Transjamaican in ICTOP10, CAB jumps 44%

May 13, 2023 by

The release of company results and some sharp price movements shook up the ICTOP10 listing this week, resulting in several changes in the top 10. Caribbean Assurance Brokers (CAB) topped the week, reporting record first quarter profit cheered by investors who pushed the price up by 44 percent to $2.88 and cleared the market of just about all supplies under $3. The stock sits in the number 7 spot, with potential for gains of 250 percent over the next twelve months.
CAB has been at the top of the TOP10 for several weeks going back to mid-March and now sits at the number 6 spot in spite of the substantial price gains, with ICInsider.com raising EPS to 50 cents from 45 cents. Taking over the number one spot is baker Consolidated Bakeries with Image Plus, that is in demand at number 2.
At the same time, ICInsider.com’s projection for Transjamaican Highway puts the stock into the Main Market TOP10 with projected earnings of 31 cents and a targeted price in the $6 region by early 2024 and replaces NCB Financial that got an earnings downgrade following the release of half year results showing earnings falling behind that for 2022, with a sharp fall in foreign exchange trading gains and increase loan loss provision.
Transjamaican headed the Market Watch list on April 29 this year. Then the price was at $1.77, with ICInsider.com indicating projected earnings of 24 cents per share and a short term price target of $2.40 and now the stock price is $1.85. The company released first quarter results on Friday, with profit of US$6 million.

Caribbean Assurance Brokers selling at a PE of just 7 based on historical earnings.

ICInsider.com has since adjusted earnings to 0.02 US cents per share or 31 Jamaican cents.
While the ICTOP10 Junior Market stocks had solid gains at the end of the week, the Main Market suffered several losses, with seven stocks declining.
Iron Rock Insurance jumped 22 percent to $2.29, Jamaican Teas rebounded from the previous week’s low by climbing 11 percent to $2.19 and dropped out of the TOP10 along with Everything Fresh having posted robust gains in revenues and profit for the March quarter, with investors welcoming the positive development by driving the stock up 14 percent to $1.89, with more to come. The company reported a profit of $35 million compared to just $7 million for the 2022 March quarter. IC Insider.com has since revised EPS for 2023, down to 25 cents from 30 cents previously, the combination of both of the above moves resulted in the stock moving out of the TOP10, but it still has more room for gains ahead. Lasco Distributors, one of the most undervalued stocks on the market, rose 4 percent to $2.68 but is trading at less than 6.4 times 2023 earnings of 42 cents per share and much lower based on earnings of 70 cents for fiscal 2024 has already started. After the March 2023 results are out, the EPS will switch over to the figure for 2024 and that would result in the stock holding the number 1 spot with likely gains above 400 percent. Image Plus rallied 4 percent to $2.20 and holds the number 3 spot on the TOP10.

Tropical Battery is the third stock to move out of the TOP10 with an earnings downgrade to 20 cents per share, following the release of half year results, showing a profit of $50 million, up from $30 million in the March quarter and from $87 million to $94 million for the half year. Dolla Financial, Edufocal and Dolphin Cove are this week’s new entrants to the Junior Market IC TOP10. Dolphin sits at the number 2 spot, with projected earnings of $3, following the 2022 full year results of 0.76 US cents or J$1.17 and will benefit from a sharp rebound in cruise ship arrivals, with the first 10 months last year being a fraction of what it was 2019 and the first quarter of 2020. This is in addition to increased stopover arrivals that will be greater than last year for a large part of the year.
The price of Main Market listed Key Insurance rose 8 percent to $3.40 to be the only stock of notable gains while Caribbean Producers dropped 8 percent in closing at $9.71, following release of nine months’ results that suggest that full year earnings from ongoing operations should end up around J$1.30 per share. Jamaica Broilers slipped 5 percent to $33.95 and Berger Paints fell 4 percent to $8.
Stocks are being prepped to rally, with signals that interest rates will be declining across the board sooner. Interest rates fell below eight percent on BOJ CDs and Treasury bills this past week, paving the way for a cut in the Bank of Jamaica overnight rate. That will provide more invigoration for the Jamaica stock market, with the Junior Market posting gains for a third consecutive week, even as the Main Market suffered another week of a mild decline.
The Junior Market’s long history of rising around a month before the release of quarterly results and declining shortly after results are released seems to be starting with a rise of 108 points in the market index in the previous week with more this past week, with the supply of some stocks continuing to fall sharply.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.8, well below the market average of 13.5. The Main Market TOP10 is projected to have an average of 259 percent, by May 2024, based on 2023 forecasted earnings.
The 15 highest valued Main Market stocks are priced at a PE of 15 to 110, with an average of 27 and 19 excluding the highest PE stocks and 19 for the top half excluding the stocks with the highest valuation.
The Junior Market Top 10 PE sits at 5.8 compared with the market at 10.8. There are nine stocks, or 19 percent of the market, with PEs from 15 to 26, averaging 19 are well above the market’s average. The top half of the market has an average PE of 15, suggesting that this may currently be the lowest fair value for Junior Market stocks. Junior Market is projected to rise by 248 percent to May 2024.
The differences between the average PE ratio of the Main and Junior Markets and the overall market valuation are important indicators of the likely gains for ICTOP10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but not always. 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 are likely to deliver the best returns up to the end of May 2023 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.

