Trading surged on the Jamaica Stock Exchange Junior Market on Tuesday, with Dolla Financial trading 63 million shares for 86 percent of the total as the volume of stocks that changed hands rose 134 percent and the value 132 percent more than on Monday as 73,506,120 shares changed hands for $255,054,005, up from 31,376,263 units at $109,876,239 on Monday.
Trading averaged 1,884,772 shares at $6,539,846, up from 697,250 shares at $2,441,694 on Monday, with the month to date, averaging 372,314 units at $1,427,027 versus 269,551 units at $1,079,640 on the previous trading day. May closed with an average of 376,907 units at $1,638,631.
Thirty-nine securities traded down from 45 on Monday, and ended with 26 rising, ten declining and three closing unchanged. The Junior Market Index popped 75.60 points to close at 4,389.62.
The PE Ratio, a measure in computing appropriate stock values, averages 13. 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.
Trading in Dolla Financial was followed by JFP Limited with 1.51 million units for 2 percent of the day’s trade, Future Energy Source ended with 1.18 million units for 1.6 percent market share and Spur Tree Spices with 1.07 million units for 1.5 percent market share.
Investor’s Choice bid-offer indicator shows four stocks ended with bids higher than their last selling prices and seven stocks with lower offers.
At the close, Access Financial declined 35 cents in ending at $19.95, with 28,293 shares changing hands, AMG Packaging gained 73 cents to close at a 52 weeks’ high of $4.48 in trading 626,836 units, CAC 2000 increased 52 cents to end at $8.90 in an exchange of 5,913 stocks. Caribbean Cream rose 13 cents to $5.15 after exchanging 50,401 stock units, Consolidated Bakeries lost 9 cents in closing at $1.29, with 13,031 shares crossing the market, Derrimon Trading advanced 10 cents to $2.77, with 309,577 stock units changing hands. Dolla Financial rallied 15 cents to end at a record closing high of $3.22 after exchanging 63,282,211 stocks, Dolphin Cove popped 38 cents to close at $17.93 in switching ownership of 104,567 units, EduFocal fell 16 cents in ending at $2.90 while exchanging 542,360 stock units. Elite Diagnostic climbed 8 cents in closing at $3.38 with an exchange of 162,304 shares, Express Catering shed 40 cents to end at $5.45 after trading 8,677 units, Fontana popped 55 cents to $10.61 and closed with 71,528 stocks changing hands. Fosrich advanced $4 in closing at $34, with an exchange of 246,703 units, Future Energy Source gained 11 cents in ending at $6.21 with the swapping of 1,181,766 shares, General Accident climbed 20 cents to close at $5.80, with 1,471 stock units clearing the market. GWest Corporation rallied 18 cents to $1.18 in exchanging 65,495 stocks, Jamaican Teas increased 9 cents in closing at $3.20 in trading 65,327 stocks, JFP Limited rose 7 cents to end at $1.69 in exchanging 1,505,005 units. Lasco Distributors advanced 12 cents to $3.22 after exchanging 10,900 stock units, Lasco Manufacturing increased 49 cents to close at $4.99 after trading 23,099 shares, Limners and Bards popped 10 cents in closing at $2.95, with 473,266 stocks crossing the exchange. Mailpac Group dropped 12 cents to end at $2.68 while exchanging 752,394 units, Medical Disposables jumped $1.15 to $7.45, with an exchange of 32,237 shares, Paramount Trading rose 14 cents to $1.99, with 64,151 stock units crossing the market. Spur Tree Spices rallied 22 cents to close at $3.97 after exchanging 1,070,114 shares, SSL Venture fell 61 cents to end at $3.38 with the swapping of 497,082 stock units and tTech climbed 63 cents to $3.75 in switching ownership of 264 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
New ICTOP10 entrants
Dolla Financial a former ICInsidertop10 stock fresh from the recent IPO, was listed on Wednesday and was the highlight of the Jamaica Stock Exchange, with the stock jumping 132 percent pushed by extremely high demand, with just modest selling, with indications the price may need to be in the $3 to $4 range to evoke greater balance between buyers and sellers.
Investors with a longer term investment target of over two years or more may find the potential growth prospects exciting and pay off well at the above prices.
The week ended with two new listings in the TOP10, but half of the Junior Market stocks recorded gained and 4 in the Main Market.
Junior Market stocks with worthwhile gains this past week are Dolphin Cove, with the price rising 14 percent to $17.61, Stationery and Office Supplies up 13 percent to $12.45, AMG Packaging up 10 percent to $3.94 and Caribbean Cream 5 percent to $4.98. Medical Disposables dropped 16 percent to $6.26.
In the TOP10 Main Market, Caribbean Cement lost 8 percent to $64.50 and Guardian Holdings fell 5 percent to $510.
Dolphin Cove and Stationery and Office Supplies dropped out of the Junior Market TOP10 and were replaced by CAC 2000, got an earnings upgrade to $1.32 after the company reported a profit of $47 million or 36 cents per share for the April quarter with the company reporting solid second quarter profit of $14 million for the six months to April from $8.7 in 2021 and Lasco Distributors.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 14.1, while the Junior Market PE for the Top 10 is 5.8 versus the market at 13.2. The Junior Market TOP10 is projected to gain an average of 249 percent to May 2023 and the Main Market 243 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 will likely deliver the best returns up to the end of May 2023. They 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, 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.
3 new ICTOP10 listings
The old stock market adage of sell in May and go away continued to influence the market this past week, helped by funds tied up in the Dolla Financial IPO, but most investors should get full refunds early this coming week, as well as the likelihood of the trading commencing in the stock in the latter part of the week.
The week ended with three new listings in the TOP10, as declining stocks dominated the Junior and Main Market.
In the Junior Market, the only worthwhile gain was a 14 percent rise by Paramount Trading to $2. Access Financial shed 6 percent to close at $20.45, stocks that declined by 5 percent each are Lasco Financial to $3.43, Jetcon Corporation to $1.26 and Medical Disposables to $7.45.
For the TOP10 Main Market stocks, Caribbean Cement gained 7 percent to $70 after the company reported a proposed $1.50 dividend payment in August. VM Investments lost 10 percent to $5.30, Berger Paints slipped 3 percent to $11, JMMB Group down 5 percent to $42 and Sygnus Credit Investments dipped 5 percent to $14.11.
Lasco Distributors and Paramount Trading dropped out of the Junior Market TOP10. They were replaced by Dolphin Cove, with the price dropping to $15.40 and Stationery and Office Supplies (SOS).
SOS got an earnings upgrade to $1.70, with first quarter revenues 24 percent ahead of 2019, the previous best quarter before the negative impact of Covid-19, with the full reopening of the economy after, suggesting revenues should be running even further ahead of 2019 for the second quarter onwards. Dolphin Cove is benefitting from a resurgence in the tourism industry that is delivering increased revenues compared to 2021. The increased income and cost reduction contribute to a substantial profit increase that will carry over into the first half of 2023. It will enjoy increased revenues since the tourism recovery was not at full force in the first half of this year.
In the Main Market, Caribbean Producers is back, with upgraded earnings for the fiscal year to June 2023 of $2.30 per share that will flow from increased earnings for the year starting in July as it benefits from the recovery in the tourism sectors from which the bulk of its revenues is earned. QWI Investments has dropped out of the ten.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 14.6, while the Junior Market PE for the Top 10, is 6 versus the market at 12.9. The Junior Market TOP10 is projected to gain an average of 235 percent to May 2023 and the Main Market 228 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 will likely deliver the best returns up to the end of May 2023. They 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, 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.