junior market — Page 121

Shake up in Junior Market ICTOP10

April 17, 2021 by IC Insider.com

Trading in the past week saw the Junior Market continuing its bullish rise, to sit at a 14.5 months high, but the Main Market continues to consolidate, sitting well below last April’s peak, but technical signals suggest that this situation is going to end soon.
Increased buying came into the market for Caribbean Cream during the past week, but the price pulled back slightly at the close to $6.34 for the stock to return to the TOP 10 at the expense of Main Event that closed the week with an impressive gain of 36 percent as it closed at $4.74. There were no exits or additions to the Main market TOP 10. Additionally, the top three Junior Market stocks changed markedly, with only one from last week remaining in the top three.
Recent activity in Caribbean Cream’s stock comes against the background of a rising stock price from a low of $4.35 to $6.34 over the past month and seems to suggest that investors are anticipating positive news when the company releases full year results later this month. The board meets next week Friday to consider a dividend. The financials for the full year to February should be released in days after.
The main market continues to trade in a narrow channel and now shows signs that a break out is imminent. First quarter results start coming in the latter part of this month and will determine the short-term move. In this regard, watch Barita Investments, Caribbean Cement, Grace Kennedy, Jamaica Producers, NCB Financial, PanJam Investment and Sagior Group.
The top three stocks in the Junior Market at the end of the last week are Jetcon Corporation followed by Main Event and Elite Diagnostic, but the list has changed and is now headed by Stationery and Office Supplies, followed by Elite Diagnostic and Medical Disposables with the potential to gain between 286 to 317 percent. The top three Main Market stocks remain unchanged, but in a slightly different order, with Radio Jamaica in the number one spot, followed by VM Investments and PanJam Investment, with expected gains of 190 to 394 percent.

Knutsford Express

The Junior Market and the Main Market continue to get support from technical indicators that point to robust gains ahead. Added to the technical indicators is the limited supply of shares for some companies. One such is Caribbean Cream that currently has few offers on the board, the same goes for Elite Diagnostic, Stationery and Office Supplies, Lasco Financial, Main Event, ISP Financial, Cargo Handlers. In the Main Market, Berger Paints, Jamaica Producers and Radio Jamaica show limited supply in the market currently.
This week’s focus: Investors should key an eye on Consolidated Bakeries, Fosrich and Jamaica Producers, this week, all three stocks have very low supplies on offer currently. Lasco Manufacturing has a large volume on the bid at $4.50 at the close on Friday and should also be watched. Knutsford Express is not in our TOP 10, but the latest results show that a turnaround has started with the February quarter showing a moderate loss of a mere $1.7 million from sales that fell 42 percent from $318 million to $185 million. The results show a marked improvement over November when revenues fell from $283 million to $149 million with a loss of $34 million. The results for the latest quarter supports ICInsider.com’s forecast for the company to return to profit for the 2022 fiscal year.
The targeted PE ratio for the market averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. For reference, fiscal 2020-21 average PE ended at 17 for Junior Stocks and 19 times for the Main Market at the end of March 2021. With interest rates on government paper below 5 percent and likely to remain there for a few years, the likelihood is for the average PE ratios to climb higher during the next twelve months.
The Junior Market, with an average PE 12.4 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17. The Junior Market Top 10 stocks average a mere 5.8 at just 46 percent of the market average, indicating strong gains ahead. The JSE Main Market ended the week with an overall PE of 15.4, some distance from the 19 the market ended March at. The Main Market TOP 10 trades at a PE of 7.3 or 48 percent of the PE of that market and well off the potential of 20.
The average projected gain for the Junior Market IC TOP 10 stocks is 252 percent and 185 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

IC TOP10 gaining from rising Junior Market

April 10, 2021 by IC Insider.com

Trading in a week cut short by the Easter Monday public holiday and half a day on Friday saw the Junior Market continuing its bullish rise, to sit just a few points below the January 2020 close, but the Main Market continues to consolidate, sitting well below last April peak and even worse, the February level of over 500,000 points.

