The Junior Market lost momentum on Monday, virtually undoing Friday’s gains, as the index gave up 32.49 points to end at 3,336.54 as trading closed with the volume of stocks traded slipping slightly below Friday’s level after 19 percent less value chased after stocks.
Market activity led to 37 securities trading compared to 33 on Friday and ended with the prices of 12 rising, 16 declining and nine closing unchanged and two stocks closed at 52 weeks’ low.
The PE Ratio, a measure used to compute an appropriate value of a stock, averages 13 based on ICInsider.com’s 2021-22 earnings forecast.
Overall, 5,432,434 shares traded for $13,895,368 compared to 5,307,749 units at $17,164,498 on Friday.
Future Energy Source led trading with 41.9 percent of total volume after an exchange of 2.28 million shares, followed by Everything Fresh 8.2 percent, with 445,595 units and Jamaican Teas 7.8 percent, with an exchange of 424,325 units.
Trading averaged 146,823 units at $375,550 in contrast to 160,841 at $520,136 on Friday. Trading month to date, averages 155,553 units at $443,033, compared to 156,090 units at $447,181 on Friday. June closed, with an average of 225,705 units at $644,459.
Investor’s Choice bid-offer indicator shows three stocks ending with bids higher than their last selling prices and three with lower offers.
At the close, AMG Packaging advanced 10 cents to $1.66 with 301,518 shares changing hands, Blue Power rallied 27 cents to $3.62, with 3,150 units traded, Caribbean Assurance Brokers rose 8 cents to $1.99 with a transfer of 2,294 stocks. Caribbean Flavours popped 6 cents to $2.06, with investors switching ownership of 111,699 shares, Express Catering fell 8 cents to $5.96 with an exchange of 775 units, Fosrich slipped 5 cents to $8.10 with 4,200 stocks passing through the market. General Accident shed 60 cents to finish at a 52 weeks’ low of $5 with 50,410 shares changing hands, Indies Pharma dropped 31 cents to $3.65 with 117,359 units traded, Iron Rock Insurance climbed 28 cents to $3.88 with a transfer of 156,125 stocks. Knutsford Express dropped 71 cents to $7.69, with an exchange of 38,041 shares, Lasco Financial rose 6 cents to $3.18, with 3,854 units passing through the market, Lasco Manufacturing spiked 42 cents to $5.25 with 25,178 stocks changing hands. Mailpac Group rallied 5 cents to $3.85 with a transfer of 253,262 stock units, Main Event lost 10 cents to end at $5.10 with 6,490 shares traded, Medical Disposables fell 20 cents to $4.55, with 12,600 units passing through the market. Paramount Trading dipped 9 cents to close at a 52 weeks’ low of $1.06, with investors switching ownership of 101,382 stocks and SSL Venture rose 7 cents to 80 cents with 3,983 shares crossing the exchange.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
#1 ICTOP10 pick to stun market
ICTOP10 number 1 stock, Radio Jamaica (RJR) price moved up 22 percent since releasing full year results recently, with the stock trading at the highest price in a year, it is set to lose the number one spot sooner than later. The company reported just 7 cents per share from reduced revenues. On the surface, the stock price should at best remain at the prerelease price around $1.70 level, but there is much more to those results that only a more detailed assessment would reveal.
Based on ICInsider.com research, investors should expect the first quarter profit to exceed the 2021 fiscal year results of $171 million on the way to record just under $1 billion in profit for 2022 to give investors a big payday.
RJR is the sort of stock that few would have on their buy list. After all, the company has not performed particularly well in recent years. Worse the Cocvid-19 pandemic made matters tough for them, with contraction in revenues and initially, reduced profit. What goes for RJR would apply to many of the ICInsider.com top stocks for 2021. ICInsider.com goes beyond the actual results to find important information that is not always useful to many but can provide guidance into the future and expose above average profit growth.
That is one reason why many of the selections at the start of the year have done well. Examples are as such, Caribbean Cream up 43 percent for the year to date started the year at the number 2 spot, Caribbean Producers the number 3 spot selection is up 82 percent, Main Event up 73 percent, Medical Disposables up just 12 percent, Stationery & Office Supplies 55 percent, Lumber Depot 116 percent and Mailpac 32 percent. Later, Future Energy Source was added to the list at the IPO stage and is up an impressive 110 percent. Additionally, Jetcon Corporation up 76 percent and Jamaican Teas 100 percent are not being counted. The Main Market with few overall winners for that market so far also produced winners from the TOP15 list, posted at the start of the year, Grace, Carreras, Caribbean Cement and Jamaica Broilers.
