Caribbean Cream exits IC TOP 10

Investors responded strongly to Caribbean Cream more than doubling profit in the half year to August and a tripling of second quarter profit by pushing the stock up 9 percent on Friday, accounting for the second highest volume for the day. The rise in the stock price resulted in it moving out of IC TOP 10 Junior Market listing and replaced by Lumber Depot.
Lumber Depot returns to the top flight of stocks with earnings per share projected at 20 cents for the current fiscal year and the price just over $1. The Main Market is as you were last week, with no new change.
The Main Market closed the past week higher than the highest level since the beginning of July, except for September 30, another reminder that the market traditionally commences rallying in July each year and slowly builds towards the end of the year. The Junior Market closed the week just above the close of the previous week. That disguises the critical signal that is the market is currently sending. The jump in Caribbean Cream’s price this past week speaks eloquently to the underlying interest that is still in the market and displayed by the demand for Barita Investment stock, with investors’ demand pushing the price within a few dollars of the record high. The broader signal is the big surge that the Junior Market will experience in a few weeks as short term moving averages cross over longer-term ones to confirm a strong rally to come.
The top three stocks in each market saw no change in ranking, leaving the top three Junior Market stocks with the potential to gain between 293 to 705 percent by March 2021. Caribbean Producers heads the list, followed by Lasco Financial and Elite Diagnostic. The focus on all three is on the 2021 fiscal year profit, projected to recover from reduced profit for the 2020 financial year. With expected gains of 151 to 245 percent, the top three Main Market stocks are Berger Paints, followed by JMMB Group and Grace Kennedy.
The local stock market’s targeted average PE ratio is 20 based on companies’ profits reporting full year’s results from now to the second quarter in 2021. The Junior and Main markets are currently trading well below this level, indicating the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 15.8 and the Junior Market 11.6, based on ICInsider.com’s projected 2020-21 earnings. The average PE ratio of the Junior Market has been slowly rising, with better profit opportunities than the Main Market and narrowing the gap. The PE ratio for the Junior Market Top 10 stocks average a mere 5.7 at just 49 percent to the Junior Market average. The Main Market TOP 10 stocks trade at a PE of 8.5 or 54 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 298 percent and 144 percent for the JSE Main Market, based on 2020-21 earnings, indicating potentially greater gains in the Junior Market than the Main Market.
IC TOP 10  stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain 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 the selection process in and out of the lists for most weeks. 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.

Caribbean Flavours highlight of IC TOP 10

For the past week, activity in the Jamaican stock market was mostly stable following the Barita Investments and Tropical Battery successful public offers. Buying interest increased for Caribbean Flavours and Jamaican Teas stocks, both with pending stock splits.

