Grace Kennedy exits ICTOP10 with record price

July 5, 2021 by

The Junior Market recovered all of its Covid-19 related loss and more in hitting its highest level this week, since the first week of December 2019, helped by a number of ICInsider.com Top stocks of which 6 recorded gains between 69 percent and 81 and two over 100 percent, with the market up 29 percent for 2021 to date.
At the close of the week, tTech entered the Junior Market TOP10 and ISP Finance fell out after the price of the latter climbed from $17.98 to $22.43 and in the Main Market long time TOP10 candidate Grace Kennedy finally slipped out with a record breaking price of $105.98 for a 64 percent rise since January, allowing Sterling Investments to return to the TOP10.
The Jamaica Stock Exchange Main Market has not performed as well as the Junior Market, with the fall in the financial sector led by NCB Financial Group, but there are a few individual stocks that continue to deliver gains in 2021 and a few that possess the potential to move decidedly higher.
This past week the average gains projected for the Junior Market slipped from 204 percent last week to 200 percent and Main Market stocks edged down from last week’s 172 percent to 171 percent.
The top three stocks in the Junior Market are Elite, Caribbean Assurance and Medical Disposables, with the potential to gain between 223 and 287 percent, following the range of 254 to 276 percent last week. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by JMMB Group and Guardian Holdings, with expected gains of 171 to 379 percent versus last weeks’ 188 to 385 percent.
The Junior Market closed the week with an average PE 13.1 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 as well as the recent historical average of 17 for the period to March this year based on 2020 earnings. For the Junior Market to trade at the historical average, the PE Ratio would have to rise by 31 percent and requires a rise of 54 percent to reach the targeted PE of 20 by March 2022. Main Market stocks would need to rise by 11 percent to hit a PE of 19 and 17 percent to get to the target of 20.
The Junior Market Top 10 stocks average PE is a mere 6.8, just 53 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 16.9, a little distance from the 19 the market ended at in March, suggesting just an 11 percent rise at a PE of 19 and 17 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.8 or 45 percent of the PE of that market, well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated Tagged With: , , , , , , , , , , , , , , , , , , , , , ,

JMMB moves to #2 in Main Market ICTOP10

June 26, 2021 by

The two main Jamaica Stock Exchange markets may have broken loose from the area of resistance, but they continue to be hemmed in around current trading levels, with Junior Market closing below last week’s close with three days of decline and the Main market had three days of decline but ended the week with a fall of points after recording a strong rise the previous week.
Caribbean Cream is back with earnings per share now at 70 cents for the current year, while Future Energy Source reached new highs during the week and is out of the IC Junior Market TOP10. In the Main Market, there was no change in the list, but earnings per share for JMMB Group is upgraded to $6 for the current year and the stock is now the second best main market stock, with potential to gain over 200 percent for the next twelve months.
There are still several stocks that are severely undervalued, with the scope to record above average gains up to the first half of 2022. This past week the average gains projected for the Junior stocks slipped from 207 percent last week to 204 percent and the Main Market stocks moved up from last week’s 166 percent up to 172 percent with the upgrading of JMMB earnings.
The top three stocks in the Junior Market continue to be Elite Diagnostic heading the list, followed by Caribbean Assurance Brokers and Medical Disposables, with the potential to gain from 254 to 276 percent, after the range fell from 247 to 300 percent last week. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by JMMB Group and Guardian Holdings, with expected gains of 171 to 379 percent versus last weeks’ 160 to 391 percent.
The Junior Market closed the week with an average PE 13.1 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 and the recent historical average of 17 for the period to March this year based on 2020 earnings. For the market to trade at the historical average, the PE Ratio would have to rise by 31 percent and require a rise of 52 percent to March 2022 to reach the targeted PE of 20.
The Junior Market Top 10 stocks average PE is a mere 6.8, just 51 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 17.1, a little distance from the 19 the market ended at in March, suggesting just an 11 percent rise at a PE of 19 and 17 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.9 or 46 percent of the PE of that market, well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated Tagged With: , , , , , , , , , , , , , , , , , , , , , , , ,

Junior Market sets for record 4,230 points?

