The Main and Junior Markets remained steady at the end of the week, only marginally adrift from last week’s close with just a few points of separation, suggesting the markets may have started to benefit from falling interest rates in the financial market. The market movement did nothing to prevent some sizable price gains, with minimal losses in the TOP10 lists.
In the All JSE TOP10 tTech replaced Iron Rock Insurance following a sharp appreciation in the latter’s stock price. The All JSE TOP10 includes ten stocks that are listed on Jamaica Stock Exchange that have the highest potential gains, using projected 2024 earnings.
In the Junior Market TOP10, Iron Rock Insurance surged 33 percent to a 52 weeks’ high of $4, Caribbean Assurance rose 13% to close at $3.50 and Stationery & Office Supplies the biggest loser shed 4 percent to close at $1.56.
In the Main Market ICTOP 10, Berger Paints gained 12 percent to close at $6.83, Margaritaville and General Accident rose by 7 percent to close at $15.40 and $6.94 respectively. No other stock moved more than 3 percent.
The average PE for the JSE Main Market ICTOP 10 stands at 4.9, well below the market average of 13.9 and the Junior Market TOP10 sits at 6, just less than half of the market, with an average of 12.4.
The Main Market ICTOP10 is projected to gain an average of 320 percent by May 2025, based on 2024 forecasted earnings and providing better values than the Junior Market with the potential to achieve 228 percent over the same period.
In the Main Market ICTOP 10, a total of 15 of the most highly valued stocks representing 29 percent of the Main Market have PEs between 15 to 107, with an average of 29 and 21 excluding the highest PE ratios, and a PE of 23 for the top half of the market with the highest values and 17 excluding the stocks with overweight values.
In the Junior Market IC TOP10 are 10 stocks, 21 percent of the market, with PEs ranging from 15 to 23 and a PE of 17 for half of the market with the highest values.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. 
ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns on or around May 2025 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
TOP 10 Stocks, Daily Trading, Jamaican Stocks, Junior Market, Jamaican Stock Exchange,
Big price moves with additions to ICTOP10
The Main Market lost 2 percent in value for the week while the Junior Market inched a few points higher, in a period of falling interest rates that will be beneficial to stocks in the coming months. The market movement did nothing to prevent some sizable price changes in the TOP10 lists.
The All JSE TOP10 had no new listing this week but Caribbean Cream which headed the list last week dropped to the eighth position, following a downward revision in projected earnings. The All JSE TOP10 includes ten stocks listed on the Jamaica Stock Exchange with the highest potential gains, based on projected 2024 earnings.
In the Junior Market TOP10, Cargo Handlers rose 14 percent to $9.08, followed by Caribbean Cream with a gain of 13 percent to $3.45 and Elite Diagnostic gained 10 percent to close at $1.75 and sits at the top of the ICTOP10 list, with both stocks in the All JSE TOP10.
Access Financial lost 12 percent to $19.03, Caribbean Assurance fell 10 percent to $3.10 as the price keeps bouncing around the $3.10 to $3.80 range, awaiting the approach of the next quarterly results. One Great Studio dropped 9 percent to 72 cents, Iron Rock Insurance and Stationery & Office Supplies shed 5 percent to close at $3 and $1.65 respectively.
Caribbean Cream released its first quarter results with revenues and profits surging as previously indicated. Revenues jumped a solid 26 percent to $764 million, with profit after tax more than doubling to $15 million from $7 million last year and almost tripling before tax to $20.4 million. The first quarter net profit represents 43 percent of 2024 full year earnings. ICInsider.com forecast is for earnings of 70 cents for the 2025 fiscal year results. The company stock is listed as the third most attractive one on the Junior Market.
In the Main Market, Key Insurance rose 7 percent to end at $2.98. Guardian Holdings dropped 10 percent to $288 and heads both the IC Main Market TOP10 and the All JSE TOP10. JMMB Group declined by 7 percent to $20.73 and Berger Paints slipped 4 percent to $6.10, with limited buying interest currently.
