NCB Financial Group broke out of a triangle pattern over the past week, as the price hit a record $81 on Friday. The technical indicator is signaling a strong buy signal and a huge movement ahead, with the group reporting strong gains in profit for 2017 over 2016. The stock has traded in a very narrow band in the $70 region for a number of months as it consolidated ahead a the big move it seems ready to make with limited supply coming into the market. Results for the none months to June suggest earnings in excess of $8 per share for 2017 with more to come in the new year starting in October. IC Insider.com placed the stock two weeks now on a market watch list.
NCB breaks out & heading higher
July 30, 2017 by
Flash Back TOP 5
May 14, 2017 by
Berger Paints is one of IC Insider’s TOP 5 best performers from the initial list & exceeded the price target.
IC Insider.com first published its TOP 5 stocks, for the week ending September 9 last year. Looking back, the first set of selection is revealing.
There has been no losers in the list, 6 have more than doubled and two nearly doubled, that is a near 80 percent of strong performances. The Junior Market index is up 43 percent over the period and the All Jamaica Composite is up 29 percent for main market stocks.
First the disappointments, Grace Kennedy has hardly moved from where it entered at $41.45 while Caribbean Cement keeps on dancing up and down as the company’s management fails to properly communicate with investors as to the company’s performance, both past and future, the stock is up from the $26 but just. AMG Packaging while trading higher than the $19.20 it entered the list at, has not done much based on its underperforming profitability. The same cannot be said about 
Berger Paints, up from $5 to $20 on Friday, helped by strong profit increase. NCB Financial has almost doubled and still has much more room for growth. Barita Investments and JMMB Group have more than doubled in price over the period. Medical Disposables have moved to $6.50 and traded higher up from $3.55, Jetcon is up from $3.50 to $15.74, exceeding by far the $10 price tag projected, Paramount was projected to get to $37 based on the number of shares then issued, the price exceeded that level after the stock split 10 for 1, and sits just below the equivalent of $37, currently. Access Financial has more than doubled and came close recently to the IC Insider.com’s target of $48, having traded at $47.
NCB scores a first for Jamaican companies
April 9, 2017 by
For the time ever, a company listed on the Jamaica Stock Exchange has provided investors with a time table for release of important information.
NCB Financial Group recently advised the Jamaica Stock Exchange and the Trinidad Exchange, that of the dates on which NCBFG’s Board of Directors intends to consider the payment of interim dividends to stockholders in 2017. By extension the dates also signifies the dates of release of the quarterly results. Historically, the dates of dividend announcements have usually been the same dates on which their interim results are released.
For the rest of 2017 the group states that the dates for release of announcements will be April 27, 2017July 27, 2017 and November 9, 2017. The announcement is an enhancement of good corporate governance and good investor relations.
10 TOP JSE main market stocks for 2017
February 7, 2017 by
It is not always that main market stocks are more attractive buys than those in the junior market, but that is what is happening currently. Strong gains, in 2016 to end of January this year, in junior market companies, resulted in Jamaica Stock Exchange main market having stocks with better values than in the junior market.
The end result is that unlike other years when the junior market stocks tended to outperform those of in the main market by a ratio of 2 to 1, this year could see both markets gaining roughly the same.
The big question, of course, is what will be the accepted PE of the market? Currently, while the average for 2016 is 17 for the main market and the ratio based on 2017 estimated earnings is 11, with 11 stocks selling above this level, Jamaica Producers and Kingston Wharves have PE ratios over 30 times 2017 earnings.
The main market faces turbulence currently as the market is sitting just below a major resistance level around 243,000 points on the All Jamaica Index. If it can overcome this level, then it will encounter resistance around the 265,000 mark.
The TOP 10 list includes 4 financial sector stocks, two communication stocks and two from the manufacturing sector.
Cable & Wireless has made considerable progress in recent years, moving from major annual losses to a stage where they reported a small profit in fiscal year 2016 to March and should break even for the nine months to December, the new financial year end. Revenues have been climbing at double digit pace and should increase even more with the upturn in economic activity and with more persons being employed. The company recently raised rates on a number of its services that should help move revenues upwards. They have also made considerable recovery in their cellular customer base and have expanded it, generating increased revenues as a result. IC Insider.com forecast calls for a profit in 2017 with growth in 2018 as well.
On this basis, the stock is set to make solid gains. The only factor preventing that is a strong possibility that the parent company may move with an offer for the minority shares that would place a cap on the upside.