June 21, 2021 by

The Junior Market closed the week at 3,367.03 points with gains of near 28 percent for the overall market for the year to date and 66 percent from the 2020 low of 2,031.79 points on March 18 last year and now sits just 8 percent below the historical high for the market of 3,662.94 points back October 14, 2019.
The market was only above Friday’s close for one day in early January last year when the index closed at 3,378.20 points on January 3 and one day in June this year.
In the process, Lumber Depot gained 111 percent for the year, followed by Fosrich, 109 percent, Jamaican Teas 97 percent, Jetcon 96 percent, Stationery and Office Supplies, 76 percent, Express Catering 71 percent, Main Event 66 percent, Lasco Manufacturing and Caribbean Cream 41 percent.
The growth for the year to date would result in a 60 percent increase for the full year if the current trend continues and would see the market index rising to a record high of 4,230 points to sit just around the next area of resistance. That level would equate with an average PE of 16 times 2021 earnings and suggest that the current rally is likely to continue at a measured pace, similar to the rise from the 2020 low point.

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

New ICTOP10 entrants

June 20, 2021 by

In a week when the main and junior markets of the Jamaica Stock exchange broke loose from resistance, with the Junior Market just creeping away and the Main market surging more than 14,000 points up, as investors appear more bullish than they have been for some time.
Scotia Group, along with Caribbean Cream, fell out of the TOP10 based on downward revisions to their earnings for the coming financial year ends. Moving into the Junior Market TOP10 is ISP Finance with the price dropping to $15.60 on Friday and the Main Market listed, Berger Paints moving back in the TOP10 with the price at $13.85 on Friday.
JMMB Group came outwith solid results for the full year to March, leading to a revision of the projection for the 2022 fiscal year, making the stock a solid buy even after it rose 12 percent to $38.45 from $32.50 last week, Grace Kennedy jumped 5 percent from $94.97 last week to close at $99.46, PanJam Investment moved up 11 percent from $54.50 to $69 and Future Energy Sources closed the week at a 52 weeks’ high of $1.10, to be marginally up for the week from $1.07.
The average gains projected for the Junior Market slipped from 210 percent last week to 207 percent as the market slowly rises. The average projected gains for the Main Market stocks dropped last week from 170 to 166 percent as the market gained 3 percent for the week.
The top three stocks in the Junior Market continue to be Elite Diagnostic heading the list, followed by Medical Disposables and Caribbean Assurance Brokers, with the potential to gain between 247 to 300 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by PanJam Investments and JMMB Group, with expected gains of 160 to 391 percent.
The targeted PE ratio for the market remains an average of 20 based on profits of companies reporting full year’s results up to the second quarter of 2022. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Stocks and 19 times for the Main Market. One reason why the Junior Market stocks have outperformed Main Market ones since last year can be seen from the big difference between the valuations of both markets, with the latter values close to maturity, based on present valuation metrics.
The Junior Market, with an average PE 13 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17, for the market to get to last year average, would require a 32 percent rise in the market, that would equate to a rise of 54 percent to March 2022 if it were to reach the targeted PE of 20. The Junior Market Top 10 stocks average a mere 6.7 at just 51 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 17.1, a little distance from the 19 the market ended in March, suggesting just an 11 percent rise at a PE of 19 and 17 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.9 or 46 percent of the PE of that market, well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

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122% gain pushes stock out of ICTOP10

