After some weeks with no change to the ICTOP10 stocks, this week has four changes following two stocks that rose in price to drop out of the top listings and two significant earnings upgrades.
Caribbean Producers traded 52 weeks’ high during the week following a near US$2 quarterly profit.
Medical Disposables jumped 23 percent this week and 60 percent for the year to date and fell out of the TOP10. The fallout follows strong results to September, with revenues climbing 48.6 percent in the quarter to $936 million and 42 percent for the six months to $1.6 billion with a profit of $21 million in the quarter versus a loss of $6 million in 2020 and $47 million for the half year from a loss of $13 million in 2020. Lasco Distributors replaced the stock after the price fell to $3.25 on Friday. Out of the Main Market comes Sygnus Credit Investments that closed the week with a rise of 5 percent to $18.90, Grace Kennedy with earnings adjusted downward and Proven with a modest price rise.
AMG Packaging with earnings per share upgraded to 30 cents now heads ICTOP10 Junior Market stocks. The company has completed the expansion of its factory, the installation of the new machine expected by January next year. The new machine is expected to reduce operating costs and provide capacity to increase production, using either virgin or recycled paper. In the Main Market, Caribbean Producers with the price up 261 percent for the year to date, received a major earnings upgrade to J$1.65 per share from $1.20, following the release of first quarter results. PanJam Investments and Sagicor Group, with earnings upgraded and Scotia Group with a fall in price to $34.05, return to the ICTOP10.
During the past week, Caribbean Brokers jumped 30 percent to close at $2.32 after hitting $2.96 on Thursday, following the company’s surprise to the market with outstanding results for the nine months to September. Elite Diagnostic rose 15 percent ahead of the release of the first quarter results that show increased sales over the June quarter and ended with a loss of $500,000 in the quarter versus a $10million loss in 2020, but the company generated cash inflows of $27 million for the quarter, slightly more than the dividend they recently paid. General Accident rose 8 percent ahead of quarterly results, Stationery & Office Supplies gained 7 percent, following improved nine months results. In the Main Market, Caribbean Producers jumped 24 percent following a big spike in September quarterly profit, but the stock has much more to do with earnings upgraded to J$1.65 per share for the year. Proven rose 6 percent, the rest were mostly downhill with a 10 percent fall for Guardian Holdings, VM Investments fell 7 percent and Radio Jamaica slipped 8 percent as investors reacted hurriedly to half year results that show the company is on track to reach ICInsider.com forecast of 45 cents per share.
The top three Main Market stocks are Guardian Holdings, Berger Paints and Caribbean Producers. These stocks are projected to gain between 227 to 261 percent expected versus last weeks’ 220 to 230 percent.
The top three stocks in the Junior Market are AMG Packaging, Elite Diagnostic, followed by Lasco Financial. All three can gain between 209 and 253 percent, from 203 percent and 297 percent previously.
This week’s focus: Earnings season is over, with a few more companies to post results. They were many positives to take from the results published so far, with many companies reporting increases for the latest quarter and the year to date. By all account, Caribbean Producers results must be the most outstanding, moving from a loss in 2020 to record first quarter profits and promise of much more. NCB Financial is worth a good look with strong fourth results that reflect improving net interest income and recovery from some poor quarters previously. Significantly, loans, the best indicator for future profits, grew a robust 16 percent for the year. Watch NCB.
The latest results show that there are many undervalued stocks, but investors should focus on these stocks that could deliver good earnings growth in 2022.
The average gains projected for the TOP 10 Junior Market stocks moved from 191 percent last week to 185 percent and Main Market stocks moved from 159 percent to 163 percent.
The Junior Market closed the week with an average PE 13.6 based on ICInsider.com’s 2021-22 earnings and is currently well below the target of 20 and the historical average of 17 for the period to March this year, based on 2020 earnings. The TOP 10 stocks trade at a PE of a mere 7.1, with a 53 percent discount to that market’s average PE.
The Junior Market can gain 47 percent to March next year, based on an average PE of 20 and 25 percent based on an average PE of 17. Six stocks represent 15 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 15.5, which is 23 percent less than the PE of 19 at the end of March and 29 percent below the target of 20 to March 2022. The Main Market TOP 10 average PE is 8, representing a 51 percent discount to the market and well below the potential of 20. A total of 12 stocks or 25 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 maybe 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.
The All Jamaican Composite Index fell 2,854.98 points to 437,644.58, the JSE Main Index declined 2,810.34 points to 395,171.32 and the JSE Financial Index shed 0.88 points to end at 95.52.
At the close, Caribbean Cement fell $2.20 to $100 trading 17,409 shares, Eppley fell 79 cents to $37 with 265 units crossing the market, GraceKennedy slipped 94 cents to $99 after exchanging 387,356 stock units. Guardian Holdings declined $10 to $510, with 889 stocks crossing the exchange, Jamaica Producers advanced $1.40 to $23.40, after 3,880 units cleared the market, JMMB Group gained 30 cents after ending at $37.80 after an exchange of 116,390 shares. Kingston Properties lost 43 cents to close at $8.57 in trading 738 stock units, Margaritaville dipped 60 cents to $15.30 with a transfer of 74,498 shares, Mayberry Jamaican Equities rose 61 cents to $9.12, in swapping of 1,900 units. NCB Financial declined $4.68 to a 52 weeks’ closing low of $115.02 in transferring 34,177 shares, Palace Amusement dropped $20 to $960 after trading two stocks, PanJam Investment fell $1.70 to $66.30 with the swapping of 6,504 stock units.
