JamTeas gains 111% to top ICTOP10 picks

May 2, 2021 by

Six Main Market ICTOP15 stocks raked between 23 and 37 percent year to date and seven of the Junior Market picks produced gains from 22 percent to 111 percent for the first four months of 2021.

Jamaican Teas stock price is up 1115 for 2021 and up 234% in just under a year.

The only top performing Main Market stocks for the period not captured by the TOP15 are Ciboney, up a stunning 121 percent at 53 cents, even after the price move up to just over $2 earlier this year, followed by Salada Foods with an incredible rise of 147 percent, Eppley Property Fund with an increase of 46 percent and Proven Investments gaining 28 percent.
The top performing Junior Market stocks to date that were not in the ICTOP15 are Fosrich with a gain of 86 percent, Blue Power 56 percent, Express Catering up 29 percent, Caribbean Flavours at 33 percent and Lasco Manufacturing with a 35 percent increase.
The highlight of the stock market this past week was the 216 percent surge in Carib Cement’s profit, from record revenues that jumped 31 percent for the 2020 first quarter. As expected, the stock jumped to a 52 weeks’ high of $95.50. The company was one of ICTOP 15 listings at the start of the year and is up 40 percent so far and still has much more gains ahead of it. The other notable development is the Main Market recording of gains for 14 days unbroken.
Other stocks in the TOP15 list that have gone on to do well are Carreras up 37 percent, Grace Kennedy with a rise of 35 percent, Jamaica Producers up 33 percent, QWI Investments up 25 and Seprod 23 percent in the Main Market. In the Junior Market, the winners are Caribbean Cream with a gain of 34 percent, Caribbean Producers up 41 percent, Stationery and Office Supplies with a gain of 25 percent. Now out of the top listings are Jamaican Teas with a 111 percent gain for the year to date, Lumber Depot up 88 percent, Lasco Distributors with a rise of 22 percent and MailPac up 25 percent. Future Energy Source that was added to ICTOP 10 earlier this year has a gain of 28 percent, but much more is expected for these stocks in the rest of the year.
There are no changes to companies on the ICTOP10 listings this week. The bullish tone of the Junior Market and the Main Market continues, with more gains expected in the coming week supported by strong technical signals and fundamentals of stocks and the overall market.
Watch these stocks over the next few weeks, Barita Investments, Caribbean Cement, Grace Kennedy, Jamaica Producers, PanJam Investment and Sagior Group, MailPac, Access Financial, Lasco Financial, Lasco Distributors, Caribbean Cream, ISP Financial.
The top three stocks in the Junior Market are headed by Elite Diagnostic, followed by Main Event and Medical Disposables, with the potential to gain between 261 to 293 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by PanJam Investment and Jamaica Broilers, with expected gains of 181 to 410 percent.
This week’s focus: Fosrich reported a 22 percent rise in revenues to $549 million, up from $449 million in the prior year with gross profit rising 13 percent to $192 million, from $170 million in 2020 with net profit surging 697 percent to $38.4 million, from only $4.8 million in the 2020 first quarter. Earnings per share jumped to 8 cents from one cent in 2020. Administrative expenses fell slightly to $144 million, from $146 million in 2020 and finance cost slipped to $24.8 million compared to $26.2 million in the 2020 quarter.
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. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Stocks and 19 times for the Main Market. 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 13 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17; this represents another 31 percent rise in the market that would equate to a rise of 50 percent to March 2022. The Junior Market Top 10 stocks average a mere 5.8 at just 44 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 16.5, some distance from the 19 the market ended March, suggesting a 20 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.7 or 46 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 248 percent and 175 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 increase 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.

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Fesco jumps ICTOP10 with 33% gains

April 24, 2021 by

Future Energy Source commenced trading on the Junior Market on Friday and closed with a 33 percent gain from the 80 cents public offer price offer to close at $1.06. Its performance saw it slipping from the ICTOP10 list but with room for more growth based on expected 2021/2 earnings.
Future Energy Source was replaced by Main Event, with the latter falling from $4.74 last week to $4.05 this week. The Main Market TOP 10 saw no change to companies on the list. The bullish tone of the Junior Market was joined by the Main Market this past week, with the latter now breaking out of a narrow channel it was trading in for some time, as this publication suggested would happen soon.
The markets made more gains in the past week, with the Main Market recording its ninth day of unbroken gains on Friday, but technical signals suggest a continuation of the rally.
Watch these stocks over the next few weeks, Barita Investments, Caribbean Cement, Grace Kennedy, Jamaica Producers, NCB Financial, PanJam Investment and Sagior Group.
The top three stocks in the Junior Market are headed by Elite Diagnostic, followed by Medical Disposables and Jetcon Corporation, with the potential to gain between 285 to 300 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by PanJam Investment and VM Investments, with expected gains of 174 to 388 percent.
Added to the technical indicators is a 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, its Berger Paints, Jamaica Producers and Radio Jamaica.
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. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Stocks and 19 times for the Main Market. 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 12.9 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17; this represents another 32 percent rise in the market that would equate to a rise of 50 percent to March 2022. The Junior Market Top 10 stocks average a mere 5.8 at just 45 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 16, some distance from the 19 the market ended March at, suggesting a 19 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.5 or 47 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 247 percent and 178 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 increase 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.

