The Junior Market slipped again on Friday by 5.49 points to close at 2,952.96 even as advancing stocks beat out declining stocks by almost a 2 to 1 ratio.
At the close of market activities, more securities traded than the day before but with lower volume as 20 securities changed hands. The prices of 9 advanced, 5 declined and 6 remained unchanged, compared 17 securities changing hands on Thursday.
Trading ended with an exchange of 1,131,667 units valued at $5,121,527 compared with 2,627,003 units valued at $9,951,186.
Market activity ended with an average of 56,583 units for an average of $256,076 compared to an average of 154,530 units for an average of $585,364 on Thursday. The average volume and value for the month to date, amounts to 198,056 units at $860,035 compared to 246,012 units at $1,064,766 on the prior trading day. March closed with an average of 149,999 units valued at $623,819, for each security traded.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows just 6 stocks ending with the bid higher than the last selling price and 7 with lower offers, suggesting the continuation of fluidity in price changes.
At the close of the market, AMG Packaging ended 5 cents higher at $2.05, with 41,930 stock units changing hands, CAC 2000 finished with a loss of 69 cents at $8.01, with 12,000 shares, Caribbean Flavours traded at $11, with 7,300 stock units, Caribbean Producers finished trading at $5, with 455,060 units, Dolphin Cove finished at $17.10, with 600 stock units trading. Elite Diagnostic settled with a loss of 1 cent at $3.30, with an exchange of 81,202 units after trading earlier in the session at a record high of $3.45. Express Catering traded 5 cents higher at $5.30, with 58,020 shares, FosRich Group finished trading at $2.50, with 24,058 shares, Jetcon Corporation traded with a loss of 5 cents at $4.10, while trading 37,746 units. Key Insurance finished trading with a loss of 15 cents at $3.85, with 47,669 shares,
KLE Group closed 3 cents higher at $2.53, with 3,529 shares, Knutsford Express ended at $14, with 300 shares, Lasco Distributors concluded trading 5 cents higher at $4.05, with 136,039 stock units. Lasco Financial finished with a loss of 75 cents at $4.95, with 59,950 units, Lasco Manufacturing settled 15 cents higher at $4.14, with 104,000 shares, Main Event ended trading at $6, with 500 shares, Medical Disposables traded 10 cents higher at $5.10, with 1,798 shares. Paramount Trading rose by 2 cents to end at $3.10, with 21,265 stock units, Stationery and Office closed 5 cents higher at $5.55, with 27,209 units and tTech concluded trading 2 cents higher at $5.99, with 11,492 shares changing hands.
Prices of securities trading for the day are those at which the last trade took place.
9 Junior Market stocks up 5 down – Friday
Iron Rock & 2 others in TOP 10
The Junior Market continues to fight for the 2018 rally to take root and grow even as interest rates are at their lowest in decades. Technical reading of this market shows the short term 45 day moving average (DMA) has crossed over the 120 DMA, a bullish sign as the market is coming from an oversold position.
With many Junior Market stocks having risen sharply in the last twelve months, it would require gains in profit above most of the recent postings to have pushed prices much higher in the short term. In a number of instances, some junior listed companies are focusing on expansion that will not bear fruit immediately and with some of the stocks pricing in these development into prices already, there are no new information to move prices in the short term. Results for the 2018 first quarter will therefore be critical in determining the performance of the market for the first half of the year.
Stationery and Office Supplies got a shot in the arm from audited financial statements to December 2018, showing strong gains in revenues and profit, compared to 2016 and saw the price moving back up to $5.50 and its position in the TOP list down to 8 from number 2 in February. It won’t be long before it drops out of the list as demand push the price higher. General insurance underwriters Iron Rock is now in the list, following improved 2017 results that benefited from strong revenues growth that augurs well for earnings in 2018. The company should also benefit from rising premium rates. Paramount Trading is back in the list and so too is AMG Packaging having disposed of its machinery in the tissue operations and cut cost it in it as well from the closure of that business line. 
Going into the 2019 fiscal year it should be rid of most of the cost of that operations and therefore focus on the container boxes to meet the existing increased demand. Out goes Dolphin Cove with lower than projected earnings being reported for 2017, followed by Blue Power and tTech with lower results for 2017 than previously projected, that will likely negatively affect 2018 earnings for these companies.
