Sagicor Group & CAC jump IC TOP 10

Sagicor Group traded 5m shares on the JSE main market on Friday.

Sagicor Group jumped to $45 at the close of the market for the past week, from $38.15 and CAC 2000 climbed to $12 from a $10 bid to exit IC Insider.com’s TOP 10 stocks.
Investors responded to the release of Sagicor’s 2018 full year results showing earnings of $3.65 per share, pushing the price higher while CAC price dropped too far at the end of the previous week and encouraged buying that pushed the price higher this week. Making way for the stocks moving on are, Sygnus Credit Investments in the main market and Lasco Manufacturing entering the Junior Market list.
Several Junior Market stocks suffered losses this past week, as the market pulled back more than 9 percent for the year to date up to Wednesday and created greater potential gains for a number of stocks.
The three leading Junior Market stocks for the coming week are Caribbean Producers with projected gains of 246 percent, Elite Diagnostic with potential gains of 245 percent and Iron Rock with potential gains of 243 percent.
Victoria Mutual Investments is now the top Main Market stock with 163 percent likely gain, followed by Radio Jamaica with 161 percent and Sterling Investments with potential to gain 153 percent.
 Wigton Windfarm, Jamaica’s latest initial public share offer that came to the market this past week remains at number 4 position on the stock list. The stock comes to the market at 50 cents per share and boast a PE of 8.3 times based on normalized earnings for the year to March 2019.
The main market, closed the week with the overall PE at 13 and the Junior Market at just 10. The PE ratio for Junior Market Top 10 stocks average 6.3 and the main market PE is now 8.3. These levels, point to the huge upside for the TOP 10 stocks over the next 12 months.
The TOP 10 stocks now trade at an average discount of 36 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 37 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have interest in the securities commented on.

Wigton storms into IC TOP 10

Wigton Windfarm is no 4 on IC Insider.com’s TOP 10

Wigton Windfarm, Jamaica’s latest initial public share offer that will come to the market this week, enters the number 4 position on the IC Insider.com’s TOP 10 main market stock list.
The stock comes to the market at 50 cents per share and boast a PE of 8.3 times, normalized earnings for the year to March 2019. IC Insider sees no great change in earnings going forward, until the present generating capacity for electricity expands.
With a new entrant to the top main market stock list, Grace Kennedy is now out of the top 10. The coming to market of this latest IPO seems to be having a negative impact on stock prices as investors gather funds to invest in what is proving to be a very popular issue. Reports reaching this publication is that a number of brokerage houses saw heavy traffic of applicants to purchase Wigton’s shares on Friday.
Several Junior Market stocks suffered losses this past week, as the Wigton IPO issue is about to open. Whether they are making a smart move or not will be known in a month or two.
Caribbean Cream slipped in price to $5.29 and Medical Disposables fell from $7.50 to $6.50 and moved back into the Junior Market TOP 10. Everything Fresh moved to $1.49 from $1.41 at the close of the previous week and Jamaican Teas closed at $4.05, up from the bid price of $3.50 to move out of the top tier of stocks.
The three leading Junior Market stocks for the coming week are Caribbean Producers with projected gains of 281 percent, Elite Diagnostic with potential gains of 238 percent and Iron Rock with potential gains of 224 percent.
Radio Jamaica is now the top Main Market stock with 163 percent likely gain, followed by Victoria Mutual investments with 153 percent and Sterling Investments with potential to gain 151 percent.
The main market, closed the week with the overall PE at 13 and the Junior Market at just 10. The PE ratio for Junior Market Top 10 stocks average 6.4 and the main market PE is now 8.2. These levels, point to the huge upside for the TOP 10 stocks over the next 12 months.
The TOP 10 stocks now trade at an average discount of 36 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 37 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have interest in the securities commented on.

3 new additions to IC TOP 10

There are three new additions to the IC Insider.com’s TOP 10 stocks for this week, but there are no new movement in and out of the top main market stocks.
AMG Packaging moved up in price and slipped out of the top list, Caribbean Cream and Medical Disposables that climbed to $7.50 at the end of the week, were edged out.
CAC2000 returns to the TOP 10 as the price fell to $9.21 after months of absence. Pressure on revenues due to disruption in business caused by the roadworks around the area of their offices, could see this one being down in price for a while, until investors see it as just temporary. Everything Fresh makes it to the list in eight position and Jamaican Teas returns with the price hit down to $3 but closed with the bid at $3.50.
The three leading Junior Market stocks for the coming week are Caribbean Producers with projected gains of 240 percent, Elite Diagnostic with potential gains of 228 percent and CAC2000 with potential gains of 226 percent.
Victoria Mutual investments is now the top Main Market stock with 156 percent likely gain, followed by Radio Jamaica with 152 percent and Sterling Investments with potential to gain 151 percent.
The main market, closed the week with the overall PE at 13.6 and the Junior Market at just 10.3. The PE ratio for Junior Market Top 10 stocks average 6.6 and the main market PE is now 8.5. These levels, point to the huge upside for the TOP 10 stocks over the next 12 months.
The TOP 10 stocks now trade at an average discount of 36 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 38 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have interest in the securities commented on.

