junior market — Page 120

Steady market steadies IC TOP10

March 20, 2021 by IC Insider.com

The JSE Main Market and Junior Market slipped to end the week marginally lower than the close of the previous week. Against the background, Berger Paints was the only stock moving out of the TOP10 as it made way for Sterling Investments.
Junior Market stocks kept above the 2,900 mark of the market index only slipping below that level just one day during the week, as the market continues to consolidate in the move higher. Main Market stocks made attempts to break clear of the consolidation zone but the market is awaiting some strong profit results to move prices and that will not come until late April.
The publication has stated that Junior Market TOP10 contains several companies that suffered a sharp reversal of revenues and profit in 2020, with recovery projected for them in 2021. Green shoots are showing for some with sales picking up in recent quarters with improving bottom-line. Some of these companies may require another quarter or two of improving fortunes before there is meaningful buying into them. Main Event is one such company and it reported a profit on reduced income for the January quarter with revenues climbing solidly in the latest quarter over the October and July quarters.
The Main Market has a number in the list that have put out record profits or show signs of strong earnings in 2021, with the stocks clearly undervalued, these include, JMMB Group, Jamaica Broilers, Sygnus Credit Investments and Grace Kennedy that are currently in the TOP10 Main Market listing and Caribbean Cement that is just outside.
Both the Junior Market and the Main Market continue to get support from technical indicators that point to robust gains ahead. To benefit from the growth in the market to come many investors will need to be on board at an early stage.
This week’s focus: Limners and Bards reported strong first quarter results with rising revenues and profit. Revenues grew a strong 36 percent over the 2020 period to $356 million with profit rising 36 percent to $67 million as cost of operations rising 38 percent over the 2020 period. The company nevertheless seems set to nearly doubling profit for the full year, with profit of $192 million and earnings per share of 20 cents.
The top three stocks in the Junior Market with the potential to gain between 292 to 312 percent are Main Event followed by Stationery and Office Supplies and Caribbean Producers. With expected gains of 181 to 433 percent, the top three Main Market stocks are, Radio Jamaica, followed by VM Investments and PanJam Investment.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, up to the second quarter of 2021. The Junior and Main markets are currently trading well below the market average, indicating strong gains ahead. The JSE Main Market ended the week, with an overall PE of 15 and the Junior Market 10, based on ICInsider.com’s projected 2021-22 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 5.5 at just 55 percent of the market average. The Main Market TOP 10 stocks trade at a PE of 7.4 or 49 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 268 percent and 184 percent for the JSE Main Market, based on 2021-22 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. 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.

Filed Under: Buy Rated Tagged With: Access Financial, Berger Paints, Caribbean Assurance Brokers, Caribbean Producers, Carreras, Daily Trading, Emerging markets, FESCO, General Accident, Grace Kennedy, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, junior market, Laco Distributors, Lasco Financial, Lumber Depot, Main Event, Medical Disposables, PANJAM Investment, Radio Jamaica, Scotia Group, Stationery and Office Supplies, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity, Victoria Mutual Investments

