of last year’s top 10 stocks, especially those that did exceptionally well and are unlikely to repeat.
Rule of 72 is simple. Divide 72 by the rate of return easily shows how quickly money can double. How does this apply to stocks? Last year the Junior Market rose 30 percent and for 2022, so far, by 27 percent. These growth rates indicate that an investment in all 45 stocks in this market would double every two and a half years based on the 2021 increase and roughly one year and four months using the year to date growth. What all of this is saying, investors don’t need to be chasing popular stocks to make good money in the market, choose those that are undervalued, with profit set to grow sufficiently to give a boost to the stock price.
Keep a careful watch on AMG Packaging, Dolphin Cove, Express Catering, Lasco Distributors, Lasco Manufacturing and Stationery and Office Supplies. Dolphin Cove, Caribbean Producers and Express Catering will be significant beneficiaries of the strong rebound in tourist arrivals.
The average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 15, while the Junior Market Top 10 PE is six versus the market at 12.9. The Junior Market TOP10 is projected to gain an average of 242 percent to May 2023 and the Main Market 229 percent.
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 the end of May 2023 and are 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 are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.