WEEKLY STOCK PICKS - VM Wealth Management

VMWM Research Department, December 1, 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
LAST TRADED PRICE:
J$36.82
YTD CHANGE: 1.97%
CAR
Carreras Ltd
P/E RATIO: 6.16x
4 WEEK PRICE MOVEMENT ($)
CAR
38
36
34
32
NCBJ
National
Commercial Bank
of Jamaica Ltd
YTD CHANGE: 9.89%
RECOMMENDATION: BUY
20
NCBJ
18
P/E RATIO: 3.81x
16
P/B RATIO: 0.55x
LAST TRADED PRICE: J$50.74
PJAM
Pan-Jamaican
Investment Trust
Ltd
YTD CHANGE: -4.26%
P/E RATIO: 4.05x
RECOMMENDATION: BUY
RATIONALE: PJAM reported an 11.5% increase
in profits for the nine months ended September
30, 2014, although profits fell for the 3 months
ended September 30, 2014 to $404M, a 35%
decline. However, PJAM continues to perform
well in the current economic environment.
Given its business model and associated
companies, we have a positive outlook.
JBG
RