The JSE Main Market and Junior Market slipped to end the week marginally lower than the close of the previous week. Against the background, Berger Paints was the only stock moving out of the TOP10 as it made way for Sterling Investments.
Junior Market stocks kept above the 2,900 mark of the market index only slipping below that level just one day during the week, as the market continues to consolidate in the move higher. Main Market stocks made attempts to break clear of the consolidation zone but the market is awaiting some strong profit results to move prices and that will not come until late April.
The publication has stated that Junior Market TOP10 contains several companies that suffered a sharp reversal of revenues and profit in 2020, with recovery projected for them in 2021. Green shoots are showing for some with sales picking up in recent quarters with improving bottom-line. Some of these companies may require another quarter or two of improving fortunes before there is meaningful buying into them. Main Event is one such company and it reported a profit on reduced income for the January quarter with revenues climbing solidly in the latest quarter over the October and July quarters.
The Main Market has a number in the list that have put out record profits or show signs of strong earnings in 2021, with the stocks clearly undervalued, these include, JMMB Group, Jamaica Broilers, Sygnus Credit Investments and Grace Kennedy that are currently in the TOP10 Main Market listing and Caribbean Cement that is just outside.
Both the Junior Market and the Main Market continue to get support from technical indicators that point to robust gains ahead. To benefit from the growth in the market to come many investors will need to be on board at an early stage.
This week’s focus: Limners and Bards reported strong first quarter results with rising revenues and profit. Revenues grew a strong 36 percent over the 2020 period to $356 million with profit rising 36 percent to $67 million as cost of operations rising 38 percent over the 2020 period. The company nevertheless seems set to nearly doubling profit for the full year, with profit of $192 million and earnings per share of 20 cents.
The top three stocks in the Junior Market with the potential to gain between 292 to 312 percent are Main Event followed by Stationery and Office Supplies and Caribbean Producers. With expected gains of 181 to 433 percent, the top three Main Market stocks are, Radio Jamaica, followed by VM Investments and PanJam Investment.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, up to the second quarter of 2021. The Junior and Main markets are currently trading well below the market average, indicating strong gains ahead. The JSE Main Market ended the week, with an overall PE of 15 and the Junior Market 10, based on ICInsider.com’s projected 2021-22 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 5.5 at just 55 percent of the market average. The Main Market TOP 10 stocks trade at a PE of 7.4 or 49 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 268 percent and 184 percent for the JSE Main Market, based on 2021-22 earnings.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely gain 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.
The All Jamaican Composite Index climbed 429.52 points to close at 432,777.32, the JSE Main Index rose 365.83 points to 394,570.77 and the JSE Financial Index gained 0.28 points to 99.30.
Investor’s Choice bid-offer indicator reading has nine stocks ending with bids higher than their last selling prices and four with lower offers.
Salada Foods lost 30 cents to finish at $44.20 in swapping 1,782 stocks, Scotia Group rose $1.89 to $42, trading 63,546 shares. Sterling Investments fell 31 cents to $2.60 in an exchange of 6,721 stock units, Supreme Ventures gained 30 cents to finish at $15.40, with 50,715 units crossing the market and Wisynco Group closed 47 cents higher at $15.50, with 16,279 shares clearing the market.
Trading for the day averaged 239,375 units at $1,671,585, compared to an average of 165,916 shares at $1,037,466 on Wednesday. The average trade month to date ends at 256,266 units at $2,210,133, in contrast to 257,553 units at $2,251,139 on Wednesday. February closed with an average of 419,015 units at $2,509,660.
138 Student Living gained 24 cents in ending at $5.40, after clearing the market with 15,702 shares, Pan Jam Investment declined by $1 to $66 with the swapping of 794 units, Proven Investments advanced $1.50 to $34.50 in exchanging 72,037 stock units. Pulse Investments shed 28 cents to close at $4.14 after trading 496,531 units, Scotia Group dropped $3.59 to close at $40.11, with 29,893 stocks crossing the market, Seprod shed $1 to end at $72 in exchanging 17,660 stock units and Wisynco Group lost 49 cents to close at $15.03, with 216,294 units clearing the market.
The All Jamaican Composite Index declined 2,779.81 points to 433,804.38, the Main Index fell 2,520.23 points to 395,489.77 and the JSE Financial Index lost 0.86 points to settle at 99.09.
Trading averaged 165,916 units at $1,037,466, compared to 175,488 shares at $1,731,775 on Tuesday. Trading month to date averaged 257,553 units at $2,251,139, in contrast to 265,470 units at $2,355,997 on Tuesday. February closed with an average of 419,015 units at $2,509,660.
