Trading on the Junior Market of the Jamaica Stock Exchange, ended on Monday with 22 securities changing hands, resulting in an exchange of 1,906,761 units valued at $16,655,143 compared to only 812,631 units valued at $3,846,042 on Friday.
At the close of market activities, the prices of 9 securities advanced, 5 declined and 8 remained unchanged resulting in the Junior Market Index rising by 11.40 points to close at 2,976.83.
Trading ended with an average of 86,671 units for an average of $757,052 in contrast to 40,632 units for an average of $192,302 on Friday. The average volume and value for the month to date amounts to 62,529 units valued at $348,543 and previously, 59,080 units valued at $290,184. In contrast, October closed with a slightly higher average of 74,690 units valued at $362,548, for each security traded.
IC bid-offer Indicator|At the end of trading, the Investor’s Choice bid-offer indicator reading shows 3 stocks ended with bids higher than their last selling prices and 4 with lower offers.
At the close of the market, AMG Packaging ended with a loss of 5 cents at $3.15, with 38,707 stock units traded, Caribbean Flavours traded 30 cents higher at $12.30, with 1,000,000 shares, Cargo Handlers finished trading at $10.99, with 550 stock units, Caribbean Cream traded 10 cents higher at $5.60, with 6,972 shares. Caribbean Producers concluded trading 42,000 units with a loss of 15 cents to end at $3.65, Dolphin Cove ended 12 cents higher at $17.55, with 1,031 shares changing hands, Express Catering traded 8 cents higher at $4.58, with 118,277 stock units, General Accident concluded trading with a loss of 3 cents at $2.70, with 450 shares, Honey Bun closed at $4.80, with 20,000 shares trading, Jamaican Teas settled at $4, with 9,302 units.
Jetcon Corporation ended trading 10 cents higher at $4.80, with 79,878 shares, Knutsford Express settled at $12.20, with 7,902 shares, Key Insurance concluded trading at $3.99, with just 100 stock units trading, Lasco Distributors rose 5 cents to end at $5.95, with 70,083 shares, after trading at a 52 weeks’ low of $5.85, Lasco Financial finished trading 30 cents higher at $4.90, with 370,948 stock units, after trading as low as $4.60 during the morning session. Lasco Manufacturing concluded trading 7 cents higher at $4.12, with 20,001 units, Medical Disposables finished with a loss of 10 cents at $5.20, with 36,000 shares. Main Event ended trading 5 cents higher at $5.80, with 64,005 shares, Paramount Trading finished trading at $3.30, with 3,650 units, Consolidated Bakeries ended at $2.36, with 5,000 shares, Stationery and Office traded at $5, with 10,000 stock units and tTech traded with a loss of 33 cents at $7.07, with 1,905 shares trading.
Prices of securities trading for the day are those at which the last trade took place.
Kremi & Jamaican Teas in TOP 10
Main Event rose in price and Medical Disposables (Meds) dropped out of the TOP 10 and were replaced by Caribbean Cream and Jamaican Teas.
Main Event rose from $5.50 to $5.75 on Friday, enough to lift them out of the Top list. Earnings at Meds were lowered with the release of the 6 months results with a 21 percent increased sales, in the September quarter but a reduction in profit margin and net profit.
JMMB Group rose from $29.50 to a record close of $30.50 and is sitting at the lower end of the main market list. Grace Kennedy reported good September quarter results, excluding one off gains while Berger Paints‘ six months results show revenues for the September quarter rising 21 percent and profit is up approximately 70 percent when the cost associated with the offer from Ansa Coatings offer is taken out. Berger traded to close on Friday at $15 and is one to watch in the week.
This coming week should see a raft of company results that could shake up the top 10 in both markets. On Friday Lasco Financial, a former TOP 10 stock, reported profit that more than doubled in September quarter to $100 million and up 63 percent to $167 million for the six months. These results could encouraged increased buying in the stock.
