45% gains for ICTOP15 stock

January 23, 2021 by

Robust gains for some stocks after less than a month of trading in 2021 have shaken up ICTOP 15 stocks forcing a number of them out or at the edge of moving out of the 2021 TOP list. Jamaican Teas now the lead stock for the year, dropped out of the Junior Market list this week, with a rise of 45 percent since the start of the year.

Jamaican Teas is the leading JSE stock for 2021 to date with a 45% increase in price. 

This brings to two, stocks that have migrated from the Junior Market TOP15 so far. Jamaica Producers fell out of the Top 15 Main Market list with the price dropping to $19.81, from $21 but Margaritaville suffered a greater fall to replace it.
Jamaican Teas one of the top 15 stocks for 2021 scaled record highs this past week as more and more investors piled into the stock since the three for one stock split in November last year. The gain also follows the directors’ report for the September quarter results that stated  “Subsequent to the year-end, overall sales increased by 47 percent in October 2020, with export sales increasing 85 percent and a 10 percent increase in domestic sales. We have good orders in hand for November and these developments, along with booking of more real estate sales, hopefully, improvement in the investment portfolio should result in a good first quarter for the financial year 2021.”
Mailpac was the first to drop out of the list and now has gains of 29 percent so far in 2021. Lumber Depot surged to $2.10 on Friday but closed at $1.95 from $1.46 last week and now sits at 15th spot on the Junior Market TOP15 for 2021, with a 25 percent gain for the year to date. Reports in the newspapers indicate bullish sales expectations from Caribbean Cement and rising prices for some construction inputs.

MailPac is the Junior Market second-best performing stock for 2021.

The news pushed investors to snap up Lumber Depot stock and drove the price much higher, since. QWI Investments is up 17 percent since the end of last year to trade at 90 cents with the net asset value rising since the latter part of last year to sit at $1.18 as gains in both local and overseas stocks continue to add to the value of the company’s portfolio. The stock is now at 14th spot on the Main Market list. A large number of shares were overhanging the market and pressuring the stock price. Once they were bought out, the supply has shrunken leaving room for the price to recover.
Caribbean Cream posted eleven percent growth in sales for the November quarter and eight percent for the nine months, with profit rising 96 percent for the nine months and a 37.5 percent increase for the third quarter. The stock is up 18 percent for the year at the close on Friday and remains at the seventh position on the 2021/22 TOP15 list.
With interest rates at low levels on government bonds and expected to remain low for a protracted period, investors are becoming more comfortable with PE of 20 times earnings or more, according to the TOP 15 rankings the above stocks still have room to gain over 90 percent from the current price for the rest of the year.

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Mailpac drops out of IC TOP15 stock listing

January 17, 2021 by

Stocks left to languish at depressed prices for months are coming back to life as some investors are now seeing the light of the huge potential profit in Junior Market stocks compared to their senior counter paths in the Main Market.
The Main Market slipped a bit to end the first half of January, with a modest loss but technical indicator points to it heading towards the 460,000 points level on the All Jamaica Composite Index, soon. The Junior Market is up 2.4 percent since the 2020 close and is a few points away from the level reached at the close of March 5 last year, having surpassed the April high, as the bullish golden cross takes full hold on the market to launch a big rally.
During this past week, IC TOP 15 selections MailPac, Caribbean Cream and Jamaican Teas all posted gains with Mailpac hitting a series of record highs this past week and closed at $3.75 up 30.6 percent since the end of 2020 and is now well outside of the 2021 Top 15 list for Junior Market stocks. The stocks still have much room for growth in the year to benefit from a strong increase in revenues. Caribbean Cream posted continued growth in sales for the November quarter and almost doubled profit for the nine months period and increased it by 37.5 percent for the third quarter. The stock gained 50 cents at the close on Friday but traded as high as $5 during the week and moved from fifth spot last week to ninth position on the 2020/21 TOP10 list. Jamaican Teas gained 25 percent since December and seems poised to move higher as interest in the stock grows since the announcement of a three for one stock split late last year. An indication of increased interest is the exchange of 4 million shares on Friday. The stock moved from the fourth position last week to seventh this past week as it gained 24 percent for the week.
Lasco Manufacturing rose in the past week and moved out of the TOP10 Junior Market ranks, with Honey Bun replacing it.
The current TOP 10 report is based on earnings for 2020/21 as there are substantial gains ahead, for many stocks in the listings.
Investors should be on the lookout for new quarterly results with Express Catering and Margaritavillle and should release results this week. Before the month ends, expect results from Caribbean Cement, QWI, NCB Financial, Barita and the three Lasco companies.
The top three stocks in the Junior Market with the potential to gain between 208 to 373 percent are Lasco Financial, followed by Caribbean Producers and Elite Diagnostic. With expected gains of 125 to 315 percent, the top three Main Market stocks are, Berger Paints followed by Grace Kennedy and Jamaica Broilers.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, from now to the second quarter in 2021. The Junior and Main markets are currently trading well below the market average, indicating strong gains ahead. The JSE Main Market ended the week, with an overall PE of 16.4 and the Junior Market 14.6, based on ICInsider.com’s projected 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 7.6 at just 52 percent of the market average. The Main Market TOP 10 stocks trade at a PE of 9.2 or 56 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 185 percent and 130 percent for the JSE Main Market, based on 2020-21 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.