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 is 10 based on 2018 estimated earnings.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 37 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.
A KEY Partnership for life!
Treveen Little- Company Secretary and Compliance Officer at Key Insurance plays her part by donating blood in the company’s drive.
Junior Market listing, Key Insurance Company recently staged its inaugural Blood Drive at the Company’s Head Office in Kingston, in partnership with the National Blood Transfusion Service, more commonly known as the Blood Bank.
The event, coordinated by Carlene Isaacs, Reinsurance Manager and Corporate Social Responsibility team leader at Key, collected 33 units of blood. Key Insurance Company views the Blood Drive as a crucial engagement tool for sensitizing employees and increasing awareness about the vital importance of giving blood. Also participating in this life-saving initiative were some of Key’s corporate partners inclusive of bankers, brokers, valuators and neighbouring businesses.
With the estimated annual blood transfusion requirement in Jamaica at 50,000 units, Key Insurance Company plans to make the Blood Drive an annual event in this important partnership for life.
Key Insurance trades on the Junior Market of the Jamaica Stock Exchange with the last traded price of $4.
tTech, LasFin & Blue Power in TOP 10
The Junior Market is up 7.5 percent for the year to date, helped considerably by three new listings since late December and recovery in the prices of three Lasco companies and a few others.
Investors pushed Treasury bill rates sharply down by 22 percent from 4.63 in December to 3.593 percent in February, while the central bank cut their overnight rates in sympathy to 2.75 percent. On the other hand profit results of companies have been mixed with some showing strong gains and others no so strong. So far stocks prices have yet to move to factor in the lower interest rates.
One company that had good 2017 results was ISP Finance but increased bad debt provisioning curtailed the growth in profits to just one percent after tax, but 20 percent ahead of the net 2016 profits with a 25 percent rise in revenues. The results for 2017 resulted in earnings per share being reduced to $1.20 for 2018 and with a rise in the stock price to $11.05 it is no longer in the TOP stocks. Also going out are, Access Financial and Paramount Trading. Access earnings have been reduced following their third quarter 2017 results.
Entering the TOP 10 Junior Market list are tTech, Lasco Financial and Blue Power. While Lasco Financial had lower profit in the December 2017 quarter than in 2016 that was due to added cost associated with the acquisition of Credi Scotia. The company will see a big jump in profit as a result of the acquisition. tTech is said to be seeing strong growth in clientele following a few years of soliciting new clients business. 
General Accident had a temporary setback in profit in 2017 due to a major claim but rising premium income margin should help boost profit in 2018 barring any major catastrophic claims. Key Insurance despite incurring cost associated with staff separation amounting to close to $50 million reported improved results for 2017 over 2016 and should go on to record the highest levels of profit in 2018 with expected better margin on insurance underwriting barring any unusually large claims. Stationery and Office had a record 2018 performance and is expected to show improve results in 2018 that will move the price upwards.
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 is 10 based on 2018 estimated earnings.
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 its less than 50 percent of what the average PE for the year is likely to be, of 15 to 20 times earnings.
Junior Market climbs 7% in January
After climbing 36.88 points on Monday, 45.59 points on Tuesday the Junior Market jumped 76.21 points to close at 2,922.21 to be up 7 percent for the year to date. Much of the gains have to do with some recovery in the prices of two largest Lasco companies.
At the close of market activities on Wednesday, 25 securities changed hands, resulting in an exchange of 4,216,943 units valued at $15,584,380 compared to 8,181,768 units valued at $31,174,089 from 22 securities changing hands, on Tuesday. GWest Corporation accounted for 71 percent of the volume traded for the day. Market activities ended with the prices of 11 securities that advanced, 12 declined and 2 remained unchanged.
Trading ended with an average of 168,678 units for an average of $623,375 in contrast to 371,899 units for an average of $1,417,004 on Tuesday. For the month to date an average of 122,386 shares valued at $489,704 and previously, an average of 119,907 shares valued at $482,228. December closed with an average of 568,732 units valued at $3,447,957 for each security traded.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 2 stocks ending with the bid higher than the last selling price and 5 with lower offers.