Sagicor Real Estate Fund rose $1.11 to $8.32, with 476 stocks clearing the market, Salada Foods climbed $2.80 to $44.50 in trading 2,804 units. Scotia Group gained 70 cents to end at $43.70, with 41,169 stocks crossing the market, Seprod closed 99 cents higher at $73 in switching ownership of 4,342 units and Wisynco Group declined 20 cents to $15.52 after exchanging 140,490 units.
The All Jamaican Composite Index climbed 2,301.07 points to 436,584.19, the JSE Main Index advanced 2,049.07 points to end at 398,010.00 and the JSE Financial Index rose 0.72 points to 99.95.
Trading averaged 175,488 units at $1,731,775, down from 211,498 shares at $1,978,267 on Monday. Month to date trading averaged 265,470 units at $2,355,997, versus 273,584 units at $2,412,290 on Monday. February closed with an average of 419,015 units at $2,509,660. 
Sagicor Real Estate Fund fell 99 cents to $7.21, after clearing the market with 820 stocks, Salada Foods shed 80 cents to end at $41.70 with 23,847 stocks crossing the exchange, Scotia Group fell $1 to $43, transferring 293,556 shares. Seprod advanced $1.31 to $72.01 with investors switching ownership of 26,824 stock units and Supreme Ventures lost 41 cents to close at $15 after trading 127,248 stocks.
Investor’s Choice bid-offer indicator reading has eight stocks ending with bids higher than their last selling prices and three with lower offers.
The Junior Market TOP10 contains companies that suffered a sharp reversal of revenues and profit in 2020, with recovery projected for them in 2021. Green shoots are showing for some, with sales picking up in recent quarters with improving bottom-line. Some of these companies may require another quarter or two of improving fortunes before there is meaningful buying into them. The Main Market has a number in the list that has put out record profits or shows strong earnings in 2021, with the stocks clearly undervalued. These include JMMB Group, Jamaica Broilers, Sygnus Credit Investments and Grace Kennedy that are currently in the TOP10 Main Market listing and Caribbean Cement that is just outside.
The top three stocks in the Junior Market with the potential to gain between 292 to 312 percent are Elite Diagnostic, followed by Caribbean Producers and Caribbean Cream. With expected gains of 190 to 441 percent, the top three Main Market stocks are Radio Jamaica, followed by VM Investments and PanJam Investment.
The Main Market TOP 10 stocks trade at a PE of 7.5 or 50 percent of that market’s PE.
Investor’s Choice bid-offer indicator reading has ten stocks ending with bids higher than their last selling prices and five with lower offers.
Sagicor Group rose 89 cents to $49.89 with the swapping of 267,625 shares, Salada Foods fell $1.75 to $42.75 after exchanging 459 stocks, Scotia Group shed 49 cents to close at $44 in switching ownership of 441,597 shares. Seprod declined $4.80 to end at $71 trading 32,504 units, Supreme Ventures gained 45 cents to end at $15.95 with 89,009 shares clearing the market and Victoria Mutual Investments shed 24 cents to close at $5.01 with 89,019 stocks crossing the market.
The All Jamaican Composite Index climbed 4,287.22 points to 436,237.85, the Main Index advanced by 3,845.10 points to 397,725.35 and the JSE Financial Index gained 0.85 points to close at 99.80.
Investor’s Choice bid-offer indicator reading has ten stocks ending with bids higher than their last selling prices and nine with lower offers.
Sagicor Group fell 99 cents to $49, with 2,825 shares crossing the market, Salada Foods climbed $3.50 to $44.50 with the swapping of 2,533 stock units, Scotia Group advanced $1.49 to $44.49, with 60,614 shares clearing the market. Seprod climbed $4.80 to close at $75.80 trading 20,614 stocks, Sterling Investments lost 32 cents in settle at $2.65 in switching ownership of 13,369 units, Supreme Ventures shed 45 cents to end at $15.50 trading 16,743 stock units and Sygnus Credit Investments advanced 54 cents to $14.99, with 33,181 shares crossing the market.
The All Jamaican Composite Index fell 655.57 points to 431,950.63, the Main Index shed 575.90 points to 393,880.25, while the JSE Financial Index slipped 0.19 points to settle at 98.95.
Investor’s Choice bid-offer indicator shows nine stocks ending with bids higher than their last selling prices and five with lower offers.
Sagicor Group shed 61 cents in ending at $49.99 in switching ownership of 9,258 stocks, Sagicor Real Estate Fund gained 30 cents to $8.30 in a transfer of 2,466 shares, Salada Foods declined $2.90 to $41 trading 13,524 units. Scotia Group climbed $3 to $43 with 48,977 stock units crossing the market, Seprod rose $1 to $71, with 4,972 stocks changing hands, Supreme Ventures gained 30 cents in ending at $15.95 with 805,261 units crossing the exchange. Sygnus Credit Investments fell 26 cents to $14.45, trading 15,239 stocks and Wisynco Group shed 24 cents to close at $15.95 with the swapping of 36,249 stock units.