Wigton storms into IC TOP 10

April 13, 2019 by

Wigton Windfarm is no 4 on IC Insider.com’s TOP 10

Wigton Windfarm, Jamaica’s latest initial public share offer that will come to the market this week, enters the number 4 position on the IC Insider.com’s TOP 10 main market stock list.
The stock comes to the market at 50 cents per share and boast a PE of 8.3 times, normalized earnings for the year to March 2019. IC Insider sees no great change in earnings going forward, until the present generating capacity for electricity expands.
With a new entrant to the top main market stock list, Grace Kennedy is now out of the top 10. The coming to market of this latest IPO seems to be having a negative impact on stock prices as investors gather funds to invest in what is proving to be a very popular issue. Reports reaching this publication is that a number of brokerage houses saw heavy traffic of applicants to purchase Wigton’s shares on Friday.
Several Junior Market stocks suffered losses this past week, as the Wigton IPO issue is about to open. Whether they are making a smart move or not will be known in a month or two.
Caribbean Cream slipped in price to $5.29 and Medical Disposables fell from $7.50 to $6.50 and moved back into the Junior Market TOP 10. Everything Fresh moved to $1.49 from $1.41 at the close of the previous week and Jamaican Teas closed at $4.05, up from the bid price of $3.50 to move out of the top tier of stocks.
The three leading Junior Market stocks for the coming week are Caribbean Producers with projected gains of 281 percent, Elite Diagnostic with potential gains of 238 percent and Iron Rock with potential gains of 224 percent.
Radio Jamaica is now the top Main Market stock with 163 percent likely gain, followed by Victoria Mutual investments with 153 percent and Sterling Investments with potential to gain 151 percent.
The main market, closed the week with the overall PE at 13 and the Junior Market at just 10. The PE ratio for Junior Market Top 10 stocks average 6.4 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 36 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 37 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked 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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Cement still top stock to watch

April 8, 2019 by

Caribbean Cement traded at a new high of $73.90 recently.


Jamaican stocks continue to consolidate as they await some major price moving events to change direction. During the past week, Caribbean Cement make a gallant move to break out but selling pushed the price back to close at $60.61, after posting a high of $73.90. On Friday, it traded at $66 but sellers pushed it back lower by the close. 
Buying interest remains good for Carib Cement while selling seems a bit muted. With first quarter results due by the last week in April, investors could be positioning to get ahead of those results, expected to be well ahead of the 2018 profit. The stock could close higher during the week based on demand and supply.
Earlier in last week, NCB Financial looked as if it was going to move back to the $150 range with no offers below $150 for an extended period of trading. That never lasted as sellers entered, keeping the price in the $145 range. Other main market stocks to watch include, Barita Investments, Berger Paints, Jamaica Producers, Radio Jamaica and Wisynco Group that has some selling around the $12 level and my take some more time to move higher.
While there are stocks that are pregnant with possibility to move, the sideways movement of the market, seems set to continue this coming week. The situation will be made worse, with the pending Wigton Windfarm IPO, that should be coming the market this week, and will suck up approximately $6 billion, at around 50 cents per share.

Wigton IPO with propectus expected in a day or two could pressure existing stock prices.

The Junior Market is currently, supported by two major technical indicators, indicating a rising market ahead. One is a triple bottom that it is bouncing off and the other a triangle formation, both indicate a big breakout. The last time the market had a triple bottom was between March and July last year and the market gained more than 500 points after.
Junior Market stocks to watch this week and beyond include, Caribbean Cream with full year results due towards the end of April that could help the stock. Caribbean Producers supported by technical indicator suggesting a higher price down the road. General Accident currently at a PE of 15 times 2018 earnings but well below likely 2019 earnings. Investors continue to demand Elite Diagnostic stock at $3.20 or lower with sellers mostly wanting close to $3.50. Honey Bun is showing all the signs of moving higher. Fontana remains fluid at $4 level. Express Catering that will benefit from the double-digit upsurge in Tourist arrivals so far in 2019. Lasco Manufacturing was in the news with expansion of the storage facilities to accommodate increased production, the stock gained last week and could record further gains this coming week, regardless it one worth watch for longer term gains.

