The Junior Market of the Jamaica Stock exchange is now trading at a new record high of 4,197.38 at 11.40 on Friday, up from 4,104.06 at the close on Thursday, as Express Catering (ECL) climbed to $6, Lasco Manufacturing rose to $5 and Spur Tree Spices hit $3.80.
Since then the market pulled back slightly to trade at 4,196.81.
The Junior Market’s previous highest level was reached on Friday, March 4, when it ended at a record closing high of 4,168.16, up 95.60 points for the day after hitting all-time intraday high of 4,185.95 at 11.45 am that morning.
Trading the shares of ECL is suspended for breaching the 15 percent circuit breaker limit. The JSE Main Index is up to 386,151.14 from Thursday’s close of 384,196.74
Junior Market at record high on Friday
10 Junior Market stocks for 10 years run
Most Junior Market listed companies don’t have the depth of management that most Main Market companies have. What most may lack in Management they make for by their agility and ability to grow faster than the more matured counterparts in the Main Market and this feature can deliver above average growth for stock prices. This factor alone can determine winners from losers in business.
Some elements are common to companies in both markets; as such, the investors who don’t have the time and inclination to monitor their investments regularly may want to invest for the long haul with the expectation that their investment will grow appreciably over time. There are some factors to consider in investing long term, these include continued growth of companies, inflation, possible shifts in government policies as well as social and economic policy changes that can affect investment returns in the short and long term.
Over the next ten years, many of the companies in the Junior Market could see changes in the leadership of many of the Junior Market companies and change in ownership as some of the majority owners retire. The ownership shift may be negative or positive, but it is a major factor. Continuity of ownership is a major factor to consider and this is more critical for Junior Market companies, with the largest shareholders being the lead executive management.
Access Financial Services is the first company to list on the Jamaica Stock Exchange Junior Market and enjoyed years of growing revenues and profit, but the stock price declined sharply in 2020 and 2021 as profits fell in the fiscal year 2020 and 2021 due to heightened provision for doubtful loans and slowdown in lending. Corrective measures were put in place and loans and profits are growing again, with improvement in the economy and a reduction in unemployment. The company stands a great chance of continuing to grow to provide the unbanked with alternative financing. The potential for tapping into this underserved area would position AFS as an interesting company to follow over the next ten years.
Elite Diagnostic – Health care services are a never ending need and demand will continue to grow as the local population ages and individual wealth improves. The company recently expanded from one location to three. They encountered major operating problems with machinery that increased cost and negatively affected revenues but now seems over that, with revenues growing again. They have plans for another branch to be established, which is delayed for the time being, but they added to machinery at the Hope Road branch to meet increasing demand. This company should be able to innovate and stay relevant for years to come. The company has the potential to expand into other areas of the country, bringing services closer to the consumers and generating higher income and profit.
Express Catering provides services directly to the tourism industry, with its restaurant operations housed within the Sangster International Airport. The future is tied into the growth in that industry, seemingly poised for more growth with the continued expansion of hotel rooms on the country’s north coast. The airport in Montego Bay is expanding and will provide opportunities for greater expansion for the company. Now focused solely on Montego Bay but could well move into Kingston, bringing additional growth possibilities.
Fontana stock is richly priced currently, as such, the time may not be right to buy into it as it could well fall back in price. It stood the test of time and seemed set for the next level of expansion and performance. It possesses good management has room for expansion by adding new products or acquiring others pharmacies as current owners of other existing pharmacies retire. A new branch is planned for the Portmore to come on stream in late 2022. The area with a growing population in Jamaica and therefore company’s expansion should attract good and profitable business. Spanish Town, another area, earmarked, with Montego Bay, could follow. The company is well positioned to acquire the many family owned pharmacies when the owners decide to retire.
General Accident has an excellent track record of growing the business and has adequate liquid funds to fund expansion and meet its operating commitments. The Jamaican operation is very profitable. Recently they expanded into Trinidad and Barbados, which could add to profits in 2022 but will be highly beneficial to the growth in revenues and profits in the years to come. This expansion will result in reduced reinsurance costs as the company spreads the risk over a wider geographical area. Further regional expansion is expected and will improve revenue and profit growth and swell cash funds for continued attractive dividend payments leaving sufficient amounts for investments and helping in reducing reinsurance costs. Guyana is growing strongly from oil production and will be enticing for the company to expand into that market, either directly or through one of the entities in the eastern Caribbean.
Fosrich has diversified into manufacturing pipes and has also gone into refurbishing electrical transformers, two new areas that it has a competitive advantage and is generating profits from. These ventures resulted in diversification away from being solely a retailer in the construction and energy sectors. With a growing Jamaican economy, that company will find room to increase revenues and profits as the years roll on and sales within the region.
