Melissa pressures Junior Market stocks

April 6, 2026 by
The Junior Market delivered minor gains in the first quarter of 2026, with the Market Index edging 0.21 percent higher, from 3,401.41 at the end of December, last year, to 3,408.64 at the close of March, 2026. While the index’s move appeared subdued, individual stock performance within the market was dynamic with the leading stock rising a solid 85 percent in a market pressured by disruption caused by Hurricane Melissa that played a major role in pressuring several stocks in the Junior Market.

A number of companies suffered from a loss in revenues during the final quarter of 2026, following the passage of the hurricane. Others faced  continued revenue pressure from the critical tourist sector that recorded sharp decline in visitor arrivals in the first quarter of 2026 and probably for a longer period.
At close of the quarter, prices of 17 stocks rose and was overwhelmed with 29 declining.

Amongst the carnage that some companies suffered, Jetcon Corporation sparked with new cars helping to deliver the top spot for the Junior Market with solid 85 percent gain to lead by a wide margin for in closing the quarter at $2.78, following in a big surge in revenues and profits in 2025, with the expectation of improvement in profits in 2026, over that of 2025, with the fourth quarter of 2026 recording profit before tax of $33 million and pointing to the possibility of more growth in 2026.  Well behind the leading stock, MFS Capital rose a respectable 31 percent, helped by an undervalued stock with the company pumping out above average profit from ongoing operations for the six months, with revenues climbing 40 percent over that for 2024 resulting in profit from continuing operations before tax, rising form $9 million $28 million. Future Energy Source gained 27 percent, with the company posting strong December results from increasing sales, with profit surging 176 percent in the quarter over the prior year and suggesting a big rise for the full year and even more for the fiscal year ending in March 2027. Atlantic Hardware finished fourth, with an 18 percent advance, following increased demand for the stock, following the passage of hurricane Melissa. That did not show up in the company’s results for the December quarter, although revenues climbed but operating profit was flat. Caribbean Assurance Brokers was the fifth best performing Junior Market stock with a rise of 16 percent, with the price was recovering from selling pressure in late 2025.

Underperformers stock or the quarter was In Junior Market was Kintyre Holdings, which fell 46 percent, having ran up to 70 cents at the end up 2026, faced heavy selling in the quarter, as buyers reduced the price they were prepared to buy the stock at. Iron Rock Insurance declined by 29 percent, with investors concerned about the impact the hurricane would have on underwriting margin as well as concerns on the investment portfolio performance with lower interest rates in the country. Paramount Trading dropped 19 percent, reflecting some profit taking after the stock ran up in 2025 based on improved half year results but much lower second quarter profits compared with the first quarter as sales suffered with the interruption caused by Hurricane Melissa. Main Event shed 16 percent, with Hurricane Melissa shattering an already pressured operation that was passing through a period of reduced revenues resulting in a small loss for 2025 coming out of a year of uncertain economic outturn leading up to the general elections in 2025.

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Q3 profit drops at Main Event

October 14, 2023 by

Revenues at Main Event Entertainment rose 45 percent to $1.59 billion for the nine months to July from $1.09 billion in 2022 but took a 29 percent hit in the third quarter to $428 million from $602 million in 2022 with profit reflecting the same pattern with $216 million for the nine months up 208 percent from $104 million and fell 85 percent from $124 million in 2022 down to a paltry $23 million.
Direct Expenses fell 33 percent in the July quarter to $204 million from $304 million in 2022 and rose 28 percent from $583 million to $748 million in 2023. Gross profit slipped 25 percent to $224 million from $298 million in the quarter and jumped 64 percent to $839 million from $511 million for the nine months.
Administrative and general expenses climbed 34 percent to $162 million in the quarter from $121 million in 2022 and from $284 million to $495 million. Depreciation charges remained fairly constant at just over $29 million versus just under $29 million in 2022 and for the nine months $81 million compared with $86 million in 2022.
Accordingly, ICInsider.com forecast is for earnings of 90 cents per share for the current year ending October, compared with 72 cents per share for the nine months to July this year and 8 cents per share for the July quarter. The stock traded at $14.11, on Friday with a PE ratio of 17.2 times ICInsider.com’s latest projected earnings of 90 cents per share. The earnings value the stock at the higher end of the Junior Market average PE of 11 times current years’ earnings.