Radio Jamaica is under selling pressure as investors ignore the fundamentals and an improving economy that could result in increased profits and growth in the stock. The merger with the Gleaner was predicated a great deal on cost cutting. The group is doing just that and should benefit from a stronger marketing team and from increased advertising as businesses augment their advertising spend.
Caribbean Cement cut cost sharply in 2016 and saw growth in local sales for the first six months. However, closure of the plant for upgrading resulted in lost sales in the third quarter but sales recovered in the fourth quarter. Going into 2017, the cost savings should reduce operating cost and boost gross profit margins. Increased economic activity and lower cost of capital is leading to an uptick in the construction sector and consequently, an increase in demand for cement. The stock remains highly undervalued and has room for major gains ahead.
Barita is one of the top IC Insider’s stock for growth over the next 12 months in the main market.
Pulse Investments reported earnings of $1.35 last year and 32 cents for the September quarter that places the stock in the undervalued category even as the price climbed to $7.10 recently. It could go higher, but a bit of the earnings flow from revaluation surplus on property and that may cause some investors to discount the earnings. In a very bullish market, that may not matter much, for many investors. One positive, is that the cash flow statement shows cash inflows growing at a much higher level than in 2015.
Keith Duncan, Group Chief Executive Officer of JMMB.
Berger Paints had a very good run to December last year, with strong gains in profit as revenues grew attractively. Growth should continue into 2018 fiscal year, helped by increased building activity and an improving economy. Dividend payment should be high, thus boosting yields.
Scotia Investments should benefit in much the same way as Barita Investments. The investment bank reported earnings of $1.27 for the October quarter and IC Insider.com forecast is $4.96 for 2017. The increase should benefit from widening net interest income, as interest rates soften and more funds generated are added to the pool of interest earning pool as well as from growth in unit trust funds that will engender higher fee income, in addition to robust stock market activities that will also enhance fee income for the brokerage arm. On the negative side, the revaluation now taking place in the local currency could negatively affect earnings from trading in this area.
Carreras is one of the few stocks that have languished at the old price while many others have recorded active gains. The company just announced an interim payment of $2.20 bringing the payment since August last year to $5.40. The full year’s amount is likely to be in the order of $7.60 for a yield on the current price of 11.5 percent. This yield will not last as investors are going to eventually push it downward by bidding the price up as an income substitute. IC Insider’s forecast
is for earnings of $9 per share for the 2018 fiscal year. The stock may well languish at current levels for a while. The longer it stays the better for those investors who may want to add it to their portfolio.National Commercial Bank reported impressive profit results for their December quarter with a jump of 49 percent to $3.56 billion with earnings per share ending at $1.45, up from 96 cents in 2016. IC Insider.com forecast earnings of $8 per share for the current year. NCB declared an increase in its interim dividend payment from 50 cents in 2016 to 60 cents per ordinary stock unit payable in February. The payment represents 42.76 percent of the first quarter profits and is an indication of future payment.
Persons associated with this article may have an interest in the companies commented on.
JSE majors hit new high again
January 31, 2017 by
National Commercial Bank (NCB) moved up to a new record high of $63.20 in early trading but pulled back to $61.10 and Kingston Wharves climbed back by $1 to $34 to help push the main market to a new record in the morning session on the Jamaica Stock Exchange on Tuesday.
National Commercial Bank traded 173,149 in its record run fueled by strong profit gains for the December quarter. JMMB Group moved to new high of $17 with 118,404 share, Jamaica Producers traded 149,756 shares at a record $15 and 
PanJam Investment traded 89,558 units at a new high of $31.
All major markets indices hit new records during the morning session but with moderate trading taking place. The all Jamaica Composite Index jumped 1,379.90 points to 231,432.96 the Jamaica Stock Exchange Market Index gained 1,233.88 points to 211,316.76, the Jamaica Stock Exchange combined index rose 978.50 points to 224,896.06 and the junior market index lost 16.12 points to 2,815.52.
Securities changing hands, amount to 29 at 10:45 am compared to 27 trading on Monday. A total of 11 securities advanced and 12 declined, resulting in a volume of 1,030,585 shares changing hands, carrying a value of $23,500,885, versus 880,842 shares changing hands, carrying a value of $12,045,282, the average trade for the early session amounted to 35,537 units, compared to 29,957 shares previously.
Jamaican stocks up in early trading – Monday
January 9, 2017 by
Stocks on the Jamaica Stock Exchange surged forward first thing Monday morning, with the All Jamaica composite index rising by 1,109.47 at 1 minute after trading opened to trade at a new high and the combined index moved up by 919.92 points.
