Some BUY RATED stocks move higher

June 1, 2020 by

Junior Market stocks gained 3 percent in the shortened trading week. In comparison, the Main Market rose 2 percent, a continuation of a 4 percent rise in the Junior Market index in the prior week and the Main Market rising, with less than a percentage point rise.
This week’s focus: Caribbean Cream reported full-year profit to February, with profit falling 38.5 percent to $55 million, from $89 million reported in the prior year, with revenues rising 10 percent and 16.2 percent in the fourth quarter. Depreciation charge almost doubled from $63 million to $115 million was the main reason for the fall in profit. IC Insider.com spoke with Christopher Clarke, Managing director of the company.

The price for skim milk powder fell sharply in March.

Clarke stated that the jump in Q4 revenues is due primarily to new products introduced in April last year and increased sales arising from the opening of the May Pen depot that resulted in lower selling price to the public.
Kremi, as the company is also known, seems set enjoy reduced cost in May and August quarters as the price of a critical raw material, milk solids, used in the production of ice cream. The price was $2,924 per ton at the start of November last year and moved to just over $3,000 in January and declined to US$2,747 at the beginning of March, US$2,527 at the end of March and US$2,380 in April and remained there until May 20 before pulling up to $2,549 towards the end of May.
The rise in the market during the past week did little for IC TOP 10 stocks, resulting in no movement in or out of the TOP 10.
The week closed with the three top Junior Market stocks with the potential to gain between 387 to 705 percent by 2021 as Caribbean Producers, followed by KLE Group and Elite Diagnostic. In the Main Market, Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group with projected gains of 165 to 212 percent.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after the second quarter of 2020 up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 14 and the Junior Market at just 9.6, based on current 2020-21 earnings. The PE ratio for Junior Market Top 10 stocks averages a mere 5.1 at just 53 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at 8.7 or 62 percent of the PE of the overall market.
The average projected gain for the IC TOP 10 stocks is 330 percent, for the Junior Market and 138 percent for the JSE Main Market, based on 2020-21 earnings, an indication that there is greater potential to make greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver some of the best returns up to March 2021. Projected gains are based on earnings and PE ratios, projected for the current fiscal year. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. 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.

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BUY RATED General Accident jumps 28%

May 24, 2020 by

The big news for the past week was a 28 percent jump in the price of General Accident shares, following the release of the first-quarter results. The stock last traded at $6.01 after rising to a high of $6.63 on Friday and dropped out of the Junior Market TOP 10.

General Accident is now out of IC TOP 10 with Q1 profit more than doubling.

During the week, investors pushed the Junior Market up 4 percent but barely moved the Main Market higher, with less than a percentage point rise. This trend is worth watching as bullish indicators point to more gains for Junior Market stocks going forward, with the latter being highly undervalued compared to the Main Market.
Medical Disposables rose from $6.20 at the start of the week to close at $7 and was the other stock to fall out of Junior Market, IC TOP 10. Coming into the TOP 10 are CAC2000 and Elite Diagnostic. The latter faced challenges in critical machine operation, resulting in lost income. Management stated that they “continue to have challenges getting the CT and MRI machines” at the St Ann branch operational. The company will hopefully resolve the problems soon so that the 2021 fiscal year can deliver optimally. Revenue for the 3rd quarter rose to $111.4 million, from $107 million the previous year and resulted in a loss of $2 million compared to a profit of $16 million the past year. In the Main Market, Proven Investments dropped out of the TOP 10 and replaced by Victoria Mutual Investments.
The three top Junior Market stocks with the potential to gain between 344 to 634 percent by 2021 are Caribbean Producers, followed by KLE Group and Lasco Financial. In the Main Market, Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group with projected gains of 165 to 190 percent.
This week’s focus: General Accident reported profit rising 146 percent to $76 million, with investment and other income moving from just $7 million to $74 million. The report showed no cost-benefit from savings that could result from lower motor vehicle accident claims, from sharply reduced motor vehicle usage, since March. Gross Premiums written declined to $2.54 billion from $2.69 billion, but Net Premiums written increased to $689 million from $543 million. Claims rose to $448 million from $294 million in 2019. The December quarter usually generates the highest profit, with claims accounted for conservatively in the earlier quarters adjusted to reflect expected amounts. The new subsidiary, Trinidad based MotorOne Insurance made a small loss of $2 million in the quarter, an indication that not much contribution to profit is expected from it for the current year, it could add to 2021 profit for the group. Total assets of the company grew substantially since March last year from $7.5 billion to $12 billion in the current year, with liabilities rising by $3.5 billion.
Over at Jamaican Teas a report in the newspaper stated, “President of the Jamaica Manufacturers and Exporters Association, JMEA, Richard Pandohie, says the coronavirus has opened trade doors that the sector had been knocking on for a long time.”
“On one level there have been great ­stories where those businesses have exploded in terms of exports. A lot of small manufacturers who are into natural juices, and natural products from cassava and natural spices have gone into markets that they have trying to do for years,” Pandohie told the Financial Gleaner.
One company that has seen an uptick in business, Jamaican Teas, had to lay on new work shifts and extra production days to keep up with export demand.
“Because of our product base, there’s been strong demand overseas to the extent that we’re doing over time, even on Saturdays, keeping up with the extra demand, said JamTeas CEO John Mahfood.
Although General Accident stock is now out of the Junior market IC TOP 10 listing, it boasts a PE ratio of just 7 versus the market average of 9.4 times this years’ earnings, an indication of potentially more upside for it.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after 2020 second quarter up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 14 and the Junior Market at just 9.4, based on current 2020-21 earnings. The PE ratio for Junior Market Top 10 stocks averages a mere 5.2 with or 55 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at 8.7 or 62 percent of the PE of the overall market.
The average projected gain for the IC TOP 10 stocks is 319 percent, for the Junior Market and 136 percent for the JSE Main Market, based on 2020-21 earnings, an indication that there is potential to make greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver some of the best returns up to March 2021. Forecasted earnings and PE ratios for the current fiscal year are used in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. 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.

