Grace segments hide important tales

GraceKennedy reported their six months results to June, showing continued strong growth in revenue and profit for a third year running. The group’s segment results make for more interesting reading when the data is examined closely.
The group reported revenues of $63.4 billion, representing an increase of $6.8 billion or 12.1 percent over the prior year’s corresponding period. Profit before tax was $5.4 billion, reflecting a 20.4 percent improvement over the same period in 2020. Net profit after tax came in at J$4 billion, a 30.3 percent increase over the same period in 2020, while net profit attributable to stockholders enjoyed a double digit increase of 30.6 percent over the prior year.
GraceKennedy group is categorized into four main segments, with all contributing positively to the half year’s performance.
The Food Trading segment saw revenues rising 11 percent in the half year to $49.6 billion, but segment profit surged 50 percent to $2.8 billion. Banking and Investments revenues rose by a mere 7 percent to $3.3 billion and delivered a 32 percent increase in segment results to $348 million, Insurance pushed 23 percent higher to $5.6 billion, with just a 5 percent rise in profit to $515 million and Money Services revenues were up 18 percent to $4.8 billion, with profit climbing 15 percent to $2.1 billion, remaining the most profitable segment of the group by far.
For the June quarter, while the Food Trading segment did well in the first quarter, the second quarter saw a blast of momentous proportion, with revenues rising 15 percent to $24.65 billion over 2020, but with segment, profit surging a stunning 99 percent to $1.32 billion over the $667 million generated in 2020. Banking and Investments revenues rose 9 percent in the second quarter to $1.66 billion, but could only deliver a 9 percent increase in segment results to $199 million, up from $184 in 2020, well off from the 86 percent increase in quarter one, when profit came in at $148 million versus just $80 million in the March 2020 quarter last year. Insurance revenues rose 17 percent to $3.16 billion, with a 13 percent contraction in profit to $432 million, but a major change to the profit of $84 million garnered in the 2021 first quarter and Money Services revenues were up 20 percent in the second quarter compared with the first quarter increase of 16 percent and ended with $2.49 billion, with profit climbing a mere 4 percent to $1.1 billion from a rise in profit in the first quarter of 30 percent.
The data indicate that the Food Trading and Money Services divisions are likely to be the greatest profits drivers in the short to medium term.
GraceKennedy stock remains as an ICInsider.com BUY RATED stock that last traded at $102, on Wednesday on the Main Market of the Jamaica Stock Exchange at a PE ratio of 9.3 ICInsider.com earnings for the year of $11.

Change in ICTOP10 picks

Mid-year results are now flowing unlike anything seen in the local market in recent years. Most companies reported gains in revenues and profits, but investors’ interest seems lukewarm in the aftermath of the results, even as interest in ICTOP10 number 1 stock, Radio Jamaica (RJR) continues to be robust as more investors turn their eyes to what is a major turnaround in fortunes.
GraceKennedy reported continued strong numbers, showing improvement in revenues and profit, so too did Caribbean Cement and Berger Paints. Investors don’t seem to buy into Berger’s major change in operations and the implication for profit from the major surge in revenues. Based on the six months numbers, the company’s earnings for 2021 is upgraded to $2 per share. All three Lasco companies reported improved revenues and profit for the June Quarter, but the stocks are stuck at prerelease prices.
Investors should ignore the lukewarm response now and accumulate some of these stocks to profit from later in the year when the inevitable buying comes in for them. Access Financial reported improved results for the June quarter after reporting modest gains in lending. NCB Financial also released results but the details suggest caution, with the performance being helped by onetime income or cost reduction. Jamaica Stock Exchange reported improved June quarter numbers, but improvement is not strong enough to justify the current price the stock trades at.
Sterling Investments returns to the TOP10 Main Market listing, after replacing Scotia Group that recorded a rise in its price from last weeks’ $38.75 to $42 at the close of trading on Friday. There are no changes in or out of the Junior Market list.
The top three stocks in the Junior Market, continue, with Elite Diagnostic, followed by Caribbean Assurance Brokers and Medical Disposables, with the potential to gain between 221 percent and 287 percent compared to 237 and 291 percent, last week. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by JMMB Group and Guardian Holdings, with expected gains of 184 to 296 percent, versus last weeks’ 183 to 292 percent.
This past week the average gains projected for the Junior Market, moved up from 202 percent last week, back to 207 percent and Main Market stocks moved to 173 percent from 164 percent.
The Junior Market closed the week with an average PE 13.3 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 as well as the recent historical average of 17, for the period to March this year based on 2020 earnings.
The JSE Main Market ended the week with an overall PE of 16.4, a little distance from the 19 the market ended at in March, suggesting just a 17 percent rise at a PE of 19 and 23 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.6 or 46 percent of the PE of that market, well off the potential of 20.
For the Junior Market to trade at the historical average, the PE Ratio would have to rise 28 percent and requires a rise of 50 percent to reach the targeted PE of 20 by March 2022. Main Market stocks would have to rise by 17 percent to hit a PE of 19 and 23 percent to get to the target of 20. The Junior Market Top 10 stocks average PE is a mere 6.7, just 50 percent of the market average, indicating substantial gains ahead.
The TOP10 stocks are not always the best stocks in the market but ones that are most likely to be the best winners within a fifteen months period. IC ranked stocks to filter out the big winners, allowing investors to focus on potentially big winners and help to keep out emotional attachments to stocks.
 IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.