Future Energy is relatively a small player in the sector and has much room for growth, with only 16 service stations under its brand. The company is branching out into LNG and LPG gas sales to expand revenues in the future. The company plan to grow the number of service station under its name to 22, within three years, including one more to be owned and operated by the company. The great scope for expansion across the country makes FESCO one to watch over the next ten years as it could expand service stations in many more areas within the country. The stock is currently highly overvalued, and any investment should await a big pullback in price.
Honey Bun has made great strides since it was listed on the Junior Market in 2011. In 2009 sales were $404 million and has climbed to $1.67 billion in 2020 and rose climbed 28 percent to $2.145 billion for the 2021 fiscal year, with profit before tax moving from $191 million to $290 million. The impressive growth continued for the first quarter to December last year, with a net profit of $45.5 million that rose 31 percent above the prior year from sales that grew 44 percent to $665 million over the prior year. The company enjoys good Management that is expected to continue guiding the operations successfully, resulting in increased revenues and profit at attractive rates.
Jamaican Teas is a diversified group and continues to add new products. Exporting has been a strong growth area, with North America and the Eastern Caribbean being big markets for them, with sales exceeding those on the Jamaican market. The group spun off its investment arm into a separately listed company, allowing for greater focus on an area that has been very profitable for them. The manufacturing arm is to be spun off into a separate company that will allow for greater focus on that operation and provide greater exposure for the Caribbean Dreams brand. The group is unique amongst the Junior Market companies due to its diverse business. The strong and continued growth in exports is a great asset that is expected to provide a good basis for continued growth. The group is cash flow positive and possesses the ability to expand from mergers and acquisitions. The investment arm offers good prospects to add to profit going forward.
Lasco Manufacturing is a low cost manufacturer with room for expansion either by producing its own brands or products under license from others. The business is cash flow positive and is building up cash at a healthy pace, with loans taken on to expand the factory almost fully paid off. They are in a good position to acquire brands or other entities and do production for third parties. It could be the subject of an acquisition by others, considering the main owner cannot be very far from retirement.
Stationery and Office Supplies is more than the name implies. While stationery and office equipment are the main lines, it also has a book manufacturing business that manufactures exercise books for children’s note pads. It also operates a paper shredding business with banks being clients of theirs and other entities, which is a high profit margin part of the business. They have stood the test of time and seem set for the next level. They possess good management that will deliver strong gains in the years ahead. The company posted its best fourth quarter results in the past year and that performance is said to have carried over into 2022, with revenues for the first two months running ahead of 2021. Looking forward, expect to see expansion by acquisitions and adding new products.
Big jump for JSE USD Market
Trading on Thursday at the close of the Jamaica Stock Exchange US dollar market ended with the volume of shares changing hands declining 83 percent, with a 92 percent lower value than on Wednesday and ended with the JSE US Denominated Equities Index jumped 12.08 points to end at 214.45.
A total of eight securities traded, up from seven on Wednesday with three rising, three declining and two ending unchanged.
The PE Ratio, a measure used in computing appropriate stock values, averages 14.7. The PE ratio uses ICInsider.com earnings forecasts for companies with financial years up to August 2022.
Overall, 26,308 shares traded for US$2,166 compared to 157,965 units at US$27,627 on Wednesday. Trading averaged 3,289 units at US$271, down from 22,566 shares at US$3,947 on Wednesday, with a month to date average of 47,031 shares at US$4,724 versus 50,271 units at US$5,054 on the previous day. February ended with an average of 87,719 units for US$9,318.
Investor’s Choice bid-offer indicator shows one stock ended with a bid higher than the last selling prices and one with a lower offer.
At the close, First Rock Capital USD share ended unchanged at 7.95 US cents after exchanging 370 shares, Margaritaville dropped 2.5 cents to close at 16 US cents in trading 148 stocks, Productive Business Solutions increased 15.19 cents to end at US$1.19 in trading 83 units. Proven Investments shed 0.38 of a cent in ending at 23.02 US cents, with 6,238 stock units crossing the market, Sterling Investments advanced 0.27 of a cent in closing at 2.27 US cents in an exchange of 12,991 units. Sygnus Credit Investments USD share fell 0.01 of a cent to end at 12.89 US cents after trading 360 stock units. Sygnus Real Estate Finance USD share climbed 2.46 cents in closing at 15.96 US cents with 1,118 stocks changing hands and Transjamaican Highway finished at 0.89 US cents with an exchange of 5,000 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Stocks closed mixed on Trinidad Stock Exchange
Market activity ended on Thursday and resulted in more stocks rising than falling at the close of trading, but the market ended with the indices turning mixed results after the volume trading jumped 112 percent, with a 26 percent higher value than on Wednesday, at the close of the Trinidad and Tobago Stock Exchange.
