The main market of the Jamaica Stock Exchange closed at a record high on first four days last week and shot to a record high during Friday’s trading but failed to hold above the 340,000 points it traded at, but the market is heading much higher.
The chart shows that 340,000 mark, as a resistance point, which may require sometime before it is fully taken out and the market moves higher. The chart is showing a pattern for 2018 that is close to that for 2017. The market having risen in January last year, went sideways with an upwards bias until July and then broke out of the channel went on to a peak in November. For 2018, the market has slowly moved upwards within a narrow channel but could break out as it did in 2018 with a bullishness seen over the past two weeks.
The market is being steered higher by a long term upward sloping support line as well the 45 and 125 day moving averages, lending support just below the index for the main market and the Junior Market is being steered by an upward rising long term support line.
Profit jumps 59% at Carib Cream

Caribbean Cream outlook.
Profit jumped 59 percent in the quarter to May, to $55 million from $35 million in 2017 from sales revenue that rose 29 percent to $412 million from $319 billion in 2017 for Caribbean Cream that trades as Kremi.
The improvement brings to an end falling profit for the past fiscal year when profit fell to $90 million from $176 million in 2017, from increased revenues and from profit of $164 million in 2016.
For the quarter, gross profit margin rose to 36 percent from 34 percent in the 2017, as input cost climbed 25 percent, compared over for the 2017 first quarter. The net effect, operating profit rose 37 percent to $147 million from $107 million.
Administrative expenses increased 25 percent to $76 million and marketing and sales expenses climbed 24 percent to $13 million. Finance cost was up to $3.4 million from $3.15 million.
Earnings per share came out at 15 cents for the quarter and should end the year around 70 cents, just slightly lower than the 80 cents forecasted at the end of the fiscal year.
According to Chairman Carol Clarke Webster and Managing Director, Christopher Clarke in their joint statement to shareholders, “these results are attributable to improved products supply as a result of greater production efficiencies, along with the introduction of a new range of novelties which are performing well in the market. In addition, we continued our sales and marketing thrusts to expand our market penetration and ‘Top of the mind” awareness of our product range.”
Gross cash flow brought in $65 million but growth in receivables, inventories, offset by payables reduced it to $44 million, in addition, fixed assets purchased for $101 million offset by net loan inflows of $65 million resulted in a cash increase of $8 million, pushing the cash and bank balances to $183 million. Shareholders’ equity stands at $693 million with borrowings at just $147 million. Net current assets ended the period at $221 million well over Payables of $134 million.
The stock traded at $4.90 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of just 7 times 2019 earnings leaving quite some room for a good bounce from the current price. The stock is one of the TOP 10 Junior Market listings.
The company declared a dividend of 4.8 cents payable on September 21 to shareholders on record at the end of September 7. The stock will traded ex dividend on September 6.
Indies Pharma could make you money
Indies Pharma goes to market on Thursday to raise $248.4 million from 174 million shares for its own use while the current shareholders are offering 92.5 million units to raise nearly $139 million.
Only 60 million shares are set aside for the general public. The shares are mostly priced at $1.50 each with lower prices for shares reserved for selected groups. The proceed is expected to be used to pay off loans to its parent company and bank loans, working capital and funds the cost of the issue. The total issued shares currently amount to 1,158,553,500 units and the issue of 173,983,149 shares, if successful will raise the total issued shares to 1,332,536,649 units.
Indies Pharma is a pharmaceutical distribution company out of Montego Bay, which sold its first pharmaceutical 2005, and today distributes over 150 prescription and over the counter pharmaceutical formulations for Bioprist Holdings under the ‘Bioprist’ brand and operates the Trident Pharmacy located nearby in Sam Sharpe Square, Montego Bay.
The Company currently services customers across all 14 parishes of the island, including over 400 pharmacies, private and public hospitals and government agencies including the National Health Fund as well as medical practitioners, and directly to individual end users.
Based on how investors have gone about pricing IPOs at their peak, it seems likely that Indies Pharma will peak around $2.45 based on IC Insider.com’ projected earnings in 2018, of 17 cents per share. It could even go higher if the number of applicants for shares exceed those Junior Market IPOs from those going back to 2017.
The stock sits in the mid-range of IC Insider.com’s ranking of Junior Market stocks with a PE of 9, just a bit less than the average of 11 for the market but most IPOs have traded around 15 times the current year’s earnings at the peak reached within 2 weeks or so.
Indies is not the cleanest entity to come public in recent years. The prospectus shows that there are clear areas of management weakness that need sorting out, but they are not alone, Elite Diagnostics exhibited some similar traits in spite of having men with business experience as board members. The promoters and directors should never have allowed the prospectus to be put out with scanned copy of the audited accounts from the book issued by the auditors. It does not telegraph a good message about management.