There were two changes to the Junior Market TOP10 listings for the week, with Image Plus and Lumber Depot coming in as Cargo Handlers and Access Financial dropping out.
The average PE for the JSE Main Market ICTOP 10 stands at 4.9, well below the market average of 13.9 and the Junior Market TOP10 sits at 6, just less than half of the market, with an average of 12.4.
The Main Market ICTOP10 is projected to gain an average of 333 percent by May 2025, based on 2024 forecasted earnings and providing better values than the Junior Market with the potential to achieve 240 percent over the same period.
In the Main Market ICTOP 10, a total of 16 of the most highly valued stocks representing 31 percent of the Main Market have PEs between 15 to 107, with an average of 29 and 20 excluding the highest PE ratios, and a PE of 23 for the top half of the market with the highest values and 17 excluding the stocks with overweight values.
In the Junior Market IC TOP10 are 7 stocks, 15 percent of the market, with PEs ranging from 15 to 22 and a PE of 17 for half of the market with the highest values.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns on or around May 2025 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
Big price moves & additions to ICTOP10
The Junior Market fell 113 points in contrast to the Main Market that rose 364 points in August and increased by 2 percent and 1.4 percent respectively for the past week, to close out August. Price changes were interesting, with the Junior Market having only one stock with a notable loss and 4 with worthwhile gains. The Main Market TOP10 had two losers of note and three noted winners.
In the Junior Market TOP10, Lumber Depot rose 8 percent to $2.95, followed by One Great Studio popping 7 percent to 79 cents, Stationery and Office Supplies gained 6 percent to $1.73, following spirited trading in the stock after they released half year results and AMG Packaging rose 5 percent to $2.75. The Caribbean Cream stock continued to be pressured by the delay in publishing quarterly results, promised for August 29 but not yet posted, has dropped 12 percent in closing at $3.05.
In the Main Market, Key Insurance rose 16 percent to $2.79, Margaritaville climbed 15 percent to $14.37 and JMMB Group rose 6 percent to $22.30. Berger Paints and 138 Student Living lost 7 percent each to close at $6.35 and $4 respectively.
The All JSE TOP10 includes ten stocks listed on the Jamaica Stock Exchange with the highest potential gains in the market, based on projected 2024 earnings. Key Insurance dropped out of the list this week and was replaced by another insurance company, the Junior Market listed Iron Rock Insurance that dropped out at the end of the previous week.
There were two changes to the Main Market and Junior Market TOP10 listings for the week, one in the Junior Market and the other in the Main Market. Entering the Junior Market TOP10 is Cargo Handlers with the price falling to $8, with Lumber Depot falling out. In the Main Market, Palace Amusement dropped out allowing VM Investments to return to the TOP10.
The average PE for the JSE Main Market ICTOP 10 stands at 4.9, well below the market average of 14.3 and the Junior Market TOP10 sits at 6, just over half of the market, with an average of 12.6.
The Main Market ICTOP10 is projected to gain an average of 324 percent by May 2025, based on 2024 forecasted earnings and providing better values than the Junior Market with the potential to achieve 268 percent over the same period.
In the Main Market ICTOP 10, a total of 17 of the most highly valued stocks representing 33 percent of the Main Market have PEs between 15 to 107, with an average of 29 and 21 excluding the highest PE ratios, and a PE of 23 for the top half of the market with the highest values and 17 excluding the stocks with overweight values.
In the Junior Market IC TOP10 are 10 stocks, 21 percent of the market, with PEs ranging from 15 to 23 and a PE of 17 for half of the market with the highest values.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns on or around May 2025 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate, resulting in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Honey Bun jumps ICTOP10 SOS returns
There has been quite a high level of volatility in the ICTOP10 over the past two weeks, with a 19 percent jump in the price of Iron Rock Insurance to $2.51, with an 11 percent fall in ISP Finance to $28.10 and a drop of 10 percent in AMG Packaging to $3.18 as The Junior Market closed with Stationery & Office Supplies returning to the TOP10 based on projected earnings for 2024 but Honey Bun rose to $7.30 and dropped out of the TOP10.