More changes to IC TOP10 stocks

March 14, 2021 by IC Insider.com

Berger Paints returns to the TOP 10 Main Market stocks while Sterling Investments drifted out, while the price of Caribbean Assurance Brokers rose 26 percent to $2.30 during the week and tumbled out of the Junior Market TOP10 and is replaced by General Accident.
Elsewhere, the 2021 TOP 15 listed Carreras that migrated from the 2021 ICTOP10 in February hit a new 52 weeks’ high during the week to sit at $10 for a rise of 45 percent for the year to date. The price could climb further, helped by improving profit and a high dividend yield. Future Energy Source (Fesco) hangs onto the Junior Market TOP10 list at the tenth position, with the prospectus still to be released to the public.
Junior Market stocks continue to fight clear of the 2,900 level of the market index for another week, but they closed above it on the last two days of the week, as the market continues to consolidate around that level. Main Market stocks made gains during the week, adding 1,524 points as they try to break clear of the consolidation zone.
The Junior Market TOP10 contains companies that suffered a sharp reversal of revenues and profit in 2020, with recovery projected for them in 2021. Green shoots are showing for some, with sales picking up in recent quarters with improving bottom-line. Some of these companies may require another quarter or two of improving fortunes before there is meaningful buying into them. The Main Market has a number in the list that has put out record profits or shows strong earnings in 2021, with the stocks clearly undervalued. These include JMMB Group, Jamaica Broilers, Sygnus Credit Investments and Grace Kennedy that are currently in the TOP10 Main Market listing and Caribbean Cement that is just outside.
Both the Junior Market and the Main Market continue to be supported by technical indicators that point to robust gains ahead that are backed up by a number of companies reporting positive profit results with their stock undervalued currently.
The top three stocks in the Junior Market with the potential to gain between 292 to 312 percent are Elite Diagnostic, followed by Caribbean Producers and Caribbean Cream. With expected gains of 190 to 441 percent, the top three Main Market stocks are Radio Jamaica, followed by VM Investments and PanJam Investment.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, up to the second quarter of 2021. The Junior and Main markets are currently trading well below the market average, indicating strong gains ahead. The JSE Main Market ended the week, with an overall PE of 15.1 and the Junior Market 10, based on ICInsider.com’s projected 2021-22 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 5.5 at just 55 percent of the market average. The Main Market TOP 10 stocks trade at a PE of 7.5 or 50 percent of that market’s PE.
The average projected gain for the Junior Market IC TOP 10 stocks is 268 percent and 184 percent for the JSE Main Market, based on 2021-22 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. 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.

Filed Under: General News Tagged With: Berger Paints, Caribbean Assurance Brokers, Caribbean Producers, Carreras, Daily Trading, Emerging markets, FESCO, General Accident, Grace Kennedy, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, junior market, Laco Distributors, Lasco Financial, Medical Disposables, PANJAM Investment, Radio Jamaica, Scotia Group, Stationery and Office Supplies, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity, Victoria Mutual Investments

More growth for Grace

March 10, 2021 by IC Insider.com

Fresh from a record-breaking profit performance in 2020, Grace Kennedy announced the signing of an agreement to acquire all the shares of Scotia Insurance Eastern Caribbean Limited subject to regulatory approval.

Grace Kennedy HQ in Kingston

Scotia Insurance operates in seven countries in the Eastern Caribbean: Anguilla, Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines. Scotia Insurance offers credit protection regionally to customers of Scotiabank on personal loans, residential mortgages, personal lines of credit, personal and small business credit cards.
According to Don Wehby, CEO of Grace Kennedy, “the operation is profitable but not highly profitable”. Grace’s ownership is likely to result in lower operating cost and a vehicle to do business in other countries and for other financial institutions.
In an investors briefing on Monday, Wehby stated that the proposed acquisition is one of ten that the group is looking at currently, at various stages of assessment or negotiation, including some being stress tested and others at the legal stages.
Wehby in answer to a question on the growth rate of 2020 continuing into 2021 confirmed, that it will as the 2020 growth was achieved after years of work to lay the foundation for it to happen.
tTech limited is a Junior Market that seems set to benefit when the acquisition is concluded, the extent of its involvement will depend on the technology in use and whether the acquisition will continue to utilize the current infrastructure or not. tTech is a major Information Technology supplier to Grace.
Grace is listed on the Jamaica Stock Exchange and currently trades at $90.99, the shares are trading on the Trinidad and Tobago Stock Exchange at TT$4.50, in line with the JSE price.

Filed Under: Buy Rated, Company News, General Business News Tagged With: Emerging markets, Grace Kennedy, Jamaica Stock Exchange, Jamaican stocks, junior market, Scotia Insurance, tTech, TTSE

