Some big Buy Rated gains more ahead

Hardware & Lumber with its Rapid True Value retail arm gained 265% since place on BUY RATED list

Hardware & Lumber with its Rapid True Value retail arm gained 265% since place on BUY RATED list

IC Insider Buy Rated stocks have chalked up 3 winners with gains in excess of 100 percent and two over 200 percent and one at 99 percent. 8 stocks have declined so far with losses between 7 percent and 27 percent but that should change as the year rolls on. There are no additions to the list, a few have been removed or put on hold.
Blue Power is now removed based on flat sales for the year to April and no immediate signs of a pickup. Dolphin Cove that was added in May last year and gained 48 percent is being moved to hold as revenues in the other half of the year to December is unlikely to grow to justify market out performance. The company had only a 6 percent increase in first quarter revenues down from 13 percent in 2014 and profit fell 10 percent to $133 million. Hardware and Lumber with buy out talks to acquire majority ownership with a maximum price of $18.50 and Scotia Investments are shifted to hold while JMM Group is moved from Buy Rated to Watch or accumulate based on the current price of $7.50.
As much as stocks with high gains may be view as already providing rich returns, there are much more gains left to be made. Carib Cement should report earnings in the $1 region this year with reduced cost, increased sales and the future should be even brighter as the local economy moves slowly into growth and lower interest rates will help boost building construction. Caribbean Cream has more than doubled this year in price but with lower input cost and increased sales should earn around 60 cents per share this year, at the present price of $1.60, there is room for growth. BUY Rated fn 7-15Jamaica Stock Exchange has had a phenomenal run this year with increased revenues and profit. Profit this year could reach $1.20 which should lift the stock some more and 2016 could be an even bigger year for it. Paramount Trading at $6 is still about 50 percent undervalued based on 2015 earnings and even more based on 2016 projected earnings. Lasco Manufacturing is yet to deliver in price movement but the 78 percent jump in the March quarter profits is a development that investors should be paying attention to.
Over in Trinidad, investors keep on ignoring Trinidad Cement but they should not, even with the 190 percent gain in the stock price. IC Insider sees higher profits flowing from increased sales, cost reduction including interest cost on loans. National Flour which we added in May is now up 21 percent still has more room to grow. The Trinidad market is likely to experience slow growth this year as such, many of the listings may not deliver much in the short term but investors should keep their eyes on Scotiabank that produced a nice lift in second quarter profits.

Access wanted

Access demanded on Friday at $11.50 for  100,000 shares

Access demanded on Friday at $11.50 for 100,000 shares

Activity closed with only 6 securities trading the same number as Thursday and ended with even less than 44,694 units changing hands, at the final day of the week only 33,681 traded valued at $139,654 compared to a mere $104,551 on Thursday. The JSE Junior Market Index declined 21.85 points close at 869.45 and is now down 7.3 percent from the high in June. The market ended with the prices of 3 stocks declining.
At the close, the junior market was showing improved sentiments with 8 stocks having bids higher than their last selling prices, 3 with lower offers, compared to 6 to 7 on Thursday and 4 securities closing with no bids to buy while 5 had no stocks being offered for sale. Access Financial Services closed with the bid above the last selling price with 131,000 units posted by three brokers on the bid to buy above the last traded price of $11.10. Offers in the market amounts to 8,360 units for sale between $15.50 and $18.50.
JM 3-7-15Stocks trading in the junior market are, Blue Power traded just 1,600 units unchanged at $9.50, Caribbean Cream traded 1,988 units on offer at $1.60, the offer at the close is at $1.60 to sell 62,805 units and the closest bid to buy, is for 126,643 units, well below, at $1.25. Lasco Distributors traded 9,365 shares at $1.65, just 5 cents lower than when it last traded, Lasco Financial Services traded only 2,128 shares and lost 8 cents to end at $1.76 and Lasco Manufacturing had 2,000 shares changing hands 16 cents lower at $1.20 and Paramount Trading ended with 16,600 shares unchanged at $6.

Low-keyed activity for juniors

Activity on the junior market closed with only 6 securities trading and ended with just 44,694 units changing hands, valued at a mere $104,551. The JSE Junior Market Index declined 4.89 points to close at 891.30. The market ended with the prices of 2 stocks advancing and none declining and with several prices appearing soft going into Friday’s trading.
JM 2-7-15At the close of the junior market was flashing weak signals on Thursday with 6 stocks having bids higher than their last selling prices, 7 with lower offers that were lower and 4 securities closing with no bids to buy while only 5 had no stocks being offered for sale.
Stocks trading in the junior market are, Cargo Handlers ending with 590 units changing hands to close unchanged at $30, Caribbean Cream traded 2,950 units at $1.60 but the offer at the close is at $1.55 for 75,800 units. Caribbean Flavours traded 10,000 shares to close 7 cents higher at $2.60. Knutsford Express traded 1,094 shares at $6.10, Lasco Financial Services traded 18,700 shares and put on 4 cents to end at $1.84 and Lasco Manufacturing had 11360 shares changing hands, unchanged at $1.36.