June 13, 2021 by

Two companies in the transportation sector swapped places in the IC Junior Market TOP10 this week as another TOP10 stock gained more than 100 percent for the year, the fourth such feat for the Junior Market TOP10. Jetcon Corporation’s price popped 61 percent for the week to a 52 weeks’ high of $1.75 to record gains of 122 percent for the year to date and dropped out of the TOP10, and is replaced by Future Energy Sources.
Other than Jetcon, prices of other TOP10 stocks had notable increases during the past week; these include; Jamaica Broilers and Grace Kennedy from the main market but Radio Jamaica, PanJam and Scotia Group prices took hits. In the Junior Market, Caribbean Cream, Access and Stationery and Office Supplies had nice gains resulted in the average gains projected slipping from 216 percent last week to 210 percent. The average projected gains for the Main Market stocks inched up last week from 169 to 170 percent.
The Junior Market closed the week at 3,327.84, down from 3,339.02, last week, as it continues to consolidate around the zone of resistance. The JSE All Jamaica Composite Index hit 466,915.58 points during the morning session on Friday, before closing lower at 459,273.23, up from 456,395.73, at the close of the previous week, as the market continues to wrestle with resistance.
The top three stocks in the Junior Market are Elite Diagnostic heading the list, followed by Medical Disposables and Caribbean Assurance, with potential to gain between 250 to 303 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by PanJam Investments and Wisynco, with expected gains of 153 to 394 percent.
This week’s focus: Access Financial Services came out with full year results that reflected increased lending and EPS of 50 cents in the March quarter. ICInsider.com upgraded earnings to just under $3 per share for the current fiscal year. Scotia Group also reported results for the six months to April, with a 12 percent rise in profit for the April quarter over the 2020 same quarter and an 11.4 percent rise for the six months results. The big negative is that the loan portfolio continued its decline into the April quarter.  ICInsider.com now projects 2021 earnings at $4 per share.
The targeted PE ratio for the market averages 20 based on companies’ profits reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Stocks and 19 times for the Main Market.
The Junior Market, with an average PE 12.6 based on ICInsider.com’s 2021-22 earnings, is currently trading below the target, as well as the recent historical average of 17.1; this represents another 35 percent rise in the market that would equate to a rise of 59 percent to March 2022. The Junior Market Top 10 stocks average a mere 6.6 at just 53 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 17.1, still some distance from the 19 the market ended March, suggesting a 17 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.8 or 45 percent of the PE of that market and well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in periodic movements in and out of the lists. Revisions to earnings per share are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.

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SOS back in ICTOP10 stocks

June 5, 2021 by

Main Event price popped nearly 14 percent from $4.65 last week to $5.28 following this week’s public forum the company CEO presented, leading the stock to dropped out of the Junior Market ICTOP10 and Stationery and Office Supplies price dipped to $7.52 and moved in to fill the slot left by Main Event.

Stationery & Office Supplies hit a record high on Friday.

Stationery & Office Supplies – Montego Bay office.

Prices of some ICTOP10 stocks bounced around during the week, resulting in changes within the list as a result. The average gains projected for the Junior Market fell from 218 percent last week to 216 percent. The average projected gains for Main Market stocks moved up last week, from 162 to 169 percent, are up again this week to 171 percent.
The markets continue to face resistance, with the Junior Market trading at the very top of its upward sloping channel while the JSE Main Market sits a few thousand points away and facing turbulence in getting to the peak. The recent release of results by two Lasco companies did not move the market this past week, investors are likely to be looking at a sideward moving market until later in the month, in keeping with the historical pattern of a recess after the completion of earnings season.
The Junior Market Index closed the week at 3,339.02, slightly up from 3,329.50, last week, after it was up moderately from 3,324 at the end of the previous week. The JSE All Jamaica Composite Index ended at 456,395.73 on Friday, up from 454,375.81 at the close of the previous week.
The Junior Market has to decidedly break the upper limit of the current upward sloping trading channel to free it to move on to the next area of resistance, of just over 4,000 mark, but the Main Market has room to run for a few thousand points before it hits the channel top at 460,000 points which it came close to on Friday at 459,758 before pulling back.
The top three stocks in the Junior Market for this week, are Elite Diagnostic, followed by Medical Disposables and Caribbean Producers, with the potential to gain between 238 to 300 percent. The top three Main Market stocks are Radio Jamaica, followed by PanJam Investments and Wisynco Group, with expected gains of 153 to 371 percent. The latter potential gain is based on earnings for the financial year starting in July, investors should not expect an early upward movement for the price until after the release of full year results to June this year, around the end of August.
The targeted PE ratio for the market averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended March, with the average PE at 17 for Junior Market stocks and 19 for the  Main Market.
The Junior Market with an average PE of 12.3 based on ICInsider.com’s 2021-22 earnings, is currently trading below the target, as well as the recent historical average of 17, this represents another 37 percent rise in the market that would equate to a rise of 63 percent to March 2022. The Junior Market Top 10 stocks average a mere 6.5 at just 52 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 16.2, some distance from the 19 the market ended March, suggesting a 23 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.7 or 48 percent of the PE of that market and well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

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Profit bounces at Stationery & Office Supplies

June 5, 2021 by

Many investors miss out on highly profitable investments in the stock market by focusing on the wrong things. Take the case of Stationery and Office Supplies that suffered a major reversal in profits in 2020 with just $33 million versus $135 million in 2019, with earnings per share of a mere 13 cents versus 54 cents in the prior year.

Operating profit at Stationery & Office Supplies grew 33% in 2021 Q1 over 2020.

Some investors see the historical PE Ratio for Junior Market for 2020 to be around 24 cents per share, as such, the company would be worth around $3 per share. Others would prefer to use the trailing four quarters earnings. Based on that, the company’s trailing earnings to March would be just 22 cents and the value would be even less than the full year’s numbers suggest. On the above two bases, at $7.52, the last price the stock traded at would be highly overvalued. The stock price jumped from $6 in trading before the results to trade mostly over $8 suggesting others investors are looking beyond the historical earnings and focusing on the future.
For the March quarter, revenues fell 7 percent to $313 million from $337 million in 2020. Importantly the average monthly sales rose 29 percent over the average for all 2020 to $104,522 but fell 7 percent against the 2020 first quarter. Despite the fall in revenues, profit rose 33 percent before gains on sale of fixed assets and loss of fair value of financial investments. A loss of $22 million was incurred in the June quarter last year, with negative 9 cents per share and profit in the September quarter last year was a mere $6.8 million from a 19 percent fall in revenues to just $240 million or $79,855 per month.
The company enjoys a ten-year tax profit break and will be subject to zero taxation until mid-2022 and 50 percent thereafter for five years.
Gross profit margin rose to 54 percent for the quarter, from 49 percent in 2020, as gross profit rose just four percent to $170 million. Administrative and other costs fell six percent to $81 million from $86 million in 2020.  Selling and promotion expenses fell 10 percent from $23 million in 2020 to $21 million. Finance costs dipped from $3.3 million to $2.5 million as the company continues to use limited debt financing to grow its business.
The principal activities of the company are the sale and distribution of stationery and office furniture.
Shareholder’s equity stood at $665 million at the end of March 2021 and loans amounts to $163 million, with $36 million earmarked to be repaid to March 2022. Current assets totaled $522 million and current liabilities $140 million. Inventories rose to $245 million from $226 million in 2020 and receivables dropped from $172 million to $124 million representing around a month of sales.
Cash funds and investments amount to $121 million after the company generated cash funds of $69 million before working capital and capital financing needs. ICInsider.com projects earnings of $1 for the financial year to December 2021 and $1.60 for 2022.
The stock last traded at $8.20, with a PE ratio of 8 based on the reported earnings and 5 based on the 2022 projected earnings.
Contributors to this article own shares in the company.

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

ICTOP10 – Guardian a better buy now

May 31, 2021 by

The average gains projected for the Junior Market fell from 225 percent last week to 218 percent as the prices of a number of the top 10 stocks rose during the past week, but with no new entrant to either Top 10 list. The average projected gains for the Main Market stocks move up from 162 to 169 percent helped in a big way by the fall of Guardian Holdings from $790 last week to $763.  

Guardian Holdings hit a low of J$750 on Friday.

