Steady going for IC Top 10 stocks

The Main Market put in a positive performance this past week, with the market index rising over 5,000 points, at the same time, the Junior Market bob and weaved its way to a minor loss for the week, resulting in changes to the TOP 10 lists.
The market move resulted in just two changes to the IC Insider.com TOP 10 weekly lists as the Main Market recovered almost all of the losses in the previous two weeks of 3,784 points a week ago and just under 2,000 points in the week before.
For the Junior Market TOP 10, Medical Disposables returns to the ten, after just a week’s absence, replacing General Accident that rose in the week.
This week’s focus:  General Accident enjoyed increased buying interest this past week, following the announcement from the company that they acquired an additional ten percent of the issued shares of MotorOne insurance company in Trinidad, taking their holdings to 65 percent. Also, the brokerage house, Mayberry Investments, upgraded the company’s earnings to 70 cents per share for this year, from 60 cents, previously and have a buy recommendation on the stock. IC Insider.com’s forecast is 85 cents per share for the current year. The stock closed on Friday at $6, up from $5.51 last week and traded over $8, last year, October. It now sits just below the Top 10 stocks, with the potential to reach $15 within the next nine months.
The top three Junior Market stocks, this week, with the potential to gain between 305 to 712 percent by March 2021 are Caribbean Producers, followed by Lasco Financial and Caribbean Cream, with the price dropping from $2.85 to $2.47. In the Main Market, the top three stocks continue to be Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group with expected gains of 173 to 205 percent.
The targeted average PE ratio of the market is 20 based on profits of companies reporting full year’s results for the financial year ending after the second quarter of 2020, up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 15.2 and the Junior Market at just 10.6, based on 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks averages a mere 5.6 at 53 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at 8.8 or 58 percent of the PE of the overall market.
The average projected gain for the IC TOP 10 stocks is 291 percent, for the Junior Market and 136 percent for the JSE Main Market, based on 2020-21 earnings, an indication that there is the potential to make greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver some of the best returns up to March 2021. Gains for each company are based on the earnings and PE ratios for the current fiscal year.
The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. The classification of the securities is in order of likely increases, with the most attractive highest ranked first. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

3 changes to BUY RATED Top 10

The Junior Main Market rose four out of five trading days this past week, with the market gaining 2.5 percent while the Main Market lost just under 2,000 points for a loss of half of one percent.

Scotia Group this week’s featured stock

In the last week of May, the Junior Market index gained 3 percent in continuation of a 4 percent rise in the prior week while the Main Market rose 2 percent, with less than a percentage point rise for the previous week.
IC Insider.com TOP 10 weekly reports indicated for some time that the best buys in the Jamaican markets are in the Junior Market, investors by their actions since the market dived in March are confirming this by pushing the Junior Market at a faster pace than the Main Market.
For the Junior Market TOP 10, CAC 2000 and KLE Group dropped out, with full-year earnings, downgraded, with the loss incurred for the six months for CAC and KLE struggling from lack of business due to coronavirus, with little possibility of either of them making up grounds to put them back in TOP 10 contention, for 2020. Elite Diagnostic price climbed from $3.74 to $4.17 and moved out of the group. Replacing the stocks dropping out of the TOP 10 are Caribbean Assurance Brokers, Jamaican Teas and Medical Disposables. There was no change to the TOP 10 Main Market this past week.
This week’s focus: Scotia Group released half-year results to April this past week, but investors are concerned about the impact of bad loans on the profits of banks and they may be overreacting to it. Scotia Group reported a net income of $4.02 billion for the six months to April compared to $5.62 billion for the corresponding period last year. Excluding additional loan provisions of $1.11 billion due to the revision of expected credit losses, net income would be down $488 million or 8.7 percent. When the added loan provision and reduced fee income are taken into consideration, the second quarter, the results would have beaten the pretax profit in 2019, by a small margin.
The group loan portfolio increased $34 billion or 18 percent year over year, primarily due to 28 percent growth in commercial loans, with delinquency of only 0.8 percent. The retail loan portfolio increased 11 percent over the prior year and included a 14 percent increase in mortgages. The growth in loans is the most critical factor in determining likely gains in profit going forward.
The past week closed with the three top Junior Market stocks with the potential to gain between 260 to 692 percent by March 2021 are Caribbean Producers, followed by Lasco Financial and Lumber Depot. In the Main Market, Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group, with expected gains of 165 to 233 percent.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after the second quarter of 2020 up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 14 and the Junior Market at just 9.3, based on current 2020-21 earnings. The PE ratio for Junior Market Top 10 stocks averages a mere 5.7 at just 61 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at 8.6 or 62 percent of the PE of the overall market.
The average projected gain for the IC TOP 10 stocks is 283 percent, for the Junior Market and 140 percent for the JSE Main Market, based on 2020-21 earnings, an indication that there is the potential to make greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver some of the best returns up to March 2021. Expected gains are computed based on earnings and PE ratios for the current fiscal year. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