 

 

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ICTOP10 Image Plus price jump 9%

May 7, 2023 by

With interest rates softening, some life has entered the Jamaica stock market, with the Junior Market posting gains for a second consecutive week, but the Main Market suffered a mild retreat following notable increases in the last week of April as several ICTOP10 stocks posted solid gains, including Image Plus that posted impressive full year results at the end of the previous week.

Dr. Karlene McDonnough – Chairman of Image Consultants Ltd.

The week ended with several sizable winners in the ICTOP10 and one big loser. Lasco Distributors rose 13 percent to lead the winning stocks, followed by Everything Fresh with a strong 11 percent climb to $1.66, Consolidated Bakeries rose 10 percent to $2.39, Image Plus rallied 9 percent and iCreate rose by 5 percent to $1.47 and fell out of the ICTOP10 and is replaced by Jamaican Teas. Iron Rock Insurance fell 18 percent to close at $1.88 and General Accident slipped 6 percent to $5.08, being the only two losers of significance.
The price of Main Market listed Berger Paints rose 10 percent to $8.30, Caribbean Producers gained 8 percent in closing at $10.56, with the stocks seemingly poised to get back to the $12 region sooner than later as the supply of stocks being sold below $13 has virtually dried up. 138 Student Living popped 6 percent to $5.35, JMMB Group fell 6 percent to $29.60, and Jamaica Broilers slipped 4 percent to $35.70.
Stocks are being prepped to rally, with signals that interest rates will be declining across the board sooner. This stems from the continued slide of BOJ CDs rates since March, which saw the rate falling by 25 percent to 8 percent this past week. Lower interest rates are around the corner, which will be positive for stocks and the signs are already showing.
At the previous week’s close, Image Plus released solid full year results showing profit after tax that jumped 125.6 percent to $213 million or 21 cents per share. Based on those numbers, ICInsider.com revised earnings for the current fiscal year to 35 cents from 30 cents previously. On Monday, the company reported revised results, with the profit being even higher at $252 million, with a reduction in the amount previously booked as professional fees. Based on the revision, projected earnings were raised by the publication to 40 cents per share for the current fiscal year. The stock sits at the number three spot in the ICTOP10. The revision raises some serious questions about how such matters escaped the directors, auditors and the financial controller before the audited financial statements were released.
Dolla Financial fell out of the TOP10 at the end of the previous week and this past week released impressive first quarter results that excited investors who responded well to them by driving the price to close the week at $2.89, with the price hitting a high of $2.99 on Friday. The company seems poised to deliver ICInsider.com forecasted earnings of 40 cents, provided they obtain loans on a timely basis to on lend.
The Junior Market’s long history of rising around a month before the release of quarterly results and declining shortly after results are released seems to be starting with a rise of 108 points in the market index in the previous week with more this past week, with the supply of some stocks continuing to fall sharply.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.5, well below the market average of 13.5. The Main Market TOP10 is projected to have an average of 273 percent, to May 2024, based on 2023 forecasted earnings.
The 16 highest valued Main Market stocks are priced at a PE of 15 to 110, with an average of 28 and 19 excluding the highest PE stocks and 20 for the top half excluding the stocks with the highest valuation.
The Junior Market Top 10 PE sits at 5.7 compared with the market at 11.5. There are 12 stocks, or 25 percent of the market, with PEs from 15 to 26, averaging 20, well above the market’s average. The top half of the market has an average PE of 16, suggesting that this may currently be the lowest fair value for Junior Market stocks. Junior Market is projected to rise by 258 percent to May 2024.
The differences between the average PE ratio of the Main and Junior Markets and the overall market valuation are important indicators of the likely gains for ICTOP10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but not always. 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 up to the end of May 2023 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.