More record close for some IC TOP10 stocks

March 8, 2021 by IC Insider.com

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With the Junior Market fighting to break clear of the 2,900 level of the market index over the past two weeks, there were no major changes to the IC TOP10 stocks this past week. The Main Market saw Carreras and Grace Kennedy trading at 52 weeks’ high, following positive gains in their latest profit results, while Caribbean Cement jumped sharply, following the release of a 70 percent rise in 2020 profit.
Sterling Investments is a new addition to the Main Market TOP 10, replacing Berger Paints with profit downgraded with earnings per share of $1.30 for 2021. That was inadequate to hold on to the TOP 10 position, but the stock is still on the ICTOP15 list for 2021. Future Energy Source (Fesco) hangs onto the Junior Market TOP10 list at ninth position, The prospectus was pulled and is yet to be re-issued. IC Insider.com gathers it was expected on Friday gone, but that seems not to be the case, but it could be coming soon.
The Junior Market TOP10 is filled with companies that suffered a sharp reversal of revenues and profit in 2020, with recovery projected in 2021. Still, green shoots are showing for some, with sales picking up in recent quarters with improving bottom-line. Some of these companies may require another quarter or two of improving fortunes before there is meaningful buying into them. The Main Market has a number in the list that have put out record profits or show signs of strong earnings with the stocks clearly undervalued; these include, JMMB Group, Jamaica Broilers, Sygnus Credit Investments, Grace Kennedy are currently in the TOP10 Main Market listing and Caribbean Cement that is just outside.
The Junior Market and the Main Market are supported by technical indicators that point to robust gains ahead that are backed up by a number of companies reporting positive profit results.
The top three stocks in the Junior Market with the potential to gain between 295 to 309 percent are Caribbean Cream, followed by Elite Diagnostic and Caribbean Producers. With expected gains of 165 to 456 percent, the top three Main Market stocks are Radio Jamaica, followed by VM Investments and PanJam Investment.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, up to the second quarter of 2021. The Junior and Main markets are currently trading well below the market average, indicating strong gains ahead. The JSE Main Market ended the week, with an overall PE of 15.8 and the Junior Market 9.8, based on ICInsider.com’s projected 2021-22 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 5.4 at just 55 percent of the market average. The Main Market TOP 10 stocks trade at a PE of 7.6 or 52 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 274 percent and 181 percent for the JSE Main Market, based on 2021-22 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. 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.

Filed Under: Buy Rated, Feature Stories Tagged With: Access Financial, Berger Paints, Caribbean Assurance Brokers, Caribbean Producers, Carreras, Daily Trading, Emerging markets, FESCO, General Accident, Grace Kennedy, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, junior market, Laco Distributors, Lasco Financial, Lumber Depot, Main Event, Medical Disposables, PANJAM Investment, Radio Jamaica, Scotia Group, Stationery and Office Supplies, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity, Victoria Mutual Investments

Fesco, JMMB & Sygnus in IC TOP10 stocks

February 28, 2021 by IC Insider.com

IC TOP10 stocks are now based on earnings for 2021/22 fiscal years. Of the January listing, Access Financial Services moved out of the TOP 10 Junior Market list while Main Market QWI Investment and Carreras fell from the Main market list with increased prices.
Coming into the TOP10 are Fesco, the latest IPO that is expected to come to market shortly, with the prospectus having been released but temporarily withdrawn to correct some errors. JMMB Group and Sygnus Credit Investments are now in the TOP10 Main market listing.
Since the start of the year, the Junior Market is up 10.5 percent, with 11 companies’ stock rising between 20 and 63 percent, including four with gains from 49 percent up. The Main Market, on the other hand, is marginally down for the year by less than one percent, with five stocks recording gains between 21 percent and 47 percent and Ciboney rising 500 percent for the year to date.
The Junior Market and the Main Market moves are supported by technical indicators, pointing to robust gains ahead and back up by some companies reporting positive profit results.
This week’s focus: Grace Kennedy had outstanding results for 2020 with much more to come in 2021; expect the price to move sharply over the next few weeks. Caribbean Cement reported a 70 percent rise in profit for 2020 and is projected to earn $6.70 for 2021, the stock is an ideal candidate to move higher in the weeks ahead.
The top three stocks in the Junior Market can gain between 329 to 339 percent are Main Event followed by Elite Diagnostic and Jetcon. With expected gains of 202 to 459 percent, the top three Main Market stocks are Radio Jamaica, followed by Berger Paints and VM Investments.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, up to the second quarter of 2021. The Junior and Main markets are currently trading well below the market average, a clear indication of strong gains ahead. The JSE Main Market ended the week, with an overall PE of 14.7 and the Junior Market 9.8 based on ICInsider.com’s projected 2021-22 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 5.2 at just 53 percent of the market average. The Main Market TOP 10 stocks trade at a PE of 7.1 or 48 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 289 percent and 204 percent for the JSE Main Market, based on 2021-22 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. 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.

