Consolidated Bakeries hits new high

Consolidated Bakeries ended at a fresh multiyear closing high of $2.50 on Friday, with more than a million shares trading. Investors can expect more gains from this one as the company enjoyed strong first half year results that are expected to carry over to the second half and with the pe ratio now at 10 times this year’s earnings.

Consolidated Bakeries (Purity) traded at a 52 weeks’ closing high on Friday.

Key Insurance is added to the watch list with the price down to $3.36. After releasing full year results last week, Express Catering released first quarter results to August. Based on those numbers, ICInsider.com revised earnings per share to 40 Jamaica cents for the current fiscal year, with the PE now at 13.
ICInsider.com watch list comprises Caribbean Assurance Brokers, Consolidated Bakers, Dolphin Cove, Caribbean Producers, Elite Diagnostic, Everything Fresh, General Accident, Guardian Holdings, Jamaica Broilers, Key Insurance, Knutsford Express, Lasco Distributors, Lasco Manufacturing, NCB Financial, Stationery and Office Supplies, Paramount Trading and Scotia Group.
Major factors to consider going forward. The rebound in tourist arrivals only came back to 2019 levels since June. Providing there are no reversals, then companies who are highly dependent on the sector will enjoy a big bounce for the next nine months compared to the lower business generated from last year to April this year. The same applies to the entertainment industry as the sector only opened up after March this year. Banks will make a fortune from increased interest rates.

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

Knutsford Express – a good stock to watch

Fresh from the release of positive full year results to May of $87 million or 16 cents per share, Knutsford Express is a new stock to watch. ICInsider.com projects earnings for the new fiscal year at 90 cents per share, with the stock trading at a PE of 8 compared to the Junior Market average of 13. The stock stands a good chance of more than doubling in the next year.

Knutsford Express

Main Event reported incredible third quarter results to July of 41 cents per share, with ICInsider.com projecting earnings for the full year at 45 cents per share and 90 cents for 2023, with the stock trading at a PE of 17 based on the current year’s estimate, but well that based on the year’s numbers.
Express Catering also released full year results that show continued recovery from last year’s fallout, with a profit of US$1.1 million, from a loss of US$1.73 million in 2021. In contrast, in the nine months to February, profit was just US$364,607, with only US$120,248 profit generated in the February quarter. ICInsider.com earnings per share are projected at Jamaica 50 cents resulting in a PE of 11.
Elite Diagnostic is added to the list with projected earnings of 55 cents per share at a PE of 6.5 at a stock price of $3.58 and Consolidated Bakery that had an excellent half year with the promise of a good second half to come.
ICInsider.com identifies the following for the watch list. Caribbean Assurance Brokers, Dolphin Cove, Caribbean Producers, Everything Fresh, General Accident, Guardian Holdings, Jamaica Broilers, Lasco Distributors, Lasco Manufacturing, NCB Financial, Stationery and Office Supplies, Paramount Trading and Scotia Group.
Dolphin Cove, Caribbean Producers and Express Catering will be major beneficiaries of the strong rebound in tourist arrivals and the supply of General Accident has declined sharply over the past few weeks, but investors may be reluctant to pile into the stock ahead of the hurricane season.
Persons who compiled this report may have an interest in securities commented on.

138 Student Living jumps 41%, Purity 34%

Last week’s stock to watch, Everything Fresh, climbed another 12.5 percent on top of the solid 43.5 percent last week to close the week at $1.89, while Consolidated Bakeries, added to the list last week, surged 34 percent to close at $1.99 as investors aggressively sucked 837,932 shares out of the market, leaving just eight lots of stocks amounting to 71,000 units on offer.
New to the list this week is Lumber Depot, that is undervalued with good potential to expand. ONE on ONE Education Services should list soon and will enjoy a significant price hike a few days after listing.
138 Student Living delivered a 41 percent jump in the week and should move even higher in the weeks ahead, while Stationery and Office Supplies picked up a bit as some demand came in for the stock. Expect more gains in the months ahead.
Investors should continue to watch Caribbean Assurance Brokers, Caribbean Producers, Dolphin Cove, Express Catering, Guardian Holdings, Jamaica Broilers, Lasco Distributors, Lasco Manufacturing, NCB Financial and Paramount Trading.
Dolphin Cove, Caribbean Producers, Express Catering and Everything Fresh will be significant beneficiaries of the strong rebound in tourist arrivals, now back to 2019 levels.

Everything Fresh jumps 44% last week

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Last week’s stock to watch, Everything Fresh, climbed 43.5 percent from $1.17 to close the week at $1.68 and should move higher and Future Energy Source, that reported fabulous results for the first quarter, was one to watch. The stock added to the $5.29 price it closed the previous week at and closed on Friday at $5.63, with a PE ratio of 22.5.