SOS & Proven back in IC TOP 10

The Junior and Main Market, IC Insider.com TOP 10 closed the week with Medical Disposables and Stationery and Office Supplies returning the TOP 10, after a week’s absence as they replaced CAC2000 and Elite Diagnostic.
In the Main Market, Seprod rose to $49.99 from $44.10 on limited volume, following robust first-quarter results, to be replaced by Proven Investments.
During the past week, investors pushed the Main and Junior Markets slightly higher than at the close of the previous week, but the message from the markets is that they are both in a consolidation mode as investors absorb results released during the past week.
If history is anything to go by, the market could remain in a period of consolidated until early July when it usually starts a slow recovery.
The past week saw the release of quarterly results with positive gains, the companies reporting sharp increases include Grace Kennedy, tTech, Caribbean Flavours, 138 Student Living, Eppley, Kingston Wharves and Sterling Investments.
The three top Junior Market stocks with the potential to gain between 355 to 663 percent by 2021 are Caribbean Producers, followed by KLE Group and Caribbean Cream. In the Main Market, Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group with projected gains of 165 to 213 percent.
This week’s focus: Caribbean Cream released full-year results, after trading closed on Friday, with profits falling 38 percent, from $89 million to $55 million, from a 10 percent rise in revenues to $1.7 billion. Depreciation more than doubled in the year, with an increase of $63 million, to end at $115 million, negatively affecting the results for the year to February. In the final quarter, sales grew 16 percent over the similar period in 2019 and might be indicating that revenues are poised to rise above recent growth levels. If this is, in fact, the case then the company is poised for strong growth in profits going forward.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after this year’s second quarter and up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 13.6 and the Junior Market a mere 8.9, based on current 2020-21 earnings. The PE ratio for Junior Market Top 10 stocks averages a mere 5 with the Main Market at a much higher level of 8.4.
The TOP 10 stocks now trade at a discount of 44 percent of the average for Junior Market and Main Market stocks trade at a discount of 38 percent to the overall market. The average projected gain for the IC TOP 10 stocks is 332 percent, for the Junior Market and 144 percent for the JSE Main Market, based on 2020-21 earnings.
IC TOP 10 stocks are likely to deliver the best returns to March 2021. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Just three IC TOP 10 changes