Proven Investments advanced $1.99 to $33.50 with 1,706 units changing hands, Radio Jamaica shed 70 cents in closing at $3.50 with the swapping of 2,014,280 stocks, following the release of record six months results, Sagicor Group lost 50 cents to finish at $54 in trading 404 stock units. Salada Foods slipped 50 cents to $7 with an exchange of 45,736 shares, Scotia Group fell $1.95 to end at $34.05 after trading 2,680,542 stock units, Supreme Ventures shed 71 cents to close at $17.23 in switching ownership of 18,990 stocks. Sygnus Credit Investments rallied 78 cents to $18.90 in an exchange of 143,034 units and Sygnus Real Estate Finance declined $1.99 in closing at a 52 weeks’ low of $16 with 10,981 shares clearing the market.
Compared to seven on Thursday, just five securities traded, with three rising, one declining and one ending unchanged.
Investor’s Choice bid-offer indicator shows one stock ended with the bid higher than the last selling price and two with lower offers.
Market activity led to 38 stocks trading up from 37 on Thursday and ended, with 15 rising, 14 declining and nine, closing unchanged.
In trading, Blue Power climbed 10 cents to close at $3.20 in trading 6,902 shares, CAC 2000 dropped $1.57 to close at a 52 weeks’ low of $6.55 while exchanging 31,000 stock units, Cargo Handlers shed 79 cents to end at $7.05 with 16,108 units changing hands. Caribbean Assurance Brokers fell 17 cents in closing at $2.32 after exchanging 601,737 stocks, Caribbean Cream lost 36 cents in ending at $5.73 with 500 stocks trading, Derrimon Trading declined 13 cents to $2.30, with 106,351 shares crossing the market. Elite Diagnostic rallied 21 cents to $3.46 after trading 101,427 units, Fontana fell 22 cents to end at $7.28, with 213,003 stock units changing hands after hitting an all-time high of $7.99, Fosrich popped 10 cents to a 52 weeks’ closing high of $9, with 500 stocks clearing the market. Future Energy Source rose 14 cents ending at $3.25 in switching ownership of 4,775,741 stock units after hitting an intraday record high of $3.50, GWest Corporation popped 8 cents to 93 cents in an exchange of 38,160 units, Iron Rock Insurance gained 30 cents in closing at $3.79 with an exchange of 3,681 shares. KLE Group lost 10 cents to end at $2.40 in exchanging 63,000 stocks, Knutsford Express shed 69 cents after finishing at $7.26 in an exchange of 18,512 units, Lasco Distributors fell 24 cents to close at $3.25, with 2,184 shares crossing the exchange. 
Limners and Bards increased 14 cents to $3.58 in trading 78,108 stock units, Lumber Depot dropped 11 cents to $2.85 after 341,461 stock units crossed the market. Mailpac Group advanced 7 cents to $3.78, with 856,569 shares changing hands. Medical Disposables spiked $1.18 to end at a 52 weeks’ high of $6.78 in trading 70,846 stocks and Paramount Trading shed 19 cents to $1.04 in exchanging 135,050 units.
At the close, 18 securities traded compared to 14 on Thursday, with seven rising, three declining and eight remained unchanged. Angostura Holdings and Massy Holdings closed a 52 weeks’ high.
GraceKennedy advanced 1 cent to $6.26 with an exchange of 41,000 stocks, Guardian Holdings shed 18 cents to close at $30.33 after exchanging 4,049 stock units, JMMB Group rallied 6 cents to $2.30 with 200,000 stock units changing hands. Massy Holdings spiked $1.50 to a 52 weeks’ high of $94 in exchanging 7,370 stocks, National Enterprises ended unchanged at $3.29 in trading 13,000 shares, NCB Financial Group dipped 6 cents to $7.99, with 103,400 units clearing the market. Republic Financial Holdings rose $5 to $145 with 26,813 shares crossing the exchange, Scotiabank traded 1,361 units at $63, Trinidad & Tobago NGL remained at $18.25, with 2,850 stock units changing hands. Trinidad Cement popped 50 cents to end at $3.85 while exchanging 465 stocks, Unilever Caribbean ended unchanged at $16.20 after an exchange of 333,141 stock units and West Indian Tobacco gained $1.10 to close at $30 after trading 10,576 shares.
Similar to Wednesday, seven securities traded, with three rising, two declining and two ending unchanged. The JSE US Denominated Equities Index lost 0.08 points to end at 199.44.