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3 new additions to IC TOP 10

April 8, 2019 by

There are three new additions to the IC Insider.com’s TOP 10 stocks for this week, but there are no new movement in and out of the top main market stocks.
AMG Packaging moved up in price and slipped out of the top list, Caribbean Cream and Medical Disposables that climbed to $7.50 at the end of the week, were edged out.
CAC2000 returns to the TOP 10 as the price fell to $9.21 after months of absence. Pressure on revenues due to disruption in business caused by the roadworks around the area of their offices, could see this one being down in price for a while, until investors see it as just temporary. Everything Fresh makes it to the list in eight position and Jamaican Teas returns with the price hit down to $3 but closed with the bid at $3.50.
The three leading Junior Market stocks for the coming week are Caribbean Producers with projected gains of 240 percent, Elite Diagnostic with potential gains of 228 percent and CAC2000 with potential gains of 226 percent.
Victoria Mutual investments is now the top Main Market stock with 156 percent likely gain, followed by Radio Jamaica with 152 percent and Sterling Investments with potential to gain 151 percent.
The main market, closed the week with the overall PE at 13.6 and the Junior Market at just 10.3. The PE ratio for Junior Market Top 10 stocks average 6.6 and the main market PE is now 8.5. 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 36 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 38 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked 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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Major changes in IC TOP 10 stocks

April 1, 2019 by

The major change in IC Insider.com’s TOP 10 this pass week, is a sharp change in the stocks showing highest potential gains.
The three leading Junior Market stocks Last week, were Iron Rock with potential gains of 300 percent, Caribbean Producers 281 percent up from last week, as the stock slipped to $4.20 and Lasco Financial with potential gains of 211 percent. At the end of last week, the highest gains forecasted is down to 235 percent, with Caribbean Producers holding the top Junior Market spot.
Main Market stocks have gone in the opposite direction with a fall in the price of Sterling Investments to $3.50, the stock now boost potential to gains 186 percent, followed by  Victoria Mutual investments with 156 percent likely gain and Radio Jamaica at 152 percent, being third.
The only change to the TOP 10 list is the exit of Lasco Manufacturing that rose to $3.60 on Friday, to be replaced by Caribbean Cream, that closed the week at $5.55.
The main market, closed the week with the overall PE at 13.6 and the Junior Market at just 10.4. The PE ratio for Junior Market Top 10 stocks average 6.9 and the main market PE is now 8.4. 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 34 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 38 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked 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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Watch Junior Market for break higher

April 1, 2019 by

Junior Market poised to breakout.

Jamaican stocks are in for an interesting period with Junior Market stocks down nearly 5 percent for the year to date, lagging their main market stocks counterparts that are up 2.2 percent for 2019, but technical indicators now point to a big rally for the Junior Market.
The Junior Market is currently, supported by two major technical indicators, indicating a rising market ahead. One is a triple bottom that it is bouncing off and the other a wedge formation, both indicate a big breakout. The last time the market had a triple bottom was between March and July last year and the market gained more than 500 points.
The Jamaica Stock Exchange main market may be consolidating, but it seems to be making another effort to challenge the record high of 433,307.22 reached by the All Jamaica Composite Index in November last year. With the market closing on Friday at 426,180.60 points, it will require some meaningful price gains to close the more than 7,000 points gap.

Carib Cement traded at $58 on Friday.

For the current week, which stock could contribute to closing of the gap? Buying interest remains good for Carib Cement that moved up by $2 by the close of the week to $58. There is some selling at the last traded price but demand should take this out soon. Radio Jamaica is in demand again with a big increase in the December quarter’s profit that spell positives for the 2020 fiscal year’s results.
Wisynco came in for some selling pressure last week by the close on Friday, the stock ended at $11.95. Going forward the stock is a strong buy with increasing business and improving efficiency in operations and with credible reports that they are in talks with other local producers to distribute some popular local brands. Supreme Ventures continues to make new highs and is worth watching. The price is high more up even higher during the week but supply seems inadequate to meet demand, but an investment in the stock now may only warrant those looking for long-term returns.

NCB Financial traded at $145.05 on the JSE on Friday.

More buying came in for NCB Financial with it closing the week marginally higher at $145.05. The stock may still take some time to break higher but with second quarter results due by end of April increase demand could well develop ahead of the results.
Junior Market stocks to watch this week include, the overhang of Cargo Handlers stock was taken out last week at $11.06 and seem set to pave the way for a bounce in the price, but the stock is a bit overvalued relative to the overall market. Caribbean Cream that closed at $5.55 but traded up to $6.60 in the previous week. Full year results are due towards the end of April and that could help the stock. Caribbean Producers came into buying last week, with a move higher going forward, supported by technical indicator. Sellers of General Accident shares continues to be low, but buyers are trying to get stocks no higher than $4.50 currently at a PE of 15 times 2018 earnings and well below likely 2019 earnings. Investors in the stock at the start of 2018 got a dividend that exceeded 5 percent. If the same were to happen in 2019, the stock would end up at $6 by the end of this year. Investors continue to demand Elite Diagnostic stock at $3.20 or lower with sellers mostly wanting close to $3.50. Trading higher may not occur until closer to the release of nine months results due by mid-May. Honey Bun is showing all the signs of moving higher and traded

