All three markets of the Jamaica Stock Exchange pulled back on Thursday following a drop in the value and volume of stocks traded compared with Wednesday’s levels.
At the close, the JSE Combined Market Index dropped 3,151.37 points to close trading at 333,982.14, the All Jamaican Composite Index fell 1,860.37 points to 355,008.73, the JSE Main Index dived 3,329.09 points to end at 320,306.69, the Junior Market Index shed 4.93 points to settle at 3,835.97, while the JSE USD Market Index slipped 1.20 points to end at 240.16.
Trading of Preference shares ended, with Eppley 7.75% preference share falling $1.85 to close at $18.20, Jamaica Public Service 7% declining $5 to $50 units and Jamaica Public Service 9.5% diving $249.99 to end at $2,800.01.
At the close, investors traded 14,063,900 shares in all three markets, down from 14,291,744 stocks on Wednesday. The value of stocks traded on the Junior and Main markets ended at just $47.66 million, down from $100.88 million on Wednesday. Trading on the JSE USD market ended with investors exchanging 389,899 shares for US$37,298 up from 45,555 units at US$14,460 on Wednesday.
The market’s PE ratio, the most popular measure used to determine the value of stocks ended at 16.8 on 2022-23 earnings and 11.7 times those for 2023-24 at the close of trading. ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
The PE ratio chart covers all ordinary shares on the Jamaica Stock Exchange. It shows companies grouped by industry, allowing for easy comparisons between the same sector companies and the overall market. The EPS & PE ratios are based on 2023 and 2024 actual or projected earnings, excluding major one off items.
Investors need pertinent information to successfully navigate numerous investment options in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
Investors should use the chart to help make rational decisions when investing in stocks close to the average for the sector and not going too far from it unless there are compelling reasons to do so. 
This approach helps to remove emotions from investment decisions and place them on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices.
Dividends paid or payable and yields for each company are shown in the Main and Junior Markets’ daily report charts along with the closing volume pertaining to the highest bid and the lowest offer for each company.
Dolla Financial an attractive performer
Supreme Ventures (SVL) recently informed investors of purchasing a 15 percent shareholding in the fast-growing Junior Market listed company – Dolla Financial Services.
According to SVL, the acquisition continues to align with SVL’s growth strategy, which has expanded beyond the gaming market and has been making headway into other growth industries with significant potential to meet the ever-growing needs of an eclectic consumer base.
The purchase is a high profile one, with Dollar Financial reporting second quarter profit of $105 million, a robust 78 percent increase over the $59 million in the June 2022 quarter as it pumped up profit by a solid 91 percent to $227 million for the six months to June, versus $119 million in 2022.
Dolla recorded total income for the six months to June 2023 of $592 million, an increase of 98 percent over the $298 million for the six months to June 2022. Fees and other income brought in $13 million for the quarter, up from just $4 in the June 2022 quarter and $26 million for the half year, from $4 million in 2022.
Net interest income, before expected credit losses, rose 69 percent to $242 million in the June Quarter, up from $143 million in 2022 and for the six months to $490 million, reflecting a growth of 80 percent over $272 million generated in the prior year, driven by loan expansion.
The period shows a small amount set aside for expected credit losses, but the cash flow indicates only 75 percent of interest earned was collected during the period, down from 77 percent for 2022 wit, with the first half coming in at 80 percent for the 2022 full year.
The company indicates that some 80 percent of loans made are collateralized. As such, they may not need to provide for all late payers as it could well recover some from the disposal of collaterals held against loans granted.
Operating expenses almost doubled in the June quarter to $144 million from $77 million and rose 97 percent to $270 million from $137 million for the six months. The company stated that the increased cost is “primarily due to intensified marketing efforts and increased staff capacity.”
Earnings per share ended at 4 cents in the latest quarter and 9 cents year to date and is expected to exceed 30 cents for the year. The stock trades around $2.65 and above, an attractive entry point for medium term investment over a year.
