The Jamaica Stock Exchange Junior Market closed on Tuesday after a day of steady trading that led to a modest fall in the market index. The stock volume declined 38 percent, with a 38 percent decline in value compared to Monday after declining stocks beat out those rising.
Market activity ended with 35 securities trading, down from 41 on Monday, with 14 rising, 19 declining and two unchanged leading the Market Index to slip 4.84 points to 3,409.50.
The PE Ratio, a measure used to compute appropriate stock values, averages 14.1. The PE ratio of each stock is shown in the chart below, is based on earnings forecast done by ICInsider.com for companies with their financial year ending up to August 2022.
A total of 8,149,450 shares traded for $35,224,431, down from 13,114,335 units at $56,513,996 on Monday. Future Energy Source led trading with 2.14 million shares for 26.2 percent of total volume, followed by Dolphin Cove 1.43 million units for 17.6 percent of the day’s trade and Caribbean Assurance Brokers with 1.14 million units for 14 percent market share.
Trading averaged 232,841 shares at $1,006,412 in contrast to 319,862 shares at $1,378,390 on Monday with month to date, averaging 172,652 units at $629,808, compared to 167,649 units at $598,499 on Monday. October closed with an average of 162,777 units at $557,275.
Investor’s Choice bid-offer indicator shows one stock ended with a bid higher than the last selling price and two with lower offers.
At the close, Access Financial rose 54 cents to $20.79 with an exchange of 10 shares, AMG Packaging increased 13 cents to $2.18 after trading 110,095 units, up to an intraday 52 weeks’ high of 42.5, Blue Power climbed 15 cents to $3.25 while exchanging 9,000 stock units. Cargo Handlers shed 55 cents to close at $7 with the swapping of 8,556 stocks, Caribbean Cream popped 22 cents in closing at $5.82, with 5,350 units changing hands, Derrimon Trading dropped 19 cents to $2.21, with 160,646 stock units crossing the market. Everything Fresh gained 9 cents in closing at $1 in trading 9,080 stocks, Express Catering advanced 15 cents to $5.15 after 850 shares changed hands, Fontana fell 27 cents to close at $7.66 in switching ownership of 75,311 stock units. Fosrich popped 10 cents to $8.90 in exchanging 6,110 units, Future Energy Source lost 16 cents to end at $3.04 after 2,138,861 stocks crossed the exchange, General Accident declined 25 cents to $7 in an exchange of 88,510 shares. Honey Bun fell 50 cents to close at $9 in exchanging 35,039 stock units, Indies Pharma shed 7 cents to end at $3.05, with 19,903 units changing hands, ISP Finance lost $3.78 after finishing at $38 and trading 259 stocks. 
Jetcon Corporation rallied 7 cents in closing at $1.09 after exchanging 257,600 shares, Knutsford Express climbed 15 cents to close at $8 with 11,232 shares clearing the market, Lasco Financial dropped 15 cents to $3.10 after exchanging 259,621 stocks. Limners and Bards advanced 20 cents to $3.55 in trading 33,339 units, Paramount Trading popped 15 cents to end at $1.40 after an exchange of 500 stock units, Stationery and Office Supplies gained 30 cents in closing at $6.20 with the swapping of 21,591 shares and tTech dropped 77 cents to $4 in an exchange of 200 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Junior Market drops on increased trading Tuesday
Trading picked up, with an increase in the number of active companies on Monday, the volume of stocks traded jumping 56 percent more and the value surging 90 percent higher than on Friday at the close of the Junior Market of the Jamaica Stock Exchange.
Market activity led to 41 securities trading up from 38 on Friday and ended with 17 rising, 20 declining and four, closing unchanged.
At the close, the Junior Market Index dropped 34.94 points to 3,414.34.
The PE Ratio, a measure used to compute appropriate stock values, averages 14. The PE ratio of each stock, shown in the chart below, is based on earnings forecasted by ICInsider.com for companies whose financial year ends up to August 2022.
Trading ended with 13,114,335 shares changing hands for $56,513,996 compared to 8,396,940 units at $29,816,364 on Friday. Future Energy Source had the lead trade of 27.6 percent of total volume, with 3.62 million shares, Dolphin Cove followed with 15.8 percent, after trading 2.07 million units, Mailpac Group 11.8 percent, with 1.55 million shares, AMG Packaging controlled 8 percent with 1.05 million units and Jamaican Teas 7.8 percent after an exchange of 1.03 million shares of the company.