At the close of Friday, the average PE ratio for Junior Market Top stocks is at 9.1 and a PE at 7.3 for the main market TOP 10.
The average PE for the overall main market trades at 14 and 13.7 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 39 percent to the average of the market for Junior Market Top stocks and 48 percent for the main market.
Market Watch| Investors should keep a keen eye for Caribbean Cement, Cable & Wireless that is expected to post improved profit in the latest quarter from increasing revenues, NCB Financial, Berger Paints, Jamaica Broilers, JMMB Group, Access Financial, General Accident that is expected to benefit from a rise in premium rates, Lasco Financial, Paramount Trading and Stationery and Office.
Chlorine to boost Paramount’s margin
Paramount Trading is expanding its operations by offering chlorine and bleach products for contract manufacturing and through a joint venture with Allegheny Petroleum into lubricants.
“The Company recently completed construction of the infrastructure required for a new chlorine and bleach plant at its 6 East Bell Road, Kingston, which will be outfitted with state of the art equipment and advanced technology. The Company plans to commence operation of the plant in February 2018,” the release from the company states.
The Company also advises that it entered into an Asset Sale Agreement to acquire the bleach plant equipment and other assets from Seprod, for its new chlorine and bleach operations. This acquisition is in line with the Company’s goals to continuously strengthen its presence as a manufacturer in the chemicals market, and will complement the Company’s existing offerings. Paramount, Chief executive Hugh Graham said is the largest importer of chlorine into the island and that is also exports the product to the Eastern Caribbean.
Currently chlorine is imported in 150 pound containers, with the new facility chlorine will be imported in 2 tons containers which will be used to fill smaller 150 pounds containers, the by-product flowing from the process is bleach, Hugh Graham advised IC Insider.com. The net effect will be improved margins and lower cost. The deal with Seprod will come into effect in February after Seprod exhausts their inventories. This will mean lower cost for Seprod as Paramount packages bleach for Seprod.
The new operation is expected to boost profit at Paramount Trading that enjoyed a 126 percent turn-around in profit for the first quarter to August this year to $34 million from a 31 percent increase in revenues to $331 million. “Yes Alpart was one of our customers in the past when the plant was operating and they have returned now that they have reopened and was a major part of the jump in sales” in the recently concluded quarter, Graham confirmed.
The construction of the blending plant and laboratory, in conjunction with Alllegheny Petroleum is will be completed within a few weeks and is expected to be up and running in early 2018 Graham advised.
Based on discussions we are having the US$5 million that Graham advised was likely two years ago is likely be higher he indicated.
The stock jumped on Monday to $3.59 on the Junior Market of the Jamaica Stock Exchange.
Stationery & Office Supplies back in TOP 10
Stationery & Office Supplies back in IC Insider.com TOP 10
There is just one change in and out of the IC Insider.com TOP 10. Lasco Distributors dropped out, resulting from the Judge’s ruling in their claim against Pfizer, suggesting that damages will be substantially lower than the amount claimed.
Lasco is replaced by Stationery and Office Supplies returning after just one week out of the top list. The company should report results for the nine months during the coming week. BUY RATED Caribbean Cement that was expected to exit the top list during the past week remains with the price retreating to close the week at $31 as investors failed to follow through on the pick up in price in the prior week in response to the third quarter results to September. Berger Paints also slipped back, with the price falling from $17 last week to end at $14 this past week, 
but it traded during the week as high as $18.
At the close of Friday, the average PE ratio for Junior Market Top stocks is at 8.4 and a PE at 7.3 for the main market TOP 10. The average PE for the overall main market At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 43 percent to the average of the market for Junior Market Top stocks and 48 percent for the main market.
Market Watch| Investors should keep a keen eye for, Cable & Wireless that is expected to post improved profit in the latest quarter from increasing revenues, 
NCB Financial, Berger Paints that should release September results early this week, Jamaica Broilers, JMMB Group, Access Financial, General Accident that is expected to benefit from a rise in premium rates, Paramount Trading after the company announced new expansion into chlorine and bleach production and Stationery and Office with September results early this week.