Loans receivable net of expected credit losses reached $2.57 billion, representing a substantial increase of $1.5 billion, a 145 percent surge from $1.05 billion as of June 2022 and is also up over the $2.27 billion at the end of March this year. Business loans accounted for 81 percent of the total loan portfolio, with personal loans accounting for the rest, the company reported. Secured loans constituted 80 percent of the portfolio, with unsecured loans making up the remainder.
Loans payable increased to $1.7 billion from $430 million at the close of June 2022 and Shareholders’ Equity climbed to $900 million from $653 million at the end of June 2022.
At the end of June, cash resources stood at just $111 million, not a great deal to fund increased lending, but continued profitability will add to the amounts they can lend. Going forward, increased profitability and access to loan funding to facilitate rapid increased lending will be critical to the rapid profit growth.
Junior Market plunges
The Junior Market Index plunged 52.88 points to close at 3,840.90 on the Junior Market of the Jamaica Stock Exchange on Wednesday, with a 53 percent rise in the volume of stocks traded and a 62 percent more value than on Tuesday with 42 securities trading compared with 41 on Tuesday and ended with 15 rising, 20 declining and seven closing unchanged, after three stocks closed at 52 weeks’ high and one at a 52 weeks’ low.
Investors traded 6,681,293 shares for $19,409,351 versus 4,369,373 units at $12,002,310 on Tuesday.
Trading averaged 159,078 shares at $462,127 compared with 106,570 units for $292,739 on Tuesday with the month to date, averaging 203,801 units at $477,438 compared with 206,921 stock units at $478,506 on the previous day. July closed with an average of 326,541 units for $843,878.
Stationery and Office Supplies led trading with 1.02 million shares for 15.3 percent of total volume, followed by Future Energy Source with 920,263 units for 13.8 percent of the day’s trade and Spur Tree Spices ended trading with 732,924 units for 11 percent of market share.
The PE Ratio, a measure of computing appropriate stock values, averages 10.7. The PE ratios of Junior Market stocks are computed using the last traded price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
Investor’s Choice bid-offer indicator shows six stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, CAC 2000 slipped 9 cents to $6.90, with just 11 shares crossing the market, Cargo Handlers lost $1.04 and ended at $16.41 after investors traded 639 units, Caribbean Assurance Brokers shed 36 cents to close at $2.53, with 110 stocks changing hands. Caribbean Cream popped 35 cents to $3.82, with 15 units crossing the market, Consolidated Bakeries dropped 42 cents to $2.27 after 3,499 shares were traded, EduFocal dipped 17 cents in closing at a 52 weeks’ low of $1.32 in switching owners of 219,708 units. Elite Diagnostic fell 21 cents to end at $1.68 as 80,060 stock units passed through the market, Express Catering lost 77 cents and ended at $4.27 with investors exchanging 19,071 shares, Fontana rose 40 cents to close at $11 after a transfer of 300,250 stocks. Fosrich climbed 16 cents to close at $2.06 after an exchange of 157,437 shares, Future Energy Source dipped 20 cents to close at $3.50 after an exchange of 920,263 stock units, General Accident fell 51 cents and ended at $4.43 while exchanging 30,502 units. Honey Bun rallied 25 cents to end at $6.45 with shareholders swapping 6,247 shares, ISP Finance rose $2.57 to close at a 52 weeks’ high of $31.12 in an exchange of 2,737 units,
Knutsford Express shed 19 cents in closing at $11.01 with investors dealing in 8,440 stocks. Lasco Distributors gained 24 cents and ended at 52 weeks’ high of $4.94 with investors exchanging 384,973 stock units, Lasco Financial declined 32 cents to close at $1.80 with 20,000 shares clearing the market, Lasco Manufacturing increased 19 cents to a 52 weeks’ high of $5.69 with an exchange of 234,576 stocks. Limners and Bards dropped 17 cents in closing at $1.81 after 19,256 units changed hands, Lumber Depot declined 8 cents to end at $1.96 with a transfer of 6,002 stock units, Main Event increased 32 cents and ended at $14.50 with investors dealing in 8,559 shares. Medical Disposables fell 59 cents in closing at $4.26 in an exchange of 1,014 units, 
MFS Capital Partners dipped 20 cents to $2.20 with 213,878 stock units crossing the exchange, Regency Petroleum climbed 8 cents to end at $2.28 in trading 304,736 stocks and Stationery and Office Supplies lost 20 cents to close at $1.80 in trading 1,021,750 shares.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Junior Market plunges, Main Market gains
Trading climbed on the Jamaica Stock Exchange on Wednesday with the value and volume of stocks traded rising above Tuesday’s levels and resulting in a mixed close for the Exchange.