Caribbean Flavours a Derrimon’s subsidiary

This week’s focus: Caribbean Flavours (CFF), a former IC TOP 10 listed stock, ten for one stock split becomes effective Tuesday.  This stock is worth watching this week.  After the split, the company will have just under one billion shares issued. Many investors foolishly position themselves to buy stocks after the split at a higher value than before. It is almost a certainty that the price of CFF will move higher after Tuesday’s split. The company reported a 42 percent rise in second-quarter revenues and an increased profit of 25 percent, with profit for the half-year up by 23 percent. The forecast for earnings per share is $1.15 for 2020 and $1.75 in 2021. The PE ratio at the current price of $19.65 the stock traded at on the Junior Market on Friday is 17 times the 2020 earnings and 11 times 2021 earnings.
For a fifth consecutive week, there were no changes in the companies on the IC TOP 10 listings, but that could change with some results set for release during the week. The markets moved moderately higher to close at their highest levels since mid-August for the. The Main Market closed the past week higher than the previous one, but the Junior Market closed the week lower than the prior one.
The top three stocks in each market saw no change in ranking, leaving the top three Junior Market stocks, with the potential to gain between 281 to 726 percent by March 2021. Caribbean Producers heads the list, followed by Lasco Financial and Elite Diagnostic. The focus on all three is on the 2021 fiscal year profit, projected to recover from reduced profit for the 2020 financial year. With expected gains of 152 to 240 percent, the top three Main Market stocks are Berger Paints,  followed by JMMB Group and Carreras. Radio Jamaica is now down to the fifth spot with slightly lower earnings per share of 15 cents from 20 cents previously.
The local stock market’s targeted average PE ratio is 20 based on companies’ profits reporting full year’s results, from now to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level, indicating the potential gains. The JSE Main Market ended the week, with an overall PE of 15.4 and the Junior Market 11.3, based on IC Insider.com’s projected 2020-21 earnings. The average PE ratio of the Junior Market has been slowly rising, with better profit opportunities than the Main Market and narrowing the gap. The PE ratio for the Junior Market Top 10 stocks average a mere 6.1 at just 54 percent to the overall Junior Market average. The Main Market TOP 10 stocks trade at a PE of 8.4 or 55 percent of the PE of the overall market.
The average projected gain for the Junior Market IC TOP 10 stocks is 279 percent and 145 percent for the JSE Main Market, based on 2020-21 earnings, an indication of potentially greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain 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 the selection process in and out of the lists for most weeks. 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.

Intriguing week for IC TOP 10

Activity in the Jamaican stock market for the past two weeks was mostly on Barita Investments following the successful public offer of new ordinary shares, Tropical Battery, with the listing after their IPO success. the prices of both rose above the public issue prices with Barita trading at a 52 weeks’ high of $98 and Tropical at $1.35.
For a fourth consecutive week, there were no changes in the companies on the IC TOP 10 listings. The markets moved moderately higher to close at their highest levels since mid-August for the junior Market. The Main Market closed at its highest level at the close of September since the beginning of July gave up all the gains on Wednesday and Tuesday to close back at mid-September level on Friday.
The top three stocks in each market saw no change in ranking, leaving the top three Junior Market stocks, with the potential to gain between 297 to 764 percent by March 2021. Caribbean Producers heads the list, followed by Lasco Financial and Elite Diagnostic. The focus on all three is on the 2021 fiscal year profit to recover from reduced profit for the 2020 financial year. With expected gains of 204 to 228 percent, the top three Main Market stocks are Berger Paints followed by Radio Jamaica and JMMB Group.
This week’s focus: Jamaican Teas came in for increased buying during the past week after the company advised the Jamaica Stock Exchange that the board of directors will meet to determine a new record date for the sub-division of the Company’s shares, following the deferral at the Annual General meeting.  The stock traded at $4.30 on September 29 and closed at $4.83 on Wednesday, with 161,040 units changing hands, with the offer at $4.50. The volume ballooned to over one million units on Thursday, with the price hitting $5.55 during the day. The company completed the 2020 fiscal year at the end of September.
The market’s targeted average PE ratio is 20 based on the profits of companies reporting full year’s results, from now to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level, indicating the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 15.1 and the Junior Market 11.2, based on IC Insider.com’s projected 2020-21 earnings. The average PE ratio of the Junior Market has been slowly rising, with better profit opportunities than the Main Market and narrowing the gap. The PE ratio for the Junior Market Top 10 stocks average a mere 6.1 at just 54 percent to the overall Junior Market average. The Main Market TOP 10 stocks trade at a PE of 8.2 or 54 percent of the PE of the overall market.
The average projected gain for the Junior Market IC TOP 10 stocks is 283 percent, and 153 percent for the JSE Main Market, based on 2020-21 earnings, indicates potentially greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain 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 for most weeks. 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.

Closed IPO & APO restore life to market

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Oversubscribed public stock issues were the most pronounced development in the Jamaican stock market for the past two weeks. Barita Investments raised $13.5 billion from the public offer of new ordinary shares in the previous week and was joined by Tropical Battery, with their IPO that closed on the same day of opening, with a raise of $325 million. 