Paramount adds chlorine & bleach
Paramount Trading expanding into Chlorine and bleach processing.
Paramount Trading is expanding its operations by offering chlorine and bleach products for contract manufacturing, the company reported.
“The Company recently completed construction of the infrastructure required for a new chlorine and bleach plant at its 6 East Bell Road, Kingston 11 location, which will be outfitted with state of the art equipment and advanced technology.
The Company plans to commence operation of the plant in February 2018,” the release from the company states.
The Company also advises that on 26 October 2017 it entered into an Asset Sale Agreement to acquire bleach plant equipment and other assets from Seprod, for its new chlorine and bleach operations. This acquisition is in line with the Company’s goals to continuously strengthen its presence as a manufacturer in the chemicals market, and will complement the Company’s existing offerings.
Paramount Trading, enjoyed a big turn-around in profit for the first quarter to August this year, with an increase of 126 percent, to $34 million from a 31 percent increase in revenues to $331 million.
The directors’ report that accompanied the August quarterly results stated that they have “an optimistic outlook for the rest of the year and is very excited by the opportunities that will be realized. The construction of the blending plant and laboratory, in conjunction with Alllegheny Petroleum is slated to be complete during the next quarter.”
The stock currently trades at a PE ratio of 15 with the price at $3 on the Junior Market is in against the line with the market. What is true, is the nimbleness of management to identify new income generated opportunities that makes staying close to the stock potentially profitable.
Lasco Distributors knocks Junior Market
Lasco’s ICool drinks.
The Junior Market Index declined by 53.97 points to close at 3,174.88 on Friday as investors reacted negatively to the interim court findings on the Lasco Distributors’ claim against Pfizer pulling the price down by $1.14 down to $7.
At the close of the Junior Market activities, 15 securities changing hands, versus 18 on Thursday as the prices of 4 securities advanced, 6 declined and 5 remained unchanged. Trading ended in an exchange of 1,983,899 units valued at $10,827,572, compared to 1,808,817 units valued at $8,566,954 on Thursday.
Trading ended with an average of 132,260 units for an average of $721,838 in contrast to 100,490 units for an average of $475,942 on Thursday. The average volume and value for the month to date amounts to 80,157 units valued at $358,761 and previously 61,095 units valued at $292,203. 
In contrast, October closed with average of 74,690 units valued at $362,548 for each security traded.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows 4 stocks ended with bids higher than their last selling prices and 3 with lower offers.
At the close of the market, AMG Packaging settled at $3.50, with 17,905 stock units, Caribbean Flavours finished trading at $12, with 243 shares, Cargo Handlers concluded trading with a loss of 20 cents at $10.80, with 2,819 stock units being exchanged, Caribbean Producers traded 5 cents higher at $3.75, with 5,000 units, Derrimon Trading slipped 1 cent to $6.99, with 131,130 shares changing hands. 
Express Catering ended with a loss of 9 cents at $4.66, trading 27,258 stock units, General Accident settled with a loss of 21 cents at $2.80, with 155,155 shares, Honey Bun closed at $4.60, trading 1,863 shares, Jetcon Corporation closed unchanged at $4.80, with 539,189 shares. Lasco Distributors closed with a loss of $1.14 at $7, with 521,025 shares after the court handed down an interim ruling in the case against Pfizer, Lasco Financial concluded trading at $5, with 502,835 stock units, after trading as high as $5.15, Lasco Manufacturing closed 10 cents higher at $4.50, with 22,372 units, Main Event ended trading with a loss of 10 cents at $5.50, with 14,976 shares. Paramount Trading traded 1 cent higher at $3, with 15,325 units and Stationery and Office finished trading 15 cents higher at $5, with 26,804 stock units.
Prices of securities trading for the day are those at which the last trade took place.
Big jump in Paramount profit
Paramount new designed offices.
