The Jamaica Stock Exchange Junior Market index surged to 3,323.70 points in the morning session on Monday, but selling pushed it back below the 3,300 mark to close at 3,277.70 after dropping 22.77 points with the volume of stocks traded slightly more than on Friday but with the value towering 40 percent higher.
Similar to trading on Friday, 37 securities traded and ended with the prices of 15 rising, 18 eclining and four closing unchanged.
The PE Ratio, a measure used to compute appropriate stock values, averages 12.5 based on ICInsider.com’s 2021-22 earnings forecast.
Trading ended with 8,315,636 shares changing hands for $36,059,912 versus 8,206,423 units at $25,715,250 on Friday. Lumber Depot led trading with 3.08 million shares after controlling 37 percent of total volume, followed by Fontana with 2.37 million units and taking 28.5 percent of the day’s trade and Future Energy Source with 689,535 units for 8.3 percent market share.
Trading averaged 224,747 shares at $974,592 in contrast to 221,795 shares at $695,007 on Friday. Trading month to date, averages 207,472 units at $735,506, compared to 204,540 units at $694,927 on Friday. September closed with an average of 207,032 units at $668,264.
Investor’s Choice bid-offer indicator shows five stocks ended with bids higher than their last selling prices and four with lower offers.
At the close, Access Financial gained $1.10 to close at $19.70 while exchanging 114,509 shares, Blue Power fell 37 cents to $3, trading 11,015 stock units, CAC 2000 shed $2.25 to end at a 52 weeks’ low of $7 after exchanging 1,009 stocks. Cargo Handlers dropped 50 cents to $7, with 367 units crossing the exchange, Caribbean Assurance Brokers rallied 17 cents to $1.80, with 17,044 stock units clearing the market, Caribbean Cream spiked 33 cents to $6.70 after 17,573 stocks changed hands. Express Catering popped 10 cents to $5 in an exchange of 43,238 shares, Fontana rose 33 cents in closing at $6.40 with 2,370,536 units changing hands, Fosrich lost 8 cents to close at $8.12 in trading 11,170 units. Future Energy Source dropped 15 cents to $2.55 with the swapping of 689,535 stock units, General Accident declined 15 cents to $5.30 after exchanging 128,132 shares, Honey Bun climbed 15 cents to $9 in exchanging 75,161 stocks. iCreate dropped 8 cents to 92 cents after 98,817 shares crossed the market, Indies Pharma advanced 19 cents to $3.39 after trading 24,595 units, Jamaican Teas fell 10 cents to $4.08, with 508,658 stocks changing hands. Jetcon Corporation shed 13 cents in closing at $1 after switching ownership of 35,184 stock units, KLE Group popped 11 cents to $1.13 while exchanging 505 units, Knutsford Express lost 7 cents in ending at $8 after 2,919 stock units changed hands, Lasco Distributors popped 10 cents to close at $3.70, with 4,394 stocks clearing the market. Lasco Manufacturing dropped 24 cents to end at $4.65 trading 14,182 shares, Limners and Bards spiked 21 cents to $3.70 with an exchange of 184,618 stocks, Lumber Depot declined 7 cents to close at $2.90 after trading 3,076,244 units, Main Event lost 40 cents in closing at $4 after exchanging 1,865 shares, Medical Disposables shed 47 cents to $4.73 with the swapping of 10,110 stock units and Stationery and Office Supplies climbed 48 cents to $6.48 in an exchange of two shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
New ICTOP10 100% plus winner
Caribbean Producers raced to the top of ICTOP10 listings last week after the company released full year results resulting in ICInsider.com upgrading earnings from 65 cents per share to $1.20 for the current year. The stock price promptly surged to close at $6.60 after hitting a high of $7.50 on Friday and gaining 136 percent for the year to date and remaining in the number one position on the Main Market list with much room to cover before full valuation.
Watch these stocks that are expected to release quarterly financial statements this coming week, in addition to CPJ that is in demand and Sygnus Credit Investments that has limited stocks on offer. Caribbean Cream’s half year results are due by Friday and should be showing earnings around 40 cents per share if the first quarter trend continues. Also expected by Friday are AMG Packaging, Express Catering, Knutsford Express and Paramount Trading.
Elsewhere, in the Junior Market, AMG Packaging rose 13.5 percent from $1.70 to $1.93, Access Financial dropped from $20 to $18.60, Caribbean Cream moved from $7 to $6.37, Dolphin Cove slipped from $10 last week to $9.69 and Stationery and Office Supplies fell from $6.49 to $6.
In the Main Market, Caribbean Producers rose 20 percent from $5.50 to $6.60, Guardian Holding fell from $582 to $577 after hitting a low during the week of $511, Sygnus Credit Investment rose 6 percent from $15.98 to $16.96 and Victoria Mutual Investments that moved from $5.45 to $6.