Barita eyeing acquisition.

Barita, a former IC Buy Rated stock capital raise, resulted in its share capital more than doubling from $10.88 billion to $24.4 billion and the overall equity capital moving to $28.74 billion. The stock price climbed to $77 at the close on Friday and provided investors in the APO with a nice 48 percent gain and more for smaller investors who bought at $49.
For a third consecutive week, there was no change in the companies on the IC TOP 10 listings, with the markets moving moderately higher partially helped by the rise in the price of Barita’s stock.
With the two public share issues out of the way, the Jamaica Stock Exchange market indices rose during the week with the JSE Main Market indices closing at the highest point since August 3 while the Junior Market was highest since August 26. The week’s movement reversed the negative effect the two issues had in diverting funds away from the market.
The top three stocks in each market saw no change in ranking for the top three Junior Market stocks, with the potential to gain between 295 to 709 percent by March 2021. Caribbean Producers heads the list, followed by Lasco Financial and Elite Diagnostic. The focus on all three is the 2021 fiscal year results, projected to show recovery from the 2020 financial year final numbers. The top three Main Market stocks, with expected gains of 205 to 231 percent, are Radio Jamaica, followed by Berger Paints and JMMB Group.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results, from now to the second quarter in 2021. Both the Junior Market and the Main Market are currently trading well below this level, indicating the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 14.8 and the Junior Market 11.2, based on IC Insider.com’s projected 2020-21 earnings. The average PE ratio of the Junior Market has been slowly rising, with better profit opportunities than the Main Market and narrowing the gap. The PE ratio for the Junior Market Top 10 stocks average a mere six at just 54 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at a PE of 8.3 or 56 percent of the PE of the overall market.
The average projected gain for the Junior Market IC TOP 10 stocks is 280 percent, and 151 percent for the JSE Main Market, based on 2020-21 earnings, indicates potentially more significant gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on the possible 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 will result in movements of the selection in and out of the lists for most weeks. 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.

Another quiet week for IC TOP 10

For a second consecutive week, there were no changes in the companies on the IC TOP 10 listings, with the markets going sideways and little or no significant price moving news.

Barita public stock offer pulled money away from other JSE stocks.

The Jamaica Stock Exchange market activity was negatively affected by funds diverted away from the as investors moved money into the successful Barita Investments issue of new shares. The Issue closed on Wednesday gone and was upsized to $13.5 billion, resulting in a more than doubling of the issued shares from $10.88 billion to $24.38 billion and the overall equity capital to $28.74 billion.
The past week that saw the local market trading in a narrow range, with the Junior Market closing slightly down for the week after ending the previous week at the highest point since August 28 and the Main Market had the highest weekly close since the end of August.
The top three stocks in each market saw no change in ranking, leaving the top three Junior Market stocks, with the potential to gain between 292 to 695 percent by March 2021. Caribbean Producers heads the list, followed by Lasco Financial and Elite Diagnostic. The focus on all three is on the 2021 fiscal year results projected to show recovery from the 2020 financial year final numbers. The top three Main Market stocks, with expected gains of 204 to 228 percent, are Radio Jamaica, followed by Berger Paints, with the price rising 7 percent during the week and JMMB Group.
This week’s focus – Tropical Battery issue for 325 million ordinary shares at $1 each of with up to 187.5 million units reserved for priority applications, opens Tuesday, September 22, with the scheduled closing of September 30, subject to the right of the Company to close it earlier. With earnings per share around 7.7 cents, the stock is priced around a PE ratio of 13 times 2020 earnings, leaving little or no room for short term gains as it is priced 19 percent above the market average.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results, from now to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level, indicating the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 15.3 and the Junior Market 11, based on IC Insider.com’s projected 2020-21 earnings. The average PE ratio of the Junior Market has been slowly rising, with better profit opportunities than the Main Market and narrowing the gap. The PE ratio for the Junior Market Top 10 stocks average a mere six at just 55 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at a PE of 8.2 or 54 percent of the PE of the overall market.
The average projected gain for the Junior Market IC TOP 10 stocks is 280 percent, and 151 percent for the JSE Main Market, based on 2020-21 earnings, indicates potentially more significant gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on possible gain 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 will result in movements of the selection in and out of the lists for most weeks. 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.