Junior Market listed Paramount Trading, enjoyed a big turn-around in profit for the first quarter to August this year, with an increase of 126 percent, to $34 million from a 31 percent increase in revenues to $331 million.
Importantly, Paramount incurred exceptional expenses in the first quarter, last year, as the company celebrated its 25 anniversary, IC Insider.com estimates the cost to be around $20 million, excluding this one off cost, profit would have been flat, in both periods.
Administrative and other expenses jumped from $44 million to $62.7 million, but selling and marketing cost dropped from $24 million to $2.8 million. Direct cost rose 35 percent, reducing gross profit margin with gross profit rising slower than the increase in revenues, at 23 percent to reach $101 million.
Earnings per share amounts to 2.2 cents. IC Insider.com places full year’s earnings at 19 cents and for the 2019 fiscal year to May 30 cents with the coming on stream of the joint venture lubricant plant.
The directors’ report stated that they have “an optimistic outlook for the rest of the year and is very excited by the opportunities that will be realized. The construction of the blending plant and laboratory, in conjunction with Alllegheny Petroleum is slated to be complete during the next quarter.”
The balance sheet shows net current assets of US$463 million, including inventories of $338 million, receivables of $283 million and cash funds and investments at $97 million. Borrowings are at $55 million up from only $16 million in August 2016.
The stock currently trades at a PE ratio of 15 with the price at $2.90 on the Junior Market against the market average of 14 and seems to be line with the market. What is true, is the nimbleness of management to identify new income generated opportunities that makes staying close to the stock potentially profitable.
Cement to head out of TOP 10
Caribbean Cement increased sales by 14% in Q3 2017.
IC Insider.com BUY RATED Caribbean Cement that showed all the signs of a big pay day is set to break out of the TOP this coming week as investors belated respond to this year’s results.
The company posted earnings of 88 cents for the September quarter, from a 15 percent increase in volume sales and should earn over $3 per share for 2017 and seems set to earn more than $4 in 2018 as it benefits from an upsurge in construction activity that will accelerate next year. The stock climbed to trade at a 52 weeks’ high of $40 on Friday, but closed at $36.10, a strong 33 percent ahead of the close of the previous week. Berger Paints is up 21 percent from last week’s close and is heading higher with very good prospects for increased profits this fiscal year and the next, as construction activity continues to benefit from increased demand, helped by falling interest rates that will make home ownership less costly than before.
Pulse Investments dropped out of the Top tier and Cable and Wireless has returned, the next set of results should help to move this stock higher. The Junior Market saw one change with Main Event entering, just edging out Stationery and Office Supplies.
The main market enjoyed the fourth consecutive weekly record close, driving the All Jamaica Composite Index to a record 321,000.17. 
The market is well clear of resistance around 300,000 points on the all Jamaica Index and continues heading to the next major resistance at the 360,000 points range, on its way to the 500,000 points mark in 2018.
At the close of Friday, the average PE ratio for Junior Market Top stocks is at 8.3 and a PE at 8 for the main market TOP 10. The average PE for the overall main market trades at 14.2 and 13.8 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 40 percent to the average of the market for Junior Market Top stocks and 44 percent for the main market.
Market Watch| Investors should keep a keen eye for Caribbean Cement, Cable & Wireless, NCB, Berger Paints, Jamaica Broilers, JMMB Group, Access Financial, General Accident, Paramount Trading and Stationery and Office.
NCB jumps TOP 10
NCB Financial Group closed at a record $107 on Friday.
NCB Financial returned to the main market list last week, but with a jump of $16 to $107 during the week, it ii no longer in the top list.
Barita Investments traded up to $9 and is now out of the listing. Pulse Investments and Seprod replaced NCB and Barita as the main market of the Jamaica Stock Exchange closed at new record high on Friday, the third consecutive week of record close, driving the All Jamaica Composite Index 313,990.54.
