Trading in the shares of Dolla Financial that offered shares to the public in an initial stock offering that closed on the same day it was opened could be listed on Friday on the Junior Market of the Jamaica Stock Exchange, a source informed ICInsider.com.
Details of the allocation are expected to be released by the close of the Jamaica Stock Exchange on Monday, the source advised.
Some $10 billion is said to have chased after the 500 million shares at $1 each, as such investors will end up, on average, with approximately 5 percent of the amount applied for.
The issue that was very popular closed at 4.30 on Friday, May 27, having been heavily oversubscribed. The shares are expected to more than double, based on the earnings for the first quarter to March this year, with a profit before tax of $66 million, up from $17 million in 2021.
The company reported an audited profit of $129 million after taxation of $38 million for 2021, from revenues of $379 million and ended with shareholders’ equity of $315 billion.
$250 million of the funds raised in the offer, net of the cost of the IPO, will be used in the business to fund loan growth.
Dolla shares could list on Friday
Institutions losing out big time in stocks
The Jamaica Stock Exchange Junior Market is growing at more than twice the pace of the Main Market but institutional investors are missing out on the significant superior performance the newer market is delivering, all because institutional investors have not been reading the Junior Market properly, the end results are, pension funds and other investors who utilize institutions to manage their funds have lost out big time on the returns the newer market has provided.
But a host of newer investors are having a whale of a time making good money in the more investor friendly market. These newer investors are mainly interested in Junior Market stocks, two observers disclosed to ICInsider.com. The burst of new investors were attracted to the market by initial public offers of mainly Junior Market stocks, fed on a dose of wildly successful issues that they made great profits from. They are familiar with the market for new issues as they have done extremely well out of them and plan to do so until the situation changes.
In the summer of 2011, just 1,339 applications pumped in $2.4 billion for Caribbean Producers public share issue. Recent issues have attracted over 5,000 applicants, with Spur Tree pulling in excess of 5,000 investors. In 2018 the Fontana IPO attracted 3,406 applications for a total of 982 shares at $2 each. In 2018, Indies Pharma pulled in 2,800 applicants, covering over $1 billion and Wisynco hauled in 7,382 applications totaling $18.8 billion. These are in contrast to the first Junior Market listing Access Financial which struggled to get acceptance at the IPO stage.
A close look at the markets and individual stocks in recent months tends to confirm this view. It is not very surprising then that the Junior Market that has seen a number of new listings in the past three years has attracted sufficient buying interest to send that market up nearly 30 percent last year and up to 33 percent up to recently in 2022, far surpassing Main Market stocks. That performance is not unique to the past two years as the Junior Market outpaced the Main Market in 7 of the last 12 years and delivered more than twice the gains as the Main Market. The Junior Market gained 984 percent from the end of 2010 up to last week with an increase of 119 percent more than the Main Market’s 449 percent.
One new entry to ICTOP10
Prices of several stocks rebounded this past week as the selloff to fund the Dolla Financial IPO receded, but the changes had little impact on changing stocks in the TOP10, with just one new entrant to the listing.
Following last week’s 330 points fall, the Junior Market index recovered 143 points by the end of the week, while the Main Market All Jamaica Index lost 211 points on top of the 5,954.55 points given up in the previous week.
This week’s market performance resulted in mostly gains for TOP10 stocks. In the Junior Market, Medical Disposables rose 12 percent to $7.85, while Access Financial gained 9 percent to close at $21.80 and Lasco Financial rallied 6 percent to $3.50, following the release of full year results to March, with profit doubling to $306 million for earnings per share of 24 cents. Elite slipped 6 percent in closing at $3.40 and Caribbean Cream fell 5 percent to $4.69.
For the TOP10 Main Market stocks, Productive Business Solutions gained 15 percent to US$1.15, VM Investments rose 13 percent to $5.87, Berger Paints rallied 6 percent to $11.30, followed by QWI Investments up 5 percent to 89 cents. Sygnus Credit Investments declined 5 percent to $14.80 and JMMB Group slipped 4 percent to $44 following the release of full year results.
Jetcon Corporation price dipped to $1.32 and squeezed out General Accident from the Junior Market TOP10.
Medical Disposables reported full year results to March, on Thursday, with profit before tax surging 938 percent to $143 million and profit due to the parent company shareholders before extraordinary gains in 2021 of $62 million, rising to $105 million, from $7.5 million, with revenues up 42 percent over the previous year.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 15.1, while the Junior Market PE for the Top 10 is six versus the market at 13.4. The Junior Market TOP10 is projected to gain an average of 235 percent to May 2023 and the Main Market 228 percent.
Watch these stocks that are sitting just outside the TOP10, the list includes Key Insurance, followed by Caribbean Producers, Scotia Group and Sagicor Group from the Main Market and in the Junior Market, Dolphin Cove, General Accident and Iron Rock Insurance.