Caribbean Cream

The past week saw Caribbean Cream finally moved higher, with supplies of the stock drying up at lower levels and few stocks currently on offer, with investors anticipating positive news when the company releases full year results later this month or early in May. The stock dropped out of the Top 10 and now sits at the 11^th spot and should have more juice to move much higher, but it will depend on results due in a few weeks’ time.
General Accident moved up to fill the spot left vacant by Caribbean Cream. The main market continues to trade in a narrow channel and shows no sign of a breakout. First quarter results start coming in the latter part of this month and will determine the short-term move. In this regard, watch Barita Investments, Caribbean Cement, Grace Kennedy, NCB Financial, PanJam Investment and Sagior Group.
The top three stocks in the Junior Market at the end of the week are now Jetcon Corporation, followed by Main Event and Elite Diagnostic, with the potential to gain between 275 to 305 percent. The top three Main Market stocks remain unchanged, with Radio Jamaica in the number one spot, with the price moving from $1.48 last week to $1.61, followed by PanJam and VM Investments, with expected gains of 178 to 397 percent.
The Junior Market and the Main Market continue to get support from technical indicators that point to robust gains ahead. Added to the technical indicators is limited supply of shares for some companies. One such is Caribbean Cream that currently has few offers on the board, the same goes for Elite Diagnostic, Stationery and Office Supplies, Lasco Financial Main Event, ISP Financial, Cargo Handlers. In the Main Market, it’s Radio Jamaica and Berger Paints.
The targeted PE ratio averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. For reference, fiscal 2020-21 average PE ended at 17 for Junior Stocks and 19 times for the Main Market at the end of March 2021. With interest rates on government paper below 5 percent and likely to remain there for a few years, the likelihood is for the average PE ratios to climb higher during the next twelve months.
The Junior Market, with an average PE 12.3 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17. The Junior Market Top 10 stocks average a mere 5.7 at just 47 percent of the market average, indicating strong gains ahead. The JSE Main Market ended the week with an overall PE of 15, some distance from the 19 the market ended March at. The Main Market TOP 10 trades at a PE of 7.4 or 50 percent of the PE of that market and well off the potential of 20.
The average projected gain for the Junior Market IC TOP 10 stocks is 251 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 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, Medical Disposables, Radio Jamaica, Scotia Group, Stationery and Office Supplies, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity, Victoria Mutual Investments

FosRich closes the year with strong 4th quarter

April 7, 2021 by IC Insider.com

FosRich, a Junior Market listed company that is a distributor of lighting, electrical and solar energy products, recently added the manufacturing of PVC pipes and repairing of transformers to its list of goods and services it provides.
The company reported strong fourth quarter results, with profit before tax rising 46 percent to $50 million from $34 million in the December quarter of 2019. Profit rose just 15 percent over 2019 to $126 million for the 2020 fiscal year, up from $110 million in 2019.
They incurred $2.7 million in taxes for 2019 due to under accrual of the 2016 taxation and no interest income was booked on advances to a related company. There was no tax charge in 2020, under tax savings enjoyed from listing on the Junior Market.
Revenue climbed 18 percent in both the final quarter and for the year, coming in at $504 million and $1.9 billion, respectively, up from $1.6 billion for 2019. “The product lines that had significant increases over the prior year were PVC Products, which grew by 252 percent, Industrial Electrical Products, which grew by 194 percent, Hardware, which grew by 153 percent and Control Devices which grew by 144 percent,” management reported in the analysis of the company’s financial performance for the year.
Other income dropped 38 percent for the year to $32 million, from $52 million in 2019 and fell from $30 million in the final 2019 quarter to negative $366,000 in the 2020 fourth quarter.
Cost of sales increased by a mere one percent for the quarter but grew by 19 percent for the year, from $902 million to $1.1 billion. Gross profit climbed 39 percent for the December quarter to $270 million and 16 percent to $825 million for the 2020 fiscal year, up from $709 million in 2019. Gross profit margin for the year remained at a healthy 44 percent and 54 percent for the final quarter. Cost of sales is based solely on cost of goods sold and not the full direct cost entailed in selling. It is troubling that with such a high mark up on goods sold, net profit is just contributing a mere 6.6 percent, due partially to the high level of inventory carried and high distribution cost currently, in addition, finance cost accounted for 8.4 percent of sales in 2020 and 6.79 percent in 2019.