The financials are strong but here again it reflects concerns. The statement of Financial position show amount dues from directors standing at $166 million per the half year report. Under the tax laws of Jamaica such amounts may be taxable if not repaid within a certain time frame as the amount would be treated as a distribution. Its is unclear if this issue is addressed in the prospectus.
The company has some strong positives. At the end of October 2017 borrowed funds exceeded shareholders’ equity this has changed by April this year with equity of $374 million well ahead of debt of $194 million.
For one Gross profit which has been running between 75 percent to 62 percent between over the past five years with the half year to March coming out at very strong 62 percent, revenues grew an average of 15 percent for the past 4 years but only 6 percent in 2017 but is up by 10 percent for the half year to April. The company has been able to keep cost well under control and this has enable a richness in profitability with pretax profit rising 56 percent in 2017 89 percent in 2016 and 154 percent in 2015 after a 25 percent increase in 2014. The profit for 2016 would have been even better if there was not a loss on sale of fixed asset in the 2017 period amounting to $32 million but the rise in 2017 would likewise be less.
For the half to April this year revenues rose 10 percent to $301 million over the similar period in 2017 but profit is only up 6 percent to $73 million from $69 million before tax. IC Insider.com forecast is for a 16 percent increase in pretax profit to $200 million for the current year. The company could pick up additional sales as a result of the publicity that emanates from the listing.
going forward the slow seen in revenues in 2017 to date has to be watched as that could suggest maturing of the company but they have a long pipe line of applications in to add products to the existing lines.
The Jamaica Stock Exchange climbed to the fifth straight record high, reached seconds after opening on Friday, when the All Jamaican Composite Index rose 1,082.40 points to 340,315.50 with the JSE Index rising 986.19 points to 310,065.85 but lost the gains by the close.
The day’s volume was led by, Jamaica Broilers with 2,084,581 units amounting to 30 percent of the volume traded, followed by Sagicor Group with 1,331,080 units accounting for 19 percent of the day’s volume of and Jamaica Stock Exchange with 1,083,267 units for 15.6 percent of the day’s volume.
Trading resulted in an average of 266,646 units valued at an average of $5,657,772 for each security traded. In contrast to 34,221 units for an average of $1,423,329 on Thursday. The average volume and value for the month to date amounts 168,594 units valued at $3,230,262 compared to 158,477 units valued at $2,952,222 on Thursday. June closed with an average of 250,168 shares with a value of $5,895,281, for each security traded.
Trading on the Junior Market of the Jamaica Stock Exchange on Friday closed with 806,470 units valued at $3,015,197 changing hands, compared to 9,971,398 units valued at $49,004,441 on Thursday. 
KLE Group closed at $2.90, trading 86,300 shares, Knutsford Express ended at $11.50, with 660 shares changing hands. Lasco Distributors concluded trading with a loss of 20 cents at $3.91, exchanging 13,718 stock units, Lasco Financial finished 1 cent higher at $5.21, with 15,560 units, Lasco Manufacturing gained 20 cents and ended at $4.20, with 185,000 shares, Main Event ended trading and rose 18 cents to $7, with 9,938 shares, Stationery and Office closed 5 cents higher at $8.05, with 6,170 units and tTech concluded trading 40 cents higher at $5.90, with 2,072 shares changing hands.
Trading rose sharply on the Junior Market of the Jamaica Stock Exchange on Thursday as trading Honey Bun and Medical Disposables shares accounted for 9 million units of the nearly 10 million units to trade.
The average volume and value for the month to date amounts to 291,975 units valued at $1,155,537 and previously 270,856 units valued at $1,015,164. June closed with an average of 139,543 units, valued at $671,002 for each security traded.
Everything Fresh traded at a new low since listing at $1.95 in the exchange of 169,459 units, but closed unchanged for the day at $2.10, Express Catering traded 12 cents higher at $7.26, with 22,882 shares changing hands, FosRich Group fell 5 cents to end at $2.85, with 31,244 shares, GWest Corporation ended 5 cents higher at $2.35, with 29,782 units trading, Honey Bun rose 10 cents higher to $5, with 6,006,556 shares. Jamaican Teas traded 3,000 stock units at $5.15, Jetcon Corporation closed 10 cents higher at $4.20, with 104,265 units, Key Insurance traded 13,837 shares at $3.01, Lasco Distributors concluded trading at $4.11, with 9,782 stock units. Lasco Manufacturing settled with a loss of 20 cents at $4, exchanging 8,190 shares, Main Event g 2ained cents to close at $6.82, with 8,559 shares, Medical Disposables traded 3,353,631 shares at $5 and Paramount Trading finished trading with a loss of 2 cents at $2.98, with 41,020 stock units changing hands.
