More gains ahead for BUY RATED stocks

Image courtesy of suphakit73/FreeDigitalPhotos.net

Image courtesy of suphakit73/FreeDigitalPhotos.net

The stock markets in the Caribbean have not been on anything close to fire; nevertheless, the prices of some stocks continue to climb. The Jamaican market has not been the only one in which gains were recorded in the summer as there has been some rebound in a number of stock prices on the Trinidad market after declines earlier.
The Jamaican market has seen strong reaction by investors on the announcement of stock splits with the price of each company stock climbing. IC Insider added Seprod to the list while lifting the watch on Sagicor Group, thus restoring a BUY RATED status on it. There are no other changes to the list.
AMG Packaging is IC Insider's top junior market stock for growth in the next 12 months.

AMG Packaging is IC Insider’s top junior market stock for growth in the next 12 months.

In the junior market, Access Financial has advanced 97 percent since 2014. However, IC Insider sees earnings of around $3 per share for the current fiscal year, which should continue to propel the stock upward. Caribbean Cream has gained 597 percent since it was added and with IC Insider forecasting around $1.10 per share earnings for the current fiscal year, the stock could be in the teens by 2017.
Caribbean Flavours price lost flight earlier this year, but with reported audited earnings of $0.82 per share, the price is rebounding. Caribbean Producers suffered from competitive pressures in the Jamaican market and wrote down inventory but should see some reversal of that pressure in the New Year.
However, it does not have a high ranking on the BUY RATED list at this time. Dolphin Cove is up 34 percent since its recent elevation to the BUY RATED list and should trend higher. ISP Finance, a recent addition, gained 140 percent since listing. The company is in the process of raising funds through a bond issue, which will provide funding for an expanded loan portfolio. The stock is very scarce, but 2017 could be a big year for the company and the stock.
Investors are ignoring the robust profit performance of Jetcon Corporation but may regret it as the price is likely to grow strongly. Profits have climbed nearly 100 percent over 2015 to June,
Barita is the top IC Insider's stock for growth over the next 12 months in the main market.

Barita is the top IC Insider’s stock for growth over the next 12 months in the main market.

nearly matching the full year earnings of 2015. Paramount  Trading will benefit from expansion into the processing of lubricants in Jamaica and from growth in its traditional business, but this stock has been scare and could benefit from a stock split and tTech, which many may consider fully priced, is enjoying strong sales growth that is certain to boost profits in the periods ahead.
In the main Jamaica stock market, Caribbean Cement remains undervalued and is poised for a big price rise as the company increases revenues from a growing economy and reduce cost. Many investors keep focusing only on the reported earnings, but these include one off cost that should be taken out in assessing earnings and value.
Buy Rated upd 9-16 Better yet, come 2017 the one off costs won’t be there, importantly, not only will the cost relating to staff separation not be there but the ongoing cost for staffing will be reduced by amounts that approximate redundancy cost. GraceKennedy is benefiting from an improving economy locally and overseas and should see more gains ahead in profits and the stock price.
IC Insider sees JMMB Group as highly undervalued with decent profit results for the current fiscal year and could surprise to the upside. Barita Investments is having a better 2016 than 2015 and has a big pool of unrealised investment gains on its balance sheet that can be released to profit at any time. The stock seems poised for more growth in the years ahead. Jamaica Stock Exchange’s stock could trend higher with the expectation of a stock split, the price may be getting a bit rich for much short term gains.
IC Insider considers the future to be bright for the stock, as trading activities rise in future years, consequent on growth in the local economy and further declines in interest rates that are bound to drive more money into the market seeking decent return. National Commercial Bank is on target to earn around $6 per share in 2016 while Scotia Group’s results to July showed strong growth in the second quarter over 2015, suggesting that increased profits are once more on the table for this entity. Investors should consider that the year end for these two entities is September and October as such very early in 2017 fresh results will be out before even some of companies with 2016 December year end, release their final numbers for this year. Seprod is engaged in cutting cost in various areas and with growth in the economy, the company is in a good position to do well for investors.
The Trinidad market remains a tough one with the price of oil under pressure. Trinidad Cement seems the only compelling buy, but pressure in the construction sector will be seen as negative for the company. [Read more…]

