Laco Distributors

Three IC TOP 10 changes

April 27, 2020 by IC Insider.com

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.

Filed Under: Buy Rated Tagged With: Berger Paints, CAC2000, Caribbean Producers, Carreras, Daily Trading, Emerging markets, General Accident, Grace Kennedy, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, junior market, KLE Group, Laco Distributors, Lasco Financial, Lumber Depot, Medical Disposables, PANJAM Investment, Radio Jamaica, Scotia Group, Stanley Motta, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity, tTech

Four changes to IC TOP 10

April 19, 2020 by IC Insider.com

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.

Filed Under: Buy Rated, JSE Combined, Stock Market Tagged With: Berger Paints, CAC2000, Caribbean Assurance Brokers, Caribbean Producers, Carreras, Daily Trading, Emerging markets, General Accident, Grace Kennedy, Jamaica Broilers, Jamaican Stock Exchange, Jamaican stocks, Jamaican Teas, junior market, KLE Group, Laco Distributors, Lasco Financial, Lumber Depot, Main Event, Medical Disposables, PANJAM Investment, Radio Jamaica, Scotia Group, Stationery and Office Supplies, Stocks to Watch, Sygnus Credit Investments, TOP 10 stocks, Trading Activity

2 weeks’ of robust gains for IC TOP 10

April 11, 2020 by IC Insider.com

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.