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Investors seem to be shrugging off some of the recent negative developments in the Jamaica stock market, with their activity moving the Main Market higher by the close of the week and the Junior Market just a few points lower.
The market is moving into a period where prices tend to move slightly downward until early July when it usually, starts a slow recovery, in this regard, first quarter results are going to be important for the market’s direction for a few weeks. Information management presents current and future business developments that will be critical in informing investors.
Developments of note this past week are the reporting of new results, with Barita Investments reporting profit of $1 billion for earnings per share (EPS) of $1.24 for the half year to March, versus 68 cents in 2019. Jamaican Teas with negative EPS of 3 cents after gross profit climbed 33 percent over 2019 out turn. Pulse Investments EPS ended at 12 cents versus 5 cents in 2019 for the nine months to March and Wisynco Group generated EPS of 78 cents vs 61 cents for the nine months to March. General Accident released 2019 audited accounts that showed for the first time the impact of the acquisition of their 55 percent interest in the Trinidad based Motor One insurance company at $238 million.
The Junior and Main Market, IC Insider.com TOP 10 closed the week with Medical Disposables and Stationery and Office Supplies exiting the TOP 10, to be replaced by Access Financial Services and Caribbean Cream, after the latter fell to $2. Seprod replaced Victoria Mutual Investments in the Main Market listing.
The three top Junior Market stocks with the potential to gain between 362 to 726 percent by 2021 are Caribbean Producers leading, followed by KLE Group and Lasco Financial. In the Main Market, Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group with projected gains of 173 to 213 percent.
This week’s focus: Seprod released first quarter results after trading closed on Friday, with ongoing operating profits more than doubling from $312 million to $632 million for the 2020 first quarter, with EPS of 86 cents. Revenues climbed 6 percent from continuing operations to $9.14 billion, an increase of $544 million. The big improvement arose from the closure of the sugar manufacturing operations and improvement in profit margin. The Sugar operations generated a loss of nearly $140 million in 2019 and just $15 million in the latest quarter while gross profit margin jumped to 30 percent from 26.6 percent in 2019.  The first quarter results are in line with ICInsider.com’s forecast of $4 per share earnings for this year and put the PE at just 11 times current year’s earnings.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after this year’s second quarter and up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 13.3 and the Junior Market a mere 8.9, based on current 2020-21 earnings. The PE ratio for Junior Market Top 10 stocks averages a mere 5 with the Main Market at a much higher level of 8.5.
The TOP 10 stocks now trade at a discount of 44 percent of the average for Junior Market and Main Market stocks trade at a discount of 36 percent to the overall market. The average projected gain for the IC TOP 10 stocks is 338 percent, for the Junior Market and 139 percent for the JSE Main Market, based on 2020-21 earnings.
IC TOP 10 stocks are likely to deliver the best returns to March 2021. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Revisions to earnings per share are ongoing based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Just two IC TOP 10 changes

The week just ended saw investors knocking bank stocks down following the surprise announcement by Bank of Jamaica to get banks to suspend the payment of dividends for the remainder of 2020 and that helped to push the market index sharply lower with some recovery on the last three days of the week.
Caribbean Cement and NCB Financial released first-quarter results in the past week with lower profit than the previous year’s March quarter. As if investors expected the outturn, the stock prices did not seem to react to them.
The Junior Market, after attempting to close higher for the past six days finally did so on Friday a sign that it could be heading higher in the days ahead as it traded as high as 2,478 points on Friday just below the close on April 16.
 The Junior and Main Market, IC Insider.com TOP 10 closed the week with one change each. Dropping from the list are Access Financial Services for the Junior Market and replaced by Stationery and Office Supplies, while Stanley Motta dropped from the Main Market listing and replaced by Victoria Mutual Investments.
The three top Junior Market stocks with the potential to gain between 344 to 660 percent by 2021 are Caribbean Producers leading, followed by Lasco Financial and KLE Group. In the Main Market, Radio Jamaica continues to lead, followed by Berger Paints and JMMB Group, with projected gains of 173 to 213 percent.
This week’s focus: Stationery and Office Supplies fell from a high of $16.35 last august is now trading at a discount of 61.5 percent to that price. The stock had moved from $6.85 in May last year to the high after revenues climbed by 23 percent for the half-year to $639 million to $519 million and profits rose 63 percent from $56 million to $92 million. The half years revenues compare favourably with the $702 million generated in the twelve months in 2016, the year before listing in 2017. Revenues grew around 12 percent from 2013 to 2016, then increased to 17.4 percent for 2018 and 14.5 percent for 2019. The company has an excellent management team that is growth-oriented as such investors can look forward to revenues growing in the 15-20 percent range going forward. In pursuit of this objective, the company is putting in place additional storage facilities to accommodate a robust expansion of sales. Investors should not rule out the possibility that they could expand from acquisitions as well as was the case with the addition of the business making the SEEK brand. While the disruption caused by the Coronavirus could derail the medium-term growth, it will only be a matter of time for management to pick up and return to the pre virus growth levels.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after this year’s second quarter and up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 12.5 and the Junior Market a mere 9, based on current 2020-21 earnings. The PE ratio for Junior Market Top 10 stocks averages a mere 5.3 with the Main Market at a much higher level of 8.3.
The TOP 10 stocks now trade at a discount of 43 percent of the average for Junior Market and Main Market stocks trade at a discount of 34 percent to the overall market. The average projected gain for the IC TOP 10 stocks is 319 percent, for the Junior Market and 148 percent for the JSE Main Market, based on 2020-21 earnings.
IC TOP 10 stocks are likely to deliver the best returns to March 2021. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected 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 when new information is received that can affect earnings significantly.