At the close of the market, Access Financial jumped by $5.90 and closed at $48, with a mere 220 shares trading, AMG Packaging ended with a loss of 2 cents at $2, with 20,000 stock units, Caribbean Cream ended trading with a loss of 5 cents at $5.51, with 106,425 shares, Caribbean Producers finished trading with a loss of 20 cents at $4.30, with 30,500 units, Consolidated Bakeries closed with a loss of 2 cents at $1.98, with 103,000 shares. Dolphin Cove finished 62 cents higher at $17, with 59,647 stock units, Eppley settled $1.50 higher at $12.50, with 6,200 units, but only after it traded at a 52 weeks’ low of $9.50. Express Catering ended trading with a loss of 5 cents at $4.50, with 29,503 shares, FosRich Group traded with a loss of 5 cents at $2.50, with 114,890 shares. GWest Corporation closed with a loss of 5 cents at $3.20, with 2,982,117 stock units, Honey Bun ended 44 cents higher at $5, with 21,000 units, Jamaican Teas settled with a loss of 5 cents at $4.60, with 37,143 shares, 
Jetcon Corporation ended trading with a loss of 30 cents at $4.50, with 43,328 stock units. Key Insurance traded 30 cents higher at $3.55, with 16,000 units, Knutsford Express closed $1 higher at $15, with 1,200 shares, Lasco Distributors ended 20 cents higher at $4, with 53,444 shares, Lasco Financial gained 4 cents to close at $5.15, with 112,729 stock units. Lasco Manufacturing finished 10 cents higher at $4.40, with 242,450 units, Main Event settled with a rise of 20 cents at $5.70, with 3,143 shares, Paramount Trading traded at $3.40, with 6,921 shares, Stationery and Office finished trading at $5.05, with 180,026 stock units. Sweet River closed with a loss of 5 cents at $3.80, with 30,000 units and tTech ended with a loss of 5 cents at $5.95, with 917 shares. In the junior market preference segment, Eppley 8.25% concluded trading with a loss of 5 cents at $5.40, with 8,940 units and Eppley 9.5% finished 64 cents higher to a 52 weeks’ high of $7.89, with 7,200 shares.
Prices of securities trading for the day are those at which the last trade took place.
Junior stocks set for strong 2018
IC Insider.com Junior Market TOP 10 stocks for 2018
The Junior Market rose just 5.3 percent at the end of the year, down from a high of 31 percent in May.
The pull back of the index from its peak pushed the market into very negative technical readings. The first negative is a head and shoulder pattern, then the deadly cross where the short and medium term moving averages have fallen below the long term moving average and to that is an examination of the potential gains for individual stocks show that more two third of them are valued around or above the market average for 2017 earnings. That means that there is not much ammunition left to seriously push this market much higher based on 2017 profit out turn. Weighting down on the juniors is a series of company results that are not reflected positive price driven data.
General Accident could be a leader in the Junior Market in 2018 as they benefit from higher premium rates.
The reports include, Paramount Trading with strong rise in revenues for the November quarter but lower profits as administrative cost rise Caribbean Cream enjoyed a strong 18 percent increase in revenues but that could not overcome a rise in administrative and direct cost in the November quarter, resulting in profit falling from $19 million in 2016 to less than $1 million in 2017 and helped to push six months profit to $71 million versus $137 million in 2016. AMG Packaging revenues jumped 24 percent in the quarter to November but increased cost wipe the sales gains away and more to leave a profit of $10 million versus $18 in the prior year period.
Express Catering is continuing to deliver strong increased earnings but the stock is already well priced and so too is Knutsford Express at which revenues rose by 18 percent in the November quarter but at a slower pace than in the prior year. For the August quarter and profit grew by just 15 percent, with half year earnings per share coming in at 19 cents, full year earnings should come close to 50 cents but the stock is already a high price relative to the overall market.
The positives in the market is that the 45 days moving average is now over stretched and should enjoy some rebound sooner than later. Looking fully at 2018 thinks appear brighter with IC Insider.com pointing to 14 stocks including the IPO, Elite Diagnostics that could double in price and around 8 that could gain over 50 percent.
Elite Diagnostics could be in the Junior Market TOP 10 by the end of 2018.
Based on projected earnings for 2018, the average PE ratio suggests that Junior Market stock prices should grow by 36 percent. Technical readings have the junior market moving to 3,900 points, 43 percent higher than the end of 2017, before major resistance sets in.