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Fesco trades at $1.04

April 23, 2021 by

Fesco opened trading on the Junior Market of the Jamaica Stock exchange on Friday, trading 2.38 million shares at $1.04 up from 80 cents the share were sold to the market at.
The stock has 151,000 units on the bid at $1.04 with just 55 000 on offer at $1.06, but trading is frozen for an hour. The rise helped to push the Junior Market Index up to 3,155.07. The Main Market has climbed to 446,096.49 at 9.43 after rising to a high for the session of 446,591 points.

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

Knutsford Express on the mend

April 22, 2021 by
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Good turnaround candidates are companies that investors can make oversized gains from, Knutsford Express falls into this category and investors would be wise to take a serious look at the company’s third quarter results to February this year.

Knutsford Express

While they did not return to profit in the quarter, they made huge strides in almost closing the gap, with the February quarter showing a moderate loss of a mere $1.7 million from revenues 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. At the same time, the Jamaican operation enjoyed a breakeven position in the third quarter. The performance is in keeping with the Directors, comments stated in their report accompanying the quarterly for November, “we expect an improved performance in the next quarter.”
Information coming in about the tourist sector indicates that the industry is on the mend with the expectation for high demand for the summer months. This will augur well for Knutsford that transports visitors to places like Negril and Ocho Rios. In addition, a more buoyant tourism sector and greater vaccination of Jamaicans will encourage more Jamaicans to travel using their buses.
The latest development is good news for the company that suffered an 11 percent decline in revenue and a 78 percent drop in profit for the 2020 financial year and a loss of $26 million for the August 2020 quarter, which worsened to $34 million in the November quarter. This followed the $70 million loss incurred in the April quarter last year, as dislocations caused by the impact of the COVID virus the company’s severely affected operations.
For the February quarter, administrative and operating expenses fell at a much slower pace and amounts than the fall in revenues, with expenses dropping 31 percent from $271 million in the 2020 January quarter to $187 million in 2021.

Knutsford Express closed at an all time high of $16 on Friday

Finance income in the 2021 quarter pulled in $4 million compared to $757,190 collected in 2020, while finance costs declined from $7 million in 2020 to $4 million in 2021.
Revenue dropped 51 percent from $925 million for the nine months to February 2020 to $456 million in 2021.
For the nine months to February this year, administrative and operating expenses fell at a much slower pace and amounts than the fall in revenues, with expenses dropping 35 percent from $797 million in the 2020 quarter to $514 million in 2021. Depreciation charges accounted for $87 million, up from $74 million in 2020.
The US operation generated a mere $638,000 in revenue and a loss of $11 million that is down from the prior year with a loss of $26 million from revenues of $21 million.
Cash flows from operating activities brought in $31 million, down from $190 million at the end of January 2020. After spending $137 million on the acquisition of fixed assets and borrowing $65 million, the balance of cash funds fell to $38 million at the end of the period, down from $96 million at the end of January 2020. The company also has investments amounting to $101 million compared to $140 million at the end of February 2020. The build out of their Drax Hall Business centre has used up some of the funds.
Current assets ended at $183 million at the end of the quarter, down from $357 million at the end of February in the previous year. Current liabilities stood at just $96 million and is well covered by current assets. At the close of January, shareholders’ equity stood at $710 million, down from $845 million as of January 2020. The company has borrowings of $300 million in borrowed funds on the books.
Earnings per share came out at a loss of just one cent for the quarter and 13 cents for the nine months. The company stands a good chance of returning to full or nearly full operations in the new fiscal year commencing in June. ICInsider.com’s estimate is for earnings per share of 45 cents for a PE of 20 times 2022 projected earnings. Knutsford Express currently trades on the Junior Market of the Jamaica Stock Exchange at $9.
The results for the latest quarter support ICInsider.com‘s forecast for the company to return to profit for the 2022 fiscal year.

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

JSE main Market at 12 months high

April 19, 2021 by

The Jamaica Stock Exchange hit the highest points on Monday Morning trading since it closed above the 442,906 points level on April 14, 2020. The Junior Market now trades at the highest level since January 31, last year with the index now at 3090.76, up from the previous high of 3,098.16 at the close of January 29 2020.

Filed Under: Breaking News, JSE Combined, Stock Market Tagged With: , , ,

Shake up in Junior Market ICTOP10

April 17, 2021 by

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.

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IC TOP10 gaining from rising Junior Market

April 10, 2021 by

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 11th 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.

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FosRich closes the year with strong 4th quarter

April 7, 2021 by

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: , , , , ,

Rising Junior Market shifts IC TOP10

April 3, 2021 by

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: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Oversubscribed

April 3, 2021 by

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: , , , , , , ,