Major changes in IC TOP 10 stocks

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The major change in IC Insider.com’s TOP 10 this pass week, is a sharp change in the stocks showing highest potential gains.
The three leading Junior Market stocks Last week, were Iron Rock with potential gains of 300 percent, Caribbean Producers 281 percent up from last week, as the stock slipped to $4.20 and Lasco Financial with potential gains of 211 percent. At the end of last week, the highest gains forecasted is down to 235 percent, with Caribbean Producers holding the top Junior Market spot.
Main Market stocks have gone in the opposite direction with a fall in the price of Sterling Investments to $3.50, the stock now boost potential to gains 186 percent, followed by  Victoria Mutual investments with 156 percent likely gain and Radio Jamaica at 152 percent, being third.
The only change to the TOP 10 list is the exit of Lasco Manufacturing that rose to $3.60 on Friday, to be replaced by Caribbean Cream, that closed the week at $5.55.
The main market, closed the week with the overall PE at 13.6 and the Junior Market at just 10.4. The PE ratio for Junior Market Top 10 stocks average 6.9 and the main market PE is now 8.4. These levels, point to the huge upside for the TOP 10 stocks over the next 12 months.
The TOP 10 stocks now trade at an average discount of 34 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 38 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have interest in the securities commented on.

Watch Junior Market for break higher

Junior Market poised to breakout.

Jamaican stocks are in for an interesting period with Junior Market stocks down nearly 5 percent for the year to date, lagging their main market stocks counterparts that are up 2.2 percent for 2019, but technical indicators now point to a big rally for the Junior Market.
The Junior Market is currently, supported by two major technical indicators, indicating a rising market ahead. One is a triple bottom that it is bouncing off and the other a wedge formation, both indicate a big breakout. The last time the market had a triple bottom was between March and July last year and the market gained more than 500 points.
The Jamaica Stock Exchange main market may be consolidating, but it seems to be making another effort to challenge the record high of 433,307.22 reached by the All Jamaica Composite Index in November last year. With the market closing on Friday at 426,180.60 points, it will require some meaningful price gains to close the more than 7,000 points gap.

Carib Cement traded at $58 on Friday.

For the current week, which stock could contribute to closing of the gap? Buying interest remains good for Carib Cement that moved up by $2 by the close of the week to $58. There is some selling at the last traded price but demand should take this out soon. Radio Jamaica is in demand again with a big increase in the December quarter’s profit that spell positives for the 2020 fiscal year’s results.
Wisynco came in for some selling pressure last week by the close on Friday, the stock ended at $11.95. Going forward the stock is a strong buy with increasing business and improving efficiency in operations and with credible reports that they are in talks with other local producers to distribute some popular local brands. Supreme Ventures continues to make new highs and is worth watching. The price is high more up even higher during the week but supply seems inadequate to meet demand, but an investment in the stock now may only warrant those looking for long-term returns.

NCB Financial traded at $145.05 on the JSE on Friday.

More buying came in for NCB Financial with it closing the week marginally higher at $145.05. The stock may still take some time to break higher but with second quarter results due by end of April increase demand could well develop ahead of the results.
Junior Market stocks to watch this week include, the overhang of Cargo Handlers stock was taken out last week at $11.06 and seem set to pave the way for a bounce in the price, but the stock is a bit overvalued relative to the overall market. Caribbean Cream that closed at $5.55 but traded up to $6.60 in the previous week. Full year results are due towards the end of April and that could help the stock. Caribbean Producers came into buying last week, with a move higher going forward, supported by technical indicator. Sellers of General Accident shares continues to be low, but buyers are trying to get stocks no higher than $4.50 currently at a PE of 15 times 2018 earnings and well below likely 2019 earnings. Investors in the stock at the start of 2018 got a dividend that exceeded 5 percent. If the same were to happen in 2019, the stock would end up at $6 by the end of this year. Investors continue to demand Elite Diagnostic stock at $3.20 or lower with sellers mostly wanting close to $3.50. Trading higher may not occur until closer to the release of nine months results due by mid-May. Honey Bun is showing all the signs of moving higher and traded

Honey Bun traded higher last week.

at $4.24 this past week, up from $3.83 at the end of the previous week. The bid for the stock is now at $4.15. Fontana closed the past week with a slight uptick to end at $4.05, buying continues to be good. With strong potential for growth to flow from expansion of stores now on the way, the stock is to be watched for the inevitable breakout. Express Catering has been enjoying decent buying interest. It is bound to be a big winner from the double digit upsurge in Tourist arrivals so far in 2019. Lasco Manufacturing was in the news with expansion of the storage facilities to accommodate increased production, the stock gained last week and could record further gains this coming week, regardless it one worth watch for longer term gains.