The Top 10 Junior market stocks are taken from those listed at the start of 2018. The list therefore excludes Elite Diagnostics which should end in the top of 2018 best Junior Market stocks at the end of the year.
The list comprise some 2017 under performers, insurance companies that should benefit from increased premium income and in the case of Key Insurance reduced administrative cost. Paramount Trading is adding new product lines that should not only boost top line but with bottom-line growth, while Caribbean Producers and Dolphin Cove will benefit from the strong growth in tourism.
Barita is back VM Investments out – TOP 10
There is only one change to the TOP 10 lists, since we last reported on it, with Victoria Mutual Investments rising to more than $4 from the IPO price of $2.45, after listing in December and is replaced by Barita Investments.
Junior market stocks show some noted position change due to price movements. Key Insurance slipped in price to move atop that list, while Jamaican Teas gained and moved into the second half of the listing. CAC2000 posted results that were just 2 cents lower than IC Insider.com’s forecast of 80 cents, with the price climbing to $7.31 at close of the week and should really be going higher based on those numbers. Access Financial climbed back to $42, pushing it to the bottom of the list.
Former TOP 10 listing, Main Event reported a 79 percent jump in earnings for 2018, to 38 cents per share before taxation, the price may bounce about for a while around the $6, until it is clear that 2018 earnings should hit 55 cents per share.
With the Initial Public offerings (IPOS) out of the way, more life returned to the secondary market this past week with the main market enjoying buoyant volumes and the Junior Market recording some recovery with more buying interest.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 8.6 and 8.4 for the main market TOP 10. 
The average PE for the overall main market is 15 and 13.6 for the Junior Market, based on 2017 estimated earnings.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 37 percent to the average of the market for Junior Market Top stocks and 44 percent for the main market.
Market Watch| Investors should still keep a keen eye on Caribbean Cement for which supply seems to be declining and word that the company is close to an agreement in refinancing the leased assets that is expected to result in major savings in cost for 2018 onwards. FosRich and GWest Corporation, pulled back from 
their highs this past week with FosRich hitting $2.50 in trading on Friday, this one could see some rebounding but GWest Corporation could decline some more. Others to be watched are, CAC2000, General Accident, Cable & Wireless, NCB Financial, Berger Paints, JMMB Group, Main Event, Lasco Financial, Paramount Trading and Stationery and Office. Wisynco pulled back this past week to $10.80 and may well trade around this level for a while with a PE of 15 times 2018 earnings, as profit taking continues.
TOP 10 stocks – Watch for Wisynco
Wata produced by Wisynco
Movement in the TOP 10 lists, resulted in just one move out, while some changed positions notably on the list. Main Event was the sole stock dropping from the top list leaving room for Caribbean Cream to move in.
With the Initial Public offerings (IPOS) out of the way, more life returned to the secondary market this past week with the main market gaining strongly but Junior Market stocks continue to struggle but helped by gains in price of two new listings.
The year ahead will see a number of changes to the TOP listings with several of the current listing carrying over. Only ISP Finance so far is showing as a new likely TOP 10 listing for 2018 in the Junior Market. 
The main market list is likely to see about 4 new entrants for 2018, with Cable & Wireless, Barita Investments, Palace Amusement and Wisynco depending on when it list, joining the top stocks. Radio Jamaica sits just below the TOP 10 and could well squeeze into the 10 by the start of 2018. Profit results for the fourth quarter, are likely to impact prices of most stocks as the information will provide important fuel for price movements.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 7.9 and 8.2 for the main market TOP 10. The average PE for the overall main market is 14.2 and 13.4 for the Junior Market, based on 2017 estimated earnings.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 41 percent to the average of the market for Junior Market Top stocks and 42 percent for the main market.
Market Watch| Investors should still keep a keen eye on Caribbean Cement for which supply seems to be declining with the focus on refinancing of leased assets that is expected to result in major savings in cost for 2018 onwards. 
FosRich and GWest Corporation, the recent IPOs, started trading on the Junior Market last week with strong gains so far, they should be watched in the few trading days left for the year, to glean further directions as both are now richly priced. Others to be watched are, General Accident, Cable & Wireless , NCB Financial, Berger Paints, JMMB Group, Main Event, Lasco Financial, Paramount Trading and Stationery and Office. Wisynco could start trading this week and is expected to create some excitement with the issue more about twice oversubscribed.