Quiet week for IC TOP 10

The past week was quiet for IC TOP 10 listings, resulting in no change to the list at the end of the week that saw the local market trading in a narrow band and the Junior Market closing at the highest point since August 28 and the Main Market since the end of August.

Scotiabank profit drops in Jamaica.

The top three stocks in each market saw no change in ranking, leaving the top three Junior Market stocks, with the potential to gain between 292 to 695 percent by March 2021. Caribbean Producers heads the list, followed by Lasco Financial and Elite Diagnostic. The focus on all three is on the 2021 fiscal year results, projected to show recovery from the 2020 financial year final numbers. The top three Main Market stocks, with expected gains of 205 to 264 percent, are Berger Paints followed by Radio Jamaica and JMMB Group. All three suffered declines during the week.
This week’s focus: Scotia Group reported a net income of $5.56 billion for the nine months ending in July, compared to $9.79 billion for the corresponding 2019 period. Overall, loans advanced, grew 12 percent mainly due to the strong performance of the Commercial Banking unit, increasing 24 percent versus the prior year. Retail loan grew 5 percent year over year, driven by strong mortgage growth of 16 percent. Total revenues, excluding expected credit losses for the nine months, ended July at $32.1 billion, a reduction of $1.7 billion or 5.1 percent, compared to 2019. For the July 2020 quarter, gross revenues fell from $12.4 billion to $11 billion, with non-interest income contributing $1.1 billion to the decline. Administrative and other expenses were essentially flat at $5.8 billion year over year, a $2 billion increase in provision for expected loan loss helped push profit down in the quarter, to $1.55 billion from $4.2 billion in 2019. Notably, while loans amounting to $221 billion at the end of July grew 12 percent year over year, loans declined modestly from $223 billion at the end of April, the result of the increased credit loss provisioning.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results, from now to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level, an indication of the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 15.1 and the Junior Market 10.9, based on IC Insider.com’s projected 2020-21 earnings. The average PE ratio of the Junior Market has been slowly rising, with better profit opportunities than the Main Market and narrowing the gap. The PE ratio for the Junior Market Top 10 stocks average a mere 6 at just 55 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at a PE of 8.2 or 54 percent of the PE of the overall market.
The average projected gain for the Junior Market IC TOP 10 stocks is 279 percent, and 153 percent for the JSE Main Market, based on 2020-21 earnings, an indication of potentially, greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain 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 will result in movements of the selection in and out of the lists for most weeks. 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.

Lasco is back in IC TOP 10

Lasco Distributors and Medical Disposables are back in the Junior Market IC TOP 10 while there are no changes to the Main Market IC TOP 10 listing.
Stationery and Office Supplies and Jetcon Corporation dropped out of the Junior Market list, the former earning, was revised down for 2020, with the loss incurred in the June quarter while Jetcon price inched up, to be squeezed out of the top stocks.
The top three stocks in each market saw little change in ranking, leaving the top three Junior Market stocks, with the potential to gain between 292 to 695 percent by March 2021. Caribbean Producers heads the list, followed by Lasco Financial and Elite Diagnostic, the focus on all three is on the 2021 fiscal year results that are projected to show recovery from the 2020 financial year final numbers. The top three Main Market stocks, with expected gains of 205 to 264 percent are Berger Paints followed by Radio Jamaica and JMMB Group, all three suffered declines during the week.
The targeted average PE ratio of the market is 20 based on the profit of companies reporting full year’s results, from now to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level, an indication of the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 15 and the Junior Market 10.8, based on IC Insider.com’s projected 2020-21 earnings. The average PE ratio of the Junior Market has been slowly rising, with better profit opportunities than the Main Market and narrowing the gap. The PE ratio for the Junior Market Top 10 stocks average a mere 6 at just 56 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at a PE of 8.1 or 54 percent of the PE of the overall market.
The average projected gain for the Junior Market IC TOP 10 stocks is 279 percent, and 157 percent for the JSE Main Market, based on 2020-21 earnings, an indication of potentially, greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain 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 will result in movements of the selection in and out of the lists for most weeks. 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.