At the close, the JSE Combined Market Index popped 709.40 points to 337133.51, the All Jamaican Composite Index climbed 1,340.21 points to 356,869.10, the JSE Main Index increased 1,279.01 points to 323,635.78, the Junior Market Index plunged 52.88 points to settle at 3,840.90, while the JSE USD Market Index rose 0.66 points to end at 241.36.
Trading of Preference shares ended, with Jamaica Public Service 7% falling $1 to $55 and Jamaica Public Service 9.5% dropping $50 to $3,050, being the preference stocks with notable price movements.
At the close, investors traded 14,291,744 shares in all three markets, down from 13,335,561 stocks on Tuesday. The value of stocks traded on the Junior and Main markets ended at $100.88 million, up from $62.45 million on Tuesday. Trading on the JSE USD market ended with investors exchanging 45,555 shares for US$14,460 compared with 343,792 units at US$39,382 on Tuesday.
The market’s PE ratio, the most popular measure used to determine the value of stocks ended at 16.5 on 2022-23 earnings and 11.6 times those for 2023-24 at the close of trading. ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
The PE ratio chart covers all ordinary shares on the Jamaica Stock Exchange. It shows companies grouped by industry, allowing for easy comparisons between the same sector companies and the overall market. The EPS & PE ratios are based on 2023 and 2024 actual or projected earnings, excluding major one off items.
Investors need pertinent information to successfully navigate numerous investment options in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
Investors should use the chart to help make rational decisions when investing in stocks close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to remove emotions from investment decisions and place them on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices.
Dividends paid or payable and yields for each company are shown in the Main and Junior Markets’ daily report charts along with the closing volume pertaining to the highest bid and the lowest offer for each company.
Slippage for Junior Market trading
After spending most of the day with gains in the Junior Market index on the Jamaica Stock Exchange on Tuesday, the market slipped moderately towards the close with 41 securities trading compared with 44 on Monday and ended with prices of just 11 rising, 20 declining and 10 closing unchanged with a 21 percent decline in the volume of stocks traded and a 5 percent more value than on Monday.
Investors traded 4,369,373 shares for $12,002,310 versus 5,508,204 units at $11,474,088 on Monday.
Trading averaged 106,570 shares at $292,739 compared to 125,186 units at $260,775 on Monday, with the month to date, averaging 206,921 stocks at $478,506 compared with 214,255 stock units at $492,082 on the previous day. Trading in July closed with an average of 326,541 units at $843,878.
EduFocal led trading with 969,126 shares for 22.2 percent of total volume, followed by Regency Petroleum with 915,554 units for 21 percent of the day’s trade and Dolla Financial with 553,510 units for 12.7 percent market share.
At the close, the Junior Market Index dipped 0.28 points to 3,893.78.
The PE Ratio, a measure of computing appropriate stock values, averages 10.9. The PE ratios of 
Junior Market are computed using the last traded price along with ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
Investor’s Choice bid-offer indicator shows two stocks ending with bids higher than their last selling prices and two with lower offers.
At the close, Access Financial dropped $1.62 in closing at $23 after trading 1,081 shares, Caribbean Assurance Brokers shed 9 cents to end at $2.89 after a transfer of 1,469 stocks, Consolidated Bakeries rallied 43 cents to $2.69 after trading 2,734 units. Dolphin Cove rose 50 cents to $17 with stakeholders exchanging 1,518 stock units, Elite Diagnostic dipped 11 cents and ended at $1.89, 41,663 units crossing the exchange, Fontana lost 15 cents to close at $10.60 after exchanging 179,716 shares. 