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iCreate in ICTOP10 Image Plus EPS jumps

April 30, 2023 by

The markets are changing, with the Main Market up for three consecutive weeks but the Junior Market meandering for the last four weeks. Against this backdrop, there was one change to the TOP10, with iCreate coming in and Dolla Financial falling out, but Dolla and Honey Bun, that slipped out the previous week, sit immediately below the TOP10.
There were no significant winners for the past week in both markets’ TOP10 as losers dominated. The Junior market had Consolidated Bakeries falling 11 percent to $2.17 and general Accident down 10 percent to $5.40 and Lasco Distributors down 3 percent, with the stock selling at just 5.5 times 2023 estimated earnings and only 8.5 times the company’s nine month results. By any stretch, the stock is considerably undervalued and there are more profits to come in the current fiscal year.
Main Market stocks had a 13 percent fall in Key Insurance after the price closed at $3.08, Berger Paints contracted by 9 percent to $7.54 and 138 Student Living slipped 5 percent to $5.03, while Jamaica Broilers rose just 3 percent to $37.
Stocks are being prepped to rally, with early signals that interest rates will be declining across the board sooner than later. This stems from the continued slide of rates on BOJ CDs since March, that saw the rate falling by 23 percent to 8.11 percent against a background where inflation since November last year is running at less than one percent per annum.
At the week’s close, Image Plus released full year results showing profit after tax jumping 125.6 percent to $213 million or 21 cents per share. ICInsider.com revised earnings for the current fiscal year to 35 cents from 30 cents previously.
The Junior Market’s long history of rising around a month before the release of quarterly results and declining shortly after results are released seems to be starting with a rise of 108 points in the market index this past week, with the supply of some stocks falling sharply.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.4, well below the market average of 13.8, while the Junior Market Top 10 PE sits at 5.9 compared with the market at 11.6. The differences are important indicators of the level of likely gains for ICTOP10 stocks. The Junior Market is projected to rise by 257 percent and the Main Market TOP10 by an average of 280 percent to May 2024, based on 2023 forecasted earnings.
The Junior Market has 11 stocks representing 23 percent of the market, with PEs from 15to 27, averaging 21, well above the market’s average. The top half of the market has an average PE of 17, suggesting that this may currently be the lowest fair value for Junior Market stocks.
The 18 highest valued Main Market stocks are priced at a PE of 15 to 115, with an average of 29 and 20 excluding the highest PE stocks and 20 for the top half excluding the stocks with the highest valuation.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but not always. 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 are likely to deliver the best returns up to the end of May 2023 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.

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Honey Bun rises 8% to exit ICTOP10

April 22, 2023 by

The Junior Market of the Jamaica Stock Exchange recorded solid gains during the past week as the Main Market declined, resulting in three solid gains for the ICTOP10 Junior Market stocks and just one notable move in the performance of the ICTOP10 Main Market as General Accident added 18 percent to its value to be the best performing stock for the week.

General Accident selling supply of stocks is down sharply.