Filed Under: Buy Rated Tagged With: Access Financial, Berger Paints, Caribbean Assurance Brokers, Caribbean Producers, Carreras, Daily Trading, Emerging markets, FESCO, Grace Kennedy, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, junior market, Laco Distributors, Lasco Financial, Main Event, Medical Disposables, PANJAM Investment, Radio Jamaica, Scotia Group, Stationery and Office Supplies, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity, Victoria Mutual Investments

Barita acquires 20% of Derrimon Trading

February 26, 2021 by IC Insider.com

Barita Investments now owns 20% of the issued shares of Derrimon Trading Company following the closing of the Derrimon additional public offer of shares, Barita disclosed in a release to the Jamaica Stock Exchange.

Barita headquarters.

Commenting on the investment, Jason Chambers, Director of Barita and Chief Investment Officer of Barita’s parent company, Cornerstone, said: “The Board of Directors of Barita and the leadership team of Cornerstone are very satisfied with this investment as Derrimon embodies several of the characteristics we typically look for in assessing investment opportunities. DTL has built up an enviable track record of growth and value creation, and the management has demonstrated their ability to achieve scale both organically and through the successful integration of several accretive acquisitions. Barita has, over the course of the last two-plus years, established significant capacity to expand its portfolio of investments into sectors that are viable alternatives to traditional ones that are now fully priced in our view and therefore not likely to generate alpha for our shareholders in the medium to long term. This minority acquisition should be seen as a by-product of our increased investing capacity as we prudently seek to unearth both value and growth-oriented investment opportunities within the context of the current global investment landscape.”
Chambers continued, “We also note the diversification factor that this investment adds to our portfolio as it provides exposure to the real sector via a company which has recently begun an international expansion.

Mayberry tried trading 420m Derrimon Trading shares but the transaction was disqualified.

At Cornerstone and Barita, our goal is to positively impact the lives of our stakeholders through the tireless pursuit of opportunities that provide solid risk-adjusted returns throughout their investment horizons. We believe this investment is aligned with that ethos and we look forward to collaborating with the team at DTL to the mutual benefit of our collective stakeholder groups.”
Paula Barclay, General Manager of Barita, in commenting on the Company’s investment in Derrimon, stated: “At Barita, we continuously seek out unique strategic opportunities to build shareholder value while balancing the interests of our clients, team members, and other key stakeholders. We are confident that our association with a company like Derrimon will only contribute positively to our overall future performance. Consummating this investment took significant effort from the team at Barita and I would like to take this opportunity to extend my gratitude to them for their hard work.”
Barita Investments is a publicly-traded Securities Dealer listed on the Jamaica Stock Exchange and majority-owned by Cornerstone Financial Holdings.
Derrimon Trading is listed on the Junior Market of the Jamaica Stock Exchange and distributes dry and frozen bulk commodities. It also operates retail outlets and Supermarkets.
The shares of Barita are trading at $81.14 and Derimon at $2.56 on early Friday morning after the release.

Filed Under: Breaking News, Company News, General Business News Tagged With: Barita Investments, Cornerstone, Derrimon Trading Company, Emerging markets, Jamaica Stock Exchange, junior market

