Trading picks up on Junior Market – Friday

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Volume surged on the Junior Market, on Friday with 4,873,191 units valued at $15,916,560 changing hands, with GWest trading almost 3.6 million units valued at $9.6 million.
The day’s trading saw a 212 percent rise in the volume and 165 percent increase in the value over the 1,563,696 units valued at $6,095,052 traded on Thursday.
Market activity resulted in 24 securities changing hands, leading to the prices of 5 advancing, 11 declining and 8 remaining unchanged compared to 22 securities trading on Tuesday. The Junior Market Index slipped just 0.74 points to close at 3,037.56.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 7 stocks ending with bids higher than their last selling prices and 2 with lower offers.
Trading ended with an average of 203,050 units for an average of $663,190 in contrast to 91,982 units for an average of $358,532 on Thursday. The average volume and value for the month to date, amounts to 139,543 units valued at $671,002 and previously 136,164 units valued at 671,284. May closed with an average of 217,589 units, valued at $1,322,452 for each security traded.
At the close of trading, AMG Packaging suffered a loss of 10 cents to end at $2, with 42,000 stock units trading, Caribbean Cream dropped 87 cents to $4.63, with 29,345 shares changing hands, Caribbean Producers traded down 10 cents to $5.10, with 26,000 stock units, Derrimon Trading ended at a new high by rising by $1.70 to $13.70, with 500 shares, Dolphin Cove concluded trading $1.99 higher at $16.80, with 4,700 shares. Elite Diagnostic finished at $3, with 77,171 stock units trading, Express Catering ended trading 20 cents higher at $7.20, with 37,570 shares, FosRich Group traded with a loss of 1 cent at $2.99, in exchanging 42,123 shares, General Accident lost 3 cents to end at $2.98, with 41,000 shares. GWest Corporation jumped 50 cents higher to $3, with 3,562,554 stock units, Honey Bun ended at $5.20, trading just 100 units, Iron Rock concluded trading at $3, with 528,900 shares, ISP Finance finished with a loss of 2 cents at $15, after trading 9,000 shares. Jamaican Teas settled at $5.50, with 1,000 shares, Jetcon Corporation ended trading at $4.06, with 90,000 stock units, Key Insurance traded at $4, with 148 units, Knutsford Express closed with a loss of 1 cent at $12.50, trading 58,719 shares. Lasco Distributors ended at $4, after shedding 10 cents exchanging 41,764 shares, Lasco Financial concluded trading of 6,941 stock units and fell 11 cents to $4.89, Lasco Manufacturing declined 30 cents to close at $3.90, with 26,900 units, Medical Disposables fell 17 cents to $5, with 500 shares, Stationery and Office finished trading 78,256 stock units at $8 and tTech ended at $6, with 8,000 shares changing hands.
Prices of securities trading for the day are those at which the last trade took place.

NCB & JMMB back in TOP 10

JMMB Group, NCB Financial and Pulse Investments moved into the IC Insider.com TOP 10 at the close of the past week as Berger Paints and Palace Amusement exited the main market TOP 10.
There was no new entry to the Junior Market listing but Jamaican Teas climbed to a new high of $6 during the week and closed just below, at $5.95 and Stationery and Office traded down to $6.85 as an investor moved more than 400,000 shares at that price, the stock rebounded to $8 on low volumes as active supply has declined below this price level. Grace Kennedy rose to a new all-time high and Berger Paints rose to $22 during the week and were eased out of the top list. Earnings for Palace for 2018 and 2019 were revised lower even with the report that the company plans on opening a new cinema in the fast growing Portmore area, in 2019 and just eased out of the listing. Barita Investments fell by 25 percent during the week from $12 down to $9 as demand at the higher price evaporated.
Recent TOP 10 member PanJam Investment traded at a new high during the week and remains a buy with very limited supply of stock for sale while former TOP 10 listings jumped sharply during the week from $28.50 to $42.18 after the company announced that the directors will meet to discuss a dividend and stock split.
During the week Sygnus Credit was listed on the main and US dollar markets and Everything Fresh became fresh new listing on the Junior market. The shares of both, traded higher than the Initial Public Issue price. Sygnus US dollar listing remains above the IPO price while the Jamaican dollar denominated stock is trading below the IPO price.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6.3 compared to an average PE for the overall main market of 11, based on 2018 estimated earnings. The main market PE is 7.7 for the top stocks, compared to a market average of 12.7.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 42 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 39 percent to the market.
Stocks to Watch The stock closed without an offer at the close of the week. NCB has good growth prospects for patient investors, the stock continues to trade around $100 where there is some selling but that level could be taken out soon and pave the way for more gains. PanJam Investment could move higher this week as there continue to be very limited supply of the stock on offer. Radio Jamaica could come in for increased attention with the network broadcasting the popular world cup matches as adverting revenues should climb as a result from the coverage. Others worth watching include Caribbean Cement, Berger Paints with little selling and Grace Kennedy for which there is also limited supply. In the Junior market, Demand for Derrimon Trading has been increasing recently and pushing the stock to new high during the past week. Stationery and Office Supplies settle down during the week before rebounding. Jamaican Teas came in for more buying in the week but with limited stocks being offered for sale is worth watching.