The Junior Market had one change in the TOP10 as Honey Bun moved out for a second time in weeks with a rise of 8 percent, allowing Dolla Financial to come in at number 10. Dolla is likely to enjoy a doubling in profit for the current year, having expanded the loan portfolio dramatically since taking on the billion dollar loan. Investors in the stock can look forward to healthy gains in the stock price during the year.
Main Event, one of the previous week’s top performers that exited the Top 10 with a 6 percent gain to close at $12.95, keeps on rolling on and climbed another 13.5 percent this week to $14.70, up 63.5 percent for the year to date as investors continue to applaud the company’s performance by buying up the stocks as they see more profits to come this year, with the economy fully opened up for entertainment.
The other major price movements during the week were a 9 percent rise for Lasco Distributors, that ended at $2.36 and Honey Bun, up 8 percent to $6.57. There are only two stocks with losses of two percent or less.
In the Main Market, only three stocks recorded declines, but Berger Paints was the only stock with a meaningful move, gaining 8 percent to $8.30.
Interest rates on Bank of Jamaica CDs dipped again at this past week’s auction that, which saw the average rate slipping to 8.21 percent from 8.41 percent at the previous week’s auction. Over the past five months, inflation has been running at less than one percent per annum, which has set the stage for BOJ to act quickly to slash interest rates, a positive development for the market.
The Junior Market’s long history of rising around a month before the release of quarterly results and declining shortly after results are released seems to be starting with a rise of 108 points in the market index this past week, with the supply of some stocks falling sharply.
Honey Bun’s fall from the TOP10 Junior Market list is not the end of the road for this outstanding performer with increased investors’ interest with an expected jump in revenues and profits for the first quarter with the Easter coming at the beginning of April versus the 17th of April last year as well as improvement of gross profit margin that slipped previous year. ICInsider.com expects the price to increase by up to 200 percent this year.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.5, well below the market average of 13.7, while the Junior Market Top 10 PE sits at 5.9 compared with the market at 11.6. The differences are important indicators of the level of likely gains for ICTOP10 stocks. The Junior Market is projected to rise by 246 percent and the Main Market TOP10 by an average of 273 percent, by May 2024, based on 2023 forecasted earnings.
The Junior Market has 13 stocks representing 27 percent of the market, with PEs from 15 to 27, averaging 19, well above the market’s average. The top half of the market has an average PE of 16, suggesting this may be the current lowest fair value for Junior Market stocks.
The 16 highest valued Main Market stocks are priced at a PE of 15 to 114, with an average of 31 and 21 excluding the highest PE stocks and 20 for the top half excluding the stocks with the highest valuation.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but not always. 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 up to the end of May 2023 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.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Honey Bun in ICTOP10 as Purity jumps 24%

April 16, 2023 by

The Main Market of the Jamaica Stock Exchange recorded solid gains during the past week as the Junior Market declined but that did not show up in the ICTOP10 stocks performance as Junior Market stocks ended with gains and losses with the average gains outdoing declines while the Main Market ended with modest price changes in a week when Consolidated Bakeries (Purity) was the star performer with a 24 percent rise to $2.50.

Consolidated Bakeries

The Junior Market had one change in the TOP10 as Main Event rose 6 percent to $12.95 and moved out of the TOP10, allowing Honey Bun to return after falling out the previous week.
Other major price movements in this past week were a 4 percent rise for Everything Fresh to $1.46, a 17 percent fall to $2.15 for Lasco Distributors and 4 percent decline for Image Plus to $1.95. Trading in Image Plus never resulted in more gains during the week following the previous week’s healthy move as selling continued at the same pace as the week before while buyers seem to have pulled back.
In the Main Market, Key Insurance rose 5 percent to $3.65, while Sygnus Credit Investments fell 5 percent to $11.40 as Guardian Holdings, Berger Paints and JMMB Group declined by 4 percent to $475, $7.70 and $30.31 respectively.
Interest rates on Bank of Jamaica CDs dipped again at this past week’s auction with the average rate slipping to 8.41 percent from 8.49 percent, at the previous week’s auction, with BOJ quarantining $104 billion. At the same time the foreign exchange market enjoyed buoyant flows with more funds entering the market each day than the amount dealers sold.
Another fact worth noting is that the Junior Market has a long history, with the market starting to rise around a month before the release of quarterly results and declining shortly after results are released.
Honey Bun’s return to the TOP10 Junior Market list this past week should enjoy increased investors’ interest with an expected jump in revenues and profits for the first quarter with the Easter coming at the beginning of April versus the 17th of April last year as well as improvement of gross profit margin that slipped last year.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.5 well below the market average of 13.5, while the Junior Market Top 10 PE sits at 5.7 compared with the market at 11.2. The differences are important indicators of the level of likely gains for ICTOP10 stocks. The Junior Market is projected to rise by 255 percent and the Main Market TOP10 an average of 276 percent, to May 2024, based on 2023 forecasted earnings.
The Junior Market has 11 stocks representing 23 percent of the market, with PEs from 15 to 28, averaging 20, well above the average of the market. The top half of the market has an average PE of 16, suggesting that this may be a logical value for junior market stocks currently.
The 16  Main Market stocks with the highest value are priced at a PE of 15 to 115, with an average of 31 and 20 excluding the highest PE stocks and 20 for the top half excluding the stocks with the highest valuation.
The above average shows the extent of potential gains for the TOP 10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market but not always. 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 are likely to deliver the best returns up to the end of May 2023 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.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Nice gains for ICTOP10 stocks, Purity returns

