weekly stock picks - vmbs

VMWM Research Department, October 13, 2014
WEEKLY STOCK PICKS
Disclaimer: The following stock picks are for information purposes only. The information stated herein may reflect the opinion and views of VM Wealth
Management in relation to market conditions and does not constitute any representation or warranties in relation to investment returns and the credibility of
the sources of information relied upon in the preparation of this report, without further research and verification. Before making any investment decision,
please consult a VM Wealth Management Advisor.
STOCK
STOCK DATA
4 WEEK PRICE MOVEMENT ($)
LAST TRADED PRICE: J$17.65
NCBJ
National
Commercial Bank
Jamaica
YTD CHANGE: 7.75%
P/E RATIO: 4.13x
NCBJ
18.5
18
17.5
17
P/B RATIO: 0.56x
LAST TRADED PRICE:
J$8.00
YTD CHANGE: -4.99%
DCOVE
Dolphin Cove Ltd
P/E RATIO: 8.88x
DCOVE
9
8.5
8
7.5
PJAM
Pan-Jamaican
Investment Trust
Ltd
RECOMMENDATION: BUY
RATIONALE: PJAM reported a 50% increase in
profits for the 6 months ended June 30, 2014
and a 29% increase in profits for the 3 months
ended June 30, 2014. Given PJAM’s business
model and its associated companies, we have a
positive outlook.
48
P/E RATIO: 3.63x
P/B RATIO: 0.56x
YTD CHANGE: -0.79%
SGJ
Scotia Group
Jamaica
SGJ
21
20
19
18
P/E RATIO: 5.95x
P/B RATIO: 0.86x
LAST TRADED PRICE: J$0.95
LASF
YTD CHANGE: -25.78%
LASF
Lasco Financial
Services Ltd
P/E RATIO: 1.67x
RECOMMENDATION: BUY
PJAM
50
YTD CHANGE: -7.53%
LAST TRADED PRICE:
J$19.99
RECOMMENDATION: BUY
RATIONALE: NCBJ reported a net profit increase
of 26% to $2.92B for the 3 months ended June
30, 2014. The sale of KW shares by NCBJ has
generated over $3B in new capital that can be
used to acquire businesses more in line with
NCBJ's long-term view.
RATIONALE: The majority of DCOVE’s income is
in US currency, which provides a good currency
hedge for local investors. The improving global
economy should also provide tailwinds.
DCOVE's ongoing expansion plans should
continue to result in significant revenue and
profit growth.
P/B RATIO: 2.18x
LAST TRADED PRICE:
J$49.01
RECOMMENDATION & RATIONALE
1.1
1
0.9
0.8
RECOMMENDATION: BUY
RATIONALE: For the 9M ended July 31, 2014,
SGJ recorded a decline of 10.6% in profits to
$4.9B. The decline was due to an increase in
expenses in the quarter, while revenue
remained relatively flat. Given an improving
economy, low valuation and stable dividend
payments, we have a favorable outlook for SGJ.
RECOMMENDATION: BUY
st
RATIONALE: In its 1 quarter ended June 30,
2014 it reported a 23% increase in revenue and
a 20% increase in profits. LASF has expressed
plans to enter the mobile money market and is
upgrading its systems to combat lottery
scammers and allow for improved processing of
loans.
P/B RATIO: 1.67x
Page 1 of 2
52 Week
Range ($)
Last
Week's
Close
Price
P/E Ratio
Book
Value/Share
(X)
Dividend
Yield for
Yr 2014
Dividend
Yield for
Yr 2013
YTD ROE Recom m endation
MAIN INDEX
Barita Investm ents Ltd
2.00 - 2.60
2.18
5.89
3.09
1.38%
4.40%
14.98% HOLD
Berger Paints
1.60 - 2.26
1.66
3.19
2.00
4.82%
7.43%
12.81% HOLD
Caribbean Cem ent Com pany Ltd
1.87 - 5.25
2.40
10.43
-0.45
0.00%
0.00%
33.00 - 48.99
34.60
4.20
8.64
17.02%
18.94%
0.00% HOLD
95.36% BUY
Desnoes & Geddes
4.00 - 5.50
4.77
4.25
3.21
5.24%
6.86%
Gleaner
1.05 - 1.21
1.06
11.21
2.13
3.77%
6.36%
GraceKennedy
53.50 - 63.00
59.09
5.61
103.40
1.18%
3.96%
10.01% BUY
Hardw are & Lum ber
Jam aica Broilers Group
4.20 - 11.80
3.90 - 5.10
6.50
4.00
0.82
5.15
15.05
8.88
4.62%
2.00%
2.13%