The price slippage for Guardian shares below $790 provides investors a better value proposition, with the PE at 8.3 times, rather than 8.6 that the NCB Global offer price for the 2 million shares they are offering to the public.
The markets continue to face resistance this past week, with the Junior Market is trading at the very top of its upward sloping channel while the JSE Main Market sits a few thousand points away and facing turbulence in getting to the peak. With the two Lasco companies releasing results after the market closed on Friday it will be interesting to see what investors do with their prices. If they rise appreciable the resistance is likely to be broken and clear the way to move to a new yearly high in the weeks ahead.
The Junior Market closed the week at 3,329.50, up slightly from 3,324 at the end of the previous week. The JSE All Jamaica Composite Index ended at 454,375.81 on Friday, marginally lower than 454,479.33 at the close of the previous week.
The top three stocks in the Junior Market, remain unchanged for this week, with Elite Diagnostic heading the list, followed by Caribbean Assurance Brokers and Caribbean Producers, with the potential to gain between 255 to 303 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by PanJam Investments and Wisynco, with expected gains of 149 to 371 percent.
This week’s focus: RJR suffered badly from the effects of the curtailment of business in 2020 after showing signs of recovering from the prior years’ slow growth and high cost of operations. In 2020 they moved to deal with the pressure the fallout had and showed marked improvement in the second half of the calendar year. Importantly, there was significant cost cutting with the third quarter showing the effects with vastly improved results.
The impression given in the group’s December quarterly report is that the sharp fall in direct operating, selling and marketing costs were directly related to the fall off in revenues. That of course is only part of the story. The fall in cost has been far greater than the reduction in revenues suggesting that actual cost cutting was effected. ICInsider.com confirmed that the group that made some staff redundant also made changes by discontinuing unprofitable programs and publications. “Regarding cost reductions, some changes in the distribution network and workflows are permanent,” this publication was informed but revenues for some of the newspapers continue to run below pre Covid-19 levels.
The targeted PE ratio for the market averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Market stocks and 19 times for the Main Market.
The Junior Market with an average PE 12.4 based on ICInsider.com’s 2021-22 earnings, is currently trading below the target, as well as the recent historical average of 17, this represents another 37 percent rise in the market that would equate to a rise of 61 percent to March 2022. The Junior Market Top 10 stocks average a mere 6.4 at just 52 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 7.8, some distance from the 19 the market ended March, suggesting a 17 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.8 or 48 percent of the PE of that market and well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

 

Filed Under: Buy Rated Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Guardian Holdings in ICTOP10

May 23, 2021 by

Guardian Holdings moved into the IC TOP 10 following the release of a prospectus from NCB Global that is offering 2 million shares to the public at $790 each, with the stock price falling immediately, after by more than $110, to be in line with the public offer price, valuing the company’s shares at 8 times 2021 projected earnings.

Guardian Holdings now in ICInsider.com’s TOP10.

Elsewhere, with the passage of earnings season, the markets have lost most of their recent firepower to drive prices forward at a time when the Junior Market is trading at the very top of its upward sloping channel while the JSE Main Market is a few thousand points away and in facing much turbulence in attempting to break through the peak.
At the start of the past week, the Junior Market pulled back from last Friday’s close, to sit just above the 3,300 level but climbed on each succeeding day of the week, but pulled back slightly on Friday to close at 3,324 points just a few points higher than at the end of the previous week. At the same time, the JSE Main Market made attempts to come close to the 460,000 mark of the All Jamaica Composite Index but was rebuffed on each occasion and ended the week at 454,479.33, up from 451,713.66 at the close of the previous week.
The Junior Market has to decidedly break through the upper limit of the trading channel, to free it to move on to the next area of resistance, just over 4,000 mark, but the Main Market has room to run for a few thousand points before it hits the channel top at 460,000 points.
There is a shakeup of the top three stocks in the Junior Market, this week. Elite Diagnostic heads the list, followed by Caribbean Assurance Brokers and Caribbean Producers, with potential to gain between 247 to 300 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by Wisynco and PanJam Investments, with expected gains of 151 to 344 percent.
The targeted PE ratio for the market averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Stocks and 19 times for the Main Market. With interest rates on government paper below 5 percent and likely to remain there for a few years, the likelihood is for the average PE ratios to climb higher during the next twelve months or so.
The Junior Market with an average PE 12.5 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17, this represents another 36 percent rise in the market that would equate to a rise of 60 percent to March 2022. The Junior Market Top 10 stocks average a mere 6.2 at just 50 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 16.5, some distance from the 19 the market ended March, suggesting a 15 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.9 or 48 percent of the PE of that market and well off the potential of 20.
The average projected gain for the Junior Market IC TOP 10 stocks is 225 percent and 162 percent for the JSE Main Market, based on 2021-22 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

Filed Under: Buy Rated Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Profit gains push Berger & SOS out of ICTOP10

May 15, 2021 by
Stationery & Office Supplies hit a record high on Friday.