Everything Fresh traded at $1.68 on Friday to gain 43.5% for the week.

This week, Consolidated Bakeries is added to the list, following excellent half year results, with prospects of more gains ahead, but General Accident is out following a bump in claims in the second quarter that squeezed profit. Also added to the list is ONE on ONE Education Services, which should list this month and enjoy a significant price hike.
138 Student Living reported strong June results but hardly moved in a week that the markets suffered declines. Meanwhile, Stationery and Office Supplies pulled back a bit as demand weakened following good half year results.
This week’s other ICInsider.com watch listings are Caribbean Assurance Brokers, Caribbean Producers, Dolphin Cove, Express Catering, Guardian Holdings, Jamaica Broilers, Lasco Distributors, Lasco Manufacturing, NCB Financial and Paramount Trading.
Dolphin Cove, Caribbean Producers, Express Catering and Everything Fresh will be major beneficiaries of the strong rebound in tourist arrivals, now back to 2019 levels.
Refunds should start returning to investors from ONE on ONE Education Services this week now that allocations in the recent IPO are determined. That could make a big difference to the market as investors deploy those funds in the market.

More changes to ICTOP10

While some investors were selling shares to buy into the latest IPO to hit the market, recent investors in the Junior Market listed Dolla Financial gave the market a shot in the arm following a disclosure that the company had corresponded with Access Financial to explore merger talks.
Investors reacted the first chance they had and drove the prices of both stocks higher on Friday.
The Ipo of OneonOne IPO opened on Friday morning and closed at the end of the day, as was to be expected, after attracting some 15,000 applications. The shares are likely to be listed before the end of August, with a name change to follow. ICInsider.com expects the stock will move into the $2 range sometime after listing.
The disclosure of the Dolla interest sent the TOP 10 listed Access up $5.79 or 25 percent to close at $25 on Friday, with the stock falling from the TOP10. Other big Junior Market TOP10 movers this past week are Caribbean Assurance Brokers, up 12 percent lower at $2.80, Paramount Trading with a rise of 9 percent, CAC 2000, up 6 percent to $7.65, while General Accident dropped 9 percent to a very attractive price of $5.
The Main Market ended the week with 138 Student Living jumping 23 percent to $5 and is likely to rise further, with the company posting solid results after the market closed, with earnings of 21 cents for the June quarter and 58 cents per share for the nine months to June. Berger Paints rose 8 percent to $11.93, VM Investments popped 4 percent to $5.20 and Guardian Holdings reversed most of the previous week’s gain by dropping a sharp 22 percent from $650 to $506.
The new entrants to the ICTOP listing are Iron Rock Insurance and Lasco Manufacturing, replacing Access Financial and Paramount Trading. There were no changes in the Main market. 
The average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 13.9, while the Junior Market Top 10 PE sits at 5.9 versus the market at 12.8. The Junior Market is projected to rise 240 percent and the Main Market TOP10 an average of 235 percent each to May 2023.
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 to highlight winners from the rest, allowing investors to focus on potential winning 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.

Fesco heads stocks to watch

Future Energy Source stunned the market with fabulous results for the first quarter that suggests earnings for the full year should hit 26 cents and thus bringing the PE ratio to a realistic 20 which is comparable to a number of other companies in the market. Demand should come in at the current $5.29 price, it closed on Friday.

138 Student Living should earn 80 cents for the year to September after posting 58 cents for the nine months to June and should move higher. Stationery and Office Supplies reported continued strong 2022 results and will be paying an 18 cents dividend with a second expected based on this year’s good earnings saw more than 551,000 shares trading on Friday in response to the results.
This week’s other ICInsider.com watch list are Access Financial, Caribbean Assurance Brokers, Dolphin Cove, Caribbean Producers, Everything Fresh, Express Catering, General Accident, Guardian Holdings, Jamaica Broilers, Lasco Distributors, Lasco Manufacturing, NCB Financial and Paramount Trading.
Dolphin Cove, Caribbean Producers, Express Catering will be major beneficiaries of the strong rebound in tourist arrivals and the supply of General Accident has declined sharply over the past few weeks, but investors may be reluctant to pile into the stock ahead of the hurricane season.