FESCO worth a buy-in

February 20, 2021 by IC Insider.com

Investors need to separate investments that can make them money from a great investment to hold long term. It is against this background that the latest IPO should be viewed.
Future Energy Source Company Limited (Fesco) initial public offer is set to open on February 25, with 500 million shares for sale at 80 cents each, with 200 million units being sold by existing shareholders.
Of the total, 325 million units are reserved for priority applicants and 175 million for the wider public to list on the Junior Market. The shares are not a great investment on the surface, but an opportunity exists to profit from an investment in the short to medium term. If all the shares offered for sale are subscribed to, the number of issued shares will rise to 2.5 billion units and the company will collect $240 million before expenses for the portion offered by them.
Proceeds from the company’s subscription of shares will support the growth of the existing businesses and allow the company to pursue strategic investment opportunities and pay the expenses of the issue.
The company was incorporated in February 2013 and made the first fuel sale in November of that year. In 2014, the first FESCO branded service station was unveiled in Mandeville and have grown to fourteen branded Service Stations. Two additional service stations, are to be opened this year, one at Ferry on Mandela Highway by April and the second at Beechwood Avenue, St. Andrew in June.
”Our current market share for transportation fuel is approximately 4.65 percent (April 2020- September 2020) and is expected to increase to 5.3 percent by March 2021 and 7 percent by December 2021. We estimate that FESCO’s market share reflects three (3) main facts: a) we are a relatively new company (operating for just over six (6) years) whose initial strategy has been to grow organically rather than through acquisitions; b) as at September 2020, we have very little presence in the Kingston and St. Andrew (KSA) fuel market. Our KSA offerings are limited to FESCO Stony Hill and FESCO Rock Hall, both of which are in the more rural parts of St. Andrew; and c) the dominance of the multinational brands in the industrial and commercial space where they provide fuels to private clients”, the prospectus states.
”FESCO’s current market share of transportation fuels at September 2020 is 4.65 percent up from 3.8 percent in 2019 and 3.5 percent in 2018 and it estimates that its market share will increase to 5.3 percent by March 2021 and 7 percent by December 2021”, the prospectus further stated.
FESCO’s sales significantly outstripped the 2019 performance in litres sold. In fact, FESCO’s April through September 2020 sales in litres of transportation fuels sold is 6.6 percent ahead of its performance for the same period in 2019 despite the impact of COVID-19 and the overall market declining 13.9 percent.
FESCO is yet to enter the commercial or retail LPG market estimated at 13,957,716 or between J$1.5 billion to $1.9 billion monthly.
Revenues increased from $3.754 billion in 2016 to $5.94 billion in 2020 representing a compounded average growth (CAGR) of 12.1 percent. Over the period, gross profits increased from $28.2 million to $178.3 million, with a CAGR of 58.6 percent. FESCO increased its gross profit margin to its dealers as its brands became more recognized and demanded by customers from 0.75 percent in 2016 to 3 percent in 2020.
From the 2015 financial year through to the 2020 financial year, average monthly volumes increased from 2,502 million litres to 3,743 million litres, a CAGR of 8.4 percent. Pre-tax profits increased by J$87 million or 172 percent to $137 million in 2020 up from $50 million in 2019.
Revenues over the period April 2020 to September 2020 was $2.811 billion down 5.84 percent from the comparative period of September 2019, a decline of $175 million from 2019 turnover of $2.99 billion. Profit before taxes for the period to September 2020 was $65 million, similar to that earned in 2019. The projection for revenues to March this year is $6 billion, with profit of $151 million for earnings per share before tax of 7 cents and a price earnings ratio of 11.4 that compares well to Tropical Battery that listed in January and now has a PE of 14.6. ICInsider.com forecasts 13 cents per share to March 2022 with the PE at 6 and the price rising to $2.50 by then. The prospectus was withdrawn due to projections to 2025 that appears to overstate the forecasted administrative costs by approximately $100 million per annum.
The company’s financial status strong with Shareholders’ equity at the end of September at $255 million, borrowings amount to just $63 million and cash on hand of $99 million.
First, the negatives. If the company succeeds with the IPO, it will have the largest board of directors of any Junior Market company, with 11 members. That is a great sign of management weakness. Grace Kennedy and NCB Financial have nine directors, while Scotia Group has 11. Those are vastly bigger and more complex entities that FESCO. The company relies solely on distributors for revenues in a sector that has been subject to industrial disputes from time to time and government regulations. Gross profit margin is primarily subject to worldwide price fluctuation in global petroleum prices.
On a positive note, the downturn in demand for petrol seems to be easing and should help boost revenues in the immediate period ahead. This year’s opening of two new service stations will help grow revenues by ten to twenty percent in a full year. One of the new stations will be owned and operated by the company. The company is relatively small, commanding less than 10 percent of the market, leaving much room for above-average growth with good scope for gain in market share. Additional, with the local economy poised to grow that, should aid growth as well.