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TOP 10 stocks – Watch FosRich on Tuesday
With the Initial Public offerings (IPOS) out of the way, more life returned to the secondary market this past week resulting in some changes to the TOP 10 lists.
Initial Public offerings for 2017 now seem to be over until they reappear in January, with Sygnus Capital Investments planning to be out of the block early. Others that were prepared to go in December could come to market in January, the start of what now appears to be another interesting year for local stocks. Coming Tuesday in the wider market, FosRich Group, the recent IPO will list and start trading on the Junior Market.
Prior to the past week, the focus on IPOs negatively affected trading in the secondary market with the Junior Market giving up almost all the gains make in the first half of the year and is still trading close to the low for the year.
The past week ended with Main Event as the only new entrant into the TOP 10 Junior Market stocks, with Blue Power leaving, as the price rose back to the $44. Sagicor Group returns to the Main Market list pushing out Pulse Investments. Interestingly, General Accident jumped to $3 by week end with limited supplies and slipped to number 2 on the list.
Investors should bear in mind that as the year closes, there will be changes to the TOP list for 2018, with a number on the current list, expected to repeat, but there will be new ones.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended at 8.1 and a PE of 8.2 for the main market TOP 10. 
The average PE for the overall main market is 14.2 and 12.8 for the Junior Market, based on 2017 estimated earnings.
IC Insider.com’s TOP 10 stocks now trade at an average discount of 36 percent to the average of the market for Junior Market Top stocks and 44 percent for the main market.
Market Watch| The two markets seem to have found support this past week after retreating sharply over the prior two weeks. Investors should still keep a keen eye on Caribbean Cement for which supply seems to be declining fast and a focus on refinancing leased assets is expected to result in major savings in cost for 2018 onwards. FosRich, the recent IPO that starts trading on the Junior Market on Tuesday, General Accident, Cable & Wireless that appears scarce under $1, NCB Financial, Berger Paints, JMMB Group, Main Event, Lasco Financial, Paramount Trading and Stationery and Office.
VM Investments in TOP 10
VM Investments press conference for launch its IPO. from left is Michael McMorris – Chairman of VMBS, Courtney Campbell Group CEO, Devon Barrett CEO of VMIL and Janice McKenley – Group Chief Financial Offer.
Initial Public offerings were all the rage in Jamaica Stock Market this past week, with three IPOS opening and closing during the week all being oversubscribed and one new one coming to market to open on Monday and expected to close on the same day.
The focus on IPOs negatively affected trading in the secondary market with the Junior Market giving up almost all of the gains make in the first half of the year. The week ended with no movement in and out of the TOP 10 Junior Market stocks but VM Investments is a new one in the Main Market list along Pulse Investments that returned with a fall in the stock price during the week, and out goes Wisynco and Sagicor Group.
As indicated last week, the bulk of Wisynco’s gain should come in the latter part of 2018, based on current operations 
that should deliver earnings of 70 cents for the current year and $1 for the next fiscal as the company continues to recover from the ravages of the fire back in 2016. Much is expected from VM Investments that is priced to bounce well. Investors ought to bear in mind that that has the year closely, they will be changes to the TOP list for 2018, quite a number on the current list are expected to repeat in 2018.
At the close of Friday, the average PE ratio for Junior Market Top stocks ended the week at 7.9 and a PE of 8 for the main market TOP 10. The average PE for 
the overall main market is 14.1 and 12.6 for the Junior Market, based on 2017 estimated earnings.
At the close of the week, discount for both the main and Junior markets have virtually merged, with the IC Insider.com’s TOP 10 stocks now trading at an average discount of 44 percent to the average of the market for Junior Market Top stocks and 46 percent for the main market.
Market Watch| The two markets retreated sharply over the past two weeks and broken through support levels with some individual stocks pulling back and pushing the market index down markedly, but the main market seems to have found a bottom and may be on the way up now 
that the major IPOs are closed. The junior market could be going through a consolidation phase for a while, at least that is what the market seems to be suggesting.
Investors should still keep a keen eye on Caribbean Cement for which supply seems to be declining fast, Cable & Wireless that appears scarce under $1, NCB Financial, Berger Paints, JMMB Group, Main Event, Lasco Financial, Paramount Trading and Stationery and Office.