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SOS & Proven back in IC TOP 10

May 17, 2020 by

The Junior and Main Market, IC Insider.com TOP 10 closed the week with Medical Disposables and Stationery and Office Supplies returning the TOP 10, after a week’s absence as they replaced CAC2000 and Elite Diagnostic.
In the Main Market, Seprod rose to $49.99 from $44.10 on limited volume, following robust first-quarter results, to be replaced by Proven Investments.
During the past week, investors pushed the Main and Junior Markets slightly higher than at the close of the previous week, but the message from the markets is that they are both in a consolidation mode as investors absorb results released during the past week.
If history is anything to go by, the market could remain in a period of consolidated until early July when it usually starts a slow recovery.
The past week saw the release of quarterly results with positive gains, the companies reporting sharp increases include Grace Kennedy, tTech, Caribbean Flavours, 138 Student Living, Eppley, Kingston Wharves and Sterling Investments.
The three top Junior Market stocks with the potential to gain between 355 to 663 percent by 2021 are Caribbean Producers, followed by KLE Group and Caribbean Cream. In the Main Market, Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group with projected gains of 165 to 213 percent.
This week’s focus: Caribbean Cream released full-year results, after trading closed on Friday, with profits falling 38 percent, from $89 million to $55 million, from a 10 percent rise in revenues to $1.7 billion. Depreciation more than doubled in the year, with an increase of $63 million, to end at $115 million, negatively affecting the results for the year to February. In the final quarter, sales grew 16 percent over the similar period in 2019 and might be indicating that revenues are poised to rise above recent growth levels. If this is, in fact, the case then the company is poised for strong growth in profits going forward.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after this year’s second quarter and up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 13.6 and the Junior Market a mere 8.9, based on current 2020-21 earnings. The PE ratio for Junior Market Top 10 stocks averages a mere 5 with the Main Market at a much higher level of 8.4.
The TOP 10 stocks now trade at a discount of 44 percent of the average for Junior Market and Main Market stocks trade at a discount of 38 percent to the overall market. The average projected gain for the IC TOP 10 stocks is 332 percent, for the Junior Market and 144 percent for the JSE Main Market, based on 2020-21 earnings.
IC TOP 10 stocks are likely to deliver the best returns to March 2021. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Revisions to earnings per share are ongoing, based on receipt of new information.