CAC & Broilers back in TOP 10

Jamaica Broilers returns to the main market TOP 10 list with a fall in the price to $22.10 by the end of the week from $26.30 last week and CAC 2000 returns after last been on the list, in December.
CAC replaced Medical Disposables while JMMB Group moved up to $29.45 to be replaced by Jamaica Broilers.
During the week the main market traded at a record close on two days but closed the week below the record high. The main market saw new buying interest coming in for a number of stocks, at the same time that supply for them have dried up. Interest rates on Treasury bills fell in the June auction and inflation remains negative for the year to May. With those developments the main market seems poised to move to more records in the weeks ahead. Strong upward movement is also being signaled by the fact that, the market is breaking out of a wedge formation.
The junior market broke through a declining resistance line during the early part of the week but retreated by week end. Technical indicators are pointing to a strong upward movement, with a golden cross approaching, with the long term moving average line set to cross over the medium and short term lines not too far away.
The past week was very eventful for the Jamaica Stock market as the main market surged to new all-time highs and the Junior Market surged more than 100 points in the early part of the week and broke through resistance before pulling back.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6.2 compared to an average PE for the overall main market of 11, based on 2018 estimated earnings. The main market PE is 7.7 for the top stocks, compared to a market average of 12.7.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 44 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 41 percent to the market.
Stocks to Watch CAC 2000 reported strong half year results during the past week, with the second quarter more than doubling even after accounting for cost associated with issuing new preference shares. NCB Financial sits just below the TOP 10 list and has good growth prospects for patient investors. During the week, the price moved to $100 where there is some selling but that level could be taken out during the coming week and pave the way for more gains. PanJam Investment could move higher this week as there is very limited supply of the stock on offer. Investors should also keep an eye out for Sygnus Credit shares that list on Monday and should see a slight bounce in the price. Others worth watching include Caribbean Cement, Berger Paints and Grace Kennedy for which there was increased demand by the end of the week. In the Junior Market, Stationery and Office Supplies could decline further during the week but could find support in the mid $6 to low $7 region before rebounding. Jamaican Teas came in for buying in the week but supply has been limited and could result in more gains for the stock that traded at a record close of $5.50 during the week.

Junior Market down 109 points in 3 days

The Junior Market of the Jamaica Stock Exchange suffered further losses on Thursday in declining 46 points, bringing the loses to 108.55 in three days and the market closed at 2,961.50.
At the close of market activities, 20 securities changed hands versus 18 trading on Wednesday, resulting in as the prices of 5 securities rising, 8 declining and 7 remaining unchanged.
The volume and value traded jumped over Wednesday’s levels, with a 96 percent rise in the volume traded to 6,809,242 units and 48 percent rise in the value traded to $27,253,969 compared to 3,476,318 units valued at $18,368,654 on Wednesday.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 6 stocks ending with bids higher than their last selling prices and 7 with lower offers.
Trading ended with an average of 340,462 units for an average of $1,362,698 in contrast to 193,129 units for an average of $1,020,481 on Wednesday. The average volume and value for the month to date, amounts to 155,908 units valued at $821,793 and previously 138,077 units valued at $769,532. May closed with an average of 217,589 units, valued at $1,322,452 for each security traded.
At the close of the market, AMG Packaging ended at $2.10, with 1,200 stock units traded, CAC 2000 finished at $9, exchanging 1,300 shares, Caribbean Cream ended trading with a loss of 10 cents to close at $5, with 15,000 shares, Caribbean Producers lost 23 cents to close at $5, with 300 units, Consolidated Bakeries closed at $2.10, with 63,000 shares exchanged. Derrimon Trading jumped $2.44 to end at a 52 weeks’ high of $11.60, with 5,750 shares changing hands, Elite Diagnostic settled at $3.12, with 15,351 units, Eppley ended trading 82 cents higher at $10, with 3,900 shares traded, Express Catering closed with a loss of $1.10 to $6.85, with 350,210 shares. FosRich Group finished trading at $2.60, with 1,144,462 shares trading, Honey Bun concluded trading with a loss of 25 cents at $4.75, after exchanging 104,000 shares, Iron Rock finished at $3.05, with 500 shares, Key Insurance finished trading at $4, trading 9,015 shares. Knutsford Express ended 25 cents higher at $11.75, with 5,000 shares changing hands, Lasco Distributors concluded trading with a loss of 24 cents at $4.20, in exchanging 48,971 stock units, Lasco Financial finished with a loss of 30 cents at $4.85, with 47,634 units, Lasco Manufacturing fell 25 cents to close at $4.20, with 4,973,719 shares. Main Event ended trading with a loss of 50 cents at $7.50, with 5,722 shares, Paramount Trading finished trading 30 cents higher at $3, with 964 stock units and Stationery and Office gained 15 cents in closing at $7.75, with 13,244 units changing hands.
Prices of securities trading for the day are those at which the last trade took place. 