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

 

GraceKennedy blast profits higher

GraceKennedy earned a 12 percent rise in revenue to $63.4 billion, up from $54.4 billion in the 2020 corresponding period. Revenues for the June quarter rose 15.8 percent from $26.6 billion to $30.8 billion.
Profit before tax for the half year was up 20.4 percent to $5.4 billion, reflecting an improvement over the $2.5 billion in 2020 and climbed 15.6 percent to $2.9 billion for the quarter from $2.5 billion in 2020.
Profit after tax attributable to stockholders for the half year bolted 30.6 percent to $3.6 billion from $2.75 billion over 2020 and rose 35 percent from $1.42 billion to $1.9 billion in the June quarter. Earnings per share for the period was $3.62, compared to $2.77 in 2020, while the second quarter recorded earnings of $1.94, up from $1.44 in 2020. In its report on the six-month performance, the company stated, “GK’s Jamaican food distribution business (GK Foods – Domestic) performed well in the first six months of 2021, recording an increase in PBT and revenue over the prior year. GK’s Manufacturing Division recorded strong gains in the first half of 2021, with growth in revenue and PBT compared to the first half of 2020. This performance was primarily driven by significant demand in the Jamaican and international markets for our Jamaican manufactured products, including Tastee Cheese, Tropical Rhythms, canned vegetables, frankfurters and vienna sausages. GK’s International Foods business exceeded both its revenue and PBT half year targets, with all business units surpassing PBT over the prior year. GraceKennedy Financial Group reported strong growth in both revenue and pre-tax profit for the first half of 2021. GK’s Insurance segment also continues to yield positive results, with GK General Insurance recording double digit growth in revenues in the second quarter compared to the same period in 2020. GraceKennedy Money Services exceeded its revenue and pre-tax profits when compared with the corresponding period of 2020.”
The shares that are listed on the Jamaica Stock Exchange, traded with a 30 cents loss on Thursday ahead of the results to end at $99.70 but is up 55 percent for the year to date.

#1 ICTOP10 pick to stun market

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ICTOP10 number 1 stock, Radio Jamaica (RJR) price moved up 22 percent since releasing full year results recently, with the stock trading at the highest price in a year, it is set to lose the number one spot sooner than later. The company reported just 7 cents per share from reduced revenues. On the surface, the stock price should at best remain at the prerelease price around $1.70 level, but there is much more to those results that only a more detailed assessment would reveal.