Trading averaged 319,862 shares at $1,378,390 in contrast to 220,972 shares at $784,641 on Friday and the month to date averages 167,649 units at $598,499, compared to 151,225 units at $514,353 on Friday. October closed with an average of 162,777 units at $557,275.
Investor’s Choice bid-offer indicator shows three stocks ended with bids higher than their last selling prices and five with lower offers.
At the close, AMG Packaging increased 35 cents to end at $2.05 a 1fter trading 1,047,866 shares, Blue Power fell 10 cents to $3.10 in switching ownership of 3,698 units, Cargo Handlers spiked 50 cents to $7.55 trading 9,427 stock units. Caribbean Cream declined 13 cents to close at $5.60 with an exchange of 28,724 stocks, Derrimon Trading advanced 10 cents in closing at $2.40 with the swapping of 244,313 units, Elite Diagnostic dropped 16 cents to $3.30 in an exchange of 167,575 shares. Everything Fresh lost 17 cents to close at 91 cents while exchanging 32,736 stocks, Express Catering shed 28 cents in ending at $5, with 52,226 stock units crossing the exchange, Fontana rallied 65 cents to end at a 52 weeks’ high of $7.93, with 257,364 stock units clearing the market. Fosrich fell 20 cents to $8.80, with 20,376 shares changing hands, General Accident popped 65 cents to a 52 weeks’ closing high of $7.25 after it hit an intraday high of $8, in trading 312,716 units, Iron Rock Insurance lost 72 cents to close at $3.07 trading just one stock. ISP Finance shed $3.22 in closing at $41.78 in trading 2,458 stock units, Jamaican Teas declined 22 cents to $4 in exchanging 1,028,278 units, KLE Group climbed 15 cents to $2.55 after trading 105,200 shares. 
Knutsford Express rose 59 cents to $7.85 with 241 stocks units changing hands, Lasco Distributors gained 12 cents in closing at $3.37 after exchanging 8,550 units, Lasco Manufacturing popped 7 cents to close at $4.82 after trading 65,400 shares. Limners and Bards dropped 23 cents to $3.35, with 36,814 stock units changing hands, Mailpac Group dipped 27 cents to $3.51 after 1,549,715 stocks traded, Medical Disposables lost $1.18 to close at $5.60, with 38,252 stock units clearing the market. Paramount Trading climbed 21 cents to end at $1.25 in an exchange of 10,000 stocks, Stationery and Office Supplies plunged 85 cents to $5.90 in an exchange of 77,418 shares and tTech spiked 77 cents in closing at $4.77, with 213 units crossing the market.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
4 new ICTOP10 stocks to make you money
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.
Junior stocks squeeze out modest gain
Trading closed on Friday, with the volume of stocks traded rising moderately over Thursday with a slightly higher value on the Junior Market of the Jamaica Stock Exchange, leading to rising stocks just edging out those declining, but Investor’s Choice bid-offer indicator flashed negative signs of a possible pullback on Monday.
Market activity led to 38 stocks trading up from 37 on Thursday and ended, with 15 rising, 14 declining and nine, closing unchanged.
Fosrich, Honey Bun and Medical Disposables closed trading at a 52 weeks’ high and CAC2000 ordinary share at a 52 weeks’ low, while Future Energy traded at an intraday high of $3.50.
The Junior Market Index rose 4.95 points to 3,449.28. The PE Ratio, a measure used to compute appropriate stock values, averages 13.6. The PE ratio of each stock shown in the chart below, is based on earnings forecasted by ICInsider.com for companies with their financial year ending up to August 2022.
In trading, 8,396,940 shares changed hands for $29,816,364 compared to 7,877,629 units at $26,515,994 on Thursday. Future Energy Source was the dominant trade, accounting for 56.9 percent of total volume with 4.78 million shares, followed by Mailpac Group 10.2 percent, with 856,569 units and Caribbean Assurance Brokers 7.2 percent with 601,737 shares.
Trading averaged 220,972 shares at $784,641, up from 212,909 shares at $716,648 on Thursday. Trading month to date, averages 151,225 units at $514,353 versus 143,476 units at $484,321 on Thursday. October closed with an average of 162,777 units at $557,275.
