10 TOP stocks for 2017 back ground

February 5, 2017 by

C&W could be 2017 top stock from the main market.

Technical indicators show that both the main and junior markets broke through major resistance levels and seem poised to reach new highs with the all Jamaica composite index seeming poised to hit 290,000 points and around 3,400 points for the junior market index before the year is out.
Projected earnings for 2017, and what now appears to be rising PE ratios, suggest the possibility of a much bigger move ahead for the local stocks.
While the junior market seems to be in the clear to move on to 3,400 before any major resistance, the same is not the case for the main market. The latter is only a few thousand points from a major resistance that has it genesis in 1992 with the major resistance in 2005. This coming week will be a big test. Friday’s initial pull back in the morning session and push back of National Commercial Bank, Scotia Group and PanJam Investment may be early signs that we may be at a tough region presently.
Treasury bill rates are set to decline this year, against the background of stability in the Jamaican dollar, with strong inflows of foreign currency into the system and low inflation. Here technical indicators are pointing to 192 Treasury bill rates going to 4.5 percent, with it reaching around 5 percent late this year or early next year and the lower level in 2018.
With low rates, more funds would be flowing into the stock market driving up valuations, with indications that the current prices for a number of stocks suggest could put PEs around 20 time earnings. Added to this, a look at orders for the majority of stocks indicates a chronic shortage of supply of stocks for sale. The implications, with the majority of stocks priced around 10 times 2017 earnings or less should result in a sharp increase in prices that would take both markets well beyond where technical indicators suggest, in the next few months.
Company expansion| The best rate of growth in the economy for years is expected to continue, with prospects of 2.5 to 3 percent seemingly on the cards for 2017. Against this background, most companies appear set to benefit with increased sales. The real big gainers should come from those companies that are undergoing expansion. They will have a double benefit, that from the pickup in economic activity and from the expansion.
Then there are those companies that will benefit from lower interest rates and pick up in stock market activity. Investors would be wise not to see bullishness in stock prices as a prelude to increased instant profits in all cases. An example is the Jamaica Stock Exchange, while the market is exhibiting a high level of bullishness, it is not translating into high volumes and value in the daily trades as yet. In the peak of the market in 2014, the JSE traded $50 billion currently, the level is running around $35 billion annualised. Last year in the first quarter, the JSE earned a big increase in fees as a result of the Desnoes & Geddes share trade. This year, there is no such a transaction expected in the quarter. Later on, the stock exchange is likely to benefit from increased trading levels as well as increased listings in 2017, with the latter also helping to increase the volume of stocks trading.
There are companies that will benefit considerably from cash provided by operations that will be used to generate increased business. This is most applicable for the smaller junior market companies. For a detail look at the Top 10 stocks for the rest of 2017 in the junior and main market, see Top 10 junior stocks and Top 10 main market stocks.

Filed Under: Feature Stories, JSE Combined, Stock Market Tagged With: , , , , , ,

Healthy 2017 gains for Jamaican stocks – Jackson

January 30, 2017 by

ISP now leads the top 10 stock predictions for the rest 2017 for junior market companies, according to John Jackson of IC Insider.com in his address to the JSE Capital Markets Conference, last week.
Jackson presented his TOP 10 listings of both junior and main market companies with Barita Investments heading the main market stocks, that should be the best performing stock for the rest of 2017.
“There are some potential good winners in the list. I am not saying that all will necessarily be winners but I expect to see some spectacular performances,” he told the conference at the Jamaica Pegasus Hotel in Kingston on Thursday.
Overall the price to earnings ratio (PE) for the junior market will climb but still offer value for money, he said.
“PEs at 20 times earnings will become the norm, once interest rates remain low. I am quite positive that they will. Based on what is happening now on the economic front, interest rates are going to go even lower, along with stability in the exchange rate,” he said.

Barita is one of the top IC Insider’s stock for growth over the next 12 months in the main market.

Few stocks however are trading at 30 and 40 times earnings. Those stocks need to be viewed with some amount caution with the average market PE well below these levels.
The gains in 2017 will come from strong earnings and investor demand pushing the price up even higher. Jackson said that the main changes in the market for 2016 over 2015 were the rising PE multiples.
“Things have substantially changed. The PE has risen with the average for the junior market at 15 and the main market is 11 to 12 times earnings based on 2016 earnings. It was about six times earnings a year ago,” he said.
The junior market has been running at roughly twice the pace of the main market. That has gone on for some time due to the fast growth nature of the junior companies, he said.