Juniors regain Monday’s losses

Trading levels climbed from Monday’s low level at 10:45 am with several stocks trading over 50,000 units with JJMB Group trading nearly 3 million units.
JSE Intra - 16-08-16Stocks trading at a new 52 weeks’ high are Cargo Handlers at $72.02, ISP Finance Services at $5.22. Other noticeable trades include Cable & Wireless with 105,961 units at $1.15, Caribbean Producers with 50,000 units at $3.20, Honey Bun traded 75,372 shares at $5.53, JMMB Group traded 2,537,927 units at $9.87, JMMB Group 7.50% preference share traded 87,835 units at $1.10, Jetcon Corporation with 48,827 units at $3, Lasco Distributors with 217,361 shares at $6.55, Lasco Manufacturing with 665,561 units at $5, Sagicor Group had 170,700 units at $21.50.
The market indices all fell in the main and junior markets, with 11 stocks gaining versus 11 that fell.
At 10:45 am 34 securities traded, resulting in a volume of 4,210,256 shares changing hands. The average number of shares traded amounts to 123,831 units compared to 43,230 units on Monday.
The all Jamaica Composite Index dropped 703.50 points to 177,756.10, the Jamaica Stock Exchange Market Index fell 629.05 points to 159,987.33, the Jamaica Stock Exchange combined index climbed 256.95 points to close at 171,363.46 points and the junior market index gained 81.91 points to 2,238.13.

Caribbean Producers profit gets hit

CPJ set to be hit by asset write down

CPJ set to be hit by asset write down

Caribbean Producers (CPJ) seems set get a big hit for the financial year ended June, this year. According to a release to the Jamaica Stock Exchange today the company release information on the impact of what they say are unregulated players in the market.
(CPJ) says it “has taken the decision to issue a preliminary disclosure of likely impairment to their net profit in the financial year ended June 30, 2016”
“CPJ advises that the presence of unregulated players in the market continue to create an unequitable environment for the company to compete against products of questionable origin and repute. This has resulted in a review of the implications for CPJ’s business model and hence the following prudent management decisions will be made: A write-down of inventory that has become aged or obsolete that cannot be competitive against unregulated players. An increase in tax provision in anticipation of realignment changes to CPJ’s business model.”
“CPJ views these issues as material primarily for the Fiscal year ended June 2016 and anticipates the authorities will aggressively target the unregulated players. CPJ states however, that the new fiscal year will concentrate on rationalizing non-core businesses and a realignment to address the year-on-year increase in costs associated with their rapid growth and new investments while focusing on protecting their profitable lines of businesses.”
CPJ reported lower profits in the March 2016 quarter of US$643,000 versus US$1.286 million in the similar period in 2015 with the nine months results being just ahead of that for 2015 at US$2.4 million.
While revenues were moderately up, by US$1.3 million in the quarter, to US$24.38 million and nearly US$5 million for the nine months to March,to US$69.8 million, selling and administrative expenses jumped by $1.3 million to US$5.47 million in the quarter and US$2 million for the nine months.
At the end of March, inventories totalled US$25.4 million, even a small write of say 5 percent, could do major damage to the 2016 profit.
The company’s shares that are listed on the junior market of the Jamaica Stock Exchange, traded a small volume today at $4.68.

JSE loses ground on Tuesday

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Grace traded at a new 52 weeks' high on the JSE Tuesday.

Grace traded at a new 52 weeks’ high on the JSE Tuesday.