Stationary & Office Supplies – Montego Bay office.
In the Main Market, 138 Student Living plunged 28 percent to $3.03 followed by a 16 percent fall for Margaritaville to $14.25, while Pulse Investments rose 13 percent to $2.14 and Kay Insurance rallied 12 percent to $2.67.
For the full list of weekly percentage changes for the ICTOP10 stocks, check the attached charts for the weekly percentage price movements.
The average PE for the JSE Main Market ICTOP 10 stands at 5.5, well below the market average of 13.9 and the Junior Market TOP10 sits at 7.4 over half of the market, with an average of 13.1.
The Main Market ICTOP10 is projected to gain an average of 284 percent by May 2024, based on 2023 forecasted earnings, providing better values than the Junior Market with the potential to gain 174 percent over the same period.
In the Main Market ICTOP 10, a total of 17 of the most highly valued stocks representing 35 percent of the Main Market are priced at a PE of 15 to 108, 
with an average of 28 and 20 excluding the highest PE ratios, and a PE of 25 for the top half and 18 excluding the stocks with overweight values.
In the Junior Market IC TOP10 are 11 stocks, or 23 percent of the market, with PEs ranging from 15 to 46, averaging 21.5, well above the market’s average. The top half of the market has an average PE of 17, possibly the lowest fair value for stocks, currently.
Of great import is that the averages of both markets are now converging around a PE of 20 for close to a third of the market, as the year is coming to a close and with more information available on the full year’s earnings.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to 
remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns on or around May 2024 and are ranked in order of potential gains, computed using projected earnings 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 are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
Junior Market delivered 2022 JSE best
The eleven best performing stocks on the Jamaica Stock Exchange for 2022 to the end of September, all came from the Junior Market with Fosrich, a company that expanded into manufacturing, put in an incredible run of 326 percent, the 2022 listed Spur Tree Spices was second with gains of 285 percent and Tropical Battery coming in at tenth position with gains of 99 percent.
Future Energy, distributors of gasoline, produced a rise of 96 percent to cap a spectacular two year run. 1834 Investments climbed 83 percent to be the best performing main market stock, after the company agreed to be acquired by Radio Jamaica, followed by Portland JSX, with 52 percent and Supreme Ventures the gaming company came next at 46 percent, in a period when the main market declined in value.
Rebound for Stationery & Office Supplies
Stationery & Office Supplies is enjoying a strong rebound from the COVID-19 afflicted 2020 financial year, with profit swinging from a loss of $22 million in the June 2020 quarter to a small profit of $3 million in the 2021 second quarter and well off from a profit of $34 million in the 2019 June Quarter.
Stationery & Office Supplies Montego Bay
Profit rose over 168 percent year on year for the first 6 months of 2021, from $21.8 million in 2020 to $58.4 million.
Sales surged 76 percent in the June quarter to $238 million from the 2020 covid-19 battered quarter and 17 percent for the half year to $551 versus $472 million in the 2020 period. While making a good recovery, this year’s revenues trail that of 2019 by some degree. Revenues in June 2019 quarter were 24 percent higher at $295 million and for the half year, 15 percent greater than the $633 million generated in 2019.
The cost of goods sold rose 61 percent in the quarter to $117 million and 7 percent for the half year to $261 million. Gross profit margin rose to 51 percent in the quarter, with gross profit of $120 million up from 46 percent in 2020, with gross profit of $63 million. For the half year, gross profit margin rose to 53 percent from gross profit of $290 million up from 46 percent in 2020, with gross profit of $228 million.
Administrative and general expenses rose 54 percent to $82 million from $55 million in 2020 during the June quarters and climbed a milder 16 percent to $163 million from $141 million for the six months period. Selling and promotional costs rose from $14.6 million in the June 2020 quarter to $22 million and moved from $38 million for the six months in 2020 to $43 million in 2021.