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Just three IC TOP 10 changes

May 10, 2020 by

Investors seem to be shrugging off some of the recent negative developments in the Jamaica stock market, with their activity moving the Main Market higher by the close of the week and the Junior Market just a few points lower.
The market is moving into a period where prices tend to move slightly downward until early July when it usually, starts a slow recovery, in this regard, first quarter results are going to be important for the market’s direction for a few weeks. Information management presents current and future business developments that will be critical in informing investors.
Developments of note this past week are the reporting of new results, with Barita Investments reporting profit of $1 billion for earnings per share (EPS) of $1.24 for the half year to March, versus 68 cents in 2019. Jamaican Teas with negative EPS of 3 cents after gross profit climbed 33 percent over 2019 out turn. Pulse Investments EPS ended at 12 cents versus 5 cents in 2019 for the nine months to March and Wisynco Group generated EPS of 78 cents vs 61 cents for the nine months to March. General Accident released 2019 audited accounts that showed for the first time the impact of the acquisition of their 55 percent interest in the Trinidad based Motor One insurance company at $238 million.
The Junior and Main Market, IC Insider.com TOP 10 closed the week with Medical Disposables and Stationery and Office Supplies exiting the TOP 10, to be replaced by Access Financial Services and Caribbean Cream, after the latter fell to $2. Seprod replaced Victoria Mutual Investments in the Main Market listing.
The three top Junior Market stocks with the potential to gain between 362 to 726 percent by 2021 are Caribbean Producers leading, followed by KLE Group and Lasco Financial. In the Main Market, Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group with projected gains of 173 to 213 percent.
This week’s focus: Seprod released first quarter results after trading closed on Friday, with ongoing operating profits more than doubling from $312 million to $632 million for the 2020 first quarter, with EPS of 86 cents. Revenues climbed 6 percent from continuing operations to $9.14 billion, an increase of $544 million. The big improvement arose from the closure of the sugar manufacturing operations and improvement in profit margin. The Sugar operations generated a loss of nearly $140 million in 2019 and just $15 million in the latest quarter while gross profit margin jumped to 30 percent from 26.6 percent in 2019.  The first quarter results are in line with ICInsider.com’s forecast of $4 per share earnings for this year and put the PE at just 11 times current year’s earnings.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after this year’s second quarter and up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 13.3 and the Junior Market a mere 8.9, based on current 2020-21 earnings. The PE ratio for Junior Market Top 10 stocks averages a mere 5 with the Main Market at a much higher level of 8.5.
The TOP 10 stocks now trade at a discount of 44 percent of the average for Junior Market and Main Market stocks trade at a discount of 36 percent to the overall market. The average projected gain for the IC TOP 10 stocks is 338 percent, for the Junior Market and 139 percent for the JSE Main Market, based on 2020-21 earnings.
IC TOP 10 stocks are likely to deliver the best returns to March 2021. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. 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.

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Just two IC TOP 10 changes

May 3, 2020 by

The week just ended saw investors knocking bank stocks down following the surprise announcement by Bank of Jamaica to get banks to suspend the payment of dividends for the remainder of 2020 and that helped to push the market index sharply lower with some recovery on the last three days of the week.
Caribbean Cement and NCB Financial released first-quarter results in the past week with lower profit than the previous year’s March quarter. As if investors expected the outturn, the stock prices did not seem to react to them.
The Junior Market, after attempting to close higher for the past six days finally did so on Friday a sign that it could be heading higher in the days ahead as it traded as high as 2,478 points on Friday just below the close on April 16.
 The Junior and Main Market, IC Insider.com TOP 10 closed the week with one change each. Dropping from the list are Access Financial Services for the Junior Market and replaced by Stationery and Office Supplies, while Stanley Motta dropped from the Main Market listing and replaced by Victoria Mutual Investments.
The three top Junior Market stocks with the potential to gain between 344 to 660 percent by 2021 are Caribbean Producers leading, followed by Lasco Financial and KLE Group. In the Main Market, Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group, with projected gains of 173 to 213 percent.
This week’s focus: Stationery and Office Supplies fell from a high of $16.35 last august is now trading at a discount of 61.5 percent to that price. The stock had moved from $6.85 in May last year to the high after revenues climbed by 23 percent for the half-year to $639 million to $519 million and profits rose 63 percent from $56 million to $92 million. The half years revenues compare favourably with the $702 million generated in the twelve months in 2016, the year before listing in 2017. Revenues grew around 12 percent from 2013 to 2016, then increased to 17.4 percent for 2018 and 14.5 percent for 2019. The company has an excellent management team that is growth-oriented as such investors can look forward to revenues growing in the 15-20 percent range going forward. In pursuit of this objective, the company is putting in place additional storage facilities to accommodate a robust expansion of sales. Investors should not rule out the possibility that they could expand from acquisitions as well as was the case with the addition of the business making the SEEK brand. While the disruption caused by the Coronavirus could derail the medium-term growth, it will only be a matter of time for management to pick up and return to the pre virus growth levels.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after this year’s second quarter and up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 12.5 and the Junior Market a mere 9, based on current 2020-21 earnings. The PE ratio for Junior Market Top 10 stocks averages a mere 5.3 with the Main Market at a much higher level of 8.3.
The TOP 10 stocks now trade at a discount of 43 percent of the average for Junior Market and Main Market stocks trade at a discount of 34 percent to the overall market. The average projected gain for the IC TOP 10 stocks is 319 percent, for the Junior Market and 148 percent for the JSE Main Market, based on 2020-21 earnings.
IC TOP 10 stocks are likely to deliver the best returns to March 2021. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis when new information is received that can affect earnings significantly.