Fosrich declined 18 cents in closing at $1.90 after an exchange of 212,022 stocks, General Accident rallied 51 cents to end at $4.94 with investors transferring 200 stock units, Honey Bun fell 32 cents to $6.20 while traders exchanged 5,194 stocks. Image Plus Consultants dropped 12 cents and ended at $2.13, with 47,381 units clearing the market, Knutsford Express shed 10 cents to close at $11.20 in an exchange of 3,863 shares, Lasco Distributors traded 172,334 shares at $4.70, after trading at an intraday 52 weeks’ high of $4.95. Lasco Manufacturing popped 15 cents and ended at 52 weeks’ high of $5.50, with 238,206 stock units crossing the market, Limners and Bards climbed 17 cents to end at $1.98 with an exchange of 302 units, Lumber Depot increased 7 cents to $2.04 as investors traded 120,839 shares. 
Main Event fell $1.01 in closing at $14.18 as 13,347 stock units passed through the market and Regency Petroleum declined 7 cents in closing at $2.20 after 915,554 stocks were traded.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Fall for JSE Markets on Tuesday
Trading dropped on the Jamaica Stock Exchange on Tuesday with the value and volume of stocks traded falling below Monday’s trades, resulting in slippage in all three markets of the Exchange.
At the close, the JSE Combined Market Index fell 1,745.02 points to 336,424.11, the All Jamaican Composite Index shed 2,282.01 points to 355,528.89, the JSE Main Index declined 1,867.43 points to 322,356.77, the Junior Market Index slipped 0.28 points to 3,893.78, while the JSE USD Market Index shed 6.67 points to settle at 240.70.
Trading of Preference shares ended with just one notable price change, with Productive Business Solutions 9.75% preference share recovering the $8 lost on Monday to close at $100.
At the close, investors traded 13,335,561 shares in all three markets, down from 15,594,397 stocks on Monday. The value of stocks traded on the Junior and Main markets ended at $62.45 million, down from $86.57 million on Monday. Trading on the JSE USD market ended with investors exchanging 343,792 shares for US$39,382 compared with 282,396 units at US$9,019 on Monday.
The market’s PE ratio, the most popular measure used to determine the value of stocks ended at 17.1 on 2022-23 earnings and 11.8 times those for 2023-24 at the close of trading. ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
The PE ratio chart covers all ordinary shares on the Jamaica Stock Exchange. It shows companies grouped by industry, allowing for easy comparisons between the same sector companies and the overall market. The EPS & PE ratios are based on 2023 and 2024 actual or projected earnings, excluding major one off items.
Investors need pertinent information to successfully navigate numerous investment options in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
Investors should use the chart to help make rational decisions when investing in stocks close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to remove emotions from investment decisions and place them on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices.
Dividends paid or payable and yields for each company are shown in the Main and Junior Markets’ daily report charts along with the closing volume pertaining to the highest bid and the lowest offer for each company.
Trading drops for Junior Market on Monday
Trading slipped on the Junior Market of the Jamaica Stock Exchange on Monday, with a 35 percent fall in the volume of stocks traded as the value dropped 29 percent below Friday with trading ending with trading in 44 stocks, the same as Friday and ended with 16 rising, 15 declining and 13 unchanged.
Investors traded 5,508,204 shares at $11,474,088 compared to 8,514,607 units at $16,106,240 on Friday.
Trading averaged 125,186 shares at $260,775 compared to 193,514 units at $366,051 on Friday with the month to date, averaging 214,255 stocks at $492,082 compared to 221,835 stocks at $511,768 on the previous trading day. July closed with an average of 326,541 units at $843,878.
ONE on ONE Educational led trading with 1.73 million shares accounting for 31.4 percent of total volume followed by Image Plus Consultants with 465,288 units for 8.4 percent of the day’s trade and Mailpac Group with 412,652 units for 7.5 percent market share.
At the close, the Junior Market Index popped 6.64 points to 3,894.06, but the Investor’s Choice bid-offer indicator flashed negative reading at the close.