3.09%
13.50% BUY
0.00% BUY
12.28% BUY
Carreras
Jam aica Money Market Brokers
37.79% BUY
3.28% HOLD
6.50 - 8.50
6.99
4.31
11.88
2.43%
3.47%
15.08 - 19.80
15.50
14.42
31.04
1.29%
1.05%
2.38% BUY
Jam aica Stock Exchange
1.75 - 3.00
1.88
NA
3.98
0.00%
0.00%
Kingston Properties
3.50 - 4.50
3.85
4.70
12.20
0.00%
0.00%
-1.21% SELL
0.11% HOLD
Kingston Wharves
4.90 - 6.90
5.00
8.17
9.16
2.00%
2.97%
5.50% BUY
LIME
0.14 - 0.70
0.29
-1.39
-2.71
0.00%
0.00%
0.00% SELL
Jam aica Producers
Mayberry Investm ents Ltd
1.45 - 2.70
1.50
5.17
3.05
8.00%
0.00%
12.13% BUY
Montego Bay Ice Co
17.95 - 17.95
17.95
35.20
19.12
0.00%
0.00%
National Com m ercial Bank
16.00 - 19.50
17.93
4.20
31.75
5.69%
3.85%
2.26% SELL
15.56% BUY
Palace Am usem ent Co (1921) Ltd
90.00 - 95.00
90.00
-10.70
196.27
1.94%
1.84%
-3.34% SELL
Pan-Jam aican Investm ent Trust
48.00 - 54.00
49.00
3.63
87.42
2.45%
3.87%
9.68% BUY
Pulse Investm ents
0.30 - 0.99
0.35
-7.00
4.76
0.00%
0.00%
15.07% SELL
Radio Jam aica Ltd
Sagicor Group Jam aica Lim ted
Sagicor Real Estate X Fund
Salada Foods
1.00 - 1.90
8.05 - 10.60
5.07 - 7.20
7.00 - 10.00
1.04
9.64
6.60
7.90
6.12
5.36
11.28
18.81
3.37
9.79
5.90
6.87
0.00%
3.63%
0.00%
0.00%
0.00%
0.00%
0.00%
9.88%
4.94%
12.25%
9.52%
9.05%
Scotia Group Jam aica
17.00 - 22.84
19.02
5.66
23.21
6.31%
7.94%
Scotia Investm ents Jam aica Ltd
20.00 - 28.50
21.80
4.86
31.72
6.19%
7.15%
14.33% BUY
13.79% BUY
Seprod
10.00 - 14.50
10.90
4.82
19.39
5.05%
7.90%
1.75 - 2.80
1.81
9.00
1.48
4.97%
7.55%
14.32% BUY
37.87% HOLD
15.60 - 17.61
17.61
-56.08
29.18
0.00%
0.00%
8.05% HOLD
Suprem e Ventures Ltd
Trinidad Cem ent Ltd
HOLD
BUY
HOLD
SELL
JUNIOR INDEX
Access Financial Services
8.00 - 13.50
10.50
9.72
2.74
3.52%
8.00%
42.90% HOLD
AMG Packaging & Paper Com pany Ltd
2.40 - 4.00
2.50
5.68
3.00
8.00%
0.00%
Blue Pow er Group
9.00 - 10.00
9.05
6.65
8.12
1.66%
1.50%
17.96% HOLD
24.02% BUY
-339.26% SELL
C2W
0.29 - 0.97
0.40
6.75
0.00
0.00%
0.00%
13.00 - 15.00
14.10
4.81
4.83
12.77%
12.44%
Caribbean Cream Ltd
0.61 - 1.05
0.70
10.00
0.65
0.00%
0.00%
45.01% HOLD
Caribbean Flavours & Fragrances Ltd
2.35 - 2.88
2.80
4.67
1.98
0.00%
0.00%
Caribbean Producers Jam aica
1.92 - 3.10
2.60
7.18
1.35
1.15%
1.85%
28.36% HOLD
15.01% BUY
Consolidated Bakeries (Ja) Ltd
0.70 - 1.39
0.81
6.75
2.30
0.00%
0.00%
Dolphin Cove
7.50 - 9.00
8.00
8.88
3.67
3.75%
4.75%
45.69% BUY
380.00
1.58
2.12
4.78
4.65
5.17
415.87
2.58
3.47
4.74%
5.06%
2.36%
0.00%
8.59%
4.70%
Cargo Handlers Ltd
Eppley Lim ited
General Accident Insurance Com pany
Honey Bun (1982) Ltd
65.68% BUY
5.81% HOLD
Jam aican Teas
3.02 - 4.20
3.30
6.45
5.04
0.00%
1.25%
21.26% HOLD
23.29% BUY
17.50% HOLD
11.50% HOLD
Knutsford Express Services Ltd
5.00 - 5.17
5.00
10.00
1.59
0.00%
0.00%
30.92% BUY
Sw eet River Abattoir and Supplies Lim ited
3.90 - 3.86
3.90
20.03
0.80
0.00%
0.00%
24.24% BUY
K.L.E. Group Ltd
0.90 - 1.61
1.00
-1.79
0.42
0.00%
0.00%
-84.72% SELL
Lasco Distributors
0.96 - 1.50
0.96
5.65
0.71
0.00%
1.54%
Lasco Financial
0.90 - 1.45
1.00
6.80
0.57
3.00%
2.34%
27.42% HOLD
28.06% BUY
Lasco Manufacturing
0.80 - 1.59
0.97
7.64
0.65
0.00%
0.00%
21.77% BUY
Param ount Trading Ltd
2.50 - 3.65
2.52
5.60
1.96
0.00%
3.94%
15.01% HOLD
Derrrim on Trading Co. Ltd
2.05 - 2.58
2.15
15.00
1.90
0.00%
0.00%
1.68% HOLD
Proven Investm ents
0.12 - 0.19
0.18
11.04
0.15
5.56%
7.69%
22.97% BUY
Margaritaville (Turks) Ltd
0.11 - 0.12
0.11
10.02
0.05
0.00%
0.00%
26.26% BUY
377.00 - 380.00
1.28 - 1.99
2.30 - 3.41
US INDEX
Page 2 of 2

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