Persons who compiled this report may have an interest in securities commented on in this report.

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Three IC TOP 10 changes

April 27, 2020 by

The Main and Junior Market of the Jamaica Stock Exchange lost more ground this past week as investors continued profit but left the vast majority of the IC Insider.com TOP 10 stocks holding on the lists.

General Accident is IC TOP 10 focus with an expected cut in MV claims.

The Main Market closed the week with two changes, resulting from down-grading of their earnings. Dropping from the list are PanJam Investment and Sagicor Group and replaced by Jamaica Broilers and Stanley Motta. Only Mailpac Group moved out of the Junior Market TOP 10 and replaced by Access Financial Services that fell to $24.01 on Friday.
The three top Junior Market stocks remain unchanged from last week with Caribbean Producers leading, followed by KLE Group and Lasco Financial with the potential to gain between 307 to 546 percent by 2021. In the Main Market, Radio Jamaica leads the pact, followed by Berger Paints and JMMB Group, with projected gains of 150 to 208 percent.
This week’s focus: General Accident is set to do very well. Last year’s earnings grew 48 percent from an increase of 22 percent in gross premium income and a 25 percent increase in net premium. The company acquired majority shares in the Trinidad based MotorOne Insurance that will add to revenues in 2020. One of the most critical development that investors seem to be ignoring is the likely sharp reduction in claims for motor vehicle accidents during the period of business disruption when there is far less traffic on the roads. Last year, claims amounted to $100 million per month. Historical trends show that the stock tends to remain fairly flat until the second half of a year.
Uncertainties exist in the economy and financial markets accordingly, and it is not possible to determine the exact impact on company earnings for the rest of the year. Actual earnings could vary materially from IC Insider.com’s forecast. Looking beyond the immediate fallout or benefits for companies can be useful in guiding investment decisions for above-average gains in the period ahead.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after this year’s second quarter, up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 12.8 and the Junior Market a mere 9, based on current 2020-21 earnings. The PE ratio for Junior Market Top 10 stocks averages a just 5.3 with the Main Market at a much higher level of 8.5.
The TOP 10 stocks now trade at a discount of 41 percent of the average for Junior Market and Main Market stocks trade at a discount of 34 percent to the overall market. The average projected gain for the IC TOP 10 stocks is 298 percent, for the Junior Market and 140 percent for the JSE Main Market, based on 2020-21 earnings.
IC TOP 10 stocks are likely to deliver the best returns to March 2021. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis when new information is received that affects earnings significantly.

Persons who compiled this report may have an interest in securities commented on in this report.

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Four changes to IC TOP 10

April 19, 2020 by

The Main and the Junior Market of the Jamaica Stock Exchange saw investors taking profit after a robust run since the second half of March, up to last Tuesday after reopening from the Easter holiday break. At the close of the week, IC Insider.com TOP 10 stocks had four changes to the lists.