Another big IC TOP 10 winner

After a record run this past week, Epply hit a record high of $23, but closed at $22 and leaped out of the Main Market IC TOP 10 listing, with a gain of 80 percent from the end of March, when the stock went into the TOP 10 for 2020.
During the past week, companies continued the release of midyear results, with little impact on the market. Jamaica Broilers released decent first-quarter results to the end of July, with a slight improvement in after-tax profit, with operating profit rising 25 percent on lower revenues. Wisynco Group full-year audited financials showed modest gains in profit while Blue Power profits jumped 41 percent. Of the three, only Jamaica Broilers is in the TOP 10. At the close of the week, Medical Disposables dropped out of the Junior Market listing and replaced by Jetcon Corporation. NCB Financial returns to TOP 10 and now sits at the bottom of the list, having replaced Eppley.
The top three stocks in each market saw little change in ranking, leaving the top three Junior Market stocks, with the potential to gain between 300 to 676 percent by March 2021. Caribbean Producers heads the list, followed by Lasco Financial and Elite Diagnostic, the focus on all three is on the 2021 fiscal year results, projected to show recovery from the 2020 financial year final numbers. The top three Main Market stocks, with expected gains of 205 to 264 percent, are Berger Paints followed by Radio Jamaica and JMMB Group, all three suffered declines during the week.
This week’s focus: Jamaica Broilers revenues declined 5 percent in the July quarter to $12.6 billion from $13.26 billion in the prior year. Operating profit rose 25 percent to $851 million from $679 million in the prior year, with profit after taxes rising moderately from $361 million to $383 million. A significant fall in administration and other expenses was the main contributor to the improved profit performance by adding $375 million to the results with a decline in cost from $2.28 billion down to $1.9 billion, while other income added nearly $200 million to the increase as well after gross profit had declined by $377 million to hit $2.95 billion. Earnings per share rose to 41 cents.
The targeted average PE ratio of the market is 20 based on profits of companies reporting full year’s results, from now to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level, an indication of the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 15 and the Junior Market 10.5, based on IC Insider.com’s projected 2020-21 earnings. The average PE ratio of the Junior Market has been slowly rising, with better profit opportunities than the Main Market and narrowing the gap. The PE ratio for the Junior Market Top 10 stocks average a mere 5.7 at just 54 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at a PE of 8 or 54 percent of the PE of the overall market.
The average projected gain for the Junior Market IC TOP 10 stocks is 291 percent, and 161 percent for the JSE Main Market, based on 2020-21 earnings, an indication of potentially greater gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain 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 will result in movements of the selection in and out of the lists for most weeks. 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.

 