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Lots of gains left for IC 2020 TOP10 stocks

January 9, 2021 by

The TOP 10 report is back and based on earnings for the 2020/21 period as there are still substantial gains ahead for many stocks in the listing, accordingly, ICInsider.com will hold off from our weekly commentary for the 2021/22 listings posted earlier this week.
For the few days in 2021, the Junior Market has moved slightly higher than the 2020 close and is a few points away from April’s high point and March 5 last year as the bullish golden cross takes full hold on the market to launch a big rally.
The Main Market slipped a bit to end the first week of the new year with a modest loss, but technical indicator points to it heading towards the 460,000 points level on the All Jamaica Composite Index.
Investors should be on the lookout for new quarterly results starting this week with AMG Packaging, Caribbean Cream, Express Catering, Knutsford Express, Margaritaville and Paramount Trading should release results this week. Before the month ends, other results expected are from Caribbean Cement, QWI Investments, NCB Financial, Barita Investments and the Lasco companies.
The top three stocks in the Junior Market with the potential to gain between 199 to 364 percent by March 2021 are Caribbean Producers, followed by Elite Diagnostic and Lasco Financial. With expected gains of 123 to 219 percent, the top three Main Market stocks are Berger Paints, followed by Scotia Group and Grace Kennedy.

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Investment 2021 – Recovery for JSE markets