Image courtesy of suphakit73/FreeDigitalPhotos.net

The Main Market closed the week with one change as Caribbean Cement climbed 14 percent to $48.50, from $42.50. The latest entrant is Eppley, with the price falling to $14.80 from $17 at the close of the prior week. The more volatile Junior Market ended with three changes. Moving on from the Junior Market TOP 10 are Caribbean Assurance Brokers that traded at a new high during the week, Lasco Distributor and Stationery and Office Supplies. New entrants to the list are Mailpac Group, Elite Diagnostic and Medical Disposables after the prices of all three fell at the end of the week.
The three top Junior Market stocks remain unchanged from last week with Caribbean Producers leading, followed by KLE Group and Lasco Financial with the potential to gain between 300 to 533 percent by 2021. In the Main Market, Berger Paints leads the pact, followed by Radio Jamaica and Sygnus Credit Investments with projected gains of 180 to 186 percent.
Significant uncertainties exist in the economy and the financial markets; accordingly, it is not possible to determine the exact impact on company earnings for the rest of the year. Actual earnings could vary materially from IC Insider.com’s forecast. Looking beyond the immediate fallout or benefits for companies can be useful in guiding investment decisions for above-average gains in the period ahead.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after this year’s second quarter and up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 13 and the Junior Market a mere 9, based on current 2020/21 earnings. The PE ratio for Junior Market Top 10 stocks averages a just 5.4 with the Main Market at a much higher level of 8.2.
The TOP 10 stocks now trade at a discount of 40 percent of the average for Junior Market and Main Market stocks trade at a discount of 37 percent to the overall market. The average projected gain for the IC TOP 10 stocks is 296 percent from 278 percent last week, for the Junior Market and 146 percent from 139 percent last week for the JSE Main Market, based on 2020/21 earnings.
IC TOP 10 stocks are likely to deliver the best returns to March 2021. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

Persons who compiled this report may have an interest in securities commented on in this report.

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2 weeks’ of robust gains for IC TOP 10

April 11, 2020 by

The IC Insider.com TOP 10 stocks have put substantial gains since the posting at the end of March. The selections based on projected 2020/21 earnings, included robust increases of 73 percent from Elite Diagnostic, followed by Lasco Manufacturing with a gain of 56 percent and Access Financial 55 percent.

Elite Diagnostics surged 73% on the Junior Market since the end of March.

Other outstanding Junior Market gains came from Caribbean Producers that enjoyed a rise of 33 percent in closing at $3 but traded up to $3.51 on Thursday, with an increase of 56 percent since the end of March. KLE Group rose 36 percent and Lasco Financial ended with a 30 percent increase. In the Main Market, Eppley leads with a 45 percent gain, Wisynco Group rose 43 percent and Radio Jamaica 24 percent.
The gains came from a strong recovery of stock prices on the Jamaica Stock Exchange after falling by record levels in March.
Following the rise in prices of TOP 10 stocks, there are five new entrants for the coming week.  These are General Accident, CAC 2000 and Stationery and Office Supplies in the Junior Market and in the Main Market, Sygnus Credit Investments and Caribbean Cement.
Stocks that dropped from the TOP 10 are Access Financial, Elite Diagnostic and Medical Disposables from the Junior Market and Eppley and Wisynco Group from the Main Market.
The current IC Insider.com TOP 10 list is based on the profit of companies reporting full year’s results for the financial year ending after 2020 second quarter and up to the second quarter in 2021.
Many local stocks made a strong recovery over the past two weeks, but major uncertainties still exist and it is not possible to determine the exact impact on company earnings. Actual earnings could vary materially from IC Insider.com’s forecast. Looking beyond the immediate fallout or benefits can provide a useful investment guide for above-average gains in the months ahead.
The three top Junior Market selections are Caribbean Producers, KLE Group and Lasco Financial with the potential to gain between 270 to 533 percent by 2021. In the Main Market, Berger Paints leads the pact followed by Radio Jamaica and then Carreras with projected gains of 146 to 170 percent.
The targeted average PE ratio of the market is 20. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 13.3 and the Junior Market a mere 9.7, based on current 2020/21 earnings. The PE ratio for Junior Market Top 10 stocks averages a just 5.7 with the Main Market at 8.8.
The TOP 10 stocks now trade at a discount of 41 percent of the average for Junior Market and Main Market stocks trade at a discount of 34 percent to the overall market. The average projected gain for the IC TOP 10 stocks is 278 percent from 312 percent last week and down from 377 percent at the close of the prior week for the Junior Market and 139 percent from 153 percent last week for the JSE Main Market, based on 2020/21 earnings.
IC TOP 10 stocks are likely to deliver the best returns to March 2021. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

Persons who compiled this report may have an interest in securities commented on in this report.