Stocks to Watch

Some companies may surprise the market with the release of profit results or other announcements that could encourage investors to buy into the stock. In some cases, information already in the market could lead to demand growing and supplies falling. ICInsider.com identifies the following for the watch list. It does not mean the stocks should be bought now but watching to see when to pounce if the signal is triggered.
Caribbean Assurance Brokers, Dolphin Cove, Caribbean Producers, Everything Fresh, Express Catering, General Accident, Guardian Holdings, Jamaica Broilers, Lasco Distributors, Lasco Manufacturing, NCB Financial, Stationery and Office Supplies and Paramount Trading.
Dolphin Cove, Caribbean Producers, Express Catering will be major beneficiaries of the strong rebound in tourist arrivals and the supply of General Accident has declined over the past few weeks, but investors may be reluctant to pile into the stock ahead of the hurricane season.
Fosrich is expected to release second quarter results this coming week and it will be interesting to see what effect they will have on demand for the stock.

Another big win for ICTOP10 pick

If investors needed reminders, the stock market showed why severely undervalued stocks should be acquired early, as most investors don’t know when surprises will occur. The announcement this week that IC stock watch pick, Stationery and Office Supplies (SOS), a former ICTOP candidate, that their directors would meet to consider a dividend in August sent the stock to a record high of $19.29, but it closed the week at $15 up 155 percent for the year to date.

Stationery & Office Supplies hits a record high of $19.29 this week.

SOS was last in the TOP10 on the week starting June 13 at $11. It was number 12 on the ICTOP15 chart to start 2022 but climbed to the sixth position on January 11. The dividend to be considered in early August signals that record profit as shown in the first quarter results continues apace. Insider.com forecast is for earnings of $1.70 for the current year, with more to come in 2023. The forecast is for the stock to reach the $30 range by year end. But investors should also consider what a stock split that seems imminent could do to the price.
There were no changes to the TOP10 listings this past week, but there was much volatility in the Junior Market, with CAC 2000 and Jetcon Corporation dropping 13 percent to  8.50 and $1.16, respectively. Caribbean Cream fell 11 percent to $4.30, Dolphin Cove dipped 5 percent and Medical Disposables fell 4 percent to $6.80. The only stock with a rise worth mentioning is Caribbean Assurance Brokers, up 6 percent.
The Main Market enjoyed a better week than the Juniors with no significant declines, while Sterling Investments rose 5 percent to end at $2.88.
Investors should keep a careful watch on Dolphin Cove, Express Catering, General Accident, Jamaica Broilers, Lasco Distributors, Lasco Financial, Lasco Manufacturing, Stationery and Office Supplies and Paramount Trading, Dolphin Cove, Caribbean Producers, Express Catering will be significant beneficiaries of the strong rebound in tourist arrivals. The supply of General Accident has declined sharply over the past few weeks, but investors may be reluctant to lie into the stock ahead of the hurricane season.
The average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 13.7, while the Junior Market Top 10 PE sits at 5.9 versus the market at 12.8. The Junior Market and the Main Market TOP10 are projected to gain an average of 239 percent each to May 2023.
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 to highlight winners from the rest, allowing investors to focus on potential winning 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.

More Gains for JSE Main Market

Main Market activity on the Jamaica Stock Exchange resulted in more gains for the major indices on Tuesday, but with declining stocks edging out advancing ones.
At the close, the JSE All Jamaican Composite Index advanced 1,603.82 points to close at 554,689.07, the JSE Market Index gained 1,368.73 points to 505,051.51 and the JSE Financial Index added 0.86 points to end at 137.19.
The market closed with 42 securities changing hands in the Main and US dollar markets with the prices of 16 stocks advancing, 18 declining and 8 trading firm. The JSE Main Market activity ended with 36 securities accounting for 25,370,029 units valued at $66,307,015 in contrast to 12,661,713 units valued at $111,971,239 from 47 securities on Monday.
 Sagicor Select Financial Fund dominated trading with 16.9 million shares for 67 percent of total volume, followed by Wigton Windfarm with 4.1 million units for 16 percent of the day’s trade, and Sagicor Select Manufacturing & Distribution with 1.9 million shares for 7 percent of the market’s volume.
The Market closed with an average of 704,723 units valued $1,841,862 units for each security traded, in contrast to 301,469 units valued at an average of $2,665,982 on Monday. The average volume and value for the month to date amounts to 463,503 units valued at $2,179,721 for each security changing hands, compared to 439,042 units valued at $2,218,333 for each security traded. Trading in December resulted in an average of 595,143 units valued at $9,344,514 for each security.
IC bid-offer Indicator| At the end of trading, the Investor’s Choice bid-offer indicator reading shows ten stocks ending with bids higher than their last selling prices and two securities closing with lower offers. The PE ratio of the market ended at 19.4, while the Main Market ended at 18.7 times the 2019 earnings.
In the prime market, Caribbean Cement dropped $4.50 to end at $69, with an exchange of 21,839 shares, Eppley gained 60 cents to close at $14.40 trading 5,607 shares, Grace Kennedy lost 99 cents exchanging 28,130 shares to end at $76.01, Jamaica Broilers closed 50 cents lower to $38.90, after swapping 8,915 shares. Jamaica Producers dropped $2.39 to settle at $24.01, with an exchange of 14,000 shares, Jamaica Stock Exchange climbed 90 cents transferring 150,186 units to end at $28.85, JMMB Group closed $2 higher to $48 in trading 106,771 units. Mayberry Investments ended at $8.50, after losing 50 cents with 21,947 shares changing hands, Mayberry Jamaican Equities closed 89 cents lower at $11.31, in swapping 4,158 units, NCB Financial Group gained $3 to settle at $198, after transferring 23,644 shares. PanJam Investment closed $2 higher at $102 after trading just 364 units, Pulse Investments lost 44 cents to close at $6.45, with 122,736 units changing hands. Sagicor Group gained 40 cents to end at $70 in swapping 50,866 shares, Scotia Group advanced $3 to $58 in exchanging 58,212 shares and Supreme Ventures closed with a loss of 50 cents to end at $25, in swapping 10,227 shares.
Trading in the US dollar market ended with 84,352 units valued at over US$42,656. The market index advanced 8.56 points to close at 238.40. Margaritaville closed at 34.99 US cents, with 425 units changing hands, Proven Investments traded 58,581 units, in losing 1 US cent to close at 32 US cents. Sygnus Credit Investments ended with 8,800 shares changing hands at 18 US cents, Sterling Investments closed at 3 US cents after exchanging 3,458 units. JMMB Group 5.75% preference share traded 8,731 units at US$2.02 and JMMB Group 6% preference share traded 4,357 units at US$1.04.