Mark Croskery speaking to Cecil Foster, Managing director of FosRich before the company went public.

The high finance cost includes cost of funds advanced to a related party, and the amount includes provision for expected losses on receivables. At the year-end, near two year’s supply of inventories were on hand, but that is up from about 13 months at the end of September. The level of inventories consumes around half of the profit margin due to the turn over time for the inventory. “Vagaries of the supply chain due the holidays in China” resulted in the increased year-end inventories in 2020, Foster informed ICInsider.com. Foster further indicates that they have seen inventory position “steadily getting better.”
Administration, marketing and selling expenses fell 13 percent for the quarter but grew by four percent for the year from $487 million to $506 million. Finance cost rose 46 percent for the year to $160 million, from $109 million with $38 million of the increase due to provision for expected credit losses.
Current assets for the 2020 financial year stood at $2 billion inclusive of cash and bank balances of $34 million and trade receivables of $245 million, while current liabilities increased by 5 percent to $580 million. Shareholders’ equity stood at $869 million and borrowings totalled $1.6 billion, resulting in a high degree of leveraging that is extremely risky.
A total of $365 million is due from a related party, with the funds used to complete the construction of an apartment complex in Kingston that is yet to be completed. According to Cecil Foster, Managing Director, the units are virtually complete and should be disposed of within two months. “All 80 units are sold at prices between $16 and $35 million and that will allow for full repayment this year of the amounts advanced,” Foster informed ICInsider.com. No interest was booked on the debt during the year, even as Fosrich has to pay interest on amounts borrowed to help fund the amounts due from the related party. The cost to the company is around $30 million per year, Foster confirmed that interest is payable and will be fully paid when the debt is paid this year.
FosRich paid dividends of 9.5 cents per share in November 2020, amounting to $48 million. Earnings per share came out at 25 cents for the fiscal year.

ICInsider.com projects 45 cents per share for 2021.
The company is not focusing solely on its traditional business of distribution. In 2019, the company commenced the manufacturing of PVC pipes, with the plant producing 16 different types of PVC pipes, on a 24-hour basis and currently has the capacity to supply the entire local market. According to the company’s management, PVC Products delivered revenues of $66 million for the period in 2019 that they operated and in 2020 up to September. “We have been profitable in this area since November last year, Foster told ICInsider.com.” There is more to come from the manufacturing of PVC pipes. “We will be manufacturing four to sixteen inch PVC pipes at Hayes in Clarendon as well as fittings for the pipe,” Foster informed this publication. From all indications, the company should have a full year of profit for the pipe division in 2021.
After 20 months of discussions with JPS in taking over their pole-mount transformer repair activity, the company has an agreement to do so and the activity is now in operation. Phase one of the reconstruction of our new distribution centre at 76 Molynes Road is completed, management told shareholders in their September interim report.
The application for Blue Emerald Limited, a new company for registration under the Special Economic Zone Authority, in order to take advantage of the significant long-term tax concessions is at an advanced stage. Activities being undertaken at the new Hayes facility in Clarendon will be done through this company, acting exclusively for FosRich under a contract manufacturing arrangement.
The stock last traded at $5.25 on the Junior Market of the Jamaica Stock Exchange with a PE of just 11.7. Going forward, Foster says that 2021 has started out well in fact, he said “very good.” As such, shareholders can look forward to more gains in 2021. This is clearly a stock to have on ones’ watch list if not already owned.

Filed Under: Company News, Company Results Tagged With: Emerging markets, Emerging Stock, FosRich Company Limited, Jamaica Stock Exchange, Jamaican stocks, junior market

Rising Junior Market shifts IC TOP10

April 3, 2021 by IC Insider.com

Add your HTML code here...