Trading volumes remained low on the Jamaica Stock Exchange on Tuesday as the main market lost much ground in trading after closing for the Labour Day holiday on Monday. The market closed with 34 securities changing hands, accounting for just 2,901,288 units valued at $53,144,793, in all market segments. The junior market accounted for 912,528 shares valued at $4,482,547 of the total level traded.
Investors pushed the price of 13 stocks in the overall market up, 13 down, including 4 stocks rising and 6 declining, from the junior market as two stocks in the main market hit new highs.
The JSE Market Index moved down by 1,629.32 points to end at 152,050.95. The all Jamaica Composite Index declined by 1,822.18 points to close at 168,891.44 and the JSE combined index dropped 1,945.68 points, to close at 162,532.10.
JSE Sum-24-5-16r IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator reading showed 17 stocks with bids higher than their last selling prices and 4 with lower offers.
At the end of market activities, Cable & Wireless closed at $1.28 after trading 14,655 units, Caribbean Cement traded 100,000 shares and fell $2 and close at $24, Carreras gained 69 cents with 69,370 units trading to close at $65.20. The price of 1834 Investments gained 2 cents to close at $1.01 with 89,139 units, Grace Kennedy traded 12,167 units to gain $1 and closed at $91. Jamaica Broilers closed with a rise of 39 cents to $14.60 while trading 2,600 shares, Jamaica Producers traded 98,860 shares at $34.99, after a loss of 1 cent, JMMB Group traded 156,747 shares but declined 43 cents to close at $9.50, Kingston Properties closed with a rise of $3.30, to a 52 weeks’ high of $9.80, after trading 3,000 units. JSE mn fn qts 24-5-16Margaritaville Turks traded 49,500 to end at 20 US cents, National Commercial Bank traded 82,360 shares, to close with a rise of 45 cents at $40.25. Pan Jamaican Investment fell back $1.70 to close trading at $121 but with 14,738 shares changing hands, Radio Jamaica rose 2 cents in trading 12,525 shares at $1.32, Sagicor Group ended with 963,187 shares changing hands, to end at $22.30. Sagicor Real Estate Fund traded 9,981 shares but ended with a loss of 15 cents at $10, Scotia Group closed at $30 while 249,275 units changed hands, Supreme Ventures closed at $5.24 with 19,300 shares changing hands, after gaining 24 cents and JMMB Group 7.5% preference share traded with 20,000 shares at $1.04 with a loss of 1 cent.

Juniors slip slightly on Monday

JSE sign The junior market edged lower at the close on Monday, with 632,321 shares valued at $2,290,950 changing hands. The market index lost 4 points to end at 2,180.43 as a total of 15 securities traded, with 5 advancing and 6 declining. The junior market ended with bids for 5 stocks closing higher than their last selling prices and 3 ending with a lower offer.
At the end of trading, CAC 2000 closed while trading 800 shares to end at $6.40, Caribbean Cream lost 1 cent with 25,000 shares changing hands at $4.94, Caribbean Producers traded 100,000 shares with a gain of 10 cents to end at $4, Consolidated Bakeries gained 15 cent to close at $1.60 with 127,159 shares changing hands. Dolphin Cove rose 20 cents while trading 1,515 units to close at $12.75, Honey Bun closed with a loss of 5 cents to $21.95, with 7,962 shares trading. Iron Rock Insurance traded 180,416 shares at $3.40, JM Trdng Sht-16-5-16Jamaican Teas traded 59,474 shares to end at $3.55, Jetcon Corporation traded 26,000 units to close with a loss of 10 cents at $2.90, KLE Group rose 20 cents in trading 20,000 shares and closed at $1.60. Knutsford Express closed with 1,570 shares trading at $18, Lasco Distributors closed with 22,730 units trading with the price declining 14 cents to close at $7.51, Lasco Financial closed at $3.49 with 49,843 shares changing hands for a fall of 1 cent. Lasco Manufacturing closed at $4.68 with 7,852 shares trading, but fell by 8 cents and Paramount Trading closed with a rise of 55 cents as 2,000 units changed hands at $11.05.