ICTOP10 focuses on likely yearly winners, accordingly, the list may or may not include the best companies in the market. ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to stocks that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023 and are ranked in order of potential gains, based on the possible increase for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result 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.
Junior stocks up blue chips down
Junior Market stocks extended the recovery from the selloff that started on the 12th of May and ended early last week as investors raised funds to invest in the Dolla IPO. The market put on 36.48 points on Friday to close at 4,263.14. The Jamaica Stock Exchange Main indices declined and that of the USD market just slipped marginally. At the close, the JSE Combined Index dipped 1,272.50 points to close at 402,566.90.
The All Jamaican Composite Index shed 2,760.54 points to 443,604.86, the JSE Main Index dropped 1,705.22 points to close at 389,557.86 and the JSE USD market index sipped 0.03 points to 215.10. Investors exchanged 29,408,449 shares in all markets, with the value of stocks traded in the Main and Junior Markets amounting to $188.3 million and the JSE USD market, US$92,093.
The market’s PE ratio ended at 24.5 based on 2021-22 earnings and 13.1 times those for 2022-23 at the close of trading.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices 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 with decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks that are 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 take emotions out of the investment decision and put in 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 ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
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 payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
Recovery checked for JSE stocks
Stocks closed mixed on the second trading day for June, with the Jamaica Stock Exchange Main and Junior Market indices declining and that of the USD market rising at the close of trading on Wednesday as the market recovered from sell off over the last two weeks of May cooled off. In the end, the JSE Combined Index dipped 1,911.25 points to close at 403,839.41.
The All Jamaican Composite Index shed 2,414.76 points to settle at 446,365.40, the JSE Main Index dropped 1,933.62 points to close at 391,263.08, the Junior Market lost 11.36 points to end at 4,226.66 and the JSE USD market index popped 1.88 points to 215.14.
Investors exchanged 25,114,906 shares in all markets, with the value of stocks traded in the Main and Junior markets amounting to a mere $99.7 million and in the JSE USD market, US$33,431.
The market’s PE ratio ended at 24.8 based on 2021-22 earnings and 13.2 times those for 2022-23 at the close of trading.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices 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 with decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks that are 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 take emotions out of the investment decision and put in 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 ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
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 payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
Mixed trading on Jamaica Stock Exchange
Stocks closed mixed on the first trading day for June, with the Jamaica Stock Exchange Main market indices and that of the USD market falling at the close of trading on Wednesday, while the Junior Market continued its recovery from the sell-off over the last two weeks of May. In the end, the JSE Combined Index dipped 828.08 points to close at 405,750.66.
The All Jamaican Composite Index shed 1,658.03 points to 448,780.16, the JSE Main Index dropped 1,215.87 points to close at 393,196.70, the Junior Market climbed 34.93 points to close at 4,238.03 and the JSE USD market index slipped 1.46 points to 213.26.
Investors exchanged 27,689,043 shares in all markets, with the value of stocks traded in the Main and Junior Markets amounting to a mere $135.3 million and in the JSE USD market, US$$13,384.
The market’s PE ratio ended at 24.8 based on 2021-22 earnings and 13.2 times those for 2022-23 at the close of trading.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices 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 with decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks that are 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 take emotions out of the investment decision and put in 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 ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
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 payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
JSE recovery continues from last week’s losses
Stocks recorded gains at the close of trading on Tuesday on the Jamaica Stock Exchange, as the markets continued to benefit from the return of some level of normality following the sell off leading to the Tuesday last week. The buoyancy in trading is reflected in the rise of the JSE Combined Index by 2,497.38 points to close at 406,578.74.
The All Jamaican Composite Index climbed 2,316.94 points to 450,438.19,the JSE Main Index added 2,129.19 points to close at 394,412.57, the Junior Market gained 56.75 points to close at 4,203.09 and the JSE USD market index popped 6.66 points to 214.72.
Investors exchanged 29,854,870 shares in all markets, with the value of stocks traded in the Main and Junior markets amounting to $248.55 million and in the JSE USD market, US$$21,187.
The market’s PE ratio ended at 24.6 based on 2021-22 earnings and 13.1 times those for 2022-23 at the close of trading.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices 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 with decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks that are 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 take emotions out of the investment decision and put in 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 ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
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 payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
More bounce for the Jamaica Stock Exchange
Stocks bounced again at the close of trading on Monday on the Main and Junior and Main Market of the Jamaica Stock Exchange, accompanied by low volume, but slipped on the JSE USD Market resulting in the JSE Combined Index bouncing 4,415.18 points to close at 404,081.36.
The All Jamaican Composite Index jumped 4,305.03 points to 448,121.25, the JSE Main Index added 4,466.69 points to close at 392,283.38, the Junior Market of the Jamaica Stock Exchange gained 26.29 points to close at 4,146.34 and the JSE USD market index slipped 1.72 points to 208.05.