Market activity resulted in 31 securities traded at 10:45 am, compared to 26 on Friday at 10:45 am. A total of 11 securities advanced and 9 declined, resulting in a volume of 842,68 shares changing hands, carrying a value of $7,961,875, compared of 984,204 shares changing hands, carrying a value of $4,620,010 on Friday. The average number of shares traded, amount to 27,183 units versus 37,854 units on Friday.
Market activity was helped by National Commercial Bank rising to $52.50, with 7,180 shares up from a last trade on Friday of $51.01, Scotia Group trading 8,582 units at $39, representing a rise of 99 cents from Friday’s close. In the junior market, Blue Power jumped $3.50 to a new all-time high of $34.50 with 3,500 units changing hands, Caribbean Cream fell back from Friday’s close of $8.55 to trade at $7.35 with 83,535 units and Jetcon Corporation with 25,946 units traded at a new high of $6.50. Caribbean Cement dropped $3.50 with 9,350 shares to $30.50 but recovered partially to traded 18,350 units up to $33.20.
The all Jamaica Composite Index gained 645.01 points to 214,293.58, the Jamaica Stock Exchange Market Index grew 576.75 points 195,991.13 the Jamaica Stock Exchange combined index gained 662.77 points to 208,847.13 and the junior market index rose 12.45 points to 2,636.77.
Jetcon & CWJ set for 2017 top spots
January 7, 2017 by
C&W set to be 2017 top stock from the main market.
In the just concluded week, Caribbean Cream (Kremi) and Lasco Financial that entered the IC Insider’s TOP 5 at the end of December, only spent one week in the list. Both stocks climbed during the past week with Lasco Financial moving up 18 percent to $3.67 and Caribbean Cream gained 14 percent to $8.55. Key Insurance rose 14 percent during the week and General Accident was up 7 percent.
Entering the TOP 5 for the first time, is Dolphin Cove, and returning is Jetcon Corporation at 4th and 5th spot, respectively. Investors have lost confidence in Dolphin Cove even as the company continues to produce decent results and having good prospects, with the major expansion in the tourism industry. Profit to September last year, was up 11 percent to $1.17 per share, exceeding the results for the entire 2015.
Jetcon reported in their September quarterly
Dolphin Cove moved into the IC Insider’s TOP 5 junior market stocks.
There were not much movement in the main market stocks during the week. Radio Jamaica moved out of the TOP 5, having gained in price during the week and is replaced by National Commercial Bank, at the number 5 position. The banking group is still selling cheaper than Scotia Group with earnings for the 2017 year to be released by the end of January. IC Insider is forecasting $8 per share earnings for 2017 with increased dividend payments around $3 per share, suggesting the stock has much room for growth. The number 1 main market stock is projected to be Cable & Wireless followed by Barita Investments. Last year this publication stated that Barita was the best main market stock back in September, it is now up by 93 percent since but has much more gains ahead with projected earnings of $1.75 for 2017.
Note: One of our writers is a director of two junior companies, Jetcon Corporation and Jamaican Teas. Connected parties to IC Insider.com may hold shares in companies commented on from time to time.
Record profit for National Commercial Bank
November 11, 2016 by
National Commercial Bank ended its financial year to September with record profits helped by strong loan growth and big loan recovery of loans that were previously quarantined as doubtful.
The big Jamaican bank posted profit after tax and minority interest of $5 billion for an increase of 34 percent over the similar period in 2015 and a rise of 27 percent for the full year to $15.6 billion.
Earnings per share ended at $2.03 for the fourth quarter and $6.35 for the year. NCB recovered bad loan resulting in a positive flow of $291 million in the last quarter reducing the full year charge to $612 million compared to $1.8 billion in 2015.
Revenues net of interest expense rose 12 percent to $13.6 billion for the quarter and 9.6 percent to $52 billion for the full year. Net interest income grew 8.3 percent for the year to $28.1 billion. NCB results of a boost from Associated company profit, that rose from $122 million to $443 million in the September quarter and to $832 million from $434 million in 2015.
Loans, the critical contributor to revenue growth grew a strong 14.3 percent for the year to reach $189 million while investment securities declined modestly.
The group declared a dividend of 90 cents per share bring the full year payment to $2.25. The stock which remains IC Insider Buy Rated, last traded on the Jamaica Stock Exchange at $45.50 and is in strong demand with limited supply.
Paramount best Top 5 performer
October 18, 2016 by
Paramount Trading having closed on Friday at $23.95 ended up as to top performing stock since IC Insider started the Top 5 selection list. 