Media house, RJR traded most shares on friday

Based on ICInsider.com research, investors should expect the first quarter profit to exceed the 2021 fiscal year results of $171 million on the way to record just under $1 billion in profit for 2022 to give investors a big payday.
RJR is the sort of stock that few would have on their buy list. After all, the company has not performed particularly well in recent years. Worse the Cocvid-19 pandemic made matters tough for them, with contraction in revenues and initially, reduced profit. What goes for RJR would apply to many of the ICInsider.com top stocks for 2021. ICInsider.com goes beyond the actual results to find important information that is not always useful to many but can provide guidance into the future and expose above average profit growth.
That is one reason why many of the selections at the start of the year have done well. Examples are as such, Caribbean Cream up 43 percent for the year to date started the year at the number 2 spot, Caribbean Producers the number 3 spot selection is up 82 percent, Main Event up 73 percent, Medical Disposables up just 12 percent, Stationery & Office Supplies 55 percent, Lumber Depot 116 percent and Mailpac 32 percent. Later, Future Energy Source was added to the list at the IPO stage and is up an impressive 110 percent. Additionally, Jetcon Corporation up 76 percent and Jamaican Teas 100 percent are not being counted. The Main Market with few overall winners for that market so far also produced winners from the TOP15 list, posted at the start of the year, Grace, Carreras, Caribbean Cement and Jamaica Broilers.
The TOP10 stocks are not always the best in the market but are most likely to be the best winners within a fifteen-month period. IC ranked stocks to filter out the big winners, allowing investors to focus on potentially big winners and help to keep out emotional attachments to stocks.
PanJam Investment earnings is downgraded to $4.50 per share and the stock moved out of the TOP10 Main Market listing and is replaced by Scotia Group, now in at tenth spot. There are no changes in or out of the Junior Market list.
This past week the average gains projected for the Junior Market moved up from 183 percent last week back to 202 percent and Main Market stocks moved to 164 percent from 176 percent.
The top three stocks in the Junior Market continue, with Elite Diagnostic heading the list, followed by Caribbean Assurance Brokers and Medical Disposables, with potential to gain between 237 percent and 291 percent compared to 233 and 242 percent last week. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by JMMB Group Guardian Holdings, with expected gains of 183 to 292 percent as RJR price rose and reducing its future potential growth, versus last weeks’ 181 to 379 percent.
The Junior Market closed the week with an average PE 13.1 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 and the recent historical average of 17 for the period to March this year based on 2020 earnings. For the Junior Market to trade at the historical average, the PE Ratio would have to rise 30 percent and requires a rise of 53 percent to reach the targeted PE of 20 by March 2022. Main Market stocks would have to rise by 17 percent to hit a PE of 19 and 23 percent to get to the target of 20. The Junior Market Top 10 stocks average PE is a mere 6.8, just 52 percent of the market average, indicating substantial gains ahead.
The JSE Main Market ended the week with an overall PE of 16.4, a little distance from the 19 the market ended at in March, suggesting just a 17 percent rise at a PE of 19 and 23 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.8 or 48 percent of the PE of that market, well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, considering the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings per share are ongoing, based on receipt of new information.

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

Profit doubles at Caribbean Cream for Q1

Caribbean Cream released first quarter results with revenues up a solid 28 percent to $549 million and profit doubled to $54 million after taxation of nearly $8 from $27 million after tax of $4 million with earnings of 14 cents per share.

Caribbean Cream’s Kremi product

Cost of sales rose 17 percent to $341 million from $292 million in 2020. Selling and distribution costs rose 21 percent to $15 million while administrative costs rose 41 percent to $126 million, finance costs came in at $5 million. Taxation rose to $7.7 million from $4 million in 2020.
Commenting on the results for the year in a joint statement Christopher Clarke, Chairman and Carol Clarke Webster director, operating expenses rose 35 percent or 38 million due to a number of factors, higher transport cost for an increased number of deliveries of product. “Internal reclassification of electricity from production to distribution to more fairly reflect energy usage by business segments’ salary increases and other staff related costs and the full annualized cost for the Ocho Rios depot. The directors stated that they are currently carrying out capital works at the properties for operations that will lead to reduced cost of utilities.
Cash inflows for the quarter were $98 million versus $64 million in 2020, but after working capital changes, inflows rose to $117 million, $62 million was expended on the acquisition of property and resulted in cash on hand of $264 million. Current assets stood at $453 million and current liabilities at $210 million, resulting in net current assets of $243 million. Shareholders’ equity grew to $888 million from $771 million as of May 2020 and loans amounted to  $324 million, of which $29 million is due to be repaid in the next twelve months.
IC Insider.com projects a profit of $320 million or 85 cents per share for the 2022 fiscal year and $1.50 per share for 2023. The stocks last traded at $6.90, after releasing the results, on the Junior Market of the Jamaica Stock Exchange, a 52 weeks’ high and the highest since October 2018. At Friday’s last traded price, the stock ended the week at a PE ratio of 8.3, well below the average of 13 currently for the Junior Market.