Main Event

The company generated gross cash flows of $340 million and after purchasing of fixed assets and loan repayment net cash amounts to $62 million and ended the period with cash and cash equivalent of $190 million.
The company’s finances remain b with current assets of $799 million and current liabilities of $330 million with net working capital of $469 million. Funds borrowed to help finance operations totalled $100 million and shareholders’ equity stood at $857 million.
In February 2017, the company’s shares were listed on the Junior Market of the Jamaica Stock Exchange and entitled them to a reduction of income tax for ten years with 100 percent tax free up to January 2022 and 50 percent to January 2027.

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Junior Market stocks dominate half year

July 2, 2023 by

At the midway point in the year, the Jamaica Stock Exchange Main Market is down 7 percent, with the Financial Index down a much larger 15 percent, but the Junior Market is flat, as the JSE delivered 35 price gains for the ordinary shares and 59 losses as Junior Market stocks dominated the top positions for the first half of 2023.
Expectations are that the Junior Market will continue its upward movement in the second half of the year with technical indicators pointing to a big upward push in the market. The market gained 75 percent the last time these indicators flashed a buy signal.
The Main Market remains under some selling pressure and is not signalling a sustained rally in the short term. But June is never the month of recovery for that market following sell in May and go away. July is the month that is historically the period in the past the Main Market usually starts to rally and sometimes as late as August fueled by mid year results that will mostly be in by the middle of August.
There are only two Main Market stocks in the TOP10 with Transjamaican heads Stocks to Watch coming on top for that market with a 77 percent gain, year to date, with it being the second highest performer for the overall market for the year so far. Ciboney is up 59 percent and the fifth highest performer, and the second best Main market stock, thanks partially to a change in the majority ownership to IEC Energy Company Ltd, with the new directors being Nigel Davy, Jennifer Davy, Klyle Davy, Wycliffe Cameron Conley Salmon Donald Patterson and Wayne Wray.
The top performing stock is Main Event with a rise of 89 percent, with more gains expected with the PE ratio of just 10 times this year’s earnings, while Stationery and Office Supplies doubled after an announcement to consider a stock split at a directors meeting on June 21 ended with a gain of 37 percent for the half year as the price pulled back after the directors announced a recommendation for a 9 for 1 split to be voted on at the company’s AGM on July 25.
The Junior Market has the majority of stocks, six, in the worst performer grouping, with Fosrich being the worst with a loss of 45 percent as the price corrected sharply from an overbought position last year, followed by iCreate down 34 percent from excessive speculation from a number of announcements the company made last year.

Filed Under: Feature Stories, JSE Combined, JSE Junior Market, JSE Main Market, Stock Market Tagged With: , , , , , , , , , , ,

Junior Market delivered 2022 JSE best

October 3, 2022 by

The eleven best performing stocks on the Jamaica Stock Exchange for 2022 to the end of September, all came from the Junior Market with Fosrich, a company that expanded into manufacturing, put in an incredible run of 326 percent, the 2022 listed Spur Tree Spices was second with gains of 285 percent and Tropical Battery coming in at tenth position with gains of 99 percent.

Future Energy, distributors of gasoline, produced a rise of 96 percent to cap a spectacular two year run. 1834 Investments climbed 83 percent to be the best performing main market stock, after the company agreed to be acquired by Radio Jamaica, followed by Portland JSX, with 52 percent and Supreme Ventures the gaming company came next at 46 percent, in a period when the main market declined in value.

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Main Event Q3 stunner

September 20, 2022 by

Main Event put in a stunning performance in the July quarter, this year with revenues rising 147 percent to a quarterly record of $601 million from just $243 million in the 2021 quarter, and profit surging 432 percent to $124 million from just $2 million for the 2021 quarter and investors immediately welcomed the good news by driving the stock up $8.57, the day the news broke on the JSE, trading in the halted in the first hour of trading on Thursday but it has since cooled to be trading around $8.

Main Event revenues growing nicely profit profit jumps.