Depreciation, amortisation and impairment charges were slightly down in the quarter at $8.2 million versus $8.7 million in 2020 and $16.5 million compared to $17.8 million for the half year. Finance and foreign exchange cost accounted for $5.2 million in the quarter versus $6.4 million in 2020 and $10 million in the six months period this year, from $12 million in 2020.
“History has shown that SOS’s second quarter is normally the slowest period during the year, but even though we continue to suffer through the Covid-19 virus and all of the issues that come along with it, SOS was able to post a profit, with significant improvements compared to the second quarter of 2020. 
These are good indicators that Jamaica’s economy is continuing to rebound and as we progress through the summer months, we will see the return of children to school which will also help improve the sales of SEEK back to school products in the market,” stated David McDaniel, Managing Director and Marjorie McDaniel, Chief Administrative officer in their joint commentary of the results.
Earnings per share for the second quarter for 2021 amount to one cent and 23 cents for the half year. ICInsider.com projects full year earnings at 85 cents per share and $1.50 for 2022. The stock traded at $7.50, with a PE of 9, based on 2021 earnings and that compares favourably with the market average PE of 12.4.
The company remains in a healthy financial position at the end of half year period. At the end of June, shareholders’ equity stood at $668 million, with long term borrowings at $114 million and short term borrowings at $39 million. Gross cash flow amounts to $89 million but, with growth in working capital and repayment of loans, the company ended the half year with net negative flows of $6 million. Current assets stood at $509 million, including inventories of $276 million, trade and other receivables of $102 million, and cash and bank balances of $91 million. Current liabilities ended at $126 million, with net current assets ending at $382 million.
SOS & tTech head IC MarketWatch
SOS anticipates maximising profits from every business line in 2019.
Second-quarter results are coming out but still, a number of them are due out over the next few days. Results released today throws up a few strong numbers and the stocks of these companies are worth watching.
First, out the block today was tTech an IC TOP 10 BUY RATED selection with possible gains of 167 percent. The company reported a 20 percent increase in revenues in the second quarter of $91 million and a 62 percent rise in profit to $16 million and 15 cents per share with flat profit of $17 million or 16 cents per share for the half-year. The stock climbed to $6.50 at the close on Thursday and seems headed higher.
Stationery and Office Supplies reported a strong 195 percent rise in profit fro the second quarter to reach $34 million compared to just $12 million in 2018 from a 23 percent rise in sales to $295 million. for the half-year profit rose 63 percent to $92 million from $56 million from a 23 percent revenue increase to $639 million. The company is on target to meet IC Insider.com’s forecast of 75 cents for the full year. Radio Jamaica is yet to release its first-quarter results but investors have sent to stock to a high of $1.90 on Thursday. 
Demand has built and supplies shrank sharply and that should help move the price higher.
Caribbean cement traded 3,770,741shares up to $85 and is worth watching with supply falling. Sagicor Select ETF Fund was listed on Thursday but demand resulted in the price exceeding the 30 percent limit permitted by the JSE with investors attempting to trade the stock as high as $1.90 but the stock closed with no trading and closed with bids amounting 12 million shares at $1.30 and 324,520 were the lowest offers at $1.85. Lasco Manufacturing could be moving higher in coming trading days as supply declines and demand rises.
Watch Barita Investments
Barita Investments headquarters
Others worth watching this week include Barita Investments with results that could be released by the end of this week or early next week. The results should be showing a big improvement over that of the similar period in 2018. The third quarter results, is rumored to be far better than the second quarter, that will be known in a few days. Importantly, the second quarter earnings posted as 65 cents should be 90 cents per share instead, with earnings equivalent to $3.60 per annum. Caribbean Cement appeared as if it was going to break higher than $80 during the past week, but did not and is worth watching this week as results for the June quarter is due out at the end of July and there is not an abundance of stock offered for sale. Sygnus Credit Investments is coming into its own with limited supply of the stock for sale.
Caribbean Producers fell to $4.50 with buying interest around these levels and limited selling pressure. Fontana jumped to a record $6.50 this past week and that encouraged some selling to take place.