Stationery and Office Supplies (SOS) jumped to the top spot in the Junior Market IC TOP10 this week, with the price falling to $4.78 while PanJam Investment slid into the number two spot for the Main Market, but Radio Jamaica still remains in the number one position.
The top three stocks in the Junior Market are now SOS, followed by Elite Diagnostic Main Event and Jetcon Corporation. The top three Main Market stocks are Radio Jamaica, followed by PanJam and VM Investments. The top three junior Market stocks have the potential to gain between 295 to 318 percent and those in the main market with expected gains of 173 to 452 percent.
TOP 10 stocks had a few changes during the past week, with Berger Paints back in the Main Market TOP10, replacing Sterling Investments that entered the list last week, while for the Junior Market, Caribbean Assurance Brokers returns to the TOP 10 as General Accident moved out.
The Junior Market TOP10 contains several companies that suffered a sharp reversal of fortunes in 2020, with recovery projected in 2021. Green shoots are visible for some, with sales picking up in recent quarters and improving profit.
Some of these companies may require another quarter or two of improvement before meaningful buying starts. Main Event, Caribbean Producers, Knutsford Express, Express Catering and Stationery and Office Supplies are some of the companies that are in this category.
The Main Market has 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.
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 to come, many investors will need to be on board at an early stage.
This week’s focus: Future Energy Source Company Initial Public Offer of 500 million shares, that ICInsider.com indicated last week should be snapped up quickly by investors, with the company having long-term prospects for strong growth, did just that. NCB Capital Markets, the brokers for the issue, reported on Thursday that the issue, priced at 80 cents per share and opened on Wednesday, closed on Thursday after another Junior Market IPO issue was oversubscribed. The successful closure of the issue will see the number of listed companies rising to 42 from the current 41.
The targeted PE ratio averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended at 17.2 for Junior Stocks and 19 times for the Main Market at the end of March 2021. With interest rates on government paper below 5 percent and likely to remain there for a few years, there is the likelihood for the average PE ratios to climb higher during the next twelve months.
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 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 5.4 at just 55 percent of the market average. The Main Market TOP 10 trades at a PE of 7.4 or 50 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 274 percent and 186 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, Dolphin Cove, 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

Oversubscribed

April 3, 2021 by IC Insider.com

Future Energy Source Company Initial Public Offer of 500 million shares, which ICInsider.com indicated last week should be snapped up quickly by investors, with the company having long-term prospects for strong growth, did just that, with investors snapping the shares within two days of the opening.
NCB Capital Markets, the brokers for the issue, reported on Thursday that the issue, priced at 80 cents per share and opened on Wednesday, closed on Thursday the Junior Market IPO issue was oversubscribed. The successful closure of the issue will see the listings of companies rising to 42 from the current 41 on the Junior Market of the Jamaica Stock Exchange.
The company that trades as Fesco reports earnings of $92 million before taxation for the period to December last year from revenues of $4.35 billion and is projecting pretax profit of $151 million for the year to March 2021 and $264 million for the 2022 fiscal year. The plant is for two new gas stations to be added to the current 14 before the end of 2021.

Filed Under: Initial Public Offers Tagged With: Emerging market, FESCO, Future Energy Source Company, IPO, Jamaica Stock Exchange, Jamaican stocks, junior market, NCB Capital Markets

Junior Market jumps 47% since March 2020

April 3, 2021 by IC Insider.com

The Junior Market climbed 47 percent in just over a year since the market collapsed by just over 39 percent in March last year from the close of 2019 when the market hit a multi-year low of 2,031.79 on March 18 last year.
At the same time, the JSE Main Market, while trading above the March 2001 low, is nowhere near the 2020 high and closed out the first quarter marginally down on the 2020 closing.
The Junior Market is up 13 percent for 2021 to the end of March, clawing back most of 21 percent of the fall in 2020 and is now just 11 percent from the close of 3,348.97 at the end of December 2019.
In 2020, the Junior and Main Markets declined, with the Junior Market just edging out the Main Market index with a lower decline of 21 percent versus 22.6 percent for the year.
One year ago, to the end of March, the Junior Market Index dropped 29 percent to 2304.14 but was down a much steeper 47 percent to March 18, at 2031.79 points on the market index. The March 2020 low was the lowest point for the Junior Market since it closed at 2,032.77 points on July 1, 2016.
The market made some recovery last year from the year’s low when it moved higher on April 14, to 2,686.90 points but drifted down after some attempts to break over 2,600 points on a sustained level and closed out 2020 at 2,643.38.
In the meantime, the JSE Main Market failed to move higher in 2021, ending the first quarter 0.20 percent lower than the December close. It is still a bit lower than the 442,905.76 reached on the All Jamaica Composite Index after the early rebound from the 2020 low of 375,091.09 reached on March 25 last year, or the 438,045.18 reached subsequently on November 30.
The gains of eighteen stocks in the first quarter, this year, exceed that of the average of the market and just three performed worse, including CAC 2000 with a fall of 24 percent 19 percent decline for Dolphin Cove and 16 percent in the case of Knutsford Express. Five stocks contributing to the 2021 rebound for the Junior Market are Jamaican Teas up 60 percent, Indies Pharma 48 percent, Lumber Depot 47 percent, Blue Power 35 percent, Caribbean Flavours 35 percent and Fosrich 28 percent.
The Main Market recorded gains in 16 stocks that beat the market’s average move in 2021, with 26 falling below. Main market stocks with healthy gains are Ciboney with a stunning 142 percent rise, followed by Salada Foods with 125 percent gain aided by a 10 to one stock split, Grace Kennedy 37 percent, First Rock 31 percent and proven Investments 27 percent. Palace Amusement Company that the Covid-19 dislocation has badly hurt is the worst-performing stock with a 51 percent decline, followed by Portland JSX with a loss of 25 percent and Radio Jamaica with 22 percent. Wisynco lost 14 percent and Wigton Windfarm 13 percent.