Grace & Carib Producers back in TOP 10

the past week was very eventful for the Jamaica Stock market as the main market surged to a new all-time high and the Junior market surges more than 100 points in the early part of the week and broke through resistance before pulling back.
Importantly, although the results for the first quarter of 2018 for many companies did not show strong gains while some showed declines compare with 2017, both the junior and main markets are at points to break out of a wedge formation. The moves are bias to the upside.
Medical Disposables jumped to $5 from $4.30 last week and was eased out of the top stocks and replaced by Caribbean Producers. Stationery and Office Supplies fell by the end of the week to $7.80, moving up on the list in the process, the order book of the stock suggest further decline before it bottoms out. Jamaican Teas price moved to $5.25 during the latter part of the week as demands picks up and supplies appear to have been declining, but by the end of the week it closed at $5.
In the main market, Jamaica broilers jumped to a record close of $26.30 on Friday, up from $21 at the end of the prior week and moved well outside the top 10 list, replaced by Grace Kennedy that slipped 50 cents in price by week end.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6,2 compared to an average PE for the overall main market of 11, based on 2018 estimated earnings. The main market PE is 7.6 for the top stocks, compared to a market average of 13.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 44 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 41 percent to the market.
Stocks to watch. Scotia Group reported half year results during the past week, but there was nothing about them for investors to be excited about, as they showed lower profits in the April quarter than a year ago period. The stock price pulled back sharply on release of the results. The stock yields a dividend of 4 percent which is higher than treasuries and this could be an attraction for some investors while they await return to profit growth. NCB sits just below the TOP 10 list and has good growth prospects for patient investors. PanJam Investment that IC Insider.com reported on in a separate article last week caught the eyes of some investors who moved the price up to $51.98 and it could go higher this week has there is very limited supply for this one. Investors should also keep an eye out for Sygnus Credit that could have its shares listed by next week.

Big 87 points drop for Junior stocks – Thursday

Blue Power in big drop of $9 to close at $28.

The Junior Market of the Jamaica Stock Exchange after enjoying five consecutive days of strong gains up to Tuesday and falling 57.67 points on Wednesday dropped another 86.91 points to close at 2,924.35 on Thursday.
At the close of market activities, the prices of 7 securities advanced, 11 declined and 7 remained unchanged with 25 securities changing hands from 25 securities changing hands on Wednesday. Market activity resulted in a fall in the quantity of shares trading to 5,590,001 units valued at $32,219,897, compared to 7,465,041 units valued at $55,063,474
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 6 stocks ending with bids higher than their last selling prices and 3 with lower offers.
Market activity ended with an average of 223,600 units for an average of $1,288,796 in contrast to 298,602 units for an average of $2,202,539 on Wednesday. The average volume and value for the month to date, amounts to 166,390 units valued at $977and previously 151,011 units valued at $894,076. In contrast, May closed with an average of 217,589 units, valued at $1,322,452 for each security traded.
At the close of the market, AMG Packaging ended at $2.10, with 3,874 stock units, Blue Power dived a sharp $9 to close at a 52 weeks’ low of $28, with 538,182 units changing hands, Cargo Handlers rose 25 cents to $9.75, with 735 shares, Caribbean Cream ended trading at $4.64 after falling of 46 cents, with 3,000 shares, Caribbean Producers declined 35 cents to $4.70, with 3,400 units. Consolidated Bakeries closed with a loss of 38 cents at $2.10, with 7,307 shares trading, Dolphin Cove dropped $1.10 to end at $16.80, with just 200 stock unit trading, Elite Diagnostic settled at $3.13, with 99,568 units, Eppley ended trading with a loss of 11 cents at $9.07, exchanging 1,000 shares. Express Catering traded with a loss of 37 cents at $7.43, with 16,619 shares traded, FosRich Group finished trading at $2.75, with 29,899 shares, General Accident closed 24 cents higher at $3.39, with 480 stock units, GWest Corporation ended at $2.30, with 580 units. Honey Bun ended trading 20 cents higher at $5.20, with 24,500 shares, Iron Rock finished with a loss of 5 cents at $3, while 4,243,672 shares changed hands, Jetcon Corporation traded with a loss of 6 cents at $4 and an exchange of 13,500 units, Key Insurance finished trading 50 cents higher at $4, with 3,000 shares. KLE Group closed after rising 9 cents to $2.95, with 7,833 shares, Knutsford Express ended at $11.50, with 108,454 shares trading, Lasco Distributors concluded trading 5 cents higher at $4.15, with 124,100 stock units, Lasco Financial finished with 335,286 units trading and rose 5 cents to $5.15. Lasco Manufacturing settled with a loss of 20 cents at $4, with 6,070 shares, Main Event fell 44 cents to end at $7.56, with 14,867 shares, Paramount Trading finished trading at $3, with 2,000 stock units and Stationery and Office closed at $8, with 1,875 units. changing hands.
Prices of securities trading for the day are those at which the last trade took place. 