January 7, 2021 by

The JSE Junior and Main Markets retreated in 2020, due mainly to the impact of the COVID-19 on the economy and businesses. Both markets, however, began to struggle in the final quarter of 2019 as a number of new IPOs were either issued or scheduled to be issued, thereby sapping some of the liquidity from the market.
The markets may have been due for a correction anyway, based on their history. Prior to this period, the Main Market had only risen on two other occasions equalling or exceeding six years. Surprisingly, the market went on to move higher during a period of economic turbulence, from 1978 to 1987, nine years of annual gains and again between 1996 and 2004 for another nine-year spell. On the other hand, the Junior Market, for the first time, recorded five consecutive years of increases from 2015 to 2019.
In reality, the market closed higher in each year from 2014 to 2019 for six years’ unbroken run. The JSE Main Market fell 33 percent to the low in March and the Junior Market by 37 percent.  Since then, they have rebounded but not enough to take them out of the negative territory for the year.
The number of new IPOs coming to market in the past three years pulled liquidity from the Junior Market, which depends extensively on the involvement of individual investors. In 2018 and 2019, the Junior Market under-performed the Main Market, measured by way of the market indices. In 2020, both markets were down, with the Junior Market just edging out the Main Market index with a lower decline of 21 percent versus 22.6 percent. Even though 2020 was not a great year, some investors made money by buying some stocks at rock bottom prices when many investors were dumping.
The decline in the market gives some investors breathing space from the six years’ bull market and opportunities to pick up stocks at better valuations or prices than for the period up to March 2020.
The markets have been recovering since they bottomed in March with the Junior Market up 30 percent and the Main Market 16.6 percent. There are strong signals pointing to an upward move for both markets as they transitioned from a consolidating phase when investors were assessing developments in the economy and the stock market.  The Golden cross technical signal for the Junior Market points to that market heading back above the 3,000 points level within months. The Main Market is undergoing a bullish signal with short term moving average line crossing over the medium-term Moving Average a bullish signal. The Main Market is within an ascending channel that points to the All Jamaican index heading towards the 460,000 points range.
Market valuations are reasonable with the PE ratios based on 2020 earnings at 14.7 times for the Junior Market and 17 for the Main Market, a few stocks are priced higher than the average, with many prices well below. Based on 2021 earnings, the PE ratio is an average of 9.2 for Junior Market stocks and 14.7 for the Main Market. The large difference is an indication as to where the best values can be found for investors. Adequate liquidity can be a problem for the Junior Market and many investors need to take a longer-term view in some of these companies as it is sometimes difficult to buy or sell good volume at prevailing market prices under current market conditions.
The local economy is currently down sharply, compared to 2019, but information released by Statin shows the economy picking up from the depressed June quarter, when major areas of the local economy were closed due to COVID-19. However, there are signs that the recovery has been picking up the pace and could move higher if the Coronavirus does not have any greater impact.
While the restrictions placed on economic and social activity has eased since the June quarter, it’s not business as usual in many areas. Investors still need to keep an eye on COVID-19 developments globally and any likely effects on the local economy. Barring any negative developments, stocks highly exposed to tourism, construction, banks and some manufacturing entities could see revenues and profits improving in 2021.
The TOP Main Market stocks’ potential gains range from 70 percent to 290 percent. The Junior Market range is 145 percent to 400 percent. Quite a number of the TOP 15 are recovery candidates. In fact, the Junior Market is filled with these, of which there are six that suffered badly from the effects COVID-19 had on their customers or in dampening demand for their products. A few in the Main Market were partially affected but not as much as some Junior Market companies.
This year 2021, seems set to be the year of surprises as many stocks that suffered badly in 2020 could be making a major turnaround in revenues and profit, while some that may not fully recover could start showing good signs of returning to normalcy.
The TOP 15 Main Market stocks: Berger Paints, Grace Kennedy, Jamaica Broilers, Pan Jam Investment, Radio Jamaica, Victoria Mutual Investments, Scotia Group, QWI Investments, Wisynco Group, Carreras, Sygnus Credit Investments, JMMB Group, Caribbean Cement, Seprod and Sterling Investments.
The TOP 15 Junior Market stocks: Lasco Financial, Caribbean Producers, Caribbean Cream, Main Event, Elite Diagnostic, Jetcon, Medical Disposables, Caribbean Assurance Brokers, Access Financial, Stationery and Office Supplies, Jamaican Teas, General Accident, Lasco Distributors, Lumber Depot and MailPac.
While there are clear signs of improving economic conditions, the path for the year ahead is uncertain for a number of companies. Some that suffered badly in 2020 will be showing signs of recovery, but the timing of their return to fairly good health is unclear at this stage. Investors should be on the watch for these early signs in individual companies.
Banks suffered from the need to increase expected credit loss provisioning, but it appears that it may not be as bad as initially projected. As such, there is likely to be less provision for credit losses in 2021 for banks and other lenders.

JSE Main Market on a rebound and heading to 460,000 points based on the AJ Index.

For other companies, just the fact that the second quarter lockdown of the economy last year is unlikely to be repeated will result in second quarter results in 2021 being better than last year. This would be of benefit to Caribbean Producers, Elite Diagnostic, Jetcon and Stationery and Office Supplies.
Strong growth in the construction sector favours stocks such as Berger Paints, Caribbean Cement and Lumber Depot while a rebound in the tourism sector will help boost revenues for Caribbean Producers, Grace Kennedy, Jamaica Broilers, Wisynco Group and the banks.
The financial challenges caused by the coronavirus are likely to lead to some businesses seeking to merge or dispose of a majority interest to other entities. As such, there is the possibility that a number of listed companies could acquire some of them at good prices. This is a potential development that investors should be on the alert for.

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More big price changes for IC TOP10

December 27, 2020 by

Last week, the Junior Market continued to move higher, closing higher than the prior week as the market index continues to flirt with the 2,600 points mark ahead of breaking higher and ended at the highest weekly close since mid-August as the bullish golden cross takes full hold on the market to launch a big rally.

Carreras stock price rose 14% during the past week.

In the process of the Junior and Main Market rising this past week, it ended with no new change to the TOP10 lists but there were some price movements of note during the week. Caribbean Producers having fell to $2.74 in the previous week rebounded 5 percent this past week to $2.89, while Lasco Financial lost 9 percent to close at $2.50.
The JSE Main Market rose to the highest level in nine trading days, during the week as it targets the 450,000 points level on the All Jamaica Composite Index in the next few weeks. Two stocks on the TOP10 made good gains in the week. Carreras that has lied in the top tier for some time, finally made a move, with a rise of 14 percent to $7.35 and now sits at no 6 spot, on the list. Radio Jamaica climbed another 13 percent this week, as sellers are less visible, with buyers pushing the price to $1.45 for a rise of 33 percent in just three weeks.
This week’s focus: The long awaited initial public offer of shares by Alliance Finance was announced this past week, with an offer for existing shareholders to sell 1.15 billion shares at $1.59 each. The prospectus containing details of the offer was released this past Wednesday, with the opening date of December 28. Other issues already announced are Sygnus Credit Investments, scheduled to close Wednesday gone, is extended to December 28. The original closing date was not convenient for some investors as the Christmas season placed pressure on some to meet the deadline. Key Insurance the smallest of the lot with a rights issue opens on December 28 and Derrimon Trading opens on January 8. Sygnus Credit Investments appears to be the best value offering with a PE below 10 times earnings.
The top three stocks in the Junior Market with the potential to gain between 220 to 350 percent by March 2021 are Caribbean Producers, followed by Elite Diagnostic and Lasco Financial, with Jamaican Teas slipping to 4th place. With expected gains of 133 to 221 percent, the top three Main Market stocks are, Berger Paints followed by Scotia Group and Grace Kennedy.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, from now to the second quarter in 2021. The Junior and Main markets are currently trading well below the market average, indicating strong gains ahead. The JSE Main Market ended the week, with an overall PE of 16.4 and the Junior Market 14, based on ICInsider.com’s projected 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 7.2 at just 52 percent of the market average. The Main Market TOP 10 stocks trade at a PE of 9.3 or 57 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 194 percent and 121 percent for the JSE Main Market, based on 2020-21 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year.  Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. 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.

 

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Strong price changes for IC TOP10 stocks

December 20, 2020 by

Last week, the Junior Market closed the week at the highest level since November 17 and before that, October 2 and moved higher this week to just below mid-August summer high. Based on the close on Thursday when the market closed above 2,600 points, the first in several months the market seems poised to challenge the April high point before the year ends.
The Main Market closed lower at the end of the past week having pulled back from last week from the close of the previous week. Against the above out turn, there is just one new addition to the TOP10 at the end of the week but there were some price movements of note during the week.
Lasco Manufacturing edged into Junior Market TOP10 as Derrimon Trading fell out with our projection for earnings down to 13 cents per share for the current year.
Radio Jamaica surged 14 percent to close at $1.28 after the company reported completion of its reorganization that resulted in 107 persons made redundant and restructuring of the operating segments within the group that should allow for greater efficiency and focus. The market closed the week with limited stocks on offer suggesting, the price should be moving higher if buyers want to stock up. AMG Packaging and Caribbean Producers fell 7 percent to $1.55 and $2.74, respectively. Lasco Distributors fell 8 percent to $3.16 from $3.55. Lumber Depot rose 12 percent to $1.55 and Jamaican Teas gained 8 percent to $2.05.
The top three stocks in the Junior Market with the potential to gain between 193 to 374 percent down from  216 to 342  percent by March 2021, are Caribbean Producers, followed by Elite Diagnostic and Jamaican Teas. With expected gains of 138 to 221 percent, the top three Main Market stocks are, Berger Paints followed by Carreras and Scotia Group.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, from now to the second quarter in 2021. The Junior and Main markets are currently trading well below the market average, indicating strong gains ahead. The JSE Main Market ended the week, with an overall PE of 16.8 and the Junior Market 13.7, based on ICInsider.com’s projected 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 7.2 at just 53 percent of the market average. The Main Market TOP 10 stocks trade at a PE of 9.2 or 55 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 194 percent and 125 percent for the JSE Main Market, based on 2020-21 earnings. IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year.  Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.

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IC TOP10 stocks deliver strong gains