Carib Cement tops stocks to Watch

Carib Cement plant in Kingston – 2019 should be a big year for the stock.

Carib Cement could be the top stock to watch this week, with quite some supply taken out of the market last week, on the way to a record close on Friday.
Stocks on the Jamaica Stock Exchange have been consolidating, with little new information to stimulate investors to be either aggressively buying or selling stocks. The market indices have been going up and down for most of the year to date.
A series of significant developments are taking place locally, that investors should be paying keen attention to as they may have coded messages for what is in store for some for the rest of the year.
The strong double growth in stopover tourist arrivals to March has strong implication for earnings of three companies. Express Catering is one company to benefit directly as departing passengers numbers rise resulting in increased patronage of their restaurants. Dolphin Cove that came in for increased selling recently, is yet another that stands to benefit directly as more tourist arrivals will likely lead to more patronage of the attraction. Caribbean Producers and Everything Fresh, major suppliers to the tourist industry, will be selling more goods to the hotel sector.
Reduced transfer tax, stamp duties, reduced mortgage rates and increase in the maximum sum the NHT can lend will all feed into increased demand for development properties and lead to increased demand for cement and paints amongst other inputs into construction.

BOJ interest rate & cash reserves cut will help push demand in the economy.

The fall in interest rates led by Bank of Jamaica and increased liquidity that has flowed from the reduction in the level of cash reserves banks have to keep at BOJ, will lead to increased demand for loans and that will be positive for banks.
The exchange rate for the Jamaican dollar has swung from $138 to the US dollar to $125 currently. Such swings will result in big gains or losses for companies with large assets or liabilities in held in foreign currencies. Investors have to decide how to read the effects of such swings on profits and by extension the pricing of stocks.
Jamaica Public Service switch to the new LNG power supply as well as the solar plant to be added to the network this year, will reduce imports of petroleum and demand for US dollars and will result in the lowering of electricity cost to users. The change will also increase productivity of businesses as energy cost declines.
Other stocks to watch include this week include, Caribbean Cream that shot up to $6.60 on Friday with a sudden burst of buying. Sellers of General Accident shares have fallen, with just 4 now posting sell orders at the close on Friday. Buyers are trying to buy Elite Diagnostic stock at $3.20 or lower with sellers mostly wanting close to $3.50. Trading higher may not occur until closer to the release of nine months results due by mid May. Honey Bun is showing all the signs of moving higher. The bid for the stock closed at $3.98 versus the last traded price of $3.83. Fontana seems stuck around $4 but with strong potential for growth, it must be watched for the inevitable break out. Express Catering has been enjoying decent buying interest. It is bound to be a big winner from the upsurge in Tourist arrivals so far in 2019. Wisynco came in for some selling pressure last week even as reports surfaced that they are in talk with yet another local producer to distribute popular brand on top of a major local brand, this is in addition to talks they have been in to distribute a major local brand with big international foot prints. Supreme Ventures continues to make new highs and is worth watching. The price is high and may only warrant long term investing. A lot of the selling of NCB Financial seems to have ended with the market taking the remainder out last week. The stock may still take some time to break higher.

 

Paramount goes to market for $300M

Paramount

Junior Market listed, Paramount Trading, goes to market to fetch $300 million at a rate that is set to exceed 12 percent per annum.
The company just issued a prospectus offering 150 million cumulative redeemable preference shares due 2021 priced at $2 each at fixed rate of 8.75% per annum. On the surface that seems a bit reasonable but with other costs, the annual rate will be approximately 12 percent. The prospectus indicates that the issue is to take advantage of opportunities for improvement and expansion of the business, to provide working capital and for general corporate purposes and to pay the expenses of the Invitation, which the Directors believe will not exceed $16.5 million. That cost adds approximately 2.75 percent per annum to the interest rate, bringing it to 11.5 percent. There will also be fees for listing on the Jamaica Stock Exchange, even more than the listing fees will be the monthly fees to be incurred, for making the monthly interest payments and providing annual reports to preference shareholders, for the two years. Mayberry Investments are the brokers to the issue.
Paramount’s profit peaked at $173 million in 2016, fell to $101 million in 2017 and then to $59 million in 2018. For the half year to November last year, profit slipped to $35 million compared to $58 million for the 2017 period. The company only had $62 million in borrowed funds but Inventories and payables climbed sharply over the previous year.