The third quarter results helped push performance for the nine months, with revenues climbing 85 percent to $1.094 billion from $501 million, with profit ending at $104 million for the nine months, for a 332 percent increase from just $9 million in 2021. “The improved performance this quarter is underpinned by increased activity in our core business. The entertainment industry has seen a strong return to outdoor events and lifestyle experiences after a 2-year hiatus. The quarter is a historic one and reinforces our optimism for a sustainable shift following the Pandemic,” Chairman, Ian Blair and CEO Solomon Sharpe advised investors in their jointly signed report that commented on the results.
Gross profit rose 95 percent in the July quarter to $298 million from $163 million in 2021 and rose
48.6 percent from $344 million in 2021 to $511 million in the nine months to July this year. Gross profit margin ended the July 2022 quarter at 49.5 percent, down from 62.9 percent in 2021. For the nine months to July gross margin ended at 45.7 percent versus 58 percent in 2021.
Operating expenses rose 35 percent to $156 million, from $115 million in the July quarters and for the nine months, it rose a more moderate 19 percent to $3884 million from $322 million in 2021. Finance costs for the nine months fell from $12.7 million to $9.6 million.
Earnings per share for the latest quarter came out at 41 cents and 35 cents for the nine months.
The company generated $222 million in gross cash inflows before working capital changes and used up all the inflows for working capital needs of $200 million repaid loans amounting to $50 million and expended $33 million on the purchase of fixed assets.
The healthy top line performance resulted in receivables climbing from $150 last year July to 404 million at the end of July while cash on hand and bank slipped from $154 million to $132 million.
Borrowings declined from $206 million to $102 million, while payables rose from $100 million to $164 million. Shareholders equity rose from $543 million at the end of July last year to $654 million.
While the fourth quarter tends to be the weakest, investors should not bank on a repeat of the third quarter, but the 2023 fiscal year could be exciting.
ICInsider.com forecast is for earnings per share to end up at 45 cents for the year to November this year and 90 cents next year, putting the PE at 18 and 9 times 2023 earnings. The company could benefit from above average growth flowing from the full opening of the economy as was the case in the July quarter.

Filed Under: Buy Rated, Company News, Company Results Tagged With: , ,

8 Junior Market stocks that should split

June 12, 2022 by

Stock splits and bonuses are two tools companies have in their tool kit to deliver value to their shareholders if used appropriately. Interestingly while the Scotia Group has used these tools repeatedly for the past several decades, Directors at NCB Group have frowned on the practice seeing no value to the group.
The critical point is that directors run a company for the benefit of shareholders not solely for the benefit of the company. Shareholders are kings and queens of the companies they own shares in and directors should not lose sight of that factor.
Some companies have split their stocks and investors love the results of these splits as they see where the values have mostly gone up, before and after the split. Some companies like the Lasco group have handled the split badly by overdoing it and creating too much liquidity that kills the value of the stock for years. The split is also an indication that a company’s profit is likely to grow short term which would cause the stock to struggle as the price gets more expensive without the split.
A look at the Junior Market shows 27 of the 45 companies listed trading below four dollars, with seven priced at more than twice $4. The price differential between the two groups suggests that a stock split is warranted if management is serious about the minority shareholders as well as creating the liquidity in the stock to maximize publicity from listing.
The seven companies are Access Financial, with only 270 million issued shares, with a stock split well overdue that will result in improved liquidity and build interest in it. Cargo Handlers at $11.50 has limited liquidity and needs a split to build back excitement into trading it. Dolphin Cove is the third one with the price at $15.25 and recently much higher, but the majority owner may not be so inclined to go the route of a split, but one never knows as local shareholders could well prevail on them to do so. Fosrich now trading around $27, is proposing a 10 to 1 stock split at the Annual General Meeting (AGM) this month. Honey Bun trading at $8.50 has the potential to move up to the $20 region later this year or early in 2023 and warrants a second split, having done one a few years ago.

Fosrich to vote on a 10 to 1 stock split at the coming AGM this month.

Back in 2020, management of ISP Finance had indicated that a split was on the cards, but even with the stock at more than $22 and highly illiquid with less than 3 percent of shares freely available for regular trading action to split the stock is nowhere in sight. Main Event is just at the borderline at $8.20 so a split may be in the future when it has fully recovered from the loss in business, with the advent of the covid-19 pandemic. There are 300 million shares issued with the top 10 holdings accounting for 93.5 percent. Stationery and Offer Supplies hinted at a past AGM that they had looked at it but felt the time was not right. The time may well be very close with the price trading recently around the $12 region with record profits expected this year a split could well happen with the AGM coming up later this year. The company has only 250 million shares issued of which 90 percent are held by the Top10 shareholders. Medical Disposables trades at $7-8 region, with the price not yelling for a split just yet but if management is smart they would split the stock with only 263 million shares issued, a two for one basis as rising profit this fiscal year will probably put the price to around $5 after such a split when all is said and done.

Filed Under: Company News, General Business News, JSE Junior Market, Stock Market Tagged With: , , , , , , , , , , , , , , , ,

Increased cost stunts Main Event’s profit

September 27, 2019 by

Main Event revenues growing nicely profit stalls.