The Jamaica Stock Exchange ended trading for the fourth straight at an all-time closing high, the All Jamaican Composite Index climbed 975.72 points to a record 339,847.87 with the JSE Index rising 888.99 points to a record 309,639.79.
Stocks with major price changes are, Berger Paints lost 94 cents and ended at $21.06, with 4,815 stock units, Caribbean Cement gained 57 cents and settled at $43.00, with 21,144 shares, Grace Kennedy shed 50 cents to end at $52, with 33,051 stock units, Jamaica Broilers lost 99 cents trading 2,000 units at $24.01 after trading at a record high of $33. JMMB Group rose 49 cents to end at $29.99, with 23,543 shares, Kingston Wharves gained $2.20 and settled at a 52 weeks’ high of $52, in trading just 498 units, NCB Financial Group traded at $96 after rising $1.50 with 222,567 shares, PanJam Investment jumped $5.49 to a record high of $58.99, with 20,100 units, Sagicor Group gained 99 cents and ended trading at $39, with 203,409 stock units changing hands, Sagicor Real Estate Fund finished trading after falling $1.15 to end at $13.95, with 8,953 stock units. Supreme Ventures climbed $1 and settled at $15.50, with 7,114 shares and Sygnus Credit Investments closed with a fall of 55 cents at $13.
In contrast to 145,471 units for an average of $3,750,316 on Wednesday. The average volume and value for the month to date amounts 158,477 units valued at $2,952,222 compared to 172,772 units valued at $3,149,989 on Wednesday. June closed with an average of 250,168 shares with a value of $5,895,281, for each security traded.
June closed with an average of 139,543 units, valued at $671,002 for each security traded.
Honey Bun concluded trading with a loss of 10 cents at $4.90, after exchanging 12,822 shares, Iron Rock finished 10 cents higher at $3.10, with 5,000 shares. Jamaican Teas ended trading at $5.15, with 11,000 stock units changing hands, Jetcon Corporation traded 11 cents higher at $4.10, with 213,711 units, Knutsford Express ended at $11.50, with 1,100 shares, Lasco Distributors concluded trading with a loss of 4 cents at $4.11, after 20,810 stock units changed hands. Lasco Financial fell 1 cent to $5.20, with 86,184 units, Lasco Manufacturing settled with a loss of 5 cents at $4.20, with 105,000 shares, Stationery and Office closed at $8, with 7,548 units traded and tTech concluded trading with a loss of 40 cents to $5.50, with 99,638 shares changing hands.
Trading activity on the Jamaica Stock Exchange closed with an exchange of 3,345,840 units valued $86,257,264 compared to 7,061,151 shares valued at $104,913,847 on Tuesday.

At the close of trading in the Junior market, Access Financial closed $1.50 higher at $48, with 10,550 shares traded, Blue Power concluded trading with a drop of $8 to $40, with 2,003 units, Caribbean Flavours traded at $11.60, with 291 stock units, Caribbean Producers finished trading 25 cents higher at $5.50, with 156,035 units changing hands, C2W Music ended trading 17,707 shares at $1.45. Derrimon Trading jumped $2.84 to a 52 weeks’ high of $22 as 16,582 shares traded, Dolphin Cove finished trading at $15, with 1,331 stock units, Elite Diagnostic settled 3 cents higher at $3, with 5,606 units, Everything Fresh traded 150,882 units, closed at a low of since listing to $2 but closed at $2.10 in falling by 4 cents at the close, FosRich Group added 15 cents in trading 3,567 shares at $2.90. General Accident closed 10 cents higher at $3.05, with 65,468 stock units, GWest Corporation ended with a loss of 10 cents at $2.30, in exchanging 15,000 units, Honey Bun traded 172,461 shares at $5,
ISP Finance settled at $15, trading 1,403 shares. Jamaican Teas ended trading 14 cents higher at $5.15, with 21,755 stock units, Jetcon Corporation traded with a loss of 1 cent at $3.99, with 74,427 units, Key Insurance finished trading at $3.01, with 1,501,000 shares, Knutsford Express ended at $11.50, with 1,200 shares. Lasco Distributors traded 601,183 stock units with a loss of 3 cents at $4.15, Lasco Financial finished 11 cents higher at $5.21, with 3,000 units, Lasco Manufacturing settled at $4.25 after rising 25 cents with 8,923 shares, Main Event ended trading with a loss of 20 cents at $6.80, trading 3,381 shares, Paramount Trading finished trading at $3, with 10,000 stock units and Stationery and Office closed 5 cents higher at $8, with 12,346 units changing hands.