The PE Ratio, a measure of computing appropriate stock values, averages 10.9. The PE ratios of Junior Market stocks are computed using the last traded price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2023 and August 2024.
Investor’s Choice bid-offer indicator shows three stocks ending with bids higher than their last selling prices and eight with lower offers.
At the close, Access Financial declined 52 cents and ended at $24.62 after exchanging a mere 16 shares, Caribbean Cream dropped 30 cents to close at $3.46 with just 5 units clearing the market, Caribbean Flavours fell 7 cents in closing at $1.24 with an exchange of 6,879 stocks. Dolla Financial shed 12 cents to close at $2.66 with investors exchanging 218,431 stock units, Dolphin Cove lost 55 cents to end at $16.50, with 1,107 stocks changing hands, EduFocal climbed 10 cents to end at $1.50 while exchanging 268,139 stock units after the price hit an intraday 52 weeks’ low of $1.36. Fontana gained 20 cents to close at $10.75 with traders swapping 38,852 shares, Fosrich increased 8 cents to $2.08, with 232,281 units crossing the market, 
Future Energy Source rallied 14 cents and ended at $3.75 in an exchange of 285,114 units. General Accident dipped 47 cents in closing at $4.43 after 5,433 stocks passed through the market, Honey Bun rose 45 cents to $6.52, with 18,119 stock units changing hands, Image Plus Consultants advanced 17 cents to close at $2.25 after an exchange of 465,288 shares. Iron Rock Insurance lost 29 cents in closing at $2.10 in switching ownership of 2,305 units, ISP Finance popped $2.07 and ended at $28.55 after 1,016 stock units changed hands, Knutsford Express shed 59 cents to end at $11.30 with a transfer of 359 stocks. Lasco Distributors climbed 21 cents and ended at a 52 weeks’ high of $4.70 after 229,107 shares crossed the market, Lasco Manufacturing traded 188,112 shares to close at $5.35 after hitting an intraday 52 weeks’ high of $5.49, Limners and Bards fell 17 cents to $1.81 in trading 65,042 units. 
Main Event rallied $1.01 to close at $15.19 after investors traded 4,415 shares and Tropical Battery rose 10 cents in closing at $1.99 after a transfer of 153,938 stock units.
Prices of securities trading are those for the last transaction of each stock unless otherwise stated.
Gains for all JSE Markets on Monday
Trading was mixed on the Jamaica Stock Exchange on Monday with the value of stocks traded climbing above Friday’s trades but with a lower volume, resulting in all three markets of the Jamaica Stock Exchange recording gains to start off the week.
At the close, the JSE Combined Market Index climbed 3,936.15 points to close at 338,169.13, the All Jamaican Composite Index surged 4,373.19 points to 357,810.90, the JSE Main Index jumped 4,153.40 points to 324,224.20, the Junior Market Index gained 6.64 points to close trading at 3,894.06, while the JSE USD Market Index popped 0.84 points to 247.37.
Trading of Preference shares ended with notable price changes for Jamaica Public Service 7% with a rise of 75 cents to close at $56, Productive Business Solutions 10.5% preference share increasing $2 to $1002 and Productive Business Solutions 9.75% preference share
shedding $8 to end at $92.
At the close, investors dealt in 15,594,397 shares in all three markets, down from 19,541,580 stocks on Friday. The value of stocks traded on the Junior and Main markets ended at $86.57 million, up from $73.3 million on Friday. Trading on the JSE USD market ended with investors exchanging 282,396 shares for US$9,019 compared with 595,775 units at US$31,180 on Friday.
The market’s PE ratio, the most popular measure used to determine the value of stocks ended at 17 on 2022-23 earnings and 11.7 times those for 2023-24 at the close of trading. ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
The PE ratio chart covers all ordinary shares on the Jamaica Stock Exchange. It shows companies grouped by industry, allowing for easy comparisons between the same sector companies and the overall market. The EPS & PE ratios are based on 2023 and 2024 actual or projected earnings, excluding major one off items.