December 12, 2020 by

The Junior Market closed the week at the highest level since November 17 and before that, October 2 and seems poised to take out all recent highs on the way to the year-end rally and a bullish period to come, to take it over 3,000 points. The main Market pulled back from last week’s levels but closed at the highest point for the week on Friday.
Honey Bun dropped out of the TOP 10, with Derrimon Trading replacing it at the bottom of the list. Honey Bun’s stock price jumped 19 percent for the week to $6.49 on Friday, with the stock now showing very limited supply and a bit of demand on the buying side, although a bit below the last sale price. The increased demand this week follows a strong September quarter profit that rose 76 percent over 2019. Wisynco Group spent just a week in the Main Market TOP 10, moved up in price to close out the week with the stock rising to $16.43 from $16.10 and replaced by NCB, in at the tenth position. The projections are for earnings to recover from the increased provision for expected credit loss charges in 2020 and from continued growth in the business and deliver earnings of $12 per share for the current year to September.
Former TOP10 holder MailPac, hit a record high on Friday, in closing at $2.60, up 19 percent from $2.19 last week. Lumber Depot reported earnings for the October quarter, keeping earnings on track for 20 cents per share and put added life into the stock, moving the price up 6 percent to close the week at $1.39 at a PE of 7 times earnings, well below the market average of 13.7. Caribbean Producers moved up 13 percent from $2.60 to $2.94 at the close and up a nice 21.5 percent for the month to date. The stock seems on target to move back into the $4 range sooner than later, with stock supplies thinning out and prospects for improved business looking increasingly better in 2021.
The top three stocks in the Junior Market with the potential by March 2021 to gain between 216 to 342 percent down from 239 to 400 percent at the end of the previous week are Caribbean Producers, even with the price has moved in recent weeks from $2.35 to $2.94 currently, followed by Elite Diagnostic and Jamaican Teas. Lumber Depot, in at third position last week, is now down to sixth after investors responded positively to quarterly results. With expected gains of 146 to 236 percent, the top three Main Market stocks are Berger Paints, followed by Radio Jamaica and Carreras.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, from now to the second quarter in 2021. The Junior and Main markets are currently trading well below the market average, indicating strong gains ahead. The JSE Main Market ended the week, with an overall PE of 16.6 and the Junior Market 13.7, based on ICInsider.com’s projected 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 7.3 at just 53 percent of the market average. The Main Market TOP 10 stocks trade at a PE of 9.1 or 55 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 192 percent down from 210 percent and 129 percent from 133 percent last week for the JSE Main Market, based on 2020-21 earnings. IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year.  Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.

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IC TOP 10 buffeted by market consolidation

December 7, 2020 by

Both the Junior and Main Market continue to consolidate ahead of a bullish period to come, as trading activities were calmer during the past week on the Jamaican Stock Exchange after a surge in prices towards the end of November. There were no major price movements this past week, but the price of Grace Kennedy pulled back from $67 to close at $64 at the end of the week while JMMB Group moved up to $35 from $34 last week.

Wisynco squeezes back into ICInsider TOP 10.

Fontana closed trading $5.35 and that was enough to move it out of the IC TOP 10. Honey Bun, with its earnings now based on the fiscal year ending September 2021 replaced Fontana. Stanley Motta is out of the Main Market TOP 10, with the stock rising to $5.35 and replaced by Wisynco Group, in at tenth position.
Profit after tax at Honey Bun, rose a healthy 76 percent to $54 million from $31 million in the fourth quarter over the similar period in 2019, bettering the 21 percent rise in the June quarter, to $20.4 million from $16.7 million. For the year to September, profit increased just 6.6 percent to $167 million from $156 million in 2019, from sale revenues that rose 15.5 percent for the quarter, to $432 million from $374 million but rose 8.5 percent for the year, to $1.675 billion from $1.544 billion in 2019. Earnings projection for the 2021 fiscal year is 55 cents, up from 35 cents for 2020 giving the stock a PE of 10.

Wisynco Group’s performance was on a roll, with revenues up 27.5 percent in the nine months to March this year, and 24 percent in the March quarter, but gross profit margin slipped in the March quarter while rising Administration and other expenses squeezed profits even more. Sales dipped slightly in the June and September quarters, but the September 2019 quarter, includes sales of $503 million from a discontinued operation, leaving flat sales from ongoing operations. Net Profits Attributable to Stockholders from continuing operations was $851 million or 23 cents per stock unit compared to $932 million or 25 cents per stock unit for the corresponding period of the prior year. Revenues for the quarter from continuing operations of $8.1 billion fell 6.1 percent from $8.6 billion in the 2019 quarter. The company expects to have lower energy costs with the successfully commissioning of the Cogeneration plant in July 2020, with the company seeing a positive contribution from the implementation through reduced energy costs.
The top three stocks in the Junior Market with the potential to gain between 239 to 400 percent by March 2021 are Caribbean Producers, followed by Elite Diagnostic and Limber Depot. With expected gains of 147 to 252 percent, the top three Main Market stocks are, Berger Paints followed by Radio Jamaica, Carreras and Sygnus Credit Investments tied for the third position.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, from now to the second quarter in 2021. The Junior and Main markets are currently trading well below the market average, indicating the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 16.1 and the Junior Market 13.1, based on ICInsider.com’s projected 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 6.9 at just 53 percent of the market average. The Main Market TOP 10 stocks trade at a PE of 9 or 56 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 210 percent and 133 percent for the JSE Main Market, based on 2020-21 earnings. IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year.  Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.

