The markets closed with contrasting styles on Friday, with Junior Market listed Caribbean Cream dropping 27 percent to $4.01 and the main market listed Radio Jamaica rising 21 percent to $2.90, with the stock triggering the circuit breaker as investors exchanged 2.9 million units of the company’s shares on Friday.
It is unclear why RJR, a stock that was previously under selling pressure, surprisingly, surged at the week’s close. Caribbean Cream came under pressure after the company reported a loss for the year to February. Investors will have to await the first quarter results in a few days to determine whether the new year will see a return to brighter days.
Five Junior Market ICTOP10 stocks fell and four rose, while in the TOP10 Main Market, six stocks gained and two fell with none exceeding 4 percent, but for RJR.
Elsewhere in the Junior Market, C2000 climbed 11 percent to $10.30. In comparison, Access Financial and Elite Diagnostic gained 5 percent each to close the week at $21.01 and $3.50, respectively. In contrast, Caribbean Assurance Brokers lost 6 percent as Jetcon Corporation and Lasco Financial all fell 5 percent.
The week ended with one new listing in the TOP10 as mild gains by General Accident and a fall in the price of Dolphin Cove resulted in them swapping places.
VM Investments moved out in the TOP10 Main Market and Key Insurance moved into the TOP 10.
It is pretty clear that many investors are investing in the dark with the hope that some overvalued stocks will continue to deliver above average gains into the future, but not many people know that yesterday’s winners may not have tomorrow’s significant gains. They ignore the long established feature of the market going back almost 40 years of the IC 80/20 rule and rule of 72. The IC 80/20 rule is that only two out of ten stocks on average in one year end up in the top 10 the following year. The essence of this is that it is not prudent to invest in the vast majority of last year’s top 10 stocks, especially those that did exceptionally well and are unlikely to repeat.
Rule of 72 is simple. Divide 72 by the rate of return easily shows how quickly money can double. How does this apply to stocks? Last year the Junior Market rose 30 percent and for 2022, so far, by 27 percent. These growth rates indicate that an investment in all 45 stocks in this market would double every two and a half years based on the 2021 increase and roughly one year and four months using the year to date growth. What all of this is saying, investors don’t need to be chasing popular stocks to make good money in the market, choose those that are undervalued, with profit set to grow sufficiently to give a boost to the stock price.
Keep a careful watch on AMG Packaging, Dolphin Cove, Express Catering, Lasco Distributors, Lasco Manufacturing and Stationery and Office Supplies. Dolphin Cove, Caribbean Producers and Express Catering will be significant beneficiaries of the strong rebound in tourist arrivals.
The average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 15, while the Junior Market Top 10 PE is six versus the market at 12.9. The Junior Market TOP10 is projected to gain an average of 242 percent to May 2023 and the Main Market 229 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 are likely to deliver the best returns up to the end of May 2023 and 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 and result 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.
A total of 2,007,601 shares were traded for $12,573,616, down from 2,330,498 units at $13,044,397 on Thursday. An average of 95,600 units traded at $598,744 versus 122,658 shares at $686,547 on Thursday. The average trade for June amounts to 55,705 units at $392,249.
L.J. Williams B share fell 13 cents to close at $1.95 in trading 1,000 stocks, Massy Holdings remained at $5.16, with 1,336 units crossing the market, National Enterprises declined 1 cent in closing at $3.24 after exchanging 10,000 shares. National Flour Mills ended unchanged at $1.75, with 362 stock units changing hands, NCB Financial Group finished at $5.50 after exchanging 3,000 units, Point Lisas ended at $3.40, with 520 stocks clearing the market. Prestige Holdings fell 20 cents to $6.75 in trading 70,199 shares, Republic Financial Holdings remained at $141 with an exchange of 9,731 shares, Scotiabank finished at $77.50 with an exchange of 2,500 stocks. Trinidad & Tobago NGL slipped 21 cents to $20.62 with the swapping of 24 stock units, Trinidad Cement finished at $3.70 while exchanging 5,024 units and West Indian Tobacco shed 85 cents to close at $22.50, with 5,595 shares crossing the market.