Persons who compiled this report may have an interest in securities commented on in this report.

Three IC TOP 10 changes

The Main and Junior Market of the Jamaica Stock Exchange lost more ground this past week as investors continued profit but left the vast majority of the IC Insider.com TOP 10 stocks holding on the lists.

General Accident is IC TOP 10 focus with an expected cut in MV claims.

The Main Market closed the week with two changes, resulting from down-grading of their earnings. Dropping from the list are PanJam Investment and Sagicor Group and replaced by Jamaica Broilers and Stanley Motta. Only Mailpac Group moved out of the Junior Market TOP 10 and replaced by Access Financial Services that fell to $24.01 on Friday.
The three top Junior Market stocks remain unchanged from last week with Caribbean Producers leading, followed by KLE Group and Lasco Financial with the potential to gain between 307 to 546 percent by 2021. In the Main Market, Radio Jamaica leads the pact, followed by Berger Paints and JMMB Group, with projected gains of 150 to 208 percent.
This week’s focus: General Accident is set to do very well. Last year’s earnings grew 48 percent from an increase of 22 percent in gross premium income and a 25 percent increase in net premium. The company acquired majority shares in the Trinidad based MotorOne Insurance that will add to revenues in 2020. One of the most critical development that investors seem to be ignoring is the likely sharp reduction in claims for motor vehicle accidents during the period of business disruption when there is far less traffic on the roads. Last year, claims amounted to $100 million per month. Historical trends show that the stock tends to remain fairly flat until the second half of a year.
Uncertainties exist in the economy and financial markets accordingly, and it is not possible to determine the exact impact on company earnings for the rest of the year. Actual earnings could vary materially from IC Insider.com’s forecast. Looking beyond the immediate fallout or benefits for companies can be useful in guiding investment decisions for above-average gains in the period ahead.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after this year’s second quarter, up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 12.8 and the Junior Market a mere 9, based on current 2020-21 earnings. The PE ratio for Junior Market Top 10 stocks averages a just 5.3 with the Main Market at a much higher level of 8.5.
The TOP 10 stocks now trade at a discount of 41 percent of the average for Junior Market and Main Market stocks trade at a discount of 34 percent to the overall market. The average projected gain for the IC TOP 10 stocks is 298 percent, for the Junior Market and 140 percent for the JSE Main Market, based on 2020-21 earnings.
IC TOP 10 stocks are likely to deliver the best returns to March 2021. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected 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 when new information is received that affects earnings significantly.

Persons who compiled this report may have an interest in securities commented on in this report.

Four changes to IC TOP 10

The Main and the Junior Market of the Jamaica Stock Exchange saw investors taking profit after a robust run since the second half of March, up to last Tuesday after reopening from the Easter holiday break. At the close of the week, IC Insider.com TOP 10 stocks had four changes to the lists.