SOS back in, Lasco Financial out of TOP 10

Stationery & Office Supplies is back in the TOP 10 but could fall in prive this week before moving higher.

A number of companies reported results in the past week, with some in the TOP 10 not getting much help from the new information and some of the top stocks earnings being downgraded, based on new information conveyed by the latest results.
Lasco Financial posted a strong 37 percent rise in profit, from $162 million to $222 million, but with slightly lower March quarter profit of $55 million, from $62 million, based on sharply increased finance cost that rose from $2 million to $14 million, as revenues grew more than 41 percent in the quarter, from $288 million to $405 million. Based on the new numbers, IC Insider.com places earnings for the current fiscal year at 50 cents per share or just around $650 million. The forecast is not enough to keep it in the Top 10 but it remains a solid buy, just below. Replacing Lasco Financial is Stationery and Office Supplies with the price pulling back during the week to close at $8.06. The price looks as if it could fall to the $6.50 region which would make it an even better buy.
All main market stocks remained in the top spots, but earnings for JMMB Group was downgraded following the March results and so too was Berger Paints. Radio Jamaica reported a loss in the March quarter and a loss for the full year, with a portion of the losses coming from one off items. The charge for depreciation and amortization is $255 million for the March 2018 fiscal year, well in excess of the loss reported for the year, resulting in a positive cash flow operation.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6 compared to an average PE for the overall main market of 11, based on 2018 estimated earnings. The main market PE is 7.6 for the top stocks, compared to a market average of 13.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 44 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 41 percent to the market. Investors should keep an eye out for Scotia Group that should release half year results on Wednesday.

Grace & FosRich in TOP 10 stocks

Grace Kennedy is in TOP 10

Out go Palace Amusement and Lasco Financial, in comes Grace Kennedy and FosRich Group into the TOP 10 listings this week.
Lasco Financial climbed to $5.65 at the end of last week while the bid on Palace climbed to $1,000 thus leaving room for Grace Kennedy and FosRich that fell to $2.35, to enter, in a week that saw the main market trading in record territory and the Junior Market recording gains in the index for the week.
The next two weeks should set the tone for the market in the medium term as most companies will be releasing results for the March quarter. Based on early releases, only a handful of results have positive effect on prices. The latest results from Supreme Ventures with a 49 percent rise in the first quarter profit seems set to push the price higher.
Investors responded positively to Berger Paints prospects, with active supply below $20 per share having declined sharply, leaving the price to close the week at $19.
Buying continued for Barita Investments with the price hitting $10 during the week. JMMB Group pulled back by the end of the week to $26.98 from $28.32, as the block out period for insiders to trade in the stock is in place until full year results are out. Resistance for the stock price is just over $31 an area investors should be on the lookout for, in the short run. Caribbean Cement first quarter profit was slightly down on last year, but the company is set to do better in the June quarter with the buyout of the expensive lease of equipment and prospects of lower operating cost, with the major repairs behind them and increasing demand for cement likely, ahead of the 6 percent growth in the first quarter. The stock may remain around current price levels for a while. Iron Rock reported vastly improved results for first quarter and appears to be on the way to their first profit since listing. The stock climbed to $3.50, following release of the results.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6.1 compared to an average PE for the overall main market of 10 based on 2018 estimated earnings. The main market PE is 7.2 for the top stocks, compared to a market average of 13.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 39 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 43 percent to the market.

