Seprod after climbing from $34.85 at the end of the first full week in February to $39 in the week following, the price made more gains this past week, to end at $48 and dropped out of the TOP 10 main market listing.
Another main market stock, Sygnus Credit Investments garnered increased buying interest after the company posted positive December quarter results and moved back to the 2018 IPO price of $13.72 to leave the TOP 10. Grace Kennedy and Stanley Motta moved in to fill the breach left by the above two companies.
Caribbean Cream and Jamaican Teas entered the TOP 10 last week but left the list, by the end of this past week. Also moving on, was Lasco Manufacturing. Entering the Junior Market TOP 10 are tTech, Main Event with the price dropping to $5 and Iron Rock with the price declining to $3.50.
The three leading Junior Market stocks are General Accident, with potential gains of 300 percent, Paramount Trading with potential gains of 281 percent but not likely until the second half of 2019 when the company starts releasing the 2020 fiscal year results and Medical Disposables with 263 percent projected gains.
The three leading main market stocks are, Victoria Mutual investments with 153 percent likely gain, Sterling Investments with 135 percent and Sagicor Group with likely gain of 125 percent. Strong gains in the price of Carib Cement pushed it down to number 4 from 2 last week following strong increased profit for 2018.
The main market closed the week with the overall PE at 13.9 and the Junior Market at 10.2. The PE ratio for Junior Market Top 10 stocks average 6 and the main market PE is now 8.7.
The TOP 10 stocks now trade at an average discount of 41 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 38 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis based on new information received that can result in changes in and out of the list as well.
Seprod & Sygnus jump IC Top 10
Fontana & Wisynco jump IC Top 10
There were some major price movements for the TOP 10 stocks. By the end of the week, Fontana moved up in price to $3.95 and moved out of the list.
ISP Finance closed with the bid at $13, forecasted earnings was adjusted down to $1.65 for 2019, with the stock existed the TOP 10. Caribbean Cream and Jamaican Teas replaced the above two companies.
TOP 10 main market selection last week, Wisynco closed the week at $11 and that was enough to move it off the list with Carreras moving back on to the list. Radio Jamaica made a big surge from 80 cents to end the week at $1.20 but with the offer at $1.18 after the company posted strong gains in profit in the December quarter of $168 million versus $79 million in the similar period in 2017. Seprod also enjoyed a big move from $34.85 to $39, both remain in the TOP 10.
Stocks falling out of the TOP 10 should not be ignored, they have much more gains ahead of them, in 2019. Both Fontana and Wisynco earnings are based on June 2019 year-end. Results for the 2020 year will start coming out before the end of this year and could result in increased interest in the stocks.
Medical Disposables fell in price during the week and rose in the TOP 10 to number 2 while Sygnus Credit Investments garnered increased buying interest with the price moving up with the stock just holding on to the number 10 spot on the main market list.
The three leading Junior Market stocks are General Accident, with potential gains of 300 percent, Medical Disposables with 264 percent projected gains and Stationery and Office Supplies 245 percent.
The three leading main market stocks are, Victoria Mutual investments 150 percent likely gains, Caribbean Cement with likely gains of 150 percent and Sterling Investments with 135 percent.
The main market closed the week with the overall PE at 13 and the Junior Market at 10. The PE ratio for Junior Market Top 10 stocks average 6.2 and the main market PE is now 8.4.
The TOP 10 stocks now trade at an average discount of 38 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings. The main market stocks trade at a discount of 35 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis based on new information received that can result in changes in and out of the list as well.
Fontana & Wisynco watch alerts
A close look at the main market shows clear bullish signs, with the market breaking out from a wedge formation and is being steered upwards by a long term upward sloping support line, that goes back to early 2016.
Unlike the rally in December that was dominated by NCB Financial, this rally is more broad based. Over the past two weeks, several company released results and seem to be stirring investors’ interest in a number of the companies.
Fontana and Wisynco were highlighted last week, as compelling stocks to watch. Demand for the two stocks drove prices higher on strong demand and increasing traded volumes, during the past week.
These two stocks remain on the watch list and IC Insider.com expects to see continued demand for them. Importantly, the supply of Wisynco’s shares is drastically reduced, since the release of the December quarterly. There are further reports that apart from a likely big new distribution contract that being discussed the company will be distributing sugar for a factory in the western end of the island.
A block of nearly 61 million AMG Packaging shares traded during the week and stopped the price from moving higher. Buying interest remains as many investors see prospects of continued profit and stock price.
Elite Diagnostic closed the past week at $3.10 as results released showed a big improvement over the first quarter to September of $5 million versus $1.6 million on a pretax basis. The reported profit was not good enough to excite investors looking for immediate stock price gains. The price may well remain anchored around current levels for a while. The quarter over quarter growth in revenues points to higher revenues in the March quarter. There now appears to be a gap developing between the bids at $3.10 and sellers at $3.40. Watch to see how this develops. PanJam Investment traded as high as $82 on Friday with limited supply of the stock offered for sale. This one seems poised to move higher as just limited supply of the stocks is on offer for sale.
Demand for Fontana shares ate away at supply of the stock during the week but seems to have the $4 mark to take out before moving higher. The stock is still undervalued, even as it has doubled the IPO price. Investors ought to be focusing on the expansion plans and what that will do to profit in fiscal 2020.
General Accident 2018 results came out in the region of 29 cents per share but with $129 million less investments income and a big bump up in Management fee expense of 40 percent to $803 million. Importantly, net premium income rose a strong 28 percent for the full year. Selling pressure may be easing up with buying picking up.
ISP Finance reported flat profit for the year to December but revenues rose 18 percent in the last quarter over that of 2017 driving profit in the quarter 30 percent to $25 million. The results was strong enough to drive the bid above the last traded price and push selling of the stock on to the sideline. The growth in the final quarter of 2018 points to improving fortunes for the company and so could ignite demand for the stock at a higher price than the closing bid of $13.
Jamaica Stock Exchange shares hit a new high of $17.95, during the past week, with increasing interest shown in the stock. Exposed supply is currently not high, with expected continued buoyancy in the market and a big increase in new listings this year, investors seem more aggressive to buy into what should be another year of increased profit for the company. Seprod’s price moved up to $39 with increased demand for the shares continuing against the background of declining supply. The price seems poised to move even higher in the coming weeks as the stock remains attractively priced and in limited supply. Lasco Financial came out with powerful December quarter profit that rose 95 percent to $107 million after tax but a still respectable 67 percent before tax. Nine months profit rose by a much slower 21 percent from $222 million to $268 million after tax but a slightly heathier 23 percent before tax. The December quarter has sufficient information that investors can use to determine what future prospects are for profit and that could help lift demand for the stock.
NCB Financial remains on the Watch List with strong gains in operating profit for the December quarter, but the stock is finding it hard to break through resistance at the $150 level and may need something out of the ordinary if the price is to move decidedly higher before the summer months.