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Big gains for some IC TOP 10 stocks

November 28, 2020 by

During the past week, Grace Kennedy was the top 10 best performer rising 16 percent to 67 percent, followed by Caribbean Producers 12 percent gain to close the week at $2.63, during a period when stocks continue their climb higher to their highest level since early-April on the Jamaican Stock Exchange Main Market in the past week.

Grace Kennedy gained 16% for the week.

The Junior Market continues to fight in continuing to build on the gains in recent weeks, with moves in both markets confirming the bullish signal technical indicators been flashing.
The movement in the markets resulted in Stanley Motta coming into the Main Market IC TOP 10, replacing Jamaica Producers. The Junior Market Top 10 remained without any new movement in and out, but Jamaican Teas started trading ex split on Friday and closed at $2.05, down from last weeks’ adjusted closing price of $2.23.
This week’s focus: 2020 is now drawing to a close and should lead investors to start the focus on 2021 and some companies that could deliver superior returns. Many of the companies that suffered badly from reduced sales could be some that should be on the investors’ list. Access Financial, Caribbean Producers, Express Catering, Elite Diagnostic, Lasco Financial, NCB Financial are some that could enjoy above-average recovery and then there are entities such as Grace Kennedy, Carib Cement, Berger Paints and Lumber Depot that should get added push from continued buoyancy in the construction sector.
The top three stocks in the Junior Market with the potential to gain between 231 to 394 percent by March 2021 are Caribbean Producers, followed by Elite Diagnostic and Limber Depot. With expected gains of 149 to 260 percent, the top three Main Market stocks are, Berger Paints followed by Radio Jamaica and Carreras in the third position.
The local stock market’s targeted average PE ratio is 20based on profits of companies reporting full year’s results, from now to the second quarter in 2021. The Junior and Main markets are currently trading well below the market average, indicating the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 15.5, The Junior Market 13.3, based on ICInsider.com’s projected 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 7.2 at just 54 percent to the average of the Junior Market. The Main Market TOP 10 stocks trade at a PE of 9 or 58 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 201 percent and 132 percent down from140 percent last week for the JSE Main Market, based on 2020-21 earnings, indicating greater likely gains for Junior Market stocks than the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year.  Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. 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.

 

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Price movements bring change to IC TOP 10

November 22, 2020 by

Stocks rose to their highest level since mid-April on the Jamaican Stock Exchange Main Market in the past week, during the past week the Junior Market traded at the highest level in seven weeks, with moves in both markets confirming the bullish signal technical indicators been flashing for weeks.
The movement in the markets resulted in shifts in the IC TOP 10. In the Junior Market Top 10, Access Financial dropped out after a week with the price moving from $20.02 to $22 while AMG Packaging moving in to sit in ninth position. Jamaican Teas shareholders approved a three for one stock split leading the stock up to $6.70 from $5.50. Eppley lost its Main Market TOP 10 position with the price moving up from $18.97 to $20.02  and is replaced by Jamaica Producers.
The top three stocks in the Junior Market with the potential to gain between 233 to 456 percent by March 2021are Caribbean Producers, followed by Elite Diagnostic and Limber Depot. With expected gains of 150 to 280 percent, the top three Main Market stocks are Berger Paints, followed by Radio Jamaica and Grace Kennedy in the third position.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, from now to the second quarter in 2021. The Junior and Main markets are currently trading well below the market average, indicating the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 15.3 and the Junior Market 13.7, based on ICInsider.com’s projected 2020-21 earnings. The average PE ratio of the Junior Market has been slowly rising, with better profit opportunities than the Main Market and narrowing the gap. The PE ratio for the Junior Market Top 10 stocks average a mere 7.2 at just 53 percent to the average of the Junior Market. The Main Market TOP 10 stocks trade at a PE of 8.7 or 57 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 202 percent and 140 percent for the JSE Main Market, based on 2020-21 earnings, indicating greater gains are likely in the Junior Market than the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year.  Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. 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.

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