In trading, First Rock Capital US share lost 0.99 of a cents to close at 6.01 US cents after trading 17,153 shares, Proven Investments rallied 0.07 cents to 22.63 US cents after exchanging 33,707 stocks, Sygnus Credit Investments USD share dropped 0.85 of a cent in closing at 12.12 US cents while trading 34,288 units. Sygnus Real Estate Finance USD share rose 0.1 of a cent to end at 16.1 US cents with the swapping of 38 stock units and Transjamaican Highway edged 0.01 of a cent higher to 0.89 US cents with ten shares crossing the exchange.
Trading averages 575,346 units at $3,582,646, compared to 175,120 shares at $1,797,342 on Wednesday and month to date, an average of 267,974 units at $2,341,992, versus 231,059 units at $2,192,992 on Wednesday. October closed with an average of 251,350 units at $2,773,208.
Sagicor Group rose 50 cents to $54.50 in switching ownership of 71,078 stocks, Salada Foods rallied 51 cents to $7.50 with 6,846 stock units crossing the market, Scotia Group gained 50 cents in ending at $36 with the swapping of 35,147 shares. Seprod spiked $2.20 in closing at $63.30 in exchanging 1,361 units, Stanley Motta rose 43 cents to end at $5.50 after 24,289 stock units changed hands, Sygnus Credit Investments shed 33 cents to close at $18.12 trading 52,125 units and Wisynco Group declined $1.10 to $16.65 in an exchange of 127,695 stock units.
At the close, the Junior Market Index shed 13.08 points to close at 3,444.33.
At the close, AMG Packaging popped 10 cents to $1.75 in trading 141,730 shares, Blue Power shed 20 cents to close at $3.10 with 1,100 units changed hands, CAC 2000 rallied $1.10 in closing at $8.12, as 96 stocks crossed the market. Caribbean Assurance Brokers increased 20 cents ending at a 52 weeks’ closing high of $2.49 after trading at an intraday 52 weeks’ high of $2.96 in an exchange of 1,262,538 stock units, Caribbean Cream gained 9 cents to end at $6.09 in exchanging 8,501 stock units, Dolphin Cove rallied 25 cents to $10.25 in switching ownership of 111,395 units. Elite Diagnostic declined 23 cents to $3.25, trading 15,390 shares, Everything Fresh climbed 12 cents in closing at $1.04 with the swapping of 361,431 stocks, Fontana lost 10 cents in ending at $7.50, with 202,617 stocks changing hands after trading at an intraday high of $7.81. Fosrich shed 10 cents to end at $8.90 after an exchange of 14,295 shares, Future Energy Source rose 21 cents to close at $3.11, trading 3,212,089 stock units, General Accident fell 20 cents to end at $6.60 with an exchange of 20,722 units. Honey Bun popped 35 cents to end at $9.50, trading 116,429 stock units, Indies Pharma popped 8 cents in ending at $3.13 after 3,700 shares crossed the exchange, Iron Rock Insurance declined 29 cents to $3.49 with one stock trading.
Lasco Distributors fell 21 cents to close at $3.49, with 105,296 units clearing the market, Lumber Depot rose 14 cents to $2.96 while exchanging 445,823 stock units, Medical Disposables rallied 30 cents to $5.60 in trading 1,832 shares. SSL Venture popped 10 cents to 76 cents with the swapping of 45,300 stocks, Stationery and Office Supplies rose 22 cents to close at $6.75, with 6,299 units crossing the market and tTech gained 11 cents to end at $4 with an exchange of 452 shares.
Clico Investment Fund popped 9 cents to $27.50 while exchanging 52,660 units. First Citizens Group climbed $1.92 in closing at a 52 weeks’ high of $52.99, with 585 stock units changing hands, GraceKennedy closed at $6.25 after exchanging 7,085 units, Guardian Holdings popped 19 cents to $30.51 in swapping of 689 stock units. JMMB Group ended at $2.24 in trading 418,018 shares, Massy Holdings fell $1 to $92.50 after exchanging 2,000 stocks, National Flour Mills ended unchanged at $1.90, with 10,287 shares crossing the market. NCB Financial Group ended unchanged at $8.05, with 71,470 stock units clearing the market, Scotiabank remained at $63, trading 903 units, Trinidad Cement shed 55 cents in closing at $3.35 with 11,929 stocks changing hands. Unilever Caribbean remained at $16.20 in exchanging 7,000 shares and West Indian Tobacco declined 60 cents to end at a 52 weeks’ low of $28.90 after trading 2,850 units.
At the close, First Rock Capital US share ended unchanged at 7 US cents with 800 shares changing hands, Margaritaville remained at 9 US cents trading 166,768 units, MPC Caribbean Clean Energy ended at US$1.08 in trading two shares. Sterling Investments rallied 0.09 cents to 2.09 US cents in an exchange of 25,000 stock units, Sygnus Credit Investments USD share climbed 0.89 cents to 12.97 US cents after 15,000 units crossed the market, Sygnus Real Estate Finance USD share gained 1 cent to end at 16 US cents after 67 stocks crossed through the market and Transjamaican Highway rose 0.07 cents to 0.88 of a US cent after 1,569 stock units crossed the exchange.