Stationery & Office Supplies – Montego Bay office.

Investors got a serious dose of a new set of company results and they liked a number of them, driving up prices of some up, following results that surprised positively. Many of the surprising ones matched the ICInsider.com forecast. Stationery & Office Supplies that was in the ICTOP10 up to last week reported earnings in line with ICInsider.com projections of $1 and investors pushed the price to a 52 weeks’ high of $9.50, with a gain of 109 percent for the year so far, with more gains ahead.
tTech is another company reporting earnings in line with the ICInsider.com forecast, with the stock jumping to $5.91 to be up 41 percent for the year. Berger Paints another TOP 10 stock up to last week, seems well on the way to earn $1.50, ICInsider.com forecasted, the price closed the week at $15, pushing it out of the TOP10. There are only 4,852 units on offer up to $17 thereafter, just over 154,000 between $18.99 and $19.86, Grace Kennedy reported a 26 percent rise in profit for the quarter, a continuation of good growth it enjoyed in 2020, but the market is yet to reward it with a price rise.
Access Financial and Key Insurance have moved into the TOP10 to fill the space left by the two stocks that fell out at the end of the week.
When ICInsider.com embarked on the 2021 profit forecast, it was a most difficult time due to the turbulence in the economy and businesses of many listed companies. Nevertheless, we boldly made our forecast and the first fruits are now showing and investors like them in driving up nine of 15 Junior Market stocks selected in January, bettering the gains for the year of 26 percent. Two stocks more than doubled and one is up 96 percent after more than doubling in trading for the year to date, earlier this week, before some profit taking set in. One stock rose 64 percent, one gained 43 percent, two 35 percent and two with 29 percent gain. Added to this is Future Energy Sources that was a part of the TOP10 listing starting at the end of February and has since gained 35 percent.
The ICTOP15 stocks in continuing an outstanding performance saw, Stationery & Office Supplies jumping 109 percent for the year to date, Lumber Depot 104 percent, Jamaican Teas 96 percent, Main Event 64 percent, Lasco Financial rose 43 percent, Caribbean Cream and Caribbean Producers up 35 percent, Lasco Distributors and MailPac a rise of 29 percent each.
The JSE Main Market is only up 4 percent year to date, but ICTOP15 stock selection saw Carreras and Grace Kennedy rising 37 percent, QWI Investments and Caribbean Cement up 29 percent, Seprod up 20 percent, Jamaica Producers 19 percent and Jamaica Broilers up 15 percent.
The bullish tone of both markets continues, but the Junior Market had hit the top line of an upward sloping channel that could act as resistance and is worth watching. The Main Market is a few thousand points away from its channel top, but those resistance points should be only temporary barriers if they, in fact become that.
The top three stocks in the Junior Market are headed by Elite Diagnostic followed by Medical Disposables and Jetcon Corporation, with the potential to gain between 245 to 283 percent. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by Jamaica Broilers and PanJam Investment, with expected gains of 165 to 385 percent.
The targeted PE ratio for the market averages 20 based on profits of companies reporting full year’s results, up to the second quarter of 2022. Fiscal 2020-21 ended March 2021 with the average PE at 17 for Junior Stocks and 19 times for the Main Market. With interest rates on government paper below 5 percent and likely to remain there for a few years, the likelihood is for the average PE ratios to climb higher during the next twelve months.
The Junior Market, with an average PE 12.3 based on ICInsider.com’s 2021-22 earnings, is currently trading well below the target, as well as the recent historical average of 17. This represents another 39 percent rise in the market that would equate to a rise of 60 percent to March 2022. The Junior Market Top 10 stocks average a mere 6.4 at just 52 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 16.5, some distance from the 19 the market ended March, suggesting a 15 percent rise from now to March 2022. The Main Market TOP 10 trades at a PE of 7.8 or 47 percent of the PE of that market and well off the potential of 20.
The average projected gain for the Junior Market IC TOP 10 stocks is 220 percent and 168 percent for the JSE Main Market, based on 2021-22 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

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