A total of 19 securities traded up from 18 on Wednesday, with five stocks rising, four declining and ten remaining unchanged. The Composite Index rose 3.43 points to 1,381.59, the All T&T Index fell 5.38 points to 2,035.34 and the Cross-Listed Index rose 1.80 points to 95.48.
Massy Holdings slipped 1 cent to end at $5.16 after trading 86,901 shares, National Enterprises climbed 1 cent to $3.25 while exchanging 12,000 stock units, National Flour Mills remained at $1.75 while 19,352 units passed through the exchange. NCB Financial Group rose 25 cents to end at $5.50 in switching ownership of 103,000 stock units, One Caribbean Media lost 5 cents to close at $4.10, with 61,433 units crossing the market, Republic Financial Holdings ended unchanged at $141 with an exchange of 1,590 shares. Scotiabank closed at $77.50 with 7,473 stocks clearing the market, Trinidad & Tobago NGL dropped 7 cents ending at $20.83 with 6,475 stock units changing hands, Unilever Caribbean shed 1 cent to close at $13.89 in trading 57 units and West Indian Tobacco finished at $23.35, with 715 shares crossing the market.
The Composite Index shed 8.01 points to end at 1,376.46, the All T&T Index advanced 2.88 points to 2,049.96 and the Cross-Listed Index fell 2.75 points to settle at 91.80.
JMMB Group finished at $2.30 with the swapping of 191,169 units, L.J. Williams B share ended unchanged at $2.08 with an exchange of 20 stocks, Massy Holdings shed 2 cents to close at $5.18 after exchanging 3,694 stock units. National Enterprises popped 1 cent to $3.25 trading 536 stocks, National Flour Mills finished at $1.75 after exchanging 2,050 stock units, NCB Financial Group fell 30 cents to $5 in trading 23,574 units. One Caribbean Media ended at $4.15, with 3,026 shares crossing the market, Republic Financial Holdings ended unchanged at $141, with 4,544 shares changing hands, Scotiabank remained at $78 in an exchange of 7,227 units. Trinidad & Tobago NGL ended unchanged at $20.90 in exchanging 8,882 stock units, Unilever Caribbean gained $1.15 to close at $13.90 after trading 1,601 stocks and West Indian Tobacco finished at $23.35 with 60 stocks changing hands.
The Composite Index rose 6.05 points to 1,384.47, the All T&T Index rallied 11.71 points to close at 2,047.08 and the Cross-Listed Index remained at 94.55.
FirstCaribbean International Bank ended unchanged at $5 with the swapping of 3,030 stock units, Guardian Holdings declined 9 cents in closing at $27.31, with 2,000 stocks clearing the market, JMMB Group remained at $2.30 in an exchange of 60,850 stocks. Massy Holdings gained 3 cents to close at $5.20 after trading 1,609,141 stock units, National Flour Mills finished at $1.75, with 2,190 units changing hands, One Caribbean Media remained at $4.15 while exchanging 4,136 shares. Republic Financial Holdings ended at $141 after trading 2,150 stock units, Scotiabank ended at $78 in switching ownership of 13,725 units, Trinidad & Tobago NGL shed 60 cents to end at $20.90 in trading 5,346 shares. Trinidad Cement dropped 28 cents in closing at $3.60 after 40,000 stocks changed hands, Unilever Caribbean fell $1.23 to a 52 weeks’ low of $12.75 with an exchange of 11,474 stock units and West Indian Tobacco ended unchanged at $23.35 after 60 stocks passed through the exchange.
Former Top10 listed
Dolphin Cove is benefitting from cost reduction in its operations, but more importantly, the solid first quarter results occurred when tourism arrivals were only 63 percent of 2019 numbers. In the first two months of the June quarter, tourist arrivals are 95 percent of the 2019 period and this is bound to have a positive impact on pushing the second quarter numbers much higher than for the first quarter as well as for the balance of the year. A similar situation would apply to Caribbean Producers, a significant supplier to the hotel sector.
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.
The Composite Index fell 0.26 points to 1,378.42, the All T&T Index shed 6.36 points to 2,035.37 and the Cross-Listed Index popped 0.88 points to 94.55.