Stunning results from ICTOP10 stocks

Caribbean Cream

Caribbean Cream delivered stunning positive results this past week with profit doubling, in line with ICInsider.com forecast and sent the stock up 25 percent to a 52 weeks’ high when it traded at $6.85 on Friday. The price is up 63 percent for the year to date but is set to clear $15, with projected earnings of 85 cents for the current year.
During the week, the Junior Market lost Caribbean Producers to the Main Market and the move attracted more trading in it, with Friday having the lowest volume of 104,442 and the highest 275,415 shares on the first day of the transfer, well up on the previous two days of 34,319 and 58,282 shares. The stock continues to move higher, with gains of 91 percent for the year to date.
tTech maintained last week’s price of $4.75 to return to Junior Market TOP10 this week, replacing Caribbean Producers that was the only new entrant to the JSE Main Market TOP10, replacing Jamaica Broilers.
This past week the average gains projected for the Junior Market fell from 202 percent last week to 183 percent and Main Market stocks moved to 176 percent from 170 percent.
The top three stocks in the Junior Market are General Accident, followed by Caribbean Assurance Brokers and Elite Diagnostic, with potential to gain between 233 percent and 242 percent compared to 240 and 282 percent last week, as Elite price moved up by 15 percent to $3.60 following the announcement a proposed dividend consideration and a change in the Chief Executive. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by JMMB Group and PanJam Investment, with expected gains of 181 to 379 percent versus last weeks’ 161 to 379 percent.
The Junior Market closed the week with an average PE 13.1 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 as well as the recent historical average of 17 for the period to March this year based on 2020 earnings. For the Junior Market to trade at the historical average, the PE Ratio would have to rise by 30 percent and requires a rise of 53 percent to reach the targeted PE of 20 by March 2022. Main Market stocks would have to rise by 19 percent to hit a PE of 19 and 24 percent to get to the target of 20. The Junior Market Top 10 stocks average PE is a mere 7.2., just 55 percent of the market average, indicating substantial gains ahead.
The JSE Main Market ended the week with an overall PE of 16.1, a little distance from the 19 the market ended at in March, suggesting just an 18 percent rise at a PE of 19 and 24 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.6 or 47 percent of the PE of that market, well off the potential of 20.
This week’s focus: Results for Caribbean Cream with revenues up a solid 28 percent and profit doubling to $54 million, from $27 million with earnings of 14 cents per share, speak for themselves. Radio Jamaica is at a totally different level. The company delivered an 11.6 percent revenue rise in the March quarter and a profit of $44 million, pushing full year’s profit to $171 million of just 7 cents per share. The year’s performance comes against the backdrop of $366 million in what can be considered one off costs and in a year when revenues fell 7 percent. The 2022 results are set to be a stunner.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.

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

Grace & Jetcon are back ICTOP10

Jetcon Corporation returns the Junior Market TOP10 after the price slipped from $1.39 last week to $1.35 at the close of the week, replacing tTech that enjoyed a slight price bounce from $4.40 last week to $4.75 this week, while in the JSE Main Market Grace Kennedy returns after a week’s absence and replaces Jamaica Broilers that is now out.
Jamaica Broilers reported full year results, with profits of $2.3 billion up 67 percent from $1.4 billion in 2020 for earnings per share of $2.30. ICInsider.com now projects $3.30 earnings per share for the 2022 fiscal year and that is not enough to keep it in the TOP10.
The performance of the Jamaica Stock Exchange Main Market continues to lag well behind the Junior Market, with the fall in the financial sector led by NCB Financial Group being a major drag on the main market, but values in the Junior Market are far more favourable than those in the main market and that is eloquently told by the average PE ratios of both markets.
This past week the average gains projected for the Junior Market rose from 200 percent last week to 202 percent and Main Market stocks edged down from last week’s 171 percent to 168 percent.
The top three Junior Market stocks are Elite Diagnostic, Caribbean Ass. Brokers and General Accident, with potential gains between 240 and 282 percent, following the range of 223 and 287 percent last week. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by JMMB Group and Guardian Holdings, with expected gains of 169 to 379 percent versus last weeks’ 188 to 385 percent.
The Junior Market closed the week with an average PE 12.9 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 as well as the recent historical average of 17 for the period to March this year based on 2020 earnings. For the Junior Market to trade at the historical average, the PE Ratio would have to rise by 32 percent and requires a rise of 53 percent to reach the targeted PE of 20 by March 2022. Main Market stocks would need to rise by 11 percent to hit a PE of 19 and 17 percent to get to the target of 20.
The Junior Market Top 10 stocks average PE is a mere 6.8, just 53 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 17, a little distance from the 19 the market ended at in March, suggesting just a 12 percent rise at a PE of 19 and 18 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.9 or 47 percent of the PE of that market, well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.

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

Grace Kennedy exits ICTOP10 with record price

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

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

JMMB moves to #2 in Main Market ICTOP10

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

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

122% gain pushes stock out of ICTOP10

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