Paramount Trading’s big trade

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Paramount_building Paramount Trading dominated the junior market with 10,549,936 shares changing hands at $6. Activity closed with 9 securities trading and ended with 11,106,761 units changing hands valued at $64,567,505. The JSE Junior Market Index declined 18.58 points close at 896.19. The market ended with the prices of 4 stocks advancing, 5 declining with 2 closing at 52 weeks’ high and 1 at a new low.
At the close of the junior market was flashing weak signals for Wednesday with 3 stocks having bids higher than their last selling prices, 4 with lower offers and 4 securities closing with no bids to buy while only 3 had no stocks being offered for sale.
Stocks trading in the junior market are, Access Financial Services closing with 28,700 shares gained 8 cents to close at $11.10, Blue Power ending with 8,901 units changing hands to close at $9.50, Caribbean Flavours trading 2,000 shares to close at $2.53 after losing 2 cents. Caribbean Producers traded 2,000 shares at $2.80, Dolphin Cove trading only 1,250 units at $12 for a loss of $1,JM - 1-7-15 at the close Lasco Distributors sold 304,274 shares and gained cents 1 cents at $1.70. Lasco Financial Services traded 69,700 shares and lost 13 cents to end at $1.80, Lasco Manufacturing had 140,000 shares changing hands at $1.36 and lost 9 cents at the end.
Caribbean Cream did not trade but remained under pressure closing with 75,800 units on offer at $1.55, 5 cents below the last traded price with the bid at $1.25, to buy 126,643 units, while offers are at $160, $1.70 up to $2.

All Jamaica Index now up 1,689 points

After 60 minutes of trading on the Jamaica Stock Exchange, 24 securities traded JSE Intra trd 1-07-15-up.xlsxwith 10 stocks rising compared to just 3 earlier and 5 declining the same as at 10.30 am. A total volume of just over 1 million shares have changed hands.
The all Jamaican Composite index inched up 1,689.49 to 109,351.43 points, JSE Combined Index put on 1,270.82 to 101,269.39 points, JSE Index is now at 98,782.68 points after adding 1,511.53 points and Junior Market Index fell to 897.77, down by 17 points.
The most noticeable trades so far are, Scotia Group that traded at $24.50 to gain $1.25 but with limited volume, Lasco Distributors 27,966 shares at $1.69, Lasco Financial Services 38,764 units at $1.81, Lasco Manufacturing 110,000 shares at $1.45 and Supreme Ventures traded at $3.90 to add 50 cents.

JSE main indices move up

After 60 minutes of trading on the Jamaica Stock Exchange, 18 securities traded JSE Intra trd 1-07-15.xlsxwith 3 rising and 5 declining comprising a total volume of only 370,060 shares changing hands, only 7 stocks have so far traded in the junior market with both declining.
The all Jamaican Composite index inched up 400.20 to 108,062.14 points, JSE Combined Index put on 154.06 to 100,152.63 points, JSE Index is now at 97,629.20 points after adding 358.05 points and Junior Market Index fell to 894.54, down by 20.23 points.
The most noticeable trades so far are, Lasco Distributors 27,966 shares at $1.69, Lasco Financial Services 38,764 units at $1.81, Lasco Manufacturing with 110,000 shares at $1.45 and Supreme Ventures traded at $3.90 to add 50 cents.

Cargo Handlers keep on sailing away

CAR H 2015-06-26 Activity on the Junior Market was moderate and closed with 11 securities trading and ended with only 347,331 units changing hands valued at $1,016,457. The JSE Junior Market Index advanced 15.05 points close at 914.77. The market ended with the prices of 4 stocks advancing, 5 declining with Cargo Handlers closing at 52 weeks’ high.
At the close of the junior market was flashing weak signals for Wednesday with 4 stocks having bids higher than their last selling prices, 5 with lower offers and 5 securities closing with no bids to buy while only 3 had no stocks being offered for sale.
Stocks trading in the junior market are, Access Financial Services closing with 5,951 shares trading 2 cents up at $11.02, AMG Packaging ending with just 200 units changing hands to close 1 cent lower at $3.19 but had an offer at $3.15 at the end to sell 27,775 shares. Cargo Handlers recorded yet another all-time high in trading 9,342 units $1.50 higher to close at $30, Caribbean Cream traded 1,000 units at $1.60, Caribbean Flavours trading 16,581 shares to close at $2.53 after losing 2 cents, JM 30-6-15Caribbean Producers traded 5,000 shares and lost 20 cents to $2.80, Dolphin Cove trading only 811 units at $13 for a new high, after gaining 40 cents. At the close Knutsford Express sold 920 shares at $6.10. Lasco Financial Services traded 218,100 shares and gained 12 cents to end at $1.93, Lasco Manufacturing had 26,937 shares changing hands at $1.45 to again 14 cents at the end, Medical Disposables ended at $2.25 with 10,000 shares changing hands with a loss of 5 cents and Derrimon Trading 11.75% preference share closed with a 10 cents loss at $2.40.