Filed Under: Buy Rated, JSE Combined, Stock Market Tagged With: , , , , ,

Public gets measly share of Main Event

January 29, 2017 by

Main Event Entertainment Group had a successful initial public offer, closing on the same day it opened but with a massive over subscription.
What is clearly a successful offer may become a major public relation nightmare as investors may be furious with the paltry amounts they end up getting and hardly being able to benefit from what will be a huge upside move in the stock price shortly after listing.
According to the broker for the issue, Mayberry Investments, stated that Mayberry West Indies Reserved Shares and Key Partner Reserved Applications were allocated in full. The first 3,000 shares of Mayberry Client Reserved Shares were allocated in full, with the balance allocated approximately 4.6095917%. Company Reserved Applications will get the first 3,000 shares with amounts over this level, to be allocated approximately 48.7418953% and general public will get the first 3,000 shares applied for plus approximately 1.1906517% of the rest.
Gary Peart of Mayberry Investments indicated than more than 1,000 applications were received for the 62 million shares that were offered.

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Huge gains for Jamaican stocks

January 27, 2017 by

The Jamaica stock market, recorded the highest points gain in trading on Friday, with some big moves in the prices of National Commercial Bank, Scotia Group, Kingston Wharves and Jamaica Producers Group as some of the main movers contributing in a major way to the gains in the main market indices.
In the process the all All Jamaica Composite Index jumped sharply by 9,082.60 points to close at 226,121.49 and the JSE Market Index surges 8,121.44 points to finish at 206,567.37.
A combination of factors helped in the big move. The bullishness of the market is coming at a time of very low supplies for a number of stocks, including the four mentioned above, while NCB reported record profit for their December quarter, with a jump of 49 percent, to $3.56 billion, helping in moving the price from $52.02 at the close on Thursday to $58. The bank also announced increased dividend payment, from 50 cents per share in 2016 to 60 cents being paid in February.
The gain on Friday was the biggest daily increase, but in percentage terms, it sits in at the 5th largest daily gain.

Filed Under: Breaking News, Feature Stories, JSE Main Market, Stock Market Tagged With: , , , , ,

Main Event heads IC TOP 5 list

January 22, 2017 by

The latest junior market offering Main Event Entertainment hits the IC Insider’s TOP 5 list as the top stock. The new entrant pushed Caribbean Flavours just outside the list.
The forecast is for Main Event to get to $6 in 2017 based on its 2016 earnings and higher based on the 2017 earnings. Prices in the junior market, continue to gain with the junior market index gaining almost 7 percent so far and running well ahead of the main market.
Berger Paints remains in the list in spite of a sharp 12.5 percent rise on Friday, following outstanding nine months results to December. IC Insider.com increased the projected earnings from 99 cents to $1.10 with 2018 forecasted at $1.60. The stock seems set to migrate out of the list during this week with limited supply.
In the main market, Caribbean Cement slipped back from $36 to $30.50 during the past week thus enhancing its attractiveness as a buy.

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Berger’s stellar performance

January 20, 2017 by

Berger price jumped on Friday after posting strong 2016 results.

Berger Paints released results to December, showing profit of $251 million and $1.17 per share for the nine months period, versus $110 million for 2015. Revenues climbed 17.8 percent in the December quarter, to $1.9 billion or 14.4 percent from $1.67 billion in 2015.
For the quarter, earnings were $185 million versus $80 million in the 2015 quarter, with revenues climbing 17.8 percent in the December quarter to $895 million.
Berger ended with cash of $158 million in December, having generated $370 million from operations before build up in working capital. The gross cash inflows, places it in a good position to continue to pay out a rich dividend, which they should do later in the year. According to the cash flow statement, receivables jumped by $378 million over the March 2016 position. That would put it at $700 million, as of December 2016. The majority of this amount should be cleared by the end of March.
Unfortunately, the Berger report does not conform to international standards for reporting interim results. The effect is there is no information on direct and indirect cost and gross profit and the balance sheet carries little information as to the composition of the current assets and liabilities. Accordingly, investors, cannot make proper assessment of its performance.
A final dividend of 20 cents per share totalling $42.864 million was paid July 2016. The stock responded well to the numbers, with investors pushing it to a new record high of $6.75 in early morning trading on Friday, on the Jamaica Stock Exchange. IC Insider.com forecast earnings of $1.10 for the full year to March 2017 and $1.60 for the 2018 fiscal year.

Filed Under: Buy Rated, Company News, Company Results Tagged With: , ,

Jetcon Flavours in TOP 5

January 16, 2017 by

There were few changes in the TOP 5 listing this past week, but Jetcon fell out of the list having climbed to $7 at the close of the week, to help flavour in Caribbean Flavours into the top list.
Price movements saw Access Financial edging towards the exit with the bid now at $26.50 and buying pushing the price up during the week as a connected party bought stock at $25.50. The stock last traded at $25.20 and closed without any stock being offer for sale.
The stocks of the main market listing, remained without change but Cement saw its price moved up to close out the week at $36 as well as did JMMB Group with heavily trading during the week.