 

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6 IC TOP 10 stocks up 25-50% last week

April 6, 2020 by

Three of IC Insider.com TOP 10 stocks gained between 25 and 33 percent during the past week and dropped out of the TOP 10 as the Jamaica Stock Exchange recorded all-round gains after falling by record levels in March.
Stocks leaving the TOP are Lasco Manufacturing with a gain of 33 percent after the stock rose from $2.75 the previous week to close at $3.65. General Accident moved from $4.50 to $5.71 to record a 27 percent rise and Sygnus US dollar-based stock gained 25 percent to close at 15 US cents and left the main market TOP 10. Eppley rose 31 percent for the week in closing at $16 and Elite Diagnostic is up a stunning 50 percent but remains in the TOP 10. Access Financial closed the prior week at $18.35 and is now up 33 percent to $24.50.> Some of the gains in the market arose from oversold conditions as well as funds returning to investors last week from the refund of the Trans Jamaica Highway IPO.
Current IC Insider.com TOP 10 listings are based on profits of companies reporting full year’s results for the financial year ending after this year’s second quarter and up to the second quarter in 2021.
While local stocks make a strong recovery this past week, thanks no doubt to some of the IPO refund coming back into the market. Investors must not lose sight that significant uncertainties abound about the local and global economy and how each company may be affected. It is not possible to determine the exact fallout and benefits from the crisis and the impact on company earnings. Actual earnings could vary materially from IC Insider.com’s forecast.
Investors should be looking beyond just the immediate situation and identify companies that are financially strong to withstand the current cut in revenues but will make a strong recovery by 2021. There are, however, cases where companies will benefit from the crisis, with signs that some companies’ sales increased sharply.
The three top Junior Market selections are Caribbean Producers, KLE Group and Caribbean Assurance Brokers with the potential to gain between 268 to 600 percent by 2021. Caribbean Producers’ price was struck, with the stock falling to a low of $2 in March, but is now trading at $2.50, as the company was poised to have their best yearly results. Closure of hotels and restaurants derailed the trend. The company had the best performance to December last year, with sales rising 10.7 percent to US$59 million, with a profit of US$525,000 versus a loss of $1.2 million in 2018. The expectations are for the company to return to normality for the 2021 fiscal year that ends in June 2021 that will give buyers of the stock around current prices a big payday.
In the Main Market, Radio Jamaica leads the pact followed by Berger Paints then Carreras with projected gains of 205 to 253 percent. RJR had its best Nine months period last year since 2014, while Berger suffered from poor sales in the second half of the year, which management attribute to weather-related disruptions. The company stands to benefit from lower raw material prices with a fall in the price of oil on the world market as well as lower energy prices.
The Jamaica stock market suffered sustained pressure during March, leading to one of the most rapid falls in stock prices in the history of the market and leaving many stocks severely undervalued.
Some companies with early 2020 year-ends will not have experienced the same impact from the fall out of sales on reported results and stock prices, as will others.
With the tourism industry virtually closed, companies heavily dependent on the industry will have little or no sales for a while from March. The Group consists of Caribbean Producers, Dolphin Cove, Everything Fresh and Express Catering. Entertainment company Main Event and restaurant operator KLE Group will be hurt from patrons staying home as well as fewer tourists visiting Montego Bay and patronizing the restaurant in that town. Once this period of disruption has passed, KLE should benefit from economies of scale with the full ownership of the additional restaurant.
The results of some companies will be hit by falling stock and bond prices. The results for the 2020 first quarter will show the impact of the recent market decline locally and overseas. The latter includes JMMB Group, Proven, NCB Financial Group, Barita Investments, VMBS Investments, Jamaican Teas, QWI Investments and Sagicor Group. Banks may have to increase loan loss provisions as businesses encounter cash flow problems and defaulting on loan payments.
The targeted average PE ratio is 20, with both the Junior and Main markets currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 12 and the Junior Market a mere 9.2, based on current 2020 earnings. The PE ratio for Junior Market Top 10 stocks averages 5.5 with the Main Market at 8.5.
The TOP 10 stocks now trade at a discount of 40 percent of the average for Junior Market and Main Market stocks trade at a discount of 29 percent to the overall market. The average projected gain for the IC TOP 10 stocks is 312 percent down from 377 percent last week for the Junior Market and 139 percent from 153 percent for the JSE Main Market, based mostly on 2020 earnings.
IC TOP 10 stocks are likely to deliver the best returns to March 2021. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

Persons who compiled this report may have an interest in securities commented on in this report.