The top three Main Market stocks are Caribbean Producers, followed by Berger Paints and Guardian Holdings, with expected gains of 219 to 264 percent for the three, versus last weeks’ 216 to 336 percent.
The top three stocks in the Junior Market are Elite Diagnostic, followed by Caribbean Assurance and General Accident. All three have the potential to gain between 230 and 304 percent, from 217 percent and 300 percent last week.
The average gains projected for the TOP 10 Junior Market stocks moved from 203 percent to 210 percent and Main Market stocks moved from 180 percent to 170 percent.
The Junior Market closed the week with an average PE 12.7 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 and the historical average of 17 to March this year based on 2020 earnings. The TOP 10 stocks trade at a PE of 6.6, with a 52 percent discount to that market’s PE.
The overall Junior Market can gain 57 percent to March next year, based on an average PE of 20 and 34 percent based on an average PE of 17. Five stocks are trading above this level and two at a PE around the 16 level and 16.7, indicating that many others will rise above the 17 mark.
The JSE Main Market ended the week with an overall PE of 15.7, a little distance from 19 the market ended at in March, suggesting a 27 percent rise at a PE of 19 and 21 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.6, with a 49 percent discount to the PE of that market, well off the potential of 20, but 12 stocks trade above a PE of 19, with most of them over 20, suggesting that the accepted multiple maybe around 25 times current year’s earnings.
ICTOP10 is not intended to select the best stocks in the market but ones that are most likely to be the best winners within fifteen months. ICInsider.com ranks stocks to highlight the winners from the rest, allowing investors to focus on potential winners, helping to remove emotional attachments to stocks that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. 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.
Carib Producers surges to top ICTOP10
Caribbean Producers raced to the top of ICTOP10 listings this week after the company released full year results that showed a loss, but with the final quarter posting a profit of US$2 million before exceptional onetime cost and resulting IC Insider.com upgrading earnings from 65 cents per share to a $1.20 for the current year.
Based on years of underperformance and the knock from the closure of the hotel industry last year, many investors thought this stock was a lost cause. Based on research and understanding of the business sector, this publication had the stock the number three position on the Junior Market Top 10 list at the start of the year, just behind Caribbean Cream. So far to October, CPJ gained 90 percent and should exceed 100 percent this coming week and Caribbean Cream is up 67 percent ahead of second quarter results due in two weeks. Another TOP 15 stock this year, Caribbean Cement, surged on Friday to close at $120 after trading at a record high of $146.12, just short of IC Insde.com forecast in April this year in the report, captioned “Carib Cement Q1 profit triples” that the stock that last traded at $75 on the Main Market of the Jamaica Stock Exchange is projected to get to $150 in the next twelve months.
While the Jamaican stock markets continued to bounce around, the past week saw clearer signs of the upward momentum returning, with the Barita Investments APO issue out of the way. Bank of Jamaica’s raise its overnight rate to 1.5 percent from 0.50 percent and the tightening of the financial market continued with CD rates averaging 2.59 percent during the past week.
Elsewhere, in the Junior Market, AMG Packaging fell from $2.10 to $1.70, Stationery and Office Supplies rose from $5.76 from $6.49, Access Financial rose from $18.75 to $20, General Accident rose from $5.15 last week to $5.45, Medical Disposables rose from $4.46 to $5.15, Caribbean Assurance fell from $1.80 to $1.66 and Caribbean Cream moved up to $7 from $6.60 last week. In the Main Market, Caribbean Producers rose from $4.65 to $5.50 on Friday.
The top three Main Market stocks are Caribbean Producers, Berger Paints, followed by Guardian Holdings, with expected gains of 216 to 336 percent for the three, versus last weeks’ 208 to 263 percent.
The top three stocks in the Junior Market are Elite Diagnostic, followed by General Accident and Lasco Financial. All three have the potential to gain between 217 and 300 percent, from 250 percent and 307 percent last week.
This past week, the average gains projected for the TOP 10 Junior Market stocks moved from 214 percent to 203 percent and Main Market stocks moved from 166 percent to 180 percent.
The Junior Market closed the week with an average PE 12.7 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 and the historical average of 17 for the period to March this year, based on 2020 earnings. The TOP 10 stocks trade at a PE of 6.7, with a 53 percent discount to that market’s PE. The overall Junior Market can gain 57 percent to March next year, based on an average PE of 20 and 34 percent based on an average PE of 17.
The JSE Main Market ended the week with an overall PE of 15.7, a little distance from 19 the market ended at in March, suggesting a 27 percent rise at a PE of 19 and 21 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.6, with a 49 percent discount to the PE of that market, well off the potential of 20.
ICTOP10 is not intended to be a selection of the best stocks in the market but the most likely to be the biggest winners within fifteen months. ICInsider.com ranks stocks to separate the bigger winners from the rest, allowing investors to focus on potentially huge gains, helping to keep out emotional attachments to stocks that often result in the making of costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on possible increases for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. 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.