Grace back in IC TOP 10

Grace new HQ close to the end of construction in downtown Kingston

General Accident returned to the Junior Market TOP 10 list along with Main Event while Grace Kennedy returns to the TOP 10 main market list at the expense of Pulse.
Jamaican Teas price moved up to $3.97 from $3.50 at the close of the previous week and Caribbean Cream came in for some buying during the past week, pushing the price to $6.60 and out of the top flight of Junior Market stocks. In the main market, Grace Kennedy slipped in price to close the week at $59.75 and that was enough for it to edge its way back in the TOP main market stocks.
The three leading Junior Market stocks are Iron Rock with potential gains of 300 percent, Caribbean Producers 281 percent up from last week, as the stock slipped to $4.20 and Lasco Financial with potential gains of 211 percent.
The three leading main market stocks are, Victoria Mutual investments with 152 percent likely gain, is on top, followed by Carib Cement with potential to gain 150 percent for the year down from 172 percent in the prior week and Sterling Investments with 150 percent.
The main market, closed the week with the overall PE at 13.3 and the Junior Market at just 10.6. The PE ratio for Junior Market Top 10 stocks average 6.7 and the main market PE is now 8.4. These levels, point to the huge upside for the TOP 10 stocks over the next 12 months.
The TOP 10 stocks now trade at an average discount of 37 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 37 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have interest in the securities commented on.

 

3 changes to IC TOP 10

There are no changes to the TOP 10 main market stock list this week but the Junior Market TOP 10 list has new additions.
IC insider.com revised Paramount Trading earnings to 12 cents per share for the upcoming fiscal year starting June with the stock falling out of the list. General Accident closed the week at $4.50 and slipped off the list while Main Event enjoyed some price recovery, closing the week at $5.80 also moved out. AMG Packaging with the price slipping to $2, Jamaican Teas price moved down to what appears a bargain of $3.50 and tTech down to $5.50 reentered the TOP 10.
The three leading Junior Market stocks are Iron Rock with potential gains of 300 percent, Caribbean Producers 248 percent and Lasco Financial with potential gains of 215 percent.
The three leading main market stocks are, Victoria Mutual investments with 173 percent likely gain, is on top, followed by Carib Cement with potential to gain 172 percent for the year and Sterling Investments with 150 percent.
The main market closed the week with the overall PE at 13.6 and the Junior Market at 10.5. The PE ratio for Junior Market Top 10 stocks average 6.5 and the main market PE is now 8.3. These levels point to the huge upside for the TOP 10 stocks over the next 12 months.
The TOP 10 stocks now trade at an average discount of 38 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 39 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Projected earnings, for each company’s current fiscal year, are used to determine the stocks selected. The PE for each stock and the projected gains are computed to show potential gains for the year. The projected gains are ranked to arrive at the selections, with the potential gains ranked in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.
This report is compiled by persons who may have interest in the securities commented on.

Use PE ratio to make big bucks

Investors can improve return on their stock market investment by just following one critical measure, the PE ratios of stocks. Buy low PE ratio stocks and sell those that are too high relative historical norm that almost a sure recipe for making good money in the stock market.
An important factor worth noting is that the PE ratios based on 2018 earnings are well ahead of those for 2019 earnings. The average PE of stocks listed on the Jamaica Stock Exchange based on 2018 earnings is just under 19 times, reflecting valuation as high as 60 times 2018 earnings, with some with PEs in single digits.
The Junior Market boast average PEs around of 17, while the main market is at 19.5. The Junior Market typical PE hoovers around 16 while that of the main market is around 15, all based on 2018 earnings. The typical PE is where a large number of stocks are clustered.
While many investors see stocks as cheap, based on price, that is not the basis of investing in a stock. The focus on the PE is most critical. It is the tool used by most investors to determine if a stock is worth having or not. Many individual investors consider NCB Financial as expensive at

Chart showing falling interest rates & rising PE ratio of the Jamaica Stock Market.

$145, but with a PE ratio of less than 10 times 2019 earnings, suggest otherwise. PEs based on current year’s estimated earnings, are just 10 for the Junior Market and 14 for the main market, with the typical average of 12 for the main market. Should economic factors remain relatively stable, as they current are in Jamaica, as well as globally, the PEs based on 2018 earnings, are indicative of good gains in stock prices in 2019. The above would equate to the junior stock posting gains of 60 percent by next year March and the main market 25 percent.
Investors can compare, the current PE based on 2019 estimated earnings of each stock against the typical ones based on 2018, to get a picture of which ones are likely to gain strongly this year. IC Insider.com daily stock market report charts carry projected earnings and current PE for each stock that investors can use as their tool for identifying stocks with above average potential gains.