Massy Holdings lost 2 cents to close at $5.17 while exchanging 204,824 stock units, National Enterprises finished at $3.24, exchanging 35 units, National Flour Mills ended at $1.75 after 500 stocks changed hands. One Caribbean Media advanced 5 cents to $4.15, with 357 stock units crossing the exchange, Point Lisas remained at $3.40 with 75 stocks changing hands, Prestige Holdings popped 24 cents to $6.95 with an exchange of 5 units. Republic Financial Holdings ended at $141 in switching ownership of 100 shares, Scotiabank rose $1 to $78 after an exchange of 16,420 shares, Trinidad & Tobago NGL climbed 65 cents to $21.50 with the swapping of 27,073 stock units. Trinidad Cement finished at $3.88 after exchanging 75 units, Unilever Caribbean rose $1.23 in closing at $13.98 with an exchange of 1,099 stocks and West Indian Tobacco fell 5 cents to close at $23.35 with 846 shares changing hands.
A total of 126,861 shares traded for $2,857,983 compared to 148,885 units at $4,988,993 on Wednesday. An average of 6,677 units traded at $150,420 versus 8,758 shares at $293,470 on Wednesday, with trading month to date averaging 57,478 units at $485.080 versus 60,925 units at $507,789. May closed with an average trade of 45,890 units at $370,328.
National Enterprises ended at $3.24 in exchanging 24,571 shares, National Flour Mills popped 5 cents to finish at $1.75 in trading 11,328 units, NCB Financial Group remained at $5.30 in switching ownership of 5,285 stock units. One Caribbean Media rose 9 cents to $4.10 in trading 167 stocks, Prestige Holdings gained 1 cent in ending at $6.71 after 528 units crossed the market, Republic Financial Holdings finished at $141 with 8,906 stock units changing hands. Scotiabank shed $1 in ending at $77 after exchanging 9,849 shares, Trinidad & Tobago NGL gained 5 cents in closing at $20.85 in switching ownership of 3,877 shares, Trinidad Cement rallied 8 cents to $3.88 with 235 units crossing the market and Unilever Caribbean ended unchanged at $12.75 with an exchange of 2,390 stocks.
The Composite Index lost 9.19 points to close at 1,379.82, the All T&T Index slipped 1.65 points to 2,041.04 and the Cross-Listed Index declined 2.42 points to settle at 94.10.
National Enterprises shed 1 cent to $3.24 in switching ownership of 965 units. National Flour Mills ended at $1.70 in an exchange of 220 stock units, NCB Financial Group dropped 35 cents to close at a 52 weeks’ low of $5.30, with 635 shares crossing the exchange, Republic Financial Holdings finished at $141 after exchanging 11,899 stocks. Scotiabank remained at $78 in trading 12,974 stock units, Trinidad & Tobago NGL finished at $20.80 with an exchange of 2,500 shares, Trinidad Cement declined 8 cents to $3.80 in exchanging 9,765 stocks. Unilever Caribbean ended at $12.75 after 305 units crossed the market and West Indian Tobacco advanced 11 cents to $23.40, trading 22,627 shares.
A total of 16 securities traded compared to 18 on Friday, with three rising, six declining and seven ending unchanged. The Composite Index fell 3.08 points to 1,389.01, the All T&T Index dropped 2.96 points to 2,042.69 and the Cross-Listed Index dipped 0.45 points to close at 96.52.
GraceKennedy slipped 5 cents in ending at $5.50, with 7,000 stocks crossing the market. JMMB Group lost 5 cents in closing at $2.30 while exchanging 2,000 units, L.J. Williams B share finished at $2.08 in switching ownership of one stock unit, Massy Holdings gained 15 cents to close at $5.20 after exchanging 143,555 stocks. National Flour Mills declined 5 cents to close at $1.70 in trading 2,208 shares, One Caribbean Media shed 14 cents to close at $4.01 after exchanging 500 stock units, Republic Financial Holdings ended unchanged at $141 after trading 17 units. Scotiabank remained at $78, with 882 units clearing the market, Trinidad & Tobago NGL ended at $20.80, with 759 shares crossing the exchange, Unilever Caribbean fell 25 cents to end at a 52 weeks’ low of $12.75 after trading 3,779 stock units and West Indian Tobacco fell 1 cent to close at $23.29 with an exchange of 17 stocks.