All selections recorded gains since they were identified as top stocks.
For the week ended on October 14, Jetcon Corporation emerged as the leader of the list of junior market stocks with the greatest potential gains followed by Access Financial Services, Derrimon Trading rose to over $4 and slipped off the list at the end of the week. Knocking at the door of the list are tTech and Dolphin Cove followed by Derrimon Trading.
Main market stocks all remained in the Top 5 but with changes in position with Barita Investments moving down to number 3 with the price moving to $4.65 and Berger Paints holding the top spot. Sitting just below the Top 5 are Palace Amusements. 
JMMB Group, National Commercial Bank, Mayberry Investments and Sterling Investments all with potential gains over 100 percent.
IC Insider started the Top 5 selection as of September 9 and with just over a month having passed IC Insider looked at the performance of all the selections. Paramount Trading topped the list with a gain of 71 percent followed by 31 percent for Derrimon Trading and 27 percent for Medical Disposables in the junior market and a 48 percent gain for Barita Investments followed by a gain of 35 percent for JMMB Group.
Buy stocks before the explosion
September 18, 2016 by
Image courtesy of suphakit73/FreeDigitalPhotos.net
Both markets have some appealing choices that offer investors a great deal of potential upside. Investors have been making big mistakes by ignoring these opportunities. The errors keep showing in junior market stocks where many wait until prices start to move before trying to buy, at which time the volumes dry up and prices have to move steeply for sellers to be induced to dispose of stocks. Recent cases in point are, ISP Finance, the stock was available under $3 but there were very few buyers, now there are many buyers with bids in the $6 region, a level at which there has been no stock offered for sale since it traded nearly 23,000 units at $6, earlier in September. Jetcon Corporation is another case, with the stock trading below the $3 level for a long time until recently, even as the profit of the company is running at almost twice the pace of 2015, now they are more investors interested at the higher prices at a time when the supply has evaporated. Caribbean Cream is yet another, with IC Insider pointing to strong increase in profits for a long time, now buyers are in at much higher prices but supply is limited. tTech is yet another example with the stock trading for a long time in the $4 region now there is virtually no supply as interest in the stocks grows.
While some investors focus on trailing quarterly earnings as the basis for valuing stocks, they tend to miss out on companies with explosive growth in profits. There is also the tendency to ignore one off time items. The case of Caribbean Cement is an excellent one. A Brokerage house has the earnings at just over $2 for 2016, but the ongoing earnings are likely to be in the $5.50 region for 2016 and this is what they should be using to value the company. Investors seem to miss the main point. The company incurred cost for reducing labour which will show up as lower operating cost in future periods, but investors don’t seem to appreciate that fact, added to what now appears to be an economy that is growing and could grow even more making Cement, a huge buy. The same can be said for National Commercial Bank and Scotia Group that are having a great 2016.An indication of where values could reach based on this year’s earnings can be gleaned from three stocks selling at PE ratios that are 16 to 17.5 times this year’s earnings with 11 out of the 29 junior listings having a PE of 10 times or more with, an average of 13.5. The average of the junior market is now at 10 times 2016 earnings with several stocks selling below. In the main market the top 11 stocks average PE is just over 15 with the overall average for the market at 9.
Based on close of the market on Friday the stocks to watch in the coming week are AMG Packaging that fell back sharply in the past week and is on IC Insiders top 5 junior market buys, Blue Power with limited supply. Cargo Handlers still in demand with the announcement of the 10 to 1 stock split and with the bid at $87.05 versus the last sale of $86.10. Caribbean Cream with limited supply and increased buying, Honey Bun with good demand and declining supply, but the price could be heavy with a PE of 17. The 2016 fiscal year ends this month, so investors may want to focus on the 2017 numbers as the main reason for buying. ISP Finance with no supply but with bid at $6.50 compared to last sale of $6 and with the success of the $150 million bond issue, could move if some supply appear.
Scotiabank with profit up 47% for the July quarter the stock could be very active this week.
Main market activity has been fluid, there are no indications from Friday’s trading, that there will be much change. Investors should keep an eye on Barita Investments, IC Insider’s Top stock in the main market, with bids at $3.51 at the close on Friday, compared with a last sale price of $3.25. There are currently only 5 offers on the board, amounting to 70,000 units and Scotia Group that is set to report earnings for 2016 in the region of $4 per share, after reporting a 47 percent jump in the July quarter. Investors may want to keep an eye out for Cable & Wireless that could well report decent profit for the 12 months to March next year. Note the company’s year end is set to change to December.