Good news push TOP 10 stocks

There were no new entrants this past week, to the TOP 10 list of stocks on the Jamaican Stock Exchange, but there was some good news with the acquisition by Stationery and Office Supplies of a book making business.
The acquisition is set to add to profit in year one, and investors responded by driving the stock to a new high. The stock that was facing some challenge to get bids around the $5.50 level, the stock traded at in the past few weeks, jumped to $6 on the same day the announcement was made. With annual sales estimated around $130 million that could rise with greater focus on the operations and more capital available to support it, IC Insder.com has up graded the earnings to 90 cents for this year. The company is one of a number of Junior Market listings expected to post positive gains in the 2018 first quart over that of 2017.
The other good news for the market was a further fall in Treasury bill rates and another month of slightly negative inflation for March with the first quarter inflation also being negative. While the main market hit two new record highs during the week. While the JSE main market is caught up in a wedge formation and waiting for a big break out which could happen any time, the Junior Market that was in a downward drift from late 2017 now seems to have support from the 200 day and 120 day moving averages with the short term moving average now above both longer term ones. The market is being steered by two support lines with one going back to 2010 and another going back to early 2014.
Investors pressured recently listed Elite Diagnostic during the week as they reacted negatively to the December quarter results with lower profit that the previous year’s results. Investors seemed to have responded the Berger Paints bullish reading in the annual report as they bought the stock in increasing volumes during the week, leaving the price at $19. The Managing Director had reported that “the outlook for 2018 and beyond is extremely positive. The Berger brand remains strong and continues to dominate the local market with strong brand equity and a reputation for quality. With GDP projected to grow by at least 1.5% in 2018, construction activity and the demand for coatings is expected to remain relatively strong for the next two to three years. Plans are already being implemented to expand the company’s local distribution and product range as well as to improve our level of customer service and responsiveness. In 2018, there will also be greater emphasis on building out exports by targeting new markets in Central America and the Greater CARICOM region.”
Palace Amusement continues to enjoy expanded interest from investors with the continued success of the movie Black Panther. After more than two months of showing it still has two showings per day in all three cinemas, but the attraction for the stock is much more than this movie.
Strong buying came in for Barita Investments at $9.50 during the week. JMMB Group gained more ground, as the block out period for insiders to trade in the stock closes and the stock moved up to $28.32, resistance is just over $31 an area investors should be on the lookout for in the short run.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6 compared to an average PE for the overall main market of 10 based on 2018 estimated earnings. The main market PE remains at 7 for the top stocks, compared to a market average of 12.7.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 40 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 42 percent to the market.

Standoff for TOP 10 stocks

Berger Paints annual report had some good news for investors to digest.

The up and down nature of the markets this past week left most stocks fairly stable resulting in no new entrant to the TOP 10 list of stocks on the Jamaican Stock Exchange.
The past week got greeted by a series of company results that were not inspiring with most reporting lower profits for the first quarter this year. On a positive note, most of the results were affected by increased cost resulting from expansion ahead of full flow of new income from the expanded facilities.
Companies affected include recently listed Elite Diagnostic, Paramount Trading and Knutsford Express. Berger Paints released their annual report that was filled with some good talk of going after market share, new product lines to be added and upgrading of equipment to increase efficiency.
“The outlook for 2018 and beyond is extremely positive. The Berger brand remains strong and continues to dominate the local market with strong brand equity and a reputation for quality. With GDP projected to grow by at least 1.5% in 2018, construction activity and the demand for coatings is expected to remain relatively strong for the next two to three years. Plans are already being implemented to expand the company’s local distribution and product range as well as to improve our level of customer service and responsiveness. In 2018, there will also be greater emphasis on building out exports by targeting new markets in Central America and the Greater CARICOM region,” the Managing Director reported.
For Palace Amusement with the bid at $781 at the close of the week down to $750 the movie Black Panther continues to pull in the crowd after two months of showing and still has two showings per day in all three cinemas, the same as shows that opened during the past week.
Barita Investments rose to close the week at $9.50 as investors sucked out most of the supply under $10. Key Insurance fell to $3 as the company reported that two directors sold shares during the week, while JMMB Group gained more ground, as the block out period for insiders to trade in the stock, comes to a close, until after mid May.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 6.2 compared to an average PE for the overall main market is 10 based on 2018 estimated earnings. The main market PE remains at 6.5 for the top stocks, compared to a market average of 12.3.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 39 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings and main market stocks traded at a discount of 47 percent to the market.