The TOP10 stocks are not always the best in the market but are most likely to be the best winners within a fifteen-month period. IC ranked stocks to filter out the big winners, allowing investors to focus on potentially big winners and help to keep out emotional attachments to stocks.
PanJam Investment earnings is downgraded to $4.50 per share and the stock moved out of the TOP10 Main Market listing and is replaced by Scotia Group, now in at tenth spot. There are no changes in or out of the Junior Market list.
This past week the average gains projected for the Junior Market moved up from 183 percent last week back to 202 percent and Main Market stocks moved to 164 percent from 176 percent.
The top three stocks in the Junior Market continue, with Elite Diagnostic heading the list, followed by Caribbean Assurance Brokers and Medical Disposables, with potential to gain between 237 percent and 291 percent compared to 233 and 242 percent last week. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by JMMB Group Guardian Holdings, with expected gains of 183 to 292 percent as RJR price rose and reducing its future potential growth, versus last weeks’ 181 to 379 percent.
The Junior Market closed the week with an average PE 13.1 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 and the recent historical average of 17 for the period to March this year based on 2020 earnings. For the Junior Market to trade at the historical average, the PE Ratio would have to rise 30 percent and requires a rise of 53 percent to reach the targeted PE of 20 by March 2022. Main Market stocks would have to rise by 17 percent to hit a PE of 19 and 23 percent to get to the target of 20. The Junior Market Top 10 stocks average PE is a mere 6.8, just 52 percent of the market average, indicating substantial gains ahead.
The JSE Main Market ended the week with an overall PE of 16.4, a little distance from the 19 the market ended at in March, suggesting just a 17 percent rise at a PE of 19 and 23 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.8 or 48 percent of the PE of that market, well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely 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.
Stunning results from ICTOP10 stocks
Caribbean Cream delivered stunning positive results this past week with profit doubling, in line with ICInsider.com forecast and sent the stock up 25 percent to a 52 weeks’ high when it traded at $6.85 on Friday. The price is up 63 percent for the year to date but is set to clear $15, with projected earnings of 85 cents for the current year.
During the week, the Junior Market lost Caribbean Producers to the Main Market and the move attracted more trading in it, with Friday having the lowest volume of 104,442 and the highest 275,415 shares on the first day of the transfer, well up on the previous two days of 34,319 and 58,282 shares. The stock continues to move higher, with gains of 91 percent for the year to date.
tTech maintained last week’s price of $4.75 to return to Junior Market TOP10 this week, replacing Caribbean Producers that was the only new entrant to the JSE Main Market TOP10, replacing Jamaica Broilers.
This past week the average gains projected for the Junior Market fell from 202 percent last week to 183 percent and Main Market stocks moved to 176 percent from 170 percent.
The top three stocks in the Junior Market are General Accident, followed by Caribbean Assurance Brokers and Elite Diagnostic, with potential to gain between 233 percent and 242 percent compared to 240 and 282 percent last week, as Elite price moved up by 15 percent to $3.60 following the announcement a proposed dividend consideration and a change in the Chief Executive. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by JMMB Group and PanJam Investment, with expected gains of 181 to 379 percent versus last weeks’ 161 to 379 percent.
The Junior Market closed the week with an average PE 13.1 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 as well as the recent historical average of 17 for the period to March this year based on 2020 earnings. For the Junior Market to trade at the historical average, the PE Ratio would have to rise by 30 percent and requires a rise of 53 percent to reach the targeted PE of 20 by March 2022. Main Market stocks would have to rise by 19 percent to hit a PE of 19 and 24 percent to get to the target of 20. The Junior Market Top 10 stocks average PE is a mere 7.2., just 55 percent of the market average, indicating substantial gains ahead.
The JSE Main Market ended the week with an overall PE of 16.1, a little distance from the 19 the market ended at in March, suggesting just an 18 percent rise at a PE of 19 and 24 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.6 or 47 percent of the PE of that market, well off the potential of 20.
This week’s focus: Results for Caribbean Cream with revenues up a solid 28 percent and profit doubling to $54 million, from $27 million with earnings of 14 cents per share, speak for themselves. Radio Jamaica is at a totally different level. The company delivered an 11.6 percent revenue rise in the March quarter and a profit of $44 million, pushing full year’s profit to $171 million of just 7 cents per share. The year’s performance comes against the backdrop of $366 million in what can be considered one off costs and in a year when revenues fell 7 percent. The 2022 results are set to be a stunner.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. 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.