Investor’s Choice bid-offer indicator is flashing a negative signal with just one stock ending with the bid higher than the last selling price and seven with lower offers.
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.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Junior Market slips back on Thursday
Trading slowed on the Jamaica Stock Exchange Junior Market on Thursday, with the volume of stocks traded declining 22 percent, with the value slipping 7 percent lower than on Wednesday as the number of securities trading remained at 37, similar to Wednesday and ended 2ith 17 rising, 18 declining and two closing unchanged.
At the close, the Junior Market Index shed 13.08 points to close at 3,444.33.
The PE Ratio, a measure used to compute appropriate stock values, averages 13.7. The PE ratio of each stock is shown in the chart below, is based on earnings forecasted by ICInsider.com for companies with their financial year ending up to August 2022.
Trading accounted for 7,877,629 shares for $26,515,994 versus 10,137,629 units at $28,425,300 on Wednesday. Future Energy Source led trading after taking 40.8 percent of total volume with 3.21 million shares, followed by Caribbean Assurance Brokers 16 percent with 1.26 million units and Jamaican Teas 15.8 percent with an exchange of 1.24 million shares.
Trading averaged 212,909 shares at $716,648 in contrast to 273,990 shares at $768,251 on Wednesday. And for the month to date an average of 143,476 units at $484,321, compared to 135,053 units at $456,137 on Wednesday. October closed with an average of 162,777 units at $557,275.
Investor’s Choice bid-offer indicator shows one stock ended with a bid higher than their last selling prices and three stocks with lower offers.
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.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Two years’ high for Junior Market
Trading pushed the Junior Market Index up 56.78 points on Wednesday to a near two years’ record high of 3,457.41, to be up 30.8 percent for the year to date, to sit just below the previous high of 3,462.91 reached back on December 6, 2019. The volume of stocks trading rose 60 percent, with the value rising 29 percent above trading on Tuesday on the Jamaica Stock Exchange Junior Market.
Future Energy new Beechwood Av station.
A total of 37 securities traded compared to 38 on Tuesday and ended with 18 rising, 13 declining and six closing unchanged.
The PE Ratio, a measure used in computing appropriate stock values, averages 13.7. The PE ratio of each stock shown in the chart below is based on earnings forecasted by ICInsider.com for companies with their financial year ending up to August 2022.
A total of 10,137,629 shares traded for $28,425,300 compared to 6,323,597 units at $22,068,391 on Tuesday. Future Energy Source led the market with 39.8 percent of total volume after trading 4.03 million shares, followed by Caribbean Assurance Brokers 18 percent with 1.82 million units and Lumber Depot 8.9 percent with 898,450 shares.
Trading averaged 273,990 shares at $768,251 up from 166,410 shares at $580,747 on Tuesday. Trading month to date, averages 135,053 units at $456,137, compared to 115,871 units at $413,046 on Tuesday. October closed with an average of 162,777 units at $557,275.
Investor’s Choice bid-offer indicator shows three stocks ending with bids higher than their last selling prices and seven with lower offers.
At the close, Access Financial dropped 25 cents and finished unchanged at $20.25 after exchanging 1,424 shares, Caribbean Assurance Brokers advanced 59 cents in ending at $2.29 trading 1,822,207 stocks, as investors responded positively to the release of results that shoed 31 cents per share for the nine months to September after reporting 41 cents for the September quarter. Caribbean Cream climbed 28 cents to $6 after exchanging 8,978s tock units. Dolphin Cove rose 9 cents to $10, with 29,850 units changing hands, Elite Diagnostic rallied 33 cents to end at $3.48 after 314,805 units crossed the market, Fontana increased 30 cents in closing at a 52 weeks’ high of $7.60 in an exchange of 115,216 stocks. General Accident popped 79 cents to end at $6.80 while exchanging 20,775 stock units, Honey Bun shed 35 cents in closing at $9.15 and trading 47,495 shares, Indies Pharma fell 15 cents to $3.05 in exchanging 288,370 stocks. Iron Rock Insurance spiked 71 cents to finish unchanged at $3.78, with one stock unit crossing the market, Jamaican Teas lost 25 cents to close at $4.25, with 163,617 units clearing the market, KLE Group declined 64 cents in ending at $2.50 after 11,500 shares changed hands. 