Investors need pertinent information to successfully navigate numerous investment options in the local stock market. The ICInsider.com PE ratio chart and the more detailed daily report charts provide investors with regularly updated information to help decision-making.
Investors should use the chart to help make rational decisions when investing in stocks close to the average for the sector and not going too far from it unless there are compelling reasons to do so. This approach helps to remove emotions from investment decisions and place them on fundamentals while at the same time not being too far from the majority of investors. Investors who buy when the price of a stock is close to the average will find that they are not inclined to overpay for a stock.
The net asset value of each company is reported as a guide to assess the value of stocks based on this measure quickly. The chart also shows daily changes in stock prices and the percentage year to date price movement based on the last traded prices.
Dividends paid or payable and yields for each company are shown in the Main and Junior Markets’ daily report charts along with the closing volume pertaining to the highest bid and the lowest offer for each company.
Junior Market stocks dominate ICTOP10
Everything Fresh jumped 19 percent to $1.60 to be the leading mover in ICTOP10 stocks, followed by Iron Rock Insurance, that rose 14 percent to $2.39, while Dolphin Cove and Margaritaville rose 4 percent to $17.05 and 11.34 US cents, respectively, on a week when the Junior Market slipped and the Main Market was pretty stable.
Investors may want to note the latest report on the court judgement on the Mystic Mountain sale as there were indications that Dolphin Cove was an interested buyer and they may well be amongst the preferred bidders. If they succeed, expect the stock that currently has limited offers posted on the JSE platform to jump.
Declining ICTOP10 stocks include Key Insurance, with an 11 percent fall to $2.56, followed by a fall of 7 percent for Caribbean Cream to $3.76. Berger Paints fell 7 percent to $7.05 and Edufocal lost 6 percent to $1.40.
Investors should note that Margaritaville is listed on both the Main and USD markets, with similar values.
The week closed with no new additions to the lists.
ICTop10 stocks that released results in the past week include the following:
General Accident Insurance was one of the TOP10 stocks to release results in the week, with the results validating why the stock is high on the TOP10 List. The half year results ended with revenues jumping sharply by 39 percent to $5.75 billion, with profit after tax of $165 million, up 193 percent over $56 million earned in the 2022 half year. Revenues for the June 2023 quarter surged 41 percent to $2.7 billion over the $1.9 billion in 2022, with profit of $225 million, up by 201 percent from $75 million in 2022.
Dolphin Cove reported a 5 percent increase in revenues to US$4.4 million in the June 2023 quarter over the June 2022 quarter and a 37 percent jump for the half year to US$9.2 million from US$6.76 million, with profit of US$1.153 million for the second quarter, up 10.5 percent over the $1.04 million in the June 2022 quarter and US$2.72 million for the half year, up 48 percent to US$1.84 million in the half year to June 2022.
JMMB Group reported a 25 percent jump in revenues to $14.34 billion in the June quarter from $11.48 billion in 2022 and generated a profit of $2.5 billion, thus reversing a loss of $2.2 billion in 2022.
138 Student Living reported a 12 percent increase in revenues to $347 million over the $309 million in the June 2022 quarter and a 17 percent jump for the nine months to $1.05 billion from $894 million and profit of $270 million, up 10.5 percent compared with $239 million in the nine months to June 2022 and for the June 2023 quarter and $89 million, up 48 percent to $54 million.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.1, well below the market average of 12.6. The Main Market TOP10 is projected to have an average of 317 percent, to May 2024, based on 2023 forecasted earnings.
The 13 most highly valued Main Market stocks representing 28 percent of the Main Market, are priced at a PE of 15 to 95, with an average of 30 and 21 excluding the highest PE ratios, with a PE of 22 for the top half and 17 excluding the stocks with the highest PEs.
The Junior Market Top 10 PE sits at 5.5 compared with the market at 10.9. There are 10 stocks representing 21 percent of the market, with PEs from 15 to 40, averaging 20, which is well above the market’s average. The top half of the market has an average PE of 15, possibly the lowest fair value for Junior Market stocks currently, and projected to rise by 278 percent to May 2024.