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Carib Producers & RJR lead IC TOP 10

March 30, 2020 by

The IC Insider.com TOP 10 stocks return, with earnings per share based on the profit of companies reporting full year’s results for the new financial year that ends after the second quarter of this year up to the second quarter in 2021.
Major uncertainties abound about the local and global economy and how each company may be affected. It is not possible to determine the exact fall out from the crisis and the impact on company earnings. Accordingly, actual earnings could vary materially from IC Insider.com’s forecast. In this regard, investors need to be alert to new information that will come to the fore on an ongoing basis and be prepared to adjust their investment decisions as time passes.
Where there are major uncertainties, there is the possibility of outlandish gains accordingly. Investors should be looking beyond just the immediate situation and identify companies that are financially strong to withstand the current cut in revenues but will make a strong recovery by 2021. The three top Junior Market selections are Caribbean Producers, KLE Group and Lasco Financial with the potential to gain between 320 to 600 percent by 2021. In the Main Market, Radio Jamaica leads the pact followed by Berger Paints then Eppley with projected gains of 149 to 200 percent.
The Jamaica stock market suffered sustained pressure during March, leading to one of the most rapid falls in stock prices in the history of the market. In the past week, prices have bounced with the Main Market putting in strong gains on Thursday and Friday, but the market index is down by a sizeable 29.5 percent year to date.
The market suffered from a large amount of money that went towards buying shares in Trans Jamaica Highway. At the same time, investors were concerned about the effects the Coronavirus could have on the economy and stocks in particular. Finally, prices fell so far that lenders make margin calls on investors who borrowed money on margin, resulting in selling shares to cover the shortfall at low prices to realize cash to pay down loans.
Trans Jamaica Highway shares were listed on the market on Tuesday. That gave some investors the opportunity to raise over $223 million in cash to reinvest in the market along with refunds from the oversubscription in the IPO.
The current year has changed markedly as the Corona Virus impact on countries worldwide has been significantly disruptive, inflicting significant damage to the individuals, businesses and economies.  With the wipeout of fiscal deficits and debt to GDP set to be below 90 percent, the Jamaican economy is in a far better place than at the time of the 2008 crisis that severely tested the country and led to many measures that severely affected the economy from then until 2016.
The current situation of job losses worldwide will lead to lower inflows of export earnings for Jamaica from goods and services. Currently, the tourist industry is at a standstill. There are no clear indications when operations resume and what will the level of support be from guests. The effect of the downturn in the economy will affect companies to differing degrees. Some companies with early 2020 year-ends will not have the same impact on reported results and stock prices. With prices having fallen sharply, investors have an excellent opportunity to get back in and make a bundle in the next two years or so. The key to coming out big winners is to understand how the effects on each company and the timeframe.
With the tourism industry virtually closed, companies heavily dependent on the industry will have little or no sales for a while from March. The Group consists of Caribbean Producers, Dolphin Cove, Everything Fresh and Express Catering. Entertainment company Main Event and restaurant operator KLE Group will be hurt from patrons staying home as well as fewer tourists visiting Montego Bay and patronizing the restaurant in that town. Some major contributors to the tourism market are Grace, Jamaica Broilers and Wisynco. The results for some companies are hit by falling stock and bond prices. The results for the 2020 first quarter will show the impact of the recent market decline. The latter includes JMMB Group, Proven, NCB Financial Group, Barita Investments, VMBS Investments, Jamaican Teas, QWI Investments and Sagicor Group. Banks may have to increase loan loss provisions as businesses encounter cash flow problems and defaulting on loan payments.
The targeted average PE ratio is 20, with both the Junior and Main markets currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 8 and the Junior Market a mere 8.5, based on current 2020 earnings. The PE ratio for Junior Market Top 10 stocks averages 4.7 with the Main Market at 8.
The TOP 10 stocks now trade at a discount of 45 percent of the average for Junior Market and Main Market stocks trade at a discount of 33 percent to the overall market. The average projected gain for the IC TOP 10 stocks is 377 percent for the Junior Market and 153 percent for the JSE Main Market, based mostly on 2020 earnings.
IC TOP 10 stocks are likely to deliver the best returns to March 2021. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

Persons who compiled this report may have an interest in securities commented on in this report.

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