Filed Under: Feature Stories, JSE Combined, Stock Market Tagged With: CAC 2000, Caribbean Flavours, Ciboney, Dolphin Cove, Emerging markets, Grace Kennedy, Indies Pharma, Jamaica Stock Exchange, Jamaican Stock, Jamaican stocks, Jamaican Teas, junior market, Knutsford Express, Palace Amusement Company, Portland JSX, Proven Investments, Radio Jamaica, Wigton Windfarm, Wisynco Group

Fosrich APO coming

March 29, 2021 by IC Insider.com

FosRich, a distributor of lighting, electrical and solar energy products and a Junior Market listed company, seems set to go back to the capital market to raise funds for expansion and reduce loan funding.
“We are currently examining a possible additional Public Offer (APO) in 2021,” managing director Cecil Foster stated in response to ICInsider.com enquiry as to why would they not take advantage of favourable market conditions currently to reduce the high debt load.
Fosrich borrowed debt totalling $1.6 billion is more than twice the Shareholders’ equity of $869 million at the end of December last year. The company has lent nearly $400 million to a related party that should be repaid this year, with the proceeds expected to reduce the debt load. Even after that, the company will still be overleveraged and will need approximately $500 million in new equity to bring its financing to accepted levels. Any new issue seems unlikely until the last quarter of 2021, with the company annual general meeting that will likely be held in August, as was the case in 2020 that would most likely approve such an issue. Additionally, with the stock now price over $5, a stock split would likely be considered to be approved at the 2021 AGM.
The company had a successful 2020 financial year with increased profits from rising sales and the stock price rising 31 percent so far in 2021.

Filed Under: Company News, General Business News, Initial Public Offers Tagged With: APO, Emerging markets, FosRich Company Limited, Jamaica Stock Exchange, Jamaican Stock, junior market

Rising Junior Market shifts up IC TOP10

March 28, 2021 by IC Insider.com

During the past week, the Junior Market moved decisively up, with the market index closing well above the 2,900 mark that became a barrier for weeks, surpassing the 3,000 level, but closed trading since Tuesday just a few points below and is poised to move higher in the weeks ahead. Main Market stocks remain in the consolidation zone awaiting profit results to move prices higher.
TOP 10 stocks had a few changes during the past week, with Berger Paints back in the Main Market TOP10, replacing Sterling Investments that entered the list last week, while in the Junior Market, Caribbean Assurance Brokers returns to the TOP 10 as General Accident moved out.
This publication has stated that Junior Market TOP10 contains several companies that suffered a sharp reversal of fortunes in 2020, with recovery projected in 2021. Green shoots are showing for some with sales picking up in recent quarters, with improving profit. Some of these companies may require another quarter or two of improvement before meaningful buying starts. Main Event is one such company, reporting a profit on reduced income for the January quarter. Revenues climbed solidly in the latest quarter over the October and July quarters, but still far below the prior year’s level. Caribbean Producers is another that will definitely benefit from pick up in the tourist trade later in the year. Expect also companies such as Knutsford Express, Express Catering and Stationery and Office Supplies to be on that list.
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: Future Energy Source Company Initial Public Offer of 500 million shares at 80 cents per share opens on Wednesday, with pretax earnings for the fiscal year to March this year around 7 cents per shares. The shares should be snapped up quickly by investors, with the company having long-term prospects for strong growth.
The top three stocks in the Junior Market mostly changed, with the potential to gain between 285 to 288 percent are Elite Diagnostic, followed by Main Event and Jetcon Corporation. The top three Main Market stocks with expected gains of 173 to 433 percent are Radio Jamaica, followed by VM Investments and Jamaica Broilers.
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 50 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 267 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, JSE Combined, Stock Market Tagged With: Access Financial, Berger Paints, Caribbean Assurance Brokers, Caribbean Producers, Daily Trading, Emerging markets, FESCO, General Accident, Grace Kennedy, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, 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