Pan Jam & Grace at new highs – Monday

Grace Kennedy and Pan Jamaican Investment traded at new 52 weeks’ high in the early morning session on the Jamaica Stock Exchange, with Grace hitting $90 following impressive first quarter resultsICI int sht 16-05-16 and Pan Jamaican traded as high as $130 but traded later at $125 in continued reaction to the company’s announced 5 fro 1 stock split, on a morning session of moderate trading.
The gains in the two stocks helped to push the main market indices up sharply by more than 1 percent.
After 75 minutes of trading in the early morning session, on Monday, the all Jamaica Composite Index rose 2,035.21 points to 170,597.52, the JSE Market Index gained 1,819.80 points to 153,586.45, the JSE combined index was up 1,726.04 points to 164,912.85 and the junior market index gained just 3.70 points to 2,188.13.
Stocks traded more than 100,000 units are, Caribbean Producers with 100,000 at $4 and Ciboney with 100,000 units. Trading resulted in activity in 23 securities, accounting for 490,595 shares changing hands as 10 stocks gained and 4 declined. The average number of shares traded is 21,330 units.

Market up on moderate trades – Tuesday

Trading on the Jamaican Stock Exchange resulted small gains in the early morning session on Tuesday as trading remained slow with very low volumes as investors return from the long break for Easter holiday week end.
After 75 minutes of the market’s opening, the trade of note was a rise of 33 cents in the price of newly listed Jetcon Corporation to $2.58 with 16,649 shares changing hands while Blue Power shed $2.05 to $11.50, Caribbean Cream recovered 75 cents with only 5,000 shares trading to end at $4.25. JSE intra 29-03-16Consolidated Bakeries is under pressure having traded down to $1.12 from $1.30 while trading 5,000 shares, there is an offer of 848,909 units on offer at $1.30 with the bid at $1.11 to buy 20,000 units. There are only six bids in the market for the stock for 290,000 units down to 85 cents while there are 27 offers to sell. Caribbean Cement gained 90 cents to $23.90 but only 13,695 shares changed hands with the bid still at $22.
Only 23 securities accounting for a mere 189,075 shares changed hands as 11 stocks gained and 6 declined.
The indices enjoyed moderate gains with the all Jamaica Composite Index rising 496.32 points to 169,413.55, the JSE Market Index gaining 444.12 points to 152,526.77 the JSE combined index ending with a 739.11 points rise to 161,133.21 but the junior market index rose 35.09 points to 1,916.62.

Junior stocks soften – Wednesday

JM SignAt the end of trading on Wednesday, the junior market index ended with a loss of 24.89 points to close at 1,905.84. The market ended with 14 active securities, 5 of which declined and 3 advanced as mere 157,151 units changed hands, valued at only $774,391.
At the close, 1 security ended with no bid and 6 securities had no stocks being offered for sale. There were only 2 stocks closing with bids that were higher than their last selling prices and 5 ended with lower offers.
In trading, AMG Packaging ended with 4,548 units changing hands to close with a loss of 43 cents at $10.57, Blue Power had 8,000 shares trading but rose 32 cents to end at $11.50. CAC 2000 traded 1,000 shares with a loss of 10 cents to end at $7.40, Caribbean Cream rose 30 cents with 5,000 shares changing hands to end at $4.Producers lost 17 cents in trading 32,327 shares at $4, Caribbean Consolidated Bakeries had 13,019 units trading firm at $1.30, JM sum 23-03-16 Iron Rock Insurance traded 13,000 shares and closed unchanged at $4, Honey Bun traded 2,151 units at $13, Jamaican Teas closed at $4.49 after trading 500 units for the loss of 50 cents. Knutsford Express closed with 312 units changing hands at $22, Lasco Distributors lost 38 cents with 43,440 units trading to end at $5.51, Lasco Financial ended at $3.03 with 8,254 shares changing hands, Lasco Manufacturing ended with 24,600 shares changing hands to close at $3.56 with a rise of 6 cents and Paramount Trading closed with 1,000 shares trading at $11.31.
The junior market will have one more listing when trading starts on Thursday when Jetcon Corporation is listed.