Investors exchanged 14,390,470 shares in all markets, with the value of stocks traded in the Main and Junior Markets amounting to a mere $79.2 million and in the JSE USD market, US$49,782.
The market’s PE ratio ended at 24.3 based on 2021-22 earnings and 13.1 times those for 2022-23 at the close of the Jamaica Stock Exchange.
Investors need a series of measures and pertinent information to successfully navigate the many investment choices 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 with decision-making.
Investors should use the chart to help make rational investment decisions by investing in stocks that are 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 take emotions out of the investment decision and put in 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 ICInsider.com PE Ratio chart covers all ordinary shares listed on the Jamaica Stock Exchange. It shows companies grouped on an industry basis, allowing easy comparisons between the same sector companies and the overall market.
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 payable and yields for each company are shown in the Main and Junior Markets’ daily report charts that show the closing volume for the bids and offers.
The EPS & PE ratios are based on 2021 and 2022 actual or projected earnings, excluding major one off items. The PE Ratio is the most popular measure used to determine the value of stocks.
Paramount Trading joins ICTOP10
Dolla Financial Services IPO was heavily oversubscribed, and it is unlikely that investors will be able to buy the stock in the secondary market at a price that would place it in the TOP10 after day two of listing. Accordingly, the stock has been moved to the sideline, but it seems set to reach the $3 region sometime after listing.
The shifting of Dolla Financial out of the TOP10 resulted in Paramount Trading entering the TOP10 with the price falling to $1.75 in a week that saw investors selling stocks to raise funds to get into the IPO issue.
The past week was volatile, with the Junior Market index dropping more than 330 points or 7.6 percent from the close of the previous week to Wednesday, as investors sought funds to go into the Dolla IPO. The selloff was visible from May 12 with a near 100 points fall on that day as there was talk in the market of the pending issue.
This week’s pullback of the market resulted in mostly declines in the TOP10 Junior Market stocks. Medical Disposables dropped 13 percent to $7, while Access Financial also dropped 13 percent to close at $20, Elite Diagnostic slipped 9 percent in closing at $3.60 and Lasco Financial dipped 7 percent to $3.30.
For the TOP10 Main Market stocks, Berger Paints fell 13 percent to $10.63; Radio Jamaica declined 11 percent to $2.55, VM Investments lost 7 percent, followed by QWI Investments down 6 percent to 85 cents. There were no meaningful gains.
During the week, General Accident reported first quarter results with profit due to shareholders of the parent company rising 36 percent to $49 million, Friday after trading, Lasco Distributors reported profit increasing 12 percent for the full year to $1 billion but the final quarter being up 35 percent to $241 million and Lasco Manufacturing rising 45 percent in the March quarter to $522 million and the full year up 24 percent to $1.7 billion.ICInsider.com upgraded earnings for Lasco Distributors to 50 cents from 45 cents, but the others remain as previously stated. All three stocks are trading below ten times 2022 earnings and therefore have huge potential to appreciate.
Results for Access Financial and Medical Disposables to March are awaited.
The average PE for the JSE Main Market TOP 10 ends the week at 6.2, well below the market average of 14.4, while the Junior Market PE for the Top 10 sits at 5.9 versus the market at 13.1. The Junior Market TOP10 is projected to gain an average of 245 percent to May 2023 and the Main Market 241 percent.
Watch these stocks that sit just outside the TOP10 that investors should watch. They include Key Insurance, followed by Caribbean Producers and Scotia Group from the Main Market. In the Junior Market, Iron Rock Insurance, Dolphin Cove, Jetcon Corporation, Stationery and Office Supplies and Lasco Manufacturingreported strong fourth quarter results to March this year.
ICTOP10 focuses on likely yearly winners, accordingly, the list may or may not include the best companies in the market. ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotional attachments to stocks that often result in costly mistakes.
IC TOP10 stocks are likely to deliver the best returns up to the end of May 2023. They are ranked in order of potential gains, based on the possible increase for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result 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.
$10 billion chased Dolla IPO
Some $10 billion is said to have chased after the 500 million shares at $1 each, offered in the Initial Public offer in Dolla Financial from approximately 10,000 applications, ICInsider.com has been advised by persons who would be in a place to know.
This could mean that each applicant may end up with an average of approximately eight percent of which they applied if over 40,000 shares.
The issue that was clearly very popular and oversubscribed closed at 4.30 on Friday, the same day of opening.
The shares are slated for listing on the Junior Market of the Jamaica Stock Exchange and are expected to more than double based on the earnings for the first quarter to March this year, with profit before tax of $66 million up from $17 million in 2021 and the high level of oversubscription.
The company reported an audited profit of $129 million after taxation of $38 million for 2021, from revenues of $379 million and ended with shareholders’ equity of $315 billion.