While the main market is making new highs, with gains of 49 percent for 2017, the junior market with gains of just 12 percent at the end of the previous week is now up 17 percent as the market moved higher for the past week helped by strong results by Paramount Trading, Express Catering and increased buying of Stationery and Office Supplies that pushed the price to $5.50 to sit at 10th spot and could well be off the list by the end of the coming week.
The Junior Market list had no movement in or out in the past week. Trading in Berger Paints shares recommenced on Tuesday, after just 6.6 million units were sold by investors in response to the buyout offer by Ansa Coatings at $10.88 per share with the price closing at $14 on Friday and seemingly poised to rise further during the coming week as investors attempted to trade it at $17 which was outside the daily price limit of 30 percent above the last price. The stock has much room to climb, with the March 2018 full year’s earnings that should hit $2.30 per share.
The main market blast well clear of resistance around 300,000 points on the all Jamaica Index and heading much higher to the next major resistance at the 360,000 points range.
At the close of Friday, the average PE ratio for the Junior Market Top stocks is at 8.1 and a PE at 7.5 for the main market TOP 10. The average PE for the overall main market trades at 13.9 and 13.8 for Junior Market, based on 2017 estimated earnings.
At the close of the week, IC Insider.com’s TOP 10 stocks now trade at an average discount of 41 percent to the average of the market for Junior Market Top stocks and 45 percent for the main market.
Market Watch| Investors should keep a keen eye for NCB, Berger, Jamaica Broiler, General Accident, Paramount Trading and Stationery and Office.
Junior Market drops again
The Junior Market Index after falling 14.30 on Friday, declined further on Monday by 26.18 points to close at 2,906.00 as trading ended with 21 securities changing hands of which 6 advanced, 5 declined and 10 remained with prices unchanged.
Market activity resulted in an exchange of 904,019 units valued at $4,463,382 compared to 1,976,686 units valued at $6,469,834 on Friday.
Trading ended with an average of 43,049 units for an average of $212,542, in contrast to 89,849 units for an average of $294,083 on Friday. The average volume and value for the month to date amounts to 74,618 units valued at $323,637 and 81,597 units valued at $348,195, previously. 
In contrast, September closed with average of 116,176 units valued at $538,652 for each security traded.
Trading ended with the market sentiments looking mixed for Tuesday’s trading activity as 4 stocks ended with bids higher than their last selling prices and 4 with lower offers.
In market activity, volumes are those traded for the day and the closing prices are those at which the last trade took place. At the close, AMG Packaging finished with a loss of 10 cents at $3.30, trading 604 units, Cargo Handlers ended at $9.50, trading 101,214 stock units, Caribbean Producers closed at $3.70, with 55,335 units, C2W Music closed at $0.49, exchanging 4,882 shares, Derrimon Trading gained 1 cent to end at $8, with 6,050 units, Dolphin Cove finished at $17.50, trading 4,162 shares. Eppley ended at $12, with 4,429 units changing hands, 
Express Catering settled at $4.40, with 63,989 units, General Accident concluded trading at $2.73, with 10,857 stock units, Honey Bun lost 20 cents at $4.10, with 3,000 shares, Jamaican Teas ended 5 cents higher at $4.10, with 50,135 shares. Jetcon Corporation concluded trading 1 cent higher at $5, with 70,000 stock units, KLE Group traded with a loss of 22 cents at $2.28, after 14,000 stock units traded, Knutsford Express settled at $14.89, with 1,120 shares, Lasco Distributors ended with a loss of 29 cents at $6, with 78,848 units, Lasco Financial gained 5 cents to end at $4.25, with 97,639 shares, Lasco Manufacturing concluded trading 201,526 units at $3.50. Main Event ended 8 cents higher at $5.18, with 35,041 units, Medical Disposables settled at $5.30, with 15,000 stock units, Paramount Trading rose 1 cent to $2.80, with 29,294 units and Stationery and Office finished with a loss of 8 cents at $4.70, with 56,894 shares traded.