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Jetcon & CWJ set for 2017 top spots

January 7, 2017 by

C&W set to be 2017 top stock from the main market.

By the end of 2017, the two top stocks on the Jamaica Stock Exchange is forecasted by IC Insider to be the 2016 listed Jetcon Corporation and previously battered Cable and Wireless that should be reporting good profits for the year.
In the just concluded week, Caribbean Cream (Kremi) and Lasco Financial that entered the IC Insider’s TOP 5 at the end of December, only spent one week in the list. Both stocks climbed during the past week with Lasco Financial moving up 18 percent to $3.67 and Caribbean Cream gained 14 percent to $8.55. Key Insurance rose 14 percent during the week and General Accident was up 7 percent.
Entering the TOP 5 for the first time, is Dolphin Cove, and returning is Jetcon Corporation at 4th and 5th spot, respectively. Investors have lost confidence in Dolphin Cove even as the company continues to produce decent results and having good prospects, with the major expansion in the tourism industry. Profit to September last year, was up 11 percent to $1.17 per share, exceeding the results for the entire 2015.
Jetcon reported in their September quarterly

Dolphin Cove moved into the IC Insider’s TOP 5 junior market stocks.

report that they “had another quarter of strong results with revenues climbing 86 percent over the September 2015 quarter, to $267 million and climbed 61 percent to $610 million for the nine months. Profit grew 275 percent to $35 million from $9 million in the September quarter, compared with the similar period in 2015 and is up 141 percent for the nine months period over the same period in 2015.” Profit for the nine months ended at $67 million and had exceeded the $40 million after tax, earned for the full year of 2015. In mid-September the company also reported that “subsequent to the Quarter, revenues continue be ahead of the same period for 2015 by approximately 70 percent,” suggesting that the final quarter should continue to reflect the robust performance seen in the earlier months. Jetcon is poised to be IC Insider’s top junior market stock for 2017, followed by ISP Finance, based on IC Insider’s forecast.
There were not much movement in the main market stocks during the week. Radio Jamaica moved out of the TOP 5, having gained in price during the week and is replaced by National Commercial Bank, at the number 5 position. The banking group is still selling cheaper than Scotia Group with earnings for the 2017 year to be released by the end of January. IC Insider is forecasting $8 per share earnings for 2017 with increased dividend payments around $3 per share, suggesting the stock has much room for growth. The number 1 main market stock is projected to be Cable & Wireless followed by Barita Investments. Last year this publication stated that Barita was the best main market stock back in September, it is now up by 93 percent since but has much more gains ahead with projected earnings of $1.75 for 2017.

Note: One of our writers is a director of two junior companies, Jetcon Corporation and Jamaican Teas. Connected parties to IC Insider.com may hold shares in companies commented on from time to time.

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Kremi & Lasco Financial in TOP 5

January 2, 2017 by

Investors’ activity in the junior market resulted in changes to the IC Insider’s TOP 5 list from that for December 9. AMG Packaging with gains of 38 percent and Blue Power with gains of 46 percent dropped off the list.
Caribbean Cream and Lasco Financial entered the top listing with potential gains based on fiscal year 2015/16 of 81 and 71 percent respectively.
Derrimon Trading fell back during the period to $3.55 to re-enter the list but has since shot up to $5.50 to be sitting well below the TOP 5 with gains of 77 percent since it entered the top 5 initially. Announcement that the company deposited money to acquire a large block of the shares in Caribbean Flavours spurred the move in the stock price.
In the IC Insider’s TOP 5, the candidates remain unchanged for the main market, with investors’ interest being focussed on other stocks in the main market.
The list comprises potential gains based on current estimated earnings which are likely to drive stock prices before the 2017 earnings start to have a full effect.
The 2017 list based on IC Insider’s earnings forecast is likely to vary quite a bit from those on the current list.

Filed Under: Buy Rated, Feature Stories Tagged With: , , , , ,

Venezuelan stocks lead with 95% in 2016

December 26, 2016 by

stocksWith just one week from the close of 2016, Venezuela Caracas Stock Exchange leads the world’s stock markets with year to date of 94.94 percent in the market Index, according to data reported on Bloomberg website.
Peru S&P/BVL LIMA 25 Index is next, with year to date return of 81.80 percent, Kazakhstan Stock Exchange Index KASE gained 57.16 percent up to Friday, December 23, while the return for S&P/BVL Peru General Index is up 56.71 percent. Jamaica Stock Exchange JSE index that topped the world in 2015, trails well behind the 2016 leaders with gain of just 20.8 percent year to date.
While the Venezuela stock market may record the highest gains in local currency for 2016, with inflation according to financial news network CNBC expected to hit 700 percent for 2016, the market may well end up being one of the worse performing.

Filed Under: Global Market, Stock Market Tagged With: , , , ,