Honey Bun traded higher last week.

at $4.24 this past week, up from $3.83 at the end of the previous week. The bid for the stock is now at $4.15. Fontana closed the past week with a slight uptick to end at $4.05, buying continues to be good. With strong potential for growth to flow from expansion of stores now on the way, the stock is to be watched for the inevitable breakout. Express Catering has been enjoying decent buying interest. It is bound to be a big winner from the double digit upsurge in Tourist arrivals so far in 2019. Lasco Manufacturing was in the news with expansion of the storage facilities to accommodate increased production, the stock gained last week and could record further gains this coming week, regardless it one worth watch for longer term gains.

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Grace back in IC TOP 10

March 23, 2019 by

Grace new HQ close to the end of construction in downtown Kingston

General Accident returned to the Junior Market TOP 10 list along with Main Event while Grace Kennedy returns to the TOP 10 main market list at the expense of Pulse.
Jamaican Teas price moved up to $3.97 from $3.50 at the close of the previous week and Caribbean Cream came in for some buying during the past week, pushing the price to $6.60 and out of the top flight of Junior Market stocks. In the main market, Grace Kennedy slipped in price to close the week at $59.75 and that was enough for it to edge its way back in the TOP main market stocks.
The three leading Junior Market stocks are Iron Rock with potential gains of 300 percent, Caribbean Producers 281 percent up from last week, as the stock slipped to $4.20 and Lasco Financial with potential gains of 211 percent.
The three leading main market stocks are, Victoria Mutual investments with 152 percent likely gain, is on top, followed by Carib Cement with potential to gain 150 percent for the year down from 172 percent in the prior week and Sterling Investments with 150 percent.
The main market, closed the week with the overall PE at 13.3 and the Junior Market at just 10.6. The PE ratio for Junior Market Top 10 stocks average 6.7 and the main market PE is now 8.4. 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 37 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 37 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked 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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No explosion for Jamaican stocks

March 18, 2019 by

Wisynco still one to watch.

Most company results are now in for 2018, a few are now due for periods ending in January and February. Not much is expected from results due shortly, that will make a major impact on the overall market.
A number of stocks that attracted increased buying interest in recent days that are worth watching this week. Wisynco Group traded during last week at $12 but slipped to $11.50 on Friday as nearly 6.4 million units crossed the exchange, but supply continues to be low.
Fontana continues to trade in healthy volumes at $4 but supply is getting limited. Seprod continues to come in for demand with the price rising in the week to close at $44. PanJam Investment continues to flirt with record highs, but is held in check by the late reporting of financials. Radio Jamaica is fluctuating in price but with increase local economic activity investors should be looking ahead for this one. General Accident has been trading around the $4.50 level for weeks with increased interest shown in the stock since it posted increased profit for 2018. Selling seems to be coming mainly from one source.
Scotia Group reported results for the first quarter but with lower profit in the quarter compared to 2018, but they reported healthy growth in loans an important indicator for improved profit going forward. This is one to watch for longer term. Caribbean Cement continues to fluctuate having posted strong 2018 results. With prospects for 2019 looking great, investors will never know when the break out will occur, the same applies partially to NCB Financial that currently have selling overwhelming buying. Honey Bun is displaying signs as if a break out is not far off with sellers mostly in the high $4 level and buyers under $4.

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Market Watch still on Scotia

March 11, 2019 by

Scotia Group January 2019 first quarter results due this week.