The divergence between the average PE ratio of the Main and Junior Markets and the overall market valuation are important indicators of the likely gains for ICTOP10 stocks.
The markets are not bullish, but there continue to be cases of slow upward movements in some prices as investors respond to some recent attractive results leading them to quietly nibble away at many stocks, gradually reducing the supply of a number of them that are attractively priced. The list includes stocks such as Access Financial, AMG Packaging, Everything Fresh, Dolphin Cove, Caribbean Cream, Caribbean Assurance Brokers, Lasco Distributors and Lasco Manufacturing, Main Event and Transjamaican Highway.
ICTOP10 focuses on likely yearly winners. Accordingly, the list includes some of the best companies in the market but not always. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns up to the end of May 2024 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
Stocks to Watch
There is currently low interest in buying Main Market stocks, even when the companies perform well and deliver positive results. One exception is Transjamaican Highway which has gained 86 percent for the year to date with more gains on the cards.
Dolphin Cove gained 31% for 2023 to date but should go higher.
The action is in the Junior Market, but even there, the interest is glacier-like, with a few stocks moving higher as buying demand is now overwhelming sellers.
A look behind the stock order book shows that a few merit watching over the next few weeks.
The list includes Carreras, Dolphin Cove, Fontana, Lasco Distributers, Lasco Manufacturing, ISP Finance, Mayberry Investments as well as Transjamaican Highway.
Carreras is enjoying consolidation of demand around the $8 level following a jump in earnings in the June quarter from rising sales. However, that is unlikely to change it from primarily one for high dividend yield rather than capital appreciation.
Dolphin Cove’s stock is up 31 percent for the year to date, but profit for the six months to June is up 48 percent over the year to June 2022. Investors may want to note the latest report on the court judgement on the sale of Mystic Mountain. There were indications that Dolphin Cove was an interested buyer and they may well be amongst the preferred bidders. If they succeed, expect the stock with limited offers posted on the JSE platform to jump.
Lasco Distributors‘ trend line shows an upward slopping momentum for the stock supported by earnings that increased 38 percent in the first quarter to June, following a 33 percent rise in full year profits to March this year. Buying interest is solid in the $4 and over region that is overwhelming supply on offer between $4.49 and $5 after that; there are currently less than 70,000 units on offer.
Lasco
Lasco Manufacturing‘s profit for the 2023 fiscal year jumped 37 percent after tax, followed by 27 percent for the June quarter. Still, the market was slow in responding positively to both sets of results, even as the price was less than ten times 2023 earnings of 50 cents per share. The stock in the past week jumped into the $5 region for the for time in months and closed the week at $5.35, with solid buying at that level and just below but with very limited selling with few stocks on offer from just nine offers for 180,000 shares.
Investors may not be ready to pounce on Fontana just yet. Still, there is limited selling in the stock ahead of the release of full year results that could come in around 80 cents per share, but with increased earnings in the current fiscal year, that will benefit from the opening of the Portmore store in a few months.
ISP Finance is an odd candidate, but there has been above average interest in this stock in recent months, with few offers in the stock currently. There are two critical factors to consider. One is that the majority shareholder must be close to retirement as such new owners cannot be far off. The recent addition of two new directors who operate in the financial market and have collaborated closely with them has increased speculation that a takeover of the majority shares will be forthcoming sooner than later. The other factor is the sharp jump in the loan portfolio to almost $1 billion after the credit loss provision. The near $200 million increase in loans over December last year and March this year is expected to swell revenues and profits in the future. The shares have to be high on the list for a split at the current price.
Fontana Waterloo Square Branch just after it was opened in October 2019.
Mayberry Investments may not have a lot of buying currently, but selling seems to be at a low level that could ignite a jump in price at any time that buying interest jumps.
Transjamaican Highway stock has almost doubled this year, encouraged by profit ballooning 338 percent for the June quarter to US$6 million and 442 percent to US$11 million for the six months to June. Supply has diminished on the sell side and could be overwhelmed by buyers. Investors have not bought into the sharp change in fortune for this stock and where it could head to. In addition, they should declare a considerable dividend payment in a few months.