Filed Under: Feature Stories, Initial Public Offers Tagged With: Emerging markets, FESCO, Future Energy Source Company, Grace Kennedy, IPO, Jamaica Stock Exchange, Jamaican stocks, junior market, NCB Financial Group, Scotia Group

Cost cuts drive Lasco Manufacturing profit

February 7, 2021 by IC Insider.com

Sharp cost-cutting and moderate growth in revenues drove profit at Lasco Manufacturing up 29 percent for the December quarter and 30 percent for the nine-month period.
The performance was even more stunning, with pretax profit jumping a very strong 43.4 percent for the quarter and 36.7 percent for the nine months to $1.3 billion as the company profit became subject to full taxation as of October 12 in 2020.
The company maintained a gross profit margin at 36 percent in the quarter, compared to 2019 but enjoyed an increase to 38 percent for the nine months from 37 percent in 2019. It ended the 2020 fiscal year at 37 percent suggesting the 2021 full-year results will most likely end at 38 percent, in line with the nine months’ margin.
The company reported revenues rising 6 percent for nine months to $6.2 billion but up just 3.5 percent to $2.07 billion for the December quarter. Administrative and other costs fell 20 percent for the quarter to $315 million and for the nine months to December by 12 percent to $982 million.
The principal activities of the company are the manufacturing of soy-based products, juice drinks, water and packaging of milk-based products.

Lasco Manufacturing products

Shareholder’s equity stood at $7.5 billion at the end of December 2020 and borrowed funds dipped to $949 million of which $453 million is due for payment within a year. Cash funds and investments amount to $1.7 billion after the company generated funds before working capital and capital financing needs of $1.5 billion. A dividend of $251 million was paid during the nine months.
Lasco generated earnings per share of 25 cents for the nine months up from 19 cents in 2019, while the quarterly 2020 earnings came in at 7 cents. ICInsider.com projects earnings per share at 35 cents for the year to March and 40 cents for the 2021 fiscal year.
The stock last traded at $4.32, with a PE ratio of 12.3. The stock is undervalued based on the earnings and an average market PE of 15 and a target PE ratio of 20 that many stocks are currently trading around. The target price of $7.

Filed Under: Buy Rated, Company News, Company Results Tagged With: Jamaica Stock Exchange, Jamaican stocks, junior market, Lasco Manufacturing

IC TOP10 stocks to drive JM over 2800

February 6, 2021 by IC Insider.com

The Junior Market is expected to blast pass the 2,800 the index mark, this coming week, following positive results just released by Lasco Manufacturing, Lasco Distributors and Jamaican Teas, to help the market to continue the 2021 rise after reaching a new eleven-month high, on Friday.
The market index closed just under 2,800 points, on Friday with a 5.8 percent gain for the year to date.
The market should continue to benefit from strong interest in Caribbean Flavours, Mailpac that traded at a record high on Friday at $4.43 before closing at $3.99 and from Lumber Depot.
Lasco Manufacturing and Honey Bun keep changing places in IC TOP10 best performing Junior Market stocks. At the close of the previous week, Lasco Manufacturing replaced Honey Bun, but this past week, the roles are reversed with both companies seeing a reversal of fortune in prices.
Lasco Manufacturing closed at $4.32 up from $3.90 last week, while Honey Bun price fell from $6 to $5.88. In addition, Lasco earnings per share were adjusted down to 35 cents from 37 cents, with the company reporting nine months results showing revenues rising 6 percent but being up 3.5 percent for the December quarter and earnings per share moving to 25 cents from 19 cents in 2019. Lasco Distributors earnings were also adjusted down, with the release of the nine months results showing earnings per share of 21 cents and 7 cents for the December quarter, putting the full-year numbers at 30 cents per share.
The Main Market TOP10 stocks continue with the same stocks as the week before, but Grace Kennedy price continues upward as interest in the stock remains strong.
The Junior Market is up 5.8 percent for 2021 and is currently powered by a bullish golden cross, setting to take the market beyond 3,000 points and likely beyond 4,000. The release of company results in the next week will play a big role in the next few weeks that will add fuel to the current rally. In this regard, based on 2020 release of results, interim financials are expected this week, from Access Financial, Barita Investments, General Accident, Iron Rock Insurance, Lasco Financial, Fontana, Elite Diagnostics, Honey Bun, JMMB Group and RJR.
The current TOP 10 report is based on earnings for 2020/21 as there are substantial gains ahead, for many stocks in the listings.
The top three Junior Market stocks with the potential to gain between 208 and 373 percent are Caribbean Producers followed by Elite Diagnostic and Lasco Financial. With expected gains of 132 to 324 percent, the top three Main Market stocks are, Berger Paints followed by Scotia Group and Sygnus Credit Investments.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, from now to the second quarter in 2021. The Junior and Main markets are currently trading well below the market average, indicating strong gains ahead. The JSE Main Market ended the week, with an overall PE of 18.8 and the Junior Market 15, based on ICInsider.com’s projected 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 8.3 at just 55 percent of the market average. Main Market TOP 10 stocks trade at a PE of 9.1 or 48 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 169 percent and 133 percent for the JSE Main Market, based on 2020-21 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. 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.