Fesco IPO opens next week

March 24, 2021 by IC Insider.com

Future Energy Source Company (Fesco) initial public offer of shares will open at 9 am on Wednesday, March 31 and close on April 9, at 4 PM, unless it closes earlier.
The issue comprises 300 million new shares with 200 million to be sold by existing shareholders at 80 cents each. If successful, the total issued shares will be 2.5 billion, with the shares slated to list on the Jamaica Stock Exchange Junior Market.
The projection shows a profit of $151 before taxes for the year ended March 2021 from revenues of $7 billion and earnings per share of 7 cents. The company forecast revenues of $106 billion and a profit of $264 million or 10.5 cents per share for 2022.
ICInsider.com had earlier done a detailed review of the offer and rated it a buy with long term growth prospects as there is much room for expansion as it currently has only 14 service stations under its banner. NCB Capital Markets is the lead broker.

Filed Under: Buy Rated, Initial Public Offers Tagged With: FESCO, Future Energy Source Company, IPO, Jamaica Stock Exchange, Jamaican Stock, junior market, NCB Capital Markets

More record profits for Limners & Bards

March 20, 2021 by IC Insider.com

Limners and Bards reported strong first quarter results with rising revenues and profit for the first three months of the new fiscal year. Revenues for the quarter ending in January this year grew a strong 36 percent over the 2020 period to $356 million from $263 million, with profit rising 36 percent to $67 million as cost of operations rose 38 percent over the 2020 period.
Profit for the quarter is more than 50 percent of the profit of $127 million made in the fiscal year ending October 2020.
The growth in revenues continues the increase of 31 percent enjoyed in 2019 over 2018 and 44 percent in 2020 over 2019. “The revenue growth is attributable to increases in the company’s core business, media placement (up $21.3 million or 16.6 percent) and production (up $72.8 million or 92.3 percent). These increases were to some extent offset by reduction in advertising agency (down $0.9 million or 1.7 percent) during the period,” Steven Gooden, Chairman and Kimala Bennett, Chief Executive Officer, stated in their report to shareholders in their comments on the results for the first quarter.
The principal activities of the company is that of an advertising and public relations agency and have several large Jamaican businesses as clients.

Kimala Bennett, Chief Executive Officer of The Lab.

Cash and cash equivalents climbed to $342 million from $249 million at the end of the first quarter in 2020 but is down from $380 million at the end of the fiscal year ended October last year after the company paid $70 million in dividends. Current assets ended at $560 million, with current liabilities at $157 million, leaving them in a healthy working capital position. Shareholders’ equity stood at $461 million at the end of the 2021 first quarter, slightly lower than the $464 million at the end of October last year.
The company seems set to nearly doubling profit for the full year, with a profit of approximately $200 million and earnings per share of 20 cents. The stocks traded at $2.80 on the Junior Market of the Jamaica Stock Exchange on Friday last, with a PE of 14 based on projected earnings.
The stock seems to be meeting resistance at $3, after trading at a record high shortly after listing in 2019 when it hit $4. This past week following the results, it traded at $2.95 when 1.1 million units traded, followed by 3.1 million on Friday, the highest daily volume for some time. Prior to December 2019, it hit $3 and again in December 2020, $3.10 and then retreated, but could move up to $3.30 with a PE of 16.5 times this year’s earnings.