In the Junior Market activity last week, Stationery & Office Supplies moved back to $5 after the company released impressive results for the year to June. Buying also came in for Barita Investments and Berger Paints while during the week and Scotia Group raced to a record high.
For the coming week investors should continue to keep eyes on NCB Financial Group, Berger Paints, that is priced currently at a PE of 6 times 2018 earnings, Caribbean Producers and Stationery & Office Supplies that IC Insider.com upgraded earnings to 50 cents per share from 40 cents previously, with the initial public offer helping to drive more business subsequent to the June quarter, with reports of sales rising faster than the 25 percent levels experienced in the second quarter.
Caribbean Producers with improved 2017 results over 2016 with profit doubling, moved up to $4 during the week, before closing at $3.11 on Friday, after a big trade and should head back to the $4 range in the coming week.
Last week Insider.com stated, “with cut in BOJ benchmark interest rate by 25 basis and a fall in the August Treasury bill rates, the entire main market is on IC Insider.com’s watch list as the All Jamaica Composite Index could move to the 300,000 points mark before long.”
IC Insider.com also stated, “the most noted move in the Jamaica Stock Exchange last week was Scotia Group racing to a record high of $52 but ending the week without any stock being offered for sale. This stock has to head the stocks to watch list this week.”
The All Jamaica Composite Index rose to 296,779.53 points during the past week and by the end of the week closed at a 291,332.10 up from 289,247.13 at the end of the previous week and Scotia Group ended at a record high of $60.
Profit jumps 146% at SOS in Q2

Stationery & Office Supplies Montego Bay office.
Profit jumped 146 percent at the recent Junior Market listing, Stationery & Office Supplies, to $20.3 million in the June quarter this year, before corporation tax of $8.8 million. For the six months period to June, profit before tax rose 33.4 percent to $50.4 million.
Revenues climbed 23.7 percent in the latest quarter to $212 million and 22 percent to $432 million for the six months. Gross profit climbed 25.5 percent to $99.5 million for the June quarter, flowing from increased gross profit margin while year to date, the increase was lower at 20.5 percent to $208 million. Expenses closed the June quarter at $79.2 million versus $71 million, an increase of 11.6 percent. For the year to date, the increase is a high 17 percent but still lower than the increase in revenues.
The 2017 result to date, is almost equal to the total 2016 results before tax of $53 million. Gross cash flow resulted in cash of $23 million being generated after an increase in working capital $28 million. The company spent $32 million on acquisition of fixed assets which required borrowing $4 and utilizing some cash on hand.
Businesses need adequate capital to grow and when debt reaches a certain level it becomes more challenging to access borrowed funding. Sometimes owners become concerned with increasing debt and this may hold back the performance of the business. Growth in the SOS’ business was putting pressure on cash resources resulting in borrowings rising, with $141 million outstanding at the end of June amounting to 50 percent of the equity. The need to expand to meet an increasing demand for its products would have placed added pressure on the owners to find the funds to finance the expansion.
The capital that came from the Issue of shares to the public will go a far way in improving the company’s finances and allow it to fund expansion, including paying for additional fixed assets which it was committed to at the time of the IPO.

The Stationery and Office Supplies executive body that helped to grow profit in 2017
IC Insider.com’s observations are that listing on the stock exchange brings huge benefits to companies. The constant exposure results in increased business, the capital injection allows for increased focus on inventory selection and choices, all of which feed into increased sales. The increased pace of sales growth in the second quarter may well be connected with the publicity received prior to listing and it would be surprising if the pace of growth does not pick up in the second half of the year and well into 2018.
At a last traded price of $4.20 on the Junior Market of the Jamaica Stock Exchange, the stock remains a buy to benefit from future growth. IC Insider.com projects earnings before tax at 50 cents per share based on the average number of shares issued for the year, up from 40 cents when the shares were offered for sale and $1 for 2018 which is projected to continue to show strong growth in revenues. IC insider.com gathers that sales have picked up strongly after the IPO with many more walk in customers being seen than before. later in 2017, online marketing website and increased sales to the Eastern Caribbean will commence which should add to growth in sales going forward.
The company, under the stock exchange rules need not have put out the six months report, having been listed in August. The release is to be applauded. It is in the investing public’s interest, to have pertinent information on which they can make their investment decisions.
JSE AJI breaks 290,000 points
Helped by a jump of $2.99 in the price of Scotia Group shares in the early morning session on Tuesday to reach a record $54.99, the All Jamaica Composite Index is up to record levels, breaking through the critical resistance of 290,000 points.
The move today have lifted the gains in All Jamaica by an impressive 38 percent for year to date. If the market continues to hold above the 290,000 points mark, it could be setting up for a huge rally ahead with no major resistance levels in sight for sometime to come.
The market index sits just above the resistance level, having exceeded the level at 10.30 earlier in trading today before Scotia Group price fell back to $51.60, after trading just 2,384 shares for the day so far.
At 10:30am, the All Jamaica Composite Index rose 2,173.29 points to 290,234.60, the JSE Market Index rose 1,980.12 points to 264,436.58 and the JSE US dollar market index remained at 198.22 and the Junior Market lost 4.13 points to 3,071.28.
New record for JSE main market
The main market of the Jamaica Stock Exchange surged to a new high at 11 am on Friday with the all Jamaica Composite index jumping 4,315.47 points to a record 284,872.86 while the main market index rose 3,931.88 points to a record 259,551.43.
The Combined Index climbed 3,602.38 points to a record 272,379.47 as market sentiments suggest that the market may be at an early stage of a major bull run. The Junior Market slipped 1.95 points to 3,096.95 while the US dollar market index is unchanged at 182.58.
Sagicor Group traded 242,800 units valued $8 million and Lasco Distributors had 214,992 units trading valued at $1,68 million and Salada Foods had 100,000 units changing hands with a gain of 50 cents to $8.50.
Trading volume on the Jamaica Stock Exchange rose 54 percent above Thursday’s level but the market indices fell as advancing stocks just edged out those falling.
The main market ended trading with an average of 247,060 units valued at $4,487,566 for each security traded compared to an average of 173,086 units valued at $3,357,793. The average volume and value for the month to date ended at 185,774 units with an average value of $3,116,747 compared with an average of 173,517 units with an average value of $3,465,932 on the previous trading day. The average volume and value for August ended at 184,094 units with an average value of $4,336,090.
Trading in the US dollar market accounted for 20,410 units valued at US$6,756 bringing the total of all trades to J$84,816,398.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 4 stocks with bids higher than their last selling prices and 2 with lower offers.
The All Jamaica index of main market stocks of the Jamaica Stock Exchange blast through the critical resistance level of 290,000 during the morning session on Tuesday and held above it at the close to end at a record close as
The main market ended trading with an average of 122,501 units valued at $2,168,932 for each security traded compared to an average of 309,660 units valued at $7,056,282. The average volume and value for the month to date ended at 189,094 units with an average value of $3,574,886 compared with an average of 222,390 units with an average value of $4,277,863 on the previous trading day. The average volume and value for August ended at 184,094 units with an average value of $4,336,090.
The main market ended trading with an average of 390,660 units valued at $7,056,282 for each security traded compared to an average of 54,120 units valued at $1,499,145. The average volume and value for the month to date ended at $222,390 units with an average value of $4,277,863 compared with an average of 54,120 units valued at $1,499,145 on the previous trading day. The average volume and value for August ended at 184,094 units with an average value of $4,336,090.
IC bid-offer Indicator| At the end of trading in the main and US dollar markets, the Investor’s Choice bid-offer indicator reading shows 8 stocks with bids higher than their last selling prices and 2 with lower offers.