Fontana upcoming Waterloo Road branch
A number of other companies will be releasing 2019 second quarter results between this week and mid August that could move prices.Most of these stocks are in the Junior Market.
Watch SOS this week
In the Junior Market activity last week, Stationery & Office Supplies moved back to $5 after the company released impressive results for the year to June. Buying also came in for Barita Investments and Berger Paints while during the week and Scotia Group raced to a record high.
For the coming week investors should continue to keep eyes on NCB Financial Group, Berger Paints, that is priced currently at a PE of 6 times 2018 earnings, Caribbean Producers and Stationery & Office Supplies that IC Insider.com upgraded earnings to 50 cents per share from 40 cents previously, with the initial public offer helping to drive more business subsequent to the June quarter, with reports of sales rising faster than the 25 percent levels experienced in the second quarter.
Caribbean Producers with improved 2017 results over 2016 with profit doubling, moved up to $4 during the week, before closing at $3.11 on Friday, after a big trade and should head back to the $4 range in the coming week.
Last week Insider.com stated, “with cut in BOJ benchmark interest rate by 25 basis and a fall in the August Treasury bill rates, the entire main market is on IC Insider.com’s watch list as the All Jamaica Composite Index could move to the 300,000 points mark before long.”
IC Insider.com also stated, “the most noted move in the Jamaica Stock Exchange last week was Scotia Group racing to a record high of $52 but ending the week without any stock being offered for sale. This stock has to head the stocks to watch list this week.”
The All Jamaica Composite Index rose to 296,779.53 points during the past week and by the end of the week closed at a 291,332.10 up from 289,247.13 at the end of the previous week and Scotia Group ended at a record high of $60.
Minority deserves better
SOS directors released June’s quarterly results even though the JSE rules require the first report to be relased for the September quarter.
The investing public seems not to be treated with the respect it deserves. It appears that many companies thing of investors last, not recognizing that they are shareholders just like the majority owners.
The last persons seen are the first to be remembered and is equivalent to out of sight out of mind. That seems to be the case with shareholders in the Caribbean. Newly listed Stationery & Office Supplies release of the June quarterly report although not required by the Jamaica Stock Exchange is an example of good corporate governance and is to be applauded.
In Trinidad for example, there is little liquidity in that market and the directors refuse to do anything about it. In Jamaica many companies tend to stick with the minimum regulations of the stock exchange, even when the recent examples in Jamaica say how important it is to ensure that there is adequate liquidity in the market.
The current regulation for listings in Jamaica, is for new listed companies to file their first quarterly report in the quarter ending after listing. The rule is inadequate to protect investors. Information is critical for the capital market to function properly, as such investors should not have to wait more than two quarters to get a quarterly report. In 2016, there was the very poor decision by Wentworth Graham the then head of the regulatory arm of the Jamaica Stock Exchange to permit 1834 Investments to wrongly withhold the December quarterly report from the public. This was based on improper interpretation of the rules relating to the release of financial information.
Main Event release their first report in June after their January IPO.
Earlier this year Main Event issued their IPO and included interim results to September 2016, with the year end of October. The IPO was in January but it was not until June that shareholders had information on the out turn of the operations for 2016 as well as for the first quarter this year. As it turned out, profit of $60 million at the 11 month period melted down to $56.5 million for the full year. The audited report was only signed on the June 5, more than 7 months after the year end while the first quarter results were never released but the second quarter to April was released within the deadline of June 15.
The management of Stationery & Office Supplies may have had a lot to shout about with pretax profit jumping 146 percent to $20.3 million for the June quarter this year and hence the release of the results to Jamaica Stock Exchange in less than a month of listing on the Junior Market.
Under the stock exchange rules it need not have put out the six months report having been listed in August. Some persons may see it as self interest in the release, but there is no evidence of that. The release provides the investing public with pertinent information in a timely manner, on which they can make their investment decisions. The hope is that the Jamaica Stock Exchange rules will be strengthened quickly to ensure that pertinent information is release on a timely basis to the public.