A total of 20 securities traded up from 18 on Wednesday, with seven rising, four declining and nine ending unchanged. The Composite Index gained 11.41 points to settle at 1,466.18 the All T&T Index dropped 12.62 points to settle at 2,094.73 and the Cross-Listed Index climbed 5.20 points to settle at 111.13.
Overall 842,830 shares traded for $7,505,068 compared to 397,112 units at $5,937,284 on Wednesday. An average of 42,142 units traded at $375,253 compared to 22,062 shares at $329,849 on Wednesday, with trading month to date averaging 34,878 units at $453,602 versus 34,412 units at $458,624, previously. The average trade in February amounts to 47,858 units at $516,870.
Investor’s Choice bid-offer indicator shows four stocks ended with bids higher than their last selling prices and two with lower offers.
At the close, Angostura Holdings remained at $20.21, with 70 shares changing hands, Ansa McAl shed 1 cent to end at $57.50 with the swapping of 42 units, Ansa Merchant Bank increased 59 cents ending at $41 after 10,028 stock units crossed the market. Calypso Macro Investment Fund rallied 25 cents to end at a 52 weeks’ high of $20 after exchanging 100 stocks, Clico Investment Fund lost 24 cents to close at $29.65 after exchanging 35 shares, First Citizens Group fell $2.69 to close at $51.31 with 1,309 units changing hands. FirstCaribbean International Bank popped 2 cents to $6.08 with an exchange of 4,064 stock units, GraceKennedy ended unchanged at $6, with 100 stocks crossing the exchange, Massy Holdings finished at $6 after trading 782,778 shares. National Enterprises gained 1 cent to end at $2.82 in an exchange of 171 units, National Flour Mills finished at $1.84 after exchanging 30 stocks, NCB Financial Group rose 67 cents to close at $6.72 after trading 100 stock units. One Caribbean Media remained at $4.15, with 472 stocks clearing the market, Point Lisas ended unchanged at $3.50 in trading 25 units, Republic Financial Holdings dipped 1 cent to end at $141 in exchanging 7,479 shares. Scotiabank climbed 10 cents in closing at a 52 weeks’ high of $82 while 8,930 stock units changed hands, Trinidad & Tobago NGL advanced 15 cents to $20.40 in switching ownership of 8,399 shares, Trinidad Cement ended unchanged at $3.50 after trading 4,500 stock units. Unilever Caribbean finished at $15 in switching ownership of 1,854 units and West Indian Tobacco ended at $24 after 12,344 stocks passed through the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Slippage for JSE USD Market
Trading ended on the Jamaica Stock Exchange US dollar market on Wednesday, with the volume of shares changing hands declining by 39 percent after a 58 percent increase in the value than on Tuesday. Trading led to seven securities trading, up from six on Tuesday, with two rising, three declining and two ending unchanged.
The JSE US Denominated Equities Index fell 2.24 points to end at 202.37.
The PE Ratio, a measure used in computing appropriate stock values, averages 14.3. The PE ratio uses ICInsider.com earnings forecasts for companies with financial years up to August 2022.
A total of 157,965 shares traded for US$27,627 compared to 257,151 units at US$17,522 on Tuesday. Trading averaged 22,566 units at US$3,947 compared to 42,859 shares at US$2,920 on Tuesday and month to date, averaging 50,271 shares at US$5,054 versus 52,191 units at US$5,130 on the previous day. February ended with an average of 87,719 units for US$9,318.
Investor’s Choice bid-offer indicator shows one stock ended with the bid higher than the last selling price and three with lower offers.
At the close, First Rock Capital USD share shed 0.05 of a cent to close at 7.95 US cents in trading 3,372 shares, Margaritaville dropped 1.45 cents in closing at 18.5 US cents, with 500 stock units clearing the market, Productive Business Solutions gained 1.81 cents to end at US$1.038 after trading 47 stocks. Proven Investments popped 0.37 of a cent in ending at 23.4 US cents in exchanging 101,001 units, Sygnus Credit Investments USD share slipped 0.04 of one cent to 12.9 US cents, with 9,133 stocks changing hands and Transjamaican Highway ended unchanged at 0.89 of a US cent after trading 42,667 stock units.
In the preference segment, JMMB Group 5.75% remained at US$2.02 after an exchange of 1,245 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.