Premium for Jamaican stocks remains – TTSE

TTSE build Grace Kennedy and Scotia Investments (SIJL) continue to trade in Trinidad at a huge premium to the prices in Jamaica on Monday although SIJL slipped at the end of trading. Trading activity ended on the Trinidad & Tobago Stock Exchange on Monday with 352,423 shares valued at $7,434,679 trading, with the market indices falling. The market ended with 10 active securities of which, 2 rose, 3 fell and 5 remained unchanged. One stock ended at 52 weeks’ low at the close.
The Composite Index lost 1.06 points to close at 1,165.96, the All T&T Index dropped 1.72 points to close at 1,890.87 and the Cross Listed Index declined 0.05 points to close at 58.45.
IC bid-offer Indicator| The Investor’s Choice bid-offer indicator has turned negative with 5 stocks with bids higher than the last selling price and 9 with offers that were lower.
Gains| Clico Investments traded 40,000 shares valued at $900,700 to close at $22.51, Republic Financial Holdings closed with a gain of 2 cents to $112.18 with 7,210 shares valued at $808,818 changing hands.
TTSE 07-03-16 Losses| ANSA McAL contributed 85,000 shares with a value of $5,418,750 but lost 23 cents in closing at a 52 weeks’ low of $63.75, Scotia Investments fell 10 cents to close at $1.90 while trading 17,822 shares and Unilever Caribbean fell by $1.81 with 2,114 shares trading to close at $66.
Firm Trades| Grace Kennedy closed with 200 shares changing hands at $5.01, JMMB Group traded 196,232 shares at 60 cents, National Commercial Bank had 200 shares changing hand to close at $2.45, Point Lisas traded 145 shares at $4 and Trinidad Cement traded 3,500 shares to end at $3.75.

Juniors rise again on Friday

Blue fell 95 cents on Friday.

Blue Power fell 95 cents on Friday.

The junior market rose 1.23 percent on Friday with advancing and declining stocks equalling each other, with low volume of stocks traded. The market rose 24.08 points to end at 1,984.03 with 15 securities trading of which 4 declined and 5 advanced. The market ended with 900,074 units changing hands, valued at $3,939,648.
At the close, 1 security ended with no bid and 5 securities had no stocks being offered for sale. There were 7 stocks closing with bids that were higher than their last selling prices and 3 ended with lower offers.
In trading, AMG Packaging closed with 2,784 units changing hands for a loss of 50 cents to close at $12.50, Blue Power ended with 2,406 shares changing hands with a loss of 95 cents at $10.05, C2W Music traded 50,000 units at 45 cents, Caribbean Cream gained 42 cents to close at $4.15 with 27,930 units traded. Carib Flavours had 27,930 units changing hands at $8.60, Caribbean Producers had 10,410 units changing hands to close at $4.85, JM sum 04-03-16Derrimon Trading had 8,250 units changing hands to close with a loss of 48 cents at $4.50, Honey Bun traded just 9,500 shares to close at $16.50 but the price reached an intraday high of $17.55 during trading. Jamaican Teas rose 30 cents, ending with 22,412 units changing hands at $6.80, KLE Group rose by 20 cents to $2.10 with 4,591 units changing hands, Lasco Distributors closed with 284,369 units trading, to end 9 cent higher at $5.60. Lasco Financial rose 5 cents to end at $3.06 with 280,642 shares changing hands, Lasco Manufacturing ended trading with 163,393 shares to close at $4 after falling 10 cents, Medical Disposables traded 1,000 units and closed at $3.50 and tTech traded 26,387 shares to close with a loss of 1 cent at $4.50.