Knutsford Express shed 9 cents in closing at $8 closed after trading 11,870 units, Lasco Distributors gained 17 cents to $3.70 with the swapping of 13,538 stock units, Lasco Financial popped 14 cents and finished unchanged at $3.24 with an exchange of 154,500 stocks. Limners and Bards advanced 16 cents to close at $3.47 in trading 114,808 shares, Lumber Depot declined 15 cents to end at $2.82 in switching ownership of 898,450 stocks, Paramount Trading increased 11 cents in ending at $1.21 while exchanging 108,466 shares and Stationery and Office Supplies climbed 23 cents to close at $6.53 after trading 54,900 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Junior Market stocks stage major recovery
Stocks made a significant recovery in trading on Tuesday. The Junior Market Index jumped 31.66 points to close at 3,400.63, rising stocks outpaced those that fell, with the volume and value of stocks traded doubling Monday trades at the close of the Jamaica Stock Exchange Junior Market.
Market activity led to 38 securities trading versus 39 on Monday and ended with 19 rising, 13 declining and six closing unchanged.
The PE Ratio, a measure used to compute appropriate stock values, averages 13.2. The PE ratio of each stock shown in the chart below is based on ICInsider.com’ s earnings forecast for companies whose financial year ends from 2021 up to August 2022.
Traders exchanged 6,323,597 shares for $22,068,391 versus 3,099,942 units at $11,381,686 on Monday. Lumber Depot led trading with 1.54 million shares for 24.3 percent of total volume, followed by Future Energy Source with 1.31 million units for 20.7 percent of the day’s trade and Jamaican Teas with 836,255 units for 13.2 percent market share.
Trading averaged 166,410 shares at $580,747 up from 79,486 shares at $291,838 on Monday and month to date, 115,871 units at $413,046 compared to 107,521 units at $385,339 on Monday. October closed with an average of 162,777 units at $557,275.
Investor’s Choice bid-offer indicator shows six stocks ended with bids higher than their last selling prices and two stocks with lower offers.
At the close, Access Financial popped 61 cents to close at $20.50 after trading 204 shares, Blue Power increased 24 cents to $3.30 in trading 1,000 units, CAC 2000 shed $2.28 to end at $7.02 while exchanging 14,000 stocks. Caribbean Assurance Brokers declined 8 cents to $1.70 with an exchange of 46,900 stock units, ahead of the release of the company’s third quarter earnings of 41 cents for the quarter and 31 cents for the nine months. Derrimon Trading rose 10 cents to $2.40, with 84,581 units crossing the exchange, Dolphin Cove fell 9 cents to close at $9.91 with 41,671 stocks clearing the market. Elite Diagnostic gained 13 cents to close at $3.15, with 21,284 stock units changing hands, Express Catering advanced 27 cents to $5.27 after trading 21,600 shares, Fontana popped 10 cents to $7.30 after an exchange of 264,511 stock units. Future Energy Source rose 7 cents to end at $2.88 in exchanging 1,310,536 shares, General Accident dropped 84 cents to $6.01 in switching ownership of 3,017 units, Honey Bun rallied 10 cents to $9.50 after trading 32,417 stocks. Jamaican Teas rose 25 cents to $4.50 with the swapping of 836,255 stocks, Jetcon Corporation rallied 11 cents in closing at $1.11 in an exchange of 70,737 shares, 
KLE Group popped 64 cents to close at a 52 weeks’ high of $3.14, after 4,725 units crossed the market. Knutsford Express popped 9 cents to close at $8.09, trading five stock units, Lasco Distributor slipped 17 cents to $3.53 trading 1,208 stock units, Lasco Manufacturing gained 25 cents to end at $4 75, after 698,413 stocks crossed the market. Limners and Bards dropped 24 cents in closing at $3.31 with the swapping of 229,331 units and Medical Disposables fell 20 cents to $5.30 in switching ownership of 700 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Plunge in Junior Market Monday
The Junior Market Index dropped sharply at the closed on Monday as investors drove the majority of stocks trading down, snapping 47.47 points off Friday’s closing index to end at 3,368.97, with the volume of stocks traded declining after 37 percent fewer shares traded, with 44 percent funds less entering the market than on Friday, but Investor’s Choice bid-offer indicator is flashing positive signals at the close.