Image courtesy of suphakit73/FreeDigitalPhotos.net

The Main Market closed the week with one change as Caribbean Cement climbed 14 percent to $48.50, from $42.50. The latest entrant is Eppley, with the price falling to $14.80 from $17 at the close of the prior week. The more volatile Junior Market ended with three changes. Moving on from the Junior Market TOP 10 are Caribbean Assurance Brokers that traded at a new high during the week, Lasco Distributor and Stationery and Office Supplies. New entrants to the list are Mailpac Group, Elite Diagnostic and Medical Disposables after the prices of all three fell at the end of the week.
The three top Junior Market stocks remain unchanged from last week with Caribbean Producers leading, followed by KLE Group and Lasco Financial with the potential to gain between 300 to 533 percent by 2021. In the Main Market, Berger Paints leads the pact, followed by Radio Jamaica and Sygnus Credit Investments with projected gains of 180 to 186 percent.
Significant uncertainties exist in the economy and the financial markets; accordingly, it is not possible to determine the exact impact on company earnings for the rest of the year. Actual earnings could vary materially from IC Insider.com’s forecast. Looking beyond the immediate fallout or benefits for companies can be useful in guiding investment decisions for above-average gains in the period ahead.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results for the financial year ending after this year’s second quarter and up to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 13 and the Junior Market a mere 9, based on current 2020/21 earnings. The PE ratio for Junior Market Top 10 stocks averages a just 5.4 with the Main Market at a much higher level of 8.2.
The TOP 10 stocks now trade at a discount of 40 percent of the average for Junior Market and Main Market stocks trade at a discount of 37 percent to the overall market. The average projected gain for the IC TOP 10 stocks is 296 percent from 278 percent last week, for the Junior Market and 146 percent from 139 percent last week for the JSE Main Market, based on 2020/21 earnings.
IC TOP 10 stocks are likely to deliver the best returns to March 2021. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected 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.

Persons who compiled this report may have an interest in securities commented on in this report.

2 weeks’ of robust gains for IC TOP 10

The IC Insider.com TOP 10 stocks have put substantial gains since the posting at the end of March. The selections based on projected 2020/21 earnings, included robust increases of 73 percent from Elite Diagnostic, followed by Lasco Manufacturing with a gain of 56 percent and Access Financial 55 percent.

Elite Diagnostics surged 73% on the Junior Market since the end of March.

Other outstanding Junior Market gains came from Caribbean Producers that enjoyed a rise of 33 percent in closing at $3 but traded up to $3.51 on Thursday, with an increase of 56 percent since the end of March. KLE Group rose 36 percent and Lasco Financial ended with a 30 percent increase. In the Main Market, Eppley leads with a 45 percent gain, Wisynco Group rose 43 percent and Radio Jamaica 24 percent.
The gains came from a strong recovery of stock prices on the Jamaica Stock Exchange after falling by record levels in March.
Following the rise in prices of TOP 10 stocks, there are five new entrants for the coming week.  These are General Accident, CAC 2000 and Stationery and Office Supplies in the Junior Market and in the Main Market, Sygnus Credit Investments and Caribbean Cement.
Stocks that dropped from the TOP 10 are Access Financial, Elite Diagnostic and Medical Disposables from the Junior Market and Eppley and Wisynco Group from the Main Market.
The current IC Insider.com TOP 10 list is based on the profit of companies reporting full year’s results for the financial year ending after 2020 second quarter and up to the second quarter in 2021.
Many local stocks made a strong recovery over the past two weeks, but major uncertainties still exist and it is not possible to determine the exact impact on company earnings. Actual earnings could vary materially from IC Insider.com’s forecast. Looking beyond the immediate fallout or benefits can provide a useful investment guide for above-average gains in the months ahead.
The three top Junior Market selections are Caribbean Producers, KLE Group and Lasco Financial with the potential to gain between 270 to 533 percent by 2021. In the Main Market, Berger Paints leads the pact followed by Radio Jamaica and then Carreras with projected gains of 146 to 170 percent.
The targeted average PE ratio of the market is 20. Both the Junior and Main markets are currently trading well below this level. The JSE Main Market ended the week, with an overall PE of 13.3 and the Junior Market a mere 9.7, based on current 2020/21 earnings. The PE ratio for Junior Market Top 10 stocks averages a just 5.7 with the Main Market at 8.8.
The TOP 10 stocks now trade at a discount of 41 percent of the average for Junior Market and Main Market stocks trade at a discount of 34 percent to the overall market. The average projected gain for the IC TOP 10 stocks is 278 percent from 312 percent last week and down from 377 percent at the close of the prior week for the Junior Market and 139 percent from 153 percent last week for the JSE Main Market, based on 2020/21 earnings.
IC TOP 10 stocks are likely to deliver the best returns to March 2021. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The ranking of stocks is in order of likely increases, with the highest-ranked, being the most attractive. Expected 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.

Persons who compiled this report may have an interest in securities commented on in this report.