LascoMan profit jumps 78% in Q4

Lasco's new I Cool drink where demand is resulting in an increase in the plant size.

Lasco’s new I Cool drink where demand is resulting in an increase in the plant size.

Lasco Manufacturing generated total revenues of $1.45 billion, 27 percent more than the $1.14 billion garnered in the March 2014 quarter, resulting in a 78 percent jump in profit for the quarter to $243 million from $138 million.
For the financial year, revenues climbed 19.4 percent to $4.8 billion from $4.03 billion and profit of $669 million is up from $584 million. Gross profit climbed 34.7 percent well above the growth in revenues, a very positive development. Gross profit for the quarter jumped a huge 86 percent helping to deliver the stunning increase in profit for the quarter and augurs well for results for the coming fiscal year, and is a result of new products now being produced by the new plant.
Administrative expenses climbed 44 percent to $555 while finance cost moved from $73 million to $125 million. The average number of persons employed by the company during the year was fifty-one up from forty-two in 2014 helping to push labour cost from $147 million to $209 million. With the new factory facilities operational, depreciation ended at $67 million up from $27 million in 2014 but is set to jump in 2016 with only a Borrowingfraction of the annual charge booked in 2015, additionally, there are more assets to be transferred to fixed assets that will give rise to even higher depreciation charges.
Borrowing climbed to $1.64 Million from $1.49 billion at the end of March 2014, the increase helped to fund capital expenditure of $523 million during the year. A total of $329 million was paid back on loans during the year.
The last quarter numbers suggest that profit could end around $1.2 billion for the year or around 30 cents per share. While the company becomes taxable this year capital allowances coupled with tax payable at 12.5 percent, will result in little or no taxes being paid on profit for the year.
The net book value of property, plant and equipment includes assets under construction amounting to $1.34 billion. The cost will be depreciated once the property is complete and available for use. The estimated additional cost of completion of the facility is $373 million.
The company is listed on the junior market of the Jamaica Stock Exchange and last traded at $1.31 for an historical PE of just over 8 and around 4 based on IC Insider’s projected earnings. The stock should deliver a healthy increase in price during the fiscal year.

Cargo Handlers new high of $28.50

CAR H 6-15 Activity on the Junior Market closed with 9 securities trading and ended with 227,627 units changing hands valued at $719,458. The JSE Junior Market Index advanced 5.56 close at 899.90. The market ended with the prices of 5 stocks advancing, 2 declining with 2 closing at 52 weeks’ high.
At the close of the market, there were 2 stocks with bids higher than their last selling prices, 4 with lower offers and 4 securities closing with no bids to buy and 5 that had no stocks being offered for sale.
Stocks trading in the junior market are, AMG Packaging ending with just 100 units changing hands to close 4 cents higher at $3.20 but had an offer at $3.15 at the end. Cargo Handlers recorded yet another all-time high in trading 2,170 units $2.50 higher to close at $28.50 and record a strong gain of 78 percent since the start of the year. Caribbean Cream with 8,757 shares traded at $1.60, Caribbean Producers traded 200,000 shares to gain 20 cents to $3, Consolidate Bakeries landed just 1,000 units but ended atJM 26-6-15 a 52 weeks’ high of $1.25 after posting a gain of 8 cents. Dolphin Cove traded 200 shares to close at $12.60 by shedding 18 cents, Jamaican Teas ended at $4 with 5,000 shares changing hands, Lasco Distributors traded 2,000 shares and declined by 3 cents to end at $1.65 and Lasco Financial traded 8,400 shares but rose 3 cents in closing at $1.93. At the close there was an offer to sell 11,241 units of Lasco Financial at $1.85.

Juniors below 900 points

JSE sign Activity on the Junior Market closed with 8 securities trading and ended with 294,026 units changing hands valued at $954,783. The JSE Junior Market Index declined 14.05 on top of a fall of 15.87 points on Wednesday to close at 894.34, the first time it closed below 900 points since crossing over this level on June 3.
At the close of the market, the prices of 2 stocks advanced, 3 declined with 2 closing at 52 weeks’ high and there were 4 stocks with bids higher than their last selling prices, 4 with lower offers and 4 securities closing with no bids to buy and 5 that had no stocks being offered for sale.
Stocks trading in the junior market are, Access Financial ending with 17,562 units changing hands to close with a loss of $1.50 at $12 Cargo Handlers finished with 10,000 units to close at $26,Caribbean Cream with 3,357 shares traded higher by 1 cent to $1.60,JM 25-6-15 Caribbean Producers traded 6,000 shares and lost 8 cents to $2.80, Dolphin Cove trading 200 shares to close at $12.78 but ended with an offer to sell just 200 shares at $12.60. Honey Bun ended at $2.88 with 20,038 shares changing hands, Lasco Financial traded 152,759 shares but fell 5 cents in closing at $1.90 and Lasco Manufacturing traded 84,000 shares but gained 1 cent to end at $1.31.