Filed Under: Buy Rated Tagged With: Access Financial, Berger Paints, Caribbean Assurance Brokers, Caribbean Flavours, Caribbean Producers, Carreras, Daily Trading, Emerging markets, General Accident, Grace Kennedy, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, junior market, Laco Distributors, Lasco Financial, Lumber Depot, Medical Disposables, Radio Jamaica, Scotia Group, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity, Victoria Mutual Investments

Jamaican Teas profit jumps sharply

February 6, 2021 by IC Insider.com

The Jamaican Teas Group enjoyed an outstanding first quarter with rising sales and profits fueled mainly by strong growth in exports that rose 88 percent over the prior year and accounted for 64 percent of total sales in the quarter and positive contribution from the investment division.

Jamaican Teas traded the most volume on Monday.

Sales rose 41 percent to $611 million and profit attributable to shareholders jumped 321 percent to $117 million from just $28 million in 2019. The improved profit result occurred with profit fully taxed compared to the 2019 quarter that was taxed at 50 percent of the normal rate for Jamaican Teas’ profits.
The real estate division also contributed to improved profits following completion of an apartment complex. The subsidiary QWI Investments, contributed positively to the profit performance following improved investment performance, resulting in the equity portfolio delivering a $143 million increase from dividends and capital appreciation of stocks in the quarter.
The supermarket contributed reduced sales and profit due to continued curfew restrictions on its hours of operation and the closure of schools. Manufacturing sales climbed 48 percent to $428 million for the quarter, with domestic sales increasing just 7 percent compared with a year ago.
First quarter revenues at the Supermarket amounted to $135 million slightly below the $142 million generated a year ago. There was a progressive fall in the rate of decline as the quarter elapsed.
The gross profit margin was a consistent year over year with a 27.5 percent margin for the latest quarter versus 27.4 percent for the 2019 first quarter for the group.
Marketing expenses fell for the quarter by $5 million to $8.7 million resulting mainly from the cost of new products launched in 2019, and not repeated in the latest quarter.
Administrative costs rose moderately by 11 percent to $63 million and Interest expense declined during the quarter resulting from lower interest rates on some borrowed funds. According to the directors in their quarterly commentary, referring to the sale of apartment units they developed, “we have signed contracts and expect to record sales for the last 4 apartments in our second quarter. Manufacturing sales after the end of the quarter are 15% higher in the first 28 days of January compared with a year ago and our quoted investments continued to improve.”
Earnings per share came in at 5.5 cents, 323 percent above the 2019 – earnings of 1.3 cents. ICImsider.com earnings forecast is for 30 cents per share, gains in the investment division could impact it positively or negatively. Based on the forecast the PE ratio at the last traded stock price of $2.75 is 9.2, suggesting a strong upside for the stock assuming a target PE of 20.
Jamaican Teas produces black and green and many herbal teas, soaps and some other consumer product and owns a supermarket and has a subsidiary that invests in local and overseas stocks. The chairman of the group is John Jackson.