General Accident is back in IC TOP 10

General Accident released six months’ results at the top of the week, but the market did not like it, with falling premium and profit in the June quarter leaving the stock price languishing at $6.40, having closed the prior week at $7.20. The fall elevating it back into the Junior Market TOP 10, with Lasco Distributors dropping out, while there was no change to the main market list.
Noticeable changes in the TOP 10, during the week, was a $3.90 rise in the price of Scotia Group to end at $48. Grace Kennedy slipped 99 cents to close at $56.01, Jamaica Broilers lost $3 to close at $23 and Access Financial rose 98 cents to last trade at $23.50 and closed, with the bid at $24.
The top three stocks in each market saw little change in ranking, leaving the top three Junior Market stocks, with the potential to gain between 258 to 692 percent by March 2021. Caribbean Producers heads the list, followed by Lasco Financial and Elite Diagnostic, the focus on all three is on the 2021 fiscal year results that are projected to show recovery from the 2020 financial year final numbers.
The top three Main Market stocks, with expected gains of 188 to 223 percent, are Berger Paints followed by Radio Jamaica and JMMB Group.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results, from now to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level, an indication of the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 15 and the Junior Market 10.6, based on IC Insider.com’s projected 2020-21 earnings. The average PE ratio of the Junior Market has been slowly rising, with better profit opportunities than the Main Market and narrowing the gap. The PE ratio for the Junior Market Top 10 stocks average a mere six at just 56 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at a PE of 8.1 or 54 percent of the PE of the overall market.
The average projected gain for the Junior Market IC TOP 10 stocks is 277 percent, and 153 percent for the JSE Main Market, based on 2020-21 earnings, an indication of potentially more significant gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on possible gain 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 will result in movements of the selection in and out of the lists for most weeks. 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.

Kremi back in IC TOP 10

In a week when several companies released quarterly results, few had any positive information to move prices forward. Against this development, some stocks pulled back a bit, flowing from weaker than expected results. Last week’s drop out candidate,

Caribbean Cream posted big gains in profit in Q1.

Caribbean Cream, closed the week at $4.10, to return to the Junior Market TOP 10, at the expense of Mailpac Group. There were no changes to the main market list.
The Mailpac Group operations enjoyed a 33 percent rise in revenues for the six months to June and a 36 percent increase in profit over the similar period in 2019. Flowing from those results, IC Insider.com revised the earnings per share down to 20 cents, thus reducing the potential gain based on 2020 earnings, moving it out of the top listing.
The top three stocks in each market saw little change in ranking, leaving the top three Junior Market stocks, with the potential to gain between 281 to 676 percent by March 2021. Caribbean Producers heads the list, followed by Lasco Financial and Elite Diagnostic, the focus on all three is on the 2021 fiscal year results, that are projected to show recovery from the 2020 financial year final numbers.
The top three Main Market stocks with expected gains of 189 to 223 percent are Berger Paints followed by Radio Jamaica and JMMB Group.
This week’s focus: 138 Students Living reported a 44 percent increase in revenues to hit $334 million from $223 million in the June 2019 quarter and a 60 percent rise in the nine months to $1.09 billion. The company moved from a loss of $17 million in the 2019 third quarter to a profit of $132 million in 2020 and from a loss of $60 million in the nine months to June, to a profit of $402 million. Operating cost fell in both periods compared with the 2019 cost. The big problem is that the company continues the extremely poor practice of not showing operating and administrative expenses separately, making it impossible to see what gross margins are. The significant increase in profit is due to claims made on the University going back to 2019, which are booked in the current year that distorts earnings from ongoing operations. While earnings per share for the quarter is an attractive 32 cents and year to date 97 cents. Earnings from ongoing operations suggest that the full year’s results should be in the order of 40 cents after a regular tax charge.
The targeted average PE ratio of the market is 20 based on the profits of companies reporting full year’s results, from now to the second quarter in 2021. Both the Junior and Main markets are currently trading well below this level, an indication of the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 15.2 and the Junior Market at just 10.9, based on IC Insider.com’s projected 2020-21 earnings. The average PE ratio of the Junior Market has been slowly rising, reflecting better profit opportunities in the Main Market and narrowing the gap. The PE ratio for the Junior Market Top 10 stocks averages a mere 5.9 at just 54 percent to the average of the overall Junior Market. The Main Market TOP 10 stocks trade at a PE of 8.2 or 54 percent of the PE of the overall market.
The average projected gain for the Junior Market IC TOP 10 stocks is 278 percent, and 152 percent for the JSE Main Market, based on 2020-21 earnings, an indication of potentially more significant gains in the Junior Market than in the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on possible profit 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 will result in movements of the selection in and out of the lists for most weeks. 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.