Overall, 39 securities traded versus 37 on Friday and ended with 12 rising, 15 declining and 12, closing unchanged.
The PE Ratio, a measure used to compute appropriate stock values, averages 13.5. The PE ratio of each stock is shown in the chart below, is based on earnings forecasts by ICInsider.com or companies with their financial year ending up to August 2022.
A total of 3,099,942 shares changed hands for $11,381,686 compared to 4,884,822 units at $20,407,151 on Friday. Future Energy Source led trading with 565,193 shares that accounted for 18.2 percent of total volume, followed by Mailpac Group with 495,561 units and 16 percent of the day’s trade and Lumber Depot with 389,581 units for 12.6 percent market share.
Trading averaged 79,486 shares at $291,838 versusu 132,022 shares at $551,545 on Friday and month to date an average of 107,521 units at $385,339 down from compared to 113,246 units at $404,431 on Friday. October closed with an average of 162,777 units at $557,275.
Investor’s Choice bid-offer indicator shows nine stocks ended with bids higher than their last selling prices and two with lower offers.
At the close, Access Financial dropped 90 cents to $19.89 while exchanging 18,421 shares, AMG Packaging fell 13 cents to $1.60 after trading 6,890 units, Blue Power dropped 24 cents to $3.06 in switching ownership of 416 stocks. Derrimon Trading lost 14 cents in closing at $2.30 with an exchange of 99,250 stock units, Fosrich spiked 37 cents to $8.97 after 17,517 units changed hands, General Accident increased 75 cents to close at 52 weeks’ closing high of $6.85 after 41,544 stocks crossed the market. iCreate declined 9 cents to 86 cents in exchanging 43,000 shares, Indies Pharma rallied 22 cents to $3.24 in an exchange of 16,401 units, Iron Rock Insurance declined 73 cents to $3.07, with 500 units changing hands. 
Jamaican Teas fell 15 cents to end at $4.25, with 269,338 stock units crossing the exchange, Knutsford Express shed 9 cents to $8 after 611 stocks crossed the market, Lasco Distributors lost 15 cents at $3.70 after trading 1,604 shares. Mailpac Group dropped 9 cents to end at $3.74 after exchanging 495,561 stocks and Main Event advanced 40 cents to close at $4.40, with 2,107 shares clearing the market.
In the preference segment, CAC 2000 9.5% preference share rose 8 cents to $1 with the swapping of 1,500 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
ICTOP10 stocks make big gains
ICTOP10 stocks continue, with some sharp price movement during the past week, with VM Investments being the lead mover with a 16 percent rise, with a 12 percent increase for General Accident to $6.10, Medical Disposables rose 11 percent to $5.50 and Guardian Holdings popped 9 percent to $565.
VM Investment jumped 16% in the week
Berger Paints and Access Financial both gained 6 percent for the week. Access’ performance followed the release of half year results that showed good promise of a strong rebound in earnings for the current fiscal year. See ICInsider.com’s report on the results.
There are no additions to the ICTOP10 this week, but with several company results due this week, the markets could benefit from some.
The top three Main Market stocks are Berger Paints, Guardian Holdings and JMMB Group, with gains of 220 to 230 percent expected versus last weeks’ 216 to 254 percent.
The top three stocks in the Junior Market are Elite Diagnostic, followed by General Accident, with a drying up of offers up to $7.24 and Lasco Financial, with all three having the potential to gain between 203 and 297 percent, from 228 percent and 281 percent, previously.
This week’s focus: QWI investments, one of ICInsdier.com TOP15 stocks for 2021, now boast a Net Asset Value of $1.43 at the end of the past week, the highest value since it was listed in 2019, but the stock is selling at 92 cents on the Main Market at a huge 36 percent discount to NAV, even as the composition of the portfolio suggests further increase in value is likely before the end of 2021. The NAV is up 23 percent from $1.16 at the end of December last year, just below the Junior Market gains for the year to date and well ahead of the Composite index rise. The stock price has increased by 19.4 percent from 77 cents at the end of 2020 to Friday. It seems that investors don’t buy into the concept of buying stocks when blood is in the streets.
Most of the top 2021 stocks will not make the top 10 in 2022, but some will. The IC 80/20 rule, with a long 40 year history, shows an average of only two of the TO10 stocks in a year repeat in the following one, while 4 out of 10 of the worst performing stocks will end up as TOP10 winners in the succeeding year.