Limners & Bards revise EPS

Kimala Bennett, Chief Executive Officer of The Lab.

Following IC Insider.com’s report that the earnings per share (EPS) for Limners & Bards were incorrect, the audited accounts of the company are now revised to reflect the EPS the article suggested they should be.
The revised audited reports now state that the calculation of earnings per stock unit is based on the profit after taxation and the weighted average number of stock units in issue during the year. Net profit attributable to shareholders of $94,746,238 in 2019, $62,313,858 in 2018. The weighted average number of ordinary stock units is 803,836,715 in 2019 and 756,552,202 in 2018, resulting in Basic and diluted earnings per stock unit of12 cents in 2019 and 8 cents in 2018.
The original audited financial statements showed the basic and diluted earnings per stock unit at 10 cents for the 2019 fiscal year and 7 cents for 2018 based on the weighted average of ordinary stock units 945,690,252 in each year.
IC Insider’s report on Tuesday stated that “Limners and Bards released full-year results with profit after taxation of $95 million, up by an impressive 52 percent from the $62 million earned in 2018 from healthy gains in revenues, with earnings per share (EPS) works out at 12 cents for 2019 and 8 cents for 2018.”
The company’s operating revenues grew 31 percent to $632 million from $483 million in 2018, with the last quarter growing a stunning 58 percent to $146 million, generating income just below the $152 million generated in the July quarter and profit before tax of $18 million versus $16.5 million in the July quarter. While revenues for the year rose 31 percent, direct cost rose at a slower pace, resulting in the gross profit climbing 39.4 percent over 2018 as gross profit margin rose to 36 percent compared to 33.7 percent in 2018. Administrative cost rose well ahead of revenue growth with a 41 percent increase over 2018, but the full-year increase is below a 70 percent surge in the July quarter while the fourth quarter saw a rise of 39 percent over 2018, is in line with the full-year increase.
In a statement accompanying the nine months results, Chairman, Steven Gooden and Kimala Bennett, Chief Executive Officer stated, “Administration expenses increased by $23.737 million, or 42 percent, which represent 16.63 percent of revenue for the nine months compared to 14.60 percent to the corresponding period ended July 31, 2018. These increases are primarily attributable to staff costs (due to increase work volume), subcontractors (on retainer contracts), depreciation charges and security costs”.
The company reports on three segments comprising Production, Media and Agency. For 2019 Production generated earnings of $226 million and profit of $100 million while Media raked in $292 million but ended with just $40 million in profit and agency the most profitable brought in $114 million and delivered $85 million in net income.
The company ended the year with cash and equivalent of $292 million with shareholders’ equity of $356 million, up from $123 million in 2018. Borrowings stood at $50 million with payables of $83 million and current assets of $387 million.
IC Insider.com forecast earnings per share of 20 cents for 2020 that puts the PE ratio at 15 with the stock closing trading at $3 on Tuesday on the Junior Market of the Jamaica Stock Exchange and is a stock to be watched into 2020.