April 9, 2023 by

The Main and Junior Markets did not maintain the sharp bounce of the previous week, but most ICTOP10 Junior Market stocks ended with gains. In contrast, the Main Market ended with mostly modest losses, with 138 Student Living rising 5 percent to $5.30 and JMMB Group declining by 5 percent to $31.49, all other changes in the Main Market were two percent or less.

Dr Karlene McDonnough – Chairman of Image Consultants Ltd. The stock came in for increased demand during the week ahead of the release of full-year results.

The Junior Market had one change in its TOP10 list as Iron Rock Insurance and Image Plus climbed 13 percent to $2.27 and $2.03, respectively, while Main Event and Honey Bun rose 5 percent to $12.26 and $6.75, respectively, with the only sizable decline being a 9 percent fall for Tropical Battery to $1.90.
Image Plus never benefitted from any serious IPO bounce seems to be finally finding buying interest and closed the past week with 159,904 shares on the bid at $2.02, 160,746 at $2 and just over 800,000 between $1.90 and $1.95, with 25,987 stocks on offer at $2.03, 81,709 at $2.05 with one big offer of 1.72 million units at S2.50 with smaller offers before the this. There has been healthy trading in the stock recently, with trading of 824,526 units on Thursday. Trading on Wednesday saw 1,153,255 shares changing hands in the stock, with 910,000 units on Tuesday and 1.75 million shares on Monday, which seems to have cleared out a great deal of overhang in the market.
Update on interest rate developments. A number of developments taking place in the economy are worth watching. Following last week’s $35 billion Bank of Jamaica CD auction that saw the average rate coming in at 8.49 percent, this week’s auction saw an offer of $34 billion, with the average rate remaining the same as the previous week with fewer funds chasing the offered amount. Another positive development is the average inflation rate running at 45 percent less than the same time last year and averaging 2.4 percent per annum since November last year. Foreign exchange inflows have been strong, with the NIR growing at $66 million in February and 220 million in March, putting it at a record end of month level as initial data suggest that tourism arrivals and foreign exchange generated by that industry exceed the similar period in 2019, the last year without the impact of covid-19 negatively affecting the sector. On top of those positive developments, corporate profits are expected to enjoy a good bounce for the majority of companies for the first quarter.
The Junior Market has a long term pattern, with the market starting to rise around a month before quarterly results are due and declining shortly after results are released. This is a pattern worth noting that can be built into investment decisions to improve returns.

Consolidated Bakeries Miss Birdie Easter bun. The stock is back in the ICTOP10

Dropping from the TOP10 Junior Market list this past week was Honey Bun, but investors should expect a big jump in revenues and profits for the first quarter, with the Easter coming at the beginning of April versus the 17th of April last year, as well as an improvement of gross profit margin that slipped up last year.
Returning to the TOP10 is Consolidated Bakeries in the number 3 spot. The company is projected to report a solid first quarter profit, with the Easter holidays coming at the start of April compared with April 17 last year and ensuring that mostly all Easter bun sales will be reported in the March quarter unlike 2022. The company reported a profit in 2022 a big improvement over a loss in the previous three years. ICInsider.com projects earnings of 40 cents for 2023 and 75 cents for 2024 with the company benefitting from a full recovery of the local economy and increase efficiency and reduction in borrowings. At the end of the week, the average PE for the JSE
Main Market TOP 10 is 5.6, well below the market average of 13.5, while the Junior Market Top 10 PE sits at 5.7 compared with the market at 11.1. The differences are important indicators of the likely gains for ICTOP10 stocks. The Junior Market is projected to rise by 256 percent and the Main Market TOP10, an average of 271 percent, to May 2024, based on 2023 forecasted earnings.
The Junior Market has 10 stocks representing 21 percent of the market, with PEs from 15 to 29, averaging 19, well above the market’s average. The top half of the market has an average PE of 15, suggesting this may be a logical value for junior market stocks.
The 16 stocks with the highest value in the Main Market stocks are priced at a PE of 15 to 115, with an average of 30 and 19 excluding the highest PE stocks and 19 for the top half excluding the stocks with the highest valuation.
The above average shows the extent of potential gains for the TOP 10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but not always. 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 up to the end of May 2023 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.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

ICTOP10 rides big weekly JSE rally

April 3, 2023 by

The JSE Main market surged sharply in the past week.