The main and Junior markets of the Jamaica Stock Exchange pulled back in the holiday shortened week as investors continue to digest and react to some mixed results for 2018.
Scotia Group did not released this past week as was done in 2018. The 2019 result is expected this week, this is one that is to be watched keenly and investors would be smart to keep an eye on the most critical signal that it will send for increased profits for this year. It must show meaningful  growth in the loan portfolio, to start pumping up profit. Caribbean Cement closed at $51.02 and should move higher with limited supply on offer and an analysis of the audited 2018 results suggesting that cost should decline sharply in some areas and revenues rise in the current year. IC Insider.com again revised earnings, this time to to $7 for the year. Last year, cement import cost more than $1 billion, that cost will not recur this year, they will also benefit from a full year of the removal of the expensive lease cost resulting full year’s saving from the $2 billion annual savings, resulting from owning the kilns rather than leasing. Radio Jamaica climbed to $1.15 late last week but there is not much selling at these levels.
Jamaica Stock Exchange pulled back during the week to $14.80 and seems poised to slip some more before settling down, ahead of the 2019 first quarter results that is expected to show a big increase in profit if the data of trading values are anything to go for 2019 to date. Grace Kennedy reported improved results with earnings per share of $5, helped by a big increase in investment income and foreign exchange should be priced higher than the $60.80 it last traded at.

Buying of Fontana was strong on Friday.


Buying came in for Fontana last week pushing the price the price to $4 on Friday and could move higher during the coming week. Wisynco continues to trade around the current price just below $12 and seems poised to continue to move side wards for a while. Watch Elite Diagnostic that has been steady around $3.20 but with good buying interest at the current price level but sellers are reluctant to come off the $3.40 offer price.
Buying for General Accident continues to trade around $4.50 level with no clear signs when it will the break out to a higher price level as there have been selling around these levels and that may well continue for a while.
Lasco Financial remains stuck around $4.60 price level with some selling taking place at $4.60, but buying is not strong enough to move the price in the short term. Medical Disposables bounced last week but the price may bounce around for some time in the medium term. Caribean Cream seems poised to move higher with a gap that has developed between buying and selling interest. Express Catering this one could see huge benefits from the big double digit increase in tourist arrival this year so far, with January up 11.3 percent islandwide. Stationery and Office Supplies dropped to $7 from more than $8 but there are signs of a bounce. Barita Investments announced an interim dividend of 82 cents per share, this news could well lift demand for the stock.

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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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Market Watch on Scotia

March 4, 2019 by

The main market of the Jamaica Stock Exchange moved within less than 5,000 points of the record close in November last year as investors pushed the prices of some stocks higher during the past week.
Based on the date the first quarter results for Scotia Group was released in 2018, the 2019 results should be released on Thursday but so far the company has not posted the date of dividend consideration  that is normally the date of announcing the results. Caribbean Cement closed at $55 and should move higher with limited supply on offer and an analysis of the audited 2018n results suggesting that cost should decline and revenues rise in the current year. IC Insider.com raised earnings to $6 for the year with the expensive $1 billion cement import last year not recurring this year and the benefit of a full year of removal of lease cost with added saving this year from the $2 billion annual savings from resulting from owning the kilns rather than leasing.  Keep on watching this one for a break out in price.
Radio Jamaica pulled back to $1 late last week but there is buying at those levels and above.
The Junior Market is consolidating with a slight negative bias, even as this market seems far more undervalued than the main market, the release of quarterly profit results is not helping this market currently as investors wait to see what 2019 results will look like.
Last week, a number of results were released but they showed that investors may have pushed prices to their limit already. Jamaica Stock Exchange report big increase in profit for 2018 of $413 million versus $221 million in 2017 with earnings per share of 59 cents and thus pushing the PE ratio to a rich 30.  Berger Paints profits were flat but the company had a blowout final quarter with revenues jumping 155 percent from the poor 2017 quarter and profits of $130 million versus just $30 million in 2017. Grace Kennedy reported improved results with earnings per share of $5, helped

Grace new HQ close to the end of construction in downtown Kingston

by a big increase in investment income and foreign exchange. Jamaica Producers earnings grew 23 percent to 73 cents per share and resulting in one of the higher valued stocks on the market. Mayberry Investments reported a loss of $6million after tax for the year with a big increase in credit loss and investment impairment provisions. Sagicor Group and PanJam Investment full year’s results are delayed.
Fontana’s and Wisynco continues to trade around their current prices just below $4 and $12 respectively and seem poised to continue to move side wards for a while.
Elite Diagnostic moved up to $3.20 last week with good demand at that level continues to trade around $3.10 with a gap developing between the bids at $3.10 and sellers at $3.40. Will buyers move higher or will sellers come down where the majority of buyers are?  Watch to see how this develops.
Buying for General Accident continues to trade around $4.50 level with no clear signs when it will the break out to a higher price level.
Lasco Financial remains stuck around $4.60 price level with some selling taking place at $4.60, but buying is not strong enough to move the price in the short term.  Medical Disposables bounced last week but the price may bounce around for some time in the medium term.

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