Sales climbed 29 percent for the quarter to $469 million from $364 million in 2018 but increased cost melted away the revenue gains leaving 40 percent less profit in the July quarter at $15 million, down from $25 million reported in 2018 for Main Event.
The third quarter’s performance is in stark contrast to the second-quarter performance. With $31 million lower revenues, profit in the April 2019 quarter was $62 million, well up on the July quarter’s outcome.
The company, an entertainment production and planning agent, recorded a strong 28 percent growth in revenues for the nine months to July of $1.36 billion, up from $1.07 billion in 2018. Very little of the increased income percolated into more profit for the nine months to July, as profit increased slightly by 2 percent to $108 million from $105 million in 2018.
The strong increase revenue is attributed to the company’s focus on diversifying its income stream that includes M-Style experience that focuses on the wedding market, expansion to the western end of the island and M Academy project, the company directors advised investors.
Gross profit margin in the nine-month period fell to 44 percent from 48 percent in 2018 and was also down in the July quarter by 42 percent, from 45 percent in 2018. Direct expenses climbed 37 percent in the nine months ending July to $761 million from $556 million in 2018, and by 36 percent in the quarter ending July to $271 million from $200 million. Gross profit rose slower than revenues by 21 percent in the quarter to $198 million from $164 million but increased 18 percent for the year to date to $604 million from $510 million in 2018.

Three directors of Main Event, including the mentor who is responsible to ensure compliance with the JSE rules.

Operating and administrative expenses rose a sharp 35 percent to $182 million in the quarter and 25 percent in the nine months to $492 million. Finance cost declined in the quarter to $8 million from $5 million in 2018 and from $14 million to $18 million for the nine-month period. “We have taken note of increased prices in third party inputs and increased inefficiency internally”, the directors indicated.
Gross cash flow from operating activities brought in $213 million, payables of $146 million and dividends of $18 million. At the end of July, shareholders’ equity was $631 million, long term loans of $139 million, net current assets ended the period at $470 billion inclusive of receivables of $375 million, cash and bank balances of $50 million and current liabilities of $240 million.
Earnings per share came out at 4 cents for the quarter and 36 cents for the nine months. IC Insider.com is forecasting 40 cents per share for PE of 14 times earnings, importantly, with the 2019 fiscal year ending in October investors should be looking at the 2020 results to deliver increased profits and stock price appreciation. Continued strong top-line growth and implementation of cost control measures will enhance gains in 2020 and should see earnings hitting 85 cents per share for a PE of 7. The shares are listed on the Junior Market of the Jamaica Stock Exchange and last traded at $5.72.

Filed Under: Buy Rated, Company News, Company Results Tagged With: , , ,

Cement tops main market TOP 10

March 10, 2019 by

Caribbean Cement is now IC Insider.com TOP 2019 main market stock.

Grace Kennedy moved up in price to $61 and is now at 13 spot, while Pulse Investments price slipped to $2.50 and moved into the TOP 10 main market stock list, replacing Grace. There were no movements in or out of the Junior Market TOP 10 listing.
IC insider.com revised Caribbean Cement earnings to $7 per share since the last report resulting from a reassessment of the amount expended on importing cement in 2018. Import of cement which cost more than $1 billion in 2018, is not expected to recur in 2019. That moved it to the top of the main market stocks. Earnings per share for General Accident was lowered to a more conservative 60 cents even though it could exceed that level, with the December 2018 quarter showing a 44 percent increase in gross premium income over the 2017 quarter, almost twice the 23 percent increase for the full year. If growth in the last quarter were to carry through in 2019, then a higher bottom-line can be expected. The earnings downgrade moved the company to the 10th spot on the list.
The three leading Junior Market stocks are Iron Rock with potential gains of 300 percent, Paramount with potential gains of 281 percent and Caribbean Producers 258 percent.
The three leading main market stocks are, Carib Cement is back on top with potential to gain 174 percent for the year followed by Victoria Mutual Investments with 173 percent likely gain and Sterling Investments with 167 percent.
The main market closed the week with the overall PE at 13.6 and the Junior Market at 10.2. The PE ratio for Junior Market Top 10 stocks average 6.3 and the main market PE is now 8.2. These levels point to the huge upside for the TOP 10 stocks over the next 12 months.
The TOP 10 stocks now trade at an average discount of 40 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 39 percent to the overall market.TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential 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.

This report is compiled by persons who may have interest in the securities commented on.