While the Main and Junior Markets rebounded sharply during last week, ICTOP10 stocks ended with varying movements, with gains and losses in both markets hitting 16 percent. It was an interesting week in which the main market gained over 18,000 points for the week with all days closing with gains including the Friday of the previous week, but it sits at a resistance level and is a signal worth watching.  
The Junior Market put on 200 points since Thursday, March 23 and had one minor negative trading day during the period, however, the last day accounted for nearly half of the above gains.
While Bank of Jamaica held their overnight rates at 7 percent, their CD rate that fell 16 percent in the previous week to an average of 8.85 percent from over 10 percent where it stood for several months, BOJ offered a huge $35 billion this past week, but the average rate fell to 8.49 percent after $70 billion chased the amount offered. Importantly, the central bank cut the stock of CDS it holds from a peak of $109.5 billion on March 3, but at the latest auction, it amounted to $88.85 billion, marginally up from $82 billion on the 17th.
At the end of the past week, in the Junior Market TOP10 four stocks gained and five declined. KLE Group jumped 16 percent to $1.69 and Tropical Battery rose 7 percent to close at $2.08. General Accident dropped 16 percent to $5 and Everything Fresh fell 6 percent to close at $1.45.
The Main Market TOP10 JMMB Group climbed 15 percent to $33.25, Jamaica Broilers gained 12 percent to $37.10, Caribbean Producers popped 7 percent to $9.70 and NCB Financial with a rise of 6 percent to $75. Berger Paints fell 10 percent to $8.20 and 138 Student Living with a fall of 6 percent to $5.05.
The Junior Market has a long term pattern, with the market starting to rise around a month before quarterly results are due and declining shortly after results are released. This is a pattern worth noting that can be built into investment decisions that can improve returns.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.6, well below the market average of 14.2, while the Junior Market Top 10 PE sits at 5.8 compared with the market at 11.4. The differences are important indicators of the level of likely gains for ICTOP10 stocks. The Junior Market is projected to rise by 248 percent and the Main MarketTOP10 by an average of 267 percent, by May 2024, based on 2023 forecasted earnings.
The Junior Market has 11 stocks representing 23 percent of the market, with PEs from 15 to 28, averaging 20.4, well above the average of the market. The top half of the market has an average PE of 16, suggesting that this may be a logical value for junior market stocks currently.
The Main Market 19 highest valued stocks are priced at a PE of 15 to 115, with an average of 29 and 21 excluding the most valued stocks and 20.5 for the top half excluding the stocks with the highest valuation.
The above average shows the extent of potential gains for the TOP 10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market but not always. 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 are likely to deliver the best returns up to the end of May 2023 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.

 

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Key Insurance highest ICTOP10 jumps 37%

March 26, 2023 by

Stocks dropped to their lowest levels this past week after falling even lower than they did to close of the previous week as investors continue to shun the market, but the time is not far off that Bank of Jamaica will begin lowering interest rates and fuel a market resurgence as they sent the clearest signal that interest rates have not only peaked but will be headed downwards this past week.