Investors’ focus should now be on 2022 for the local stocks and the current year’s values to determine the appropriate values of each stock for a hold or fold decision.
PE ratio is revaluing, with the Main Market moving from 15.6 last week to 16 this week and the Junior Market from 13.2 to 13.7. This trend will continue as results are released and encourage increased investments in stocks that are now undervalued.
The average gains projected for the TOP 10 Junior Market stocks moved from 202 percent last week to 191 percent and Main Market stocks moved from 169 percent to 159 percent.
The Junior Market closed the week with an average PE 13.7 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, with a 52 percent discount to that market’s PE.
The Junior Market can gain 52 percent to March next year, based on an average PE of 20 and 25 percent based on an average PE of 17. Seven stocks representing 15 percent of all Junior Market stocks with positive earnings are trading at or above this level, down from nine last week, indicating that many others will rise above the 17 mark in the weeks ahead.
The average PE for the JSE Main Market is 16, which is 19 percent less than the PE of 19 at the end of March and 25 percent below the target of 20 to March 2022. The Main Market TOP 10 average PE is 7.8, representing a 50 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 24, suggesting that the accepted multiple maybe around 25 times the current year’s earnings.
ICTOP10 focuses on potential 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.
Junior Market ends week with gains
More funds passed through the Jamaica Stock Exchange Junior Market on Friday, pushing the volume of stocks traded up 18 percent and the value rising 46 percent higher than on Thursday and led to market to record an increase over last week’s close and with gains going into the weekend.
A total of 37 securities traded down from 41 on Thursday and ended with 16 rising, 13 declining and eight closed unchanged.
The Junior Market Index climbed 27.68 points to 3,416.44. The PE Ratio, a measure used to compute appropriate stock values, averages 13.6. The PE ratio of each stock is shown in the chart below, is based on earnings forecasts done by ICInsider.com for companies with their financial year ending up to August 2022.
Overall, 4,884,822 shares traded for $20,407,151 up from 4,133,325 units at $14,013,135 on Thursday. Jamaican Teas led trading with 1.49 million shares for 30.4 percent of total volume, followed by Future Energy Source with 1.17 million units for 24 percent of the day’s trade and Mailpac Group with 384,475 units for 7.9 percent market share.
Trading averaged 132,022 shares at $551,545 in contrast to 100,813 shares at $341,784 on Thursday and month to date, an average of 113,246 units at $404,431, compared to 108,735 units at $369,086 on Thursday. Trading in October averaged 162,777 units at $557,275.
Investor’s Choice bid-offer indicator shows three stocks ended with bids higher than their last selling prices and two with lower offers.
At the close, Access Financial rose $1.09 to $20.79 in an exchange of 94,398 shares, Cargo Handlers climbed 34 cents to $7.84 after trading 21 stocks, Caribbean Cream fell 29 cents to close at $5.68 with 3,180 stock units changing hands. Derrimon Trading fell 8 cents to $2.44 while exchanging 70,522 units, Elite Diagnostic dropped 23 cents to end at $3.02 after clearing the market with 88,778 stock units, Everything Fresh shed 7 cents to 91 cents with the swapping of 34,100 shares. Fosrich popped 10 cents to close at $8.60 with an exchange of 54,742 stocks, General Accident spiked 65 cents to $6.10, with 136,082 units changing hands, Honey Bun lost 15 cents to end at $9.35 after exchanging 95,727 units. Indies Pharma dropped 18 cents in closing at $3.02 in trading 125,039 stock units, ISP Finance fell $2.23 to $45 after trading 80 stocks, Jamaican Teas declined 10 cents to close at $4.40, with 1,485,356 shares crossing the exchange. 
Knutsford Express rose 9 cents in closing at $8.09, trading 6,374 stock units, Lasco Distributors advanced 33 cents to end at $3.85, with 58,015 units crossing the market Lasco Manufacturing lost 30 cents, closing at $4.50 after trading 250,158 shares. Main Event shed 40 cents to close at $4 in switching ownership of 354,112 stocks, Paramount Trading popped 9 cents in closing at $1.14, with 470 shares crossing the market and Stationery and Office Supplies rallied 39 cents to end at $6.30 with an exchange of 200 units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