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More gains for Junior Market – Friday

October 6, 2018 by

The Junior Market Index rose 14.27 points to close at 3,415.20, after 28 securities changed hands, resulting in the prices of 12 securities rising, 7 declining and 9 remaining unchanged.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading had 7 stocks ending with bids higher than their last selling prices, 3 closed with lower offers.
Market activities, resulted in an exchange of 2,257,896 units valued at $8,866,130 compared to 2,660,833 units valued at $11,718,330 on Thursday, from trading 28 securities.
Trading closed with an average of 80,639 units for an average of $316,647 in contrast to 104,192 units for an average of $364,931 on Thursday. Trading for the month to date averages 76,500 for an average of $311,790 compared to averages of 75,437 for an average of $310,542 previously. September, ended with an average of 484,335 at $2,628,299 for each security traded.
At the close of trading, Access Financial lost $2 to close at $46, in exchanging 1,790 shares, AMG Packaging ended at $1.95, trading 134,947 stock units, CAC 2000 finished at $18.80, trading 1,028 shares, Cargo Handlers settled 24 cents higher at $13.75, with 3,400 shares changing hands, Caribbean Cream ended trading 50,052 shares with a loss of $1.69 at $6.16. Caribbean Flavours traded 760 stock units, at $19, Caribbean Producers rose 3 cents trading 67,300 units to close at $6.28, Consolidated Bakeries closed at $2, with 6,068 shares trading, Derrimon Trading ended 10 cents higher at $3, with 230,398 shares changing hands. Elite Diagnostic finished 5 cents higher at $3.20, with 170,003 stock units being exchanged, Everything Fresh ended trading of 241,493 shares at $2.10, Express Catering ended trading 158,804 shares and rose 4 cents to $8.39, FosRich Group traded 15 cents higher at $4, with 6,459 shares changing hands, GWest Corporation closed at $1.90, with 5,000 stock units changing hands. Honey Bun ended with a loss of 4 cents at $3.91, after trading 211,872 units, Indies Pharma rose 10 cents and ended with 671,846 shares changing hands to close at $3.30. Iron Rock concluded trading of 800 shares at $5, Jamaican Teas settled with a loss of 5 cents at $4.60, exchanging 100 shares, Jetcon Corporation ended trading 157,389 stock units and rose 6 cents to $3.96, KLE Group finished trading with a loss of 5 cents at $3.75, with 31,700 shares, Knutsford Express closed at $12, in exchanging 5,632 shares, Lasco Distributors ended with a loss of 9 cents at $4.01, with 33,567 shares changing hands, Lasco Financial concluded trading 5 cents higher at $5.47, with 23,234 stock units. Lasco Manufacturing finished 13 cents higher at $3.86, trading 13,500 units, Main Event settled with a rise of 15 cents to $6.65, trading 1,000 shares, Medical Disposables ended trading 7 cents higher at $6.07, with 7,526 shares being exchanged, SSL Venture Capital traded 1,000 shares at $2.30 after trading at a 52 weeks’ high of $2.50 and Stationery and Office finished trading with a loss of 5 cents at $9.45, with 21,228 stock units changing hands.
Prices of securities trading for the day are those at which the last trade took place.

Filed Under: Feature Stories, JSE Junior Market, Stock Market Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

3 new junior stocks in 2017 best 10

December 30, 2017 by

The Junior Market ended 2017 with 3 new listings in the Top 10 best performing stocks in 2017. The 3 are, Express Catering up 167 percent, Main Event with a rise of 164 percent and Stationery and Office Supplies with a gain of 148 percent.
Knutsford Express with an increase of 275 percent, is the winning Junior Market stock for 2017, after ending at ninth position on the Junior Market in 2016, with a rise of 108 percent in 2016. Jetcon Corporation, the no 6 best performing stock in 2016 gained 199 percent in 2017 to land the number 2 spot. Eppley gained 145 percent for 2017 to hold down spot number 6 spot, number 7, is Blue Power rising 104 percent, followed by C2W Music after gaining 104 percent, with the number 9 spot being held down by Access Financial with gains of 76 percent and KLE Group rising 67 percent at 10.
Investor’s Choice research covering more than 30 years’ data shows that only an average of 2 stocks out of the top 10 performers each year repeat that performance in the following year, with the rest falling outside the top 10.
IC Insider.com data is showing that only Access and Stationery and Office Supplies are likely to end in the TOP 15 Junior Stocks in 2018.

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