The first signs of an easing of rate came this past week with BOJ CDs rates plunging 16 percent to an average of 8.85 percent from over 10 percent where it stood for several months. Importantly, the central bank cut the stock of CDS it holds from a peak of $109.5 billion on March 3, down to $82 billion at the latest auction, far less than from mid-January to the end of February, as more than $58 billion chasing after the $18 billion that was offered last week. While this happened the foreign exchange market looks very liquid with the rate falling under $152 to one US dollar from $155 earlier in February.
Performance in the past week for the Junior Market TOP10 saw only two stocks rising and seven falling, the majority of the declining stocks registering fell by 3 percent or less. General Accident jumped 20 percent to $5.98, but the bids are not there at the close, to support the price, but selling has abated for this stock currently. Everything Fresh rose 9 percent to close at $1.55 and actually traded at $1.65 during the week. Iron Rock Insurance fell 13 percent to $2 and Caribbean Assurance Brokers lost 6 percent to $1.90.
The Main Market TOP10 saw the highest gaining stock rising just 34 percent, after Key Insurance jumped to $3.50 and was followed by 138 Student Living with an 8 percent rise to $5.40, but Caribbean Producers dropped 8 percent to $9.07. All other movements were 3 percent or less.
The Junior Market has a long term pattern, with the market starting to rise around a month before quarterly results are due and declining shortly after results are released. This is a pattern worth noting that can be built into investment decisions that can improve returns.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.5, well below the market average of 13.2, while the Junior Market Top 10 PE sits at 5.9 compared with the market at 10.6. The differences are important indicators of the level of likely gains for ICTOP10 stocks. The Junior Market is projected to rise by 248 percent and the Main Market TOP10 an average of 274 percent, to May 2024, based on 2023 forecasted earnings.
The Junior Market has 9 stocks representing 19 percent of the market, with PEs from 15 to 24, averaging 19, well above the average of the market. The top half of the market has an average PE of 15, suggesting that this may be a logical value for junior market stocks currently.
The Main Market 16 most valued stocks are priced at a PE of 15 to 100, with an average of 29 and 19 excluding the highest valued stocks and 18 for the top half excluding the stocks with the highest valuation. The above average shows the extent of potential gains for the TOP 10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market but not always. 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 are likely to deliver the best returns up to the end of May 2023 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.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

KLE Group is Main Event in ICTOP10

March 20, 2023 by

Stocks continued to be battered in the past week sending the Junior Market back to January 2022 levels and the Main Market declined for a second week and as far back as September 2018 levels, but some stocks bucked the trend and posted gains.

Main Event

Earnings season delivered a few new results during the past week, with Main Event posting positive profit gains for the January first quarter and seeming poised to earn $1.80 for the year. Fosrich released full year results to December, with profit jumping to $325 million from $199 million in 2021 as revenues climbed a solid 43.4 percent, Dolla Financial posted increased profit of 18 cents per share and should go on to earn 40 cents in 2023, but it is not in ICInsider.com TOP10 reporting solid results that augur well for full year’s profit. Limners and Bards delivered disappointing first quarter results of a mere $7 million, down from $66 million in 2022, as revenues dropped sharply from $443 million to $248 million. Lumber Depot suffered a decline in revenues for the January quarter, with a decline in profit and Blue Power reported an increase in revenues year over year, with a profit rising for their third quarter to January, with profit slipping for the nine months.
Performance in the past week for the Junior Market TOP10 saw four stocks rising and three falling. AMG Packaging gained 16 percent to $2.90, followed by Everything Fresh with a 5 percent gain, Lasco Distributors gained 4 percent to $2.74. Tropical Battery lost 10 percent of its value to close at $2.02 and Image Plus lost 4 percent to end at $1.85.
Stationery and Office Supplies is said to continue to enjoy buoyant business into 2023, rose 3 percent to $15 and dropped out of the Junior Market ICTOP10 along with AMG Packaging as Main Event and KLE Group replaced those that fell out, with the former posting strong first quarter results that point to earnings of $1.80 for the year. KLE is now in, based on the fall in the stock price, but investment in the stock is not without above average risk. They are yet to release 2022 earnings, but they should benefit from pick up in business in their associated restaurant business in which they hold a 49 percent interest, with exposure in Montego Bay that will see added inflows from the considerable pick up in tourist patronage and should have income generated from managing the Bessa apartments in Oracabessa on the north coast of Jamaica.
The Main Market TOP10 saw the highest gaining stock rising just 3 percent while Jamaica Broilers dropped 12 percent to $33.50’ following some large trades in the week, Guardian Holdings followed with a fall of 6 percent to close at $480 and 138 Student Living being down by 4 percent to $5.01.
There have been no changes in the listing in the Main Market ICTOP10 this past week.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.4, well below the market average of 13.3, while the Junior Market Top 10 PE sits at 5.9 compared with the market at 11.3. The differences are important indicators of the likely gains for ICTOP10 stocks. The Junior Market is projected to rise by 245 percent and the Main Market TOP10 by an average of 282 percent, to May 2024, based on 2023 forecasted earnings.
The Junior Market has 12 stocks representing 25 percent of the market, with PEs from 15 to 24, averaging 18.3, well above the market’s average. The top half of the market has an average PE of 15.
The Main Market 18 highest valued stocks are priced at a PE of 18 to 115, with an average of 30 and 21 excluding stocks with the highest valuations and 20 for the top half excluding the stocks with the highest valuation. The above average shows the extent of potential gains for the TOP 10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but not always. 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 up to the end of May 2023 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.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Everything & Guardian head ICTOP10

March 12, 2023 by

Everything Fresh and Guardian Holdings continue to head the ICInsider.com TOP10 in a week when the Main Market fell 2.7 percent and the Junior Market dropped a hefty 7.8 percent and reversed all the gains of the previous week, but the Investors Choice bid-offer Indicator is flashing positive signals for both markets on Monday.
Guardian Holdings has a commanding lead over its next rival by almost 100 points, but Everything Fresh likely gain of 344 percent is just above Caribbean Assurance at 333 percent, but the latter is currently far more appealing, with the stock selling at a PE of a mere 7 times 2022 earnings and 4.6 times 2023. Everything Fresh PE based on 2022 earnings is at a much higher 17 and 4.5 based on projected 2023 earnings.
Earnings season had two companies in ICInsider.com TOP10 reporting very strong results that augur well for a full year’s profit.

Caribbean Assurance Brokers is selling at a PE of just 7 based on historical earnings.

Scotia Group reported a net income of $3.4 billion for the quarter that ended January 2023, an increase of $2.2 billion or 173 percent over the prior year period as loans the primary driver of profits increased a solid 18.8 percent to $237 billion while deposits grew only 7.7 percent to $4.05 billion and resulted in net interest income surging $2.6 billion as interest expenses actually declined. These results suggest  ICInsider.com forecast for $5 per share may be a bit light with solid prospects that earnings of $5.50 seem possible. It noted that overall comprehensive profit shows a loss of $1 billion after accounting for pension obligations of $9.5 billion and other items of gains.
Jamaica Broilers continues to churn out strong growth in profits with their nine months results more than double that of the prior year while the January quarter is up 27 percent to $1.5 billion as revenues climbed a solid 20 percent after finance cost nearly doubled. With the tourism industry back to normal the company should get a further boost for the rest of 2023. ICInsider.com forecast for $6 per share for the current fiscal year from continuing operations seem well within reach and could be exceeded making it a solid buy for the long haul.

Scotia Group had a significant increase in profits for the January 2023 quarter.

Performance in the past week was mixed for the Junior Market TOP10 but was far better than the near 8 percent fall by that market, with only three stocks rising of which two rose by 2 percent or less. Iron Rock Insurance gained 15 percent this past week to $2.30 after falling 13 percent the previous week. Lasco Distributors fell 6 percent to $2.64, followed by AMG Packaging and Stationery and Office Supplies which fell by 3 percent to $2.51 and $14.50, respectively.
The Main Market TOP10 performed worse than the overall market with only two stocks gaining and six declining. Jamaica Broilers rose 6 percent to $38 as investors warmed to the stock following release of outstanding results, with the price having a far way to run, while JMMB Group a clear winner for the long term, put on just 2 percent to close at $31.01. Key Insurance fell 7 percent to $2.61 followed by a 5 percent for NCB Financial and 138 Student Living to $72 and $5.20 respectively.
There are no new additions in either market to the ICTOP10 this past week.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.5, well below the market average of 13.3, while the Junior Market Top 10 PE sits at 6.1 compared with the market at 11.3. The differences are important indicators of the level of likely gains of ICTOP10 stocks. The Junior Market is projected to rise by 238 percent and the Main Market TOP10 by an average of 274 percent to May 2024, based on 2023 forecasted earnings.
The Junior Market has 11 stocks representing 23 percent of the market, with PEs from 15 to 25, averaging 19.7, well above the market’s average. The top half of the market has an average PE of 16.
The Main Market 16 highest valued stocks are priced at a PE of 15 to 98, with an average of 30 and 22 excluding the highest valued stocks and 20 for the top half excluding the stocks with the highest valuation.
The above average shows the extent of potential gains for the TOP 10 stocks.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market but not always. 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 up to the end of May 2023 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.

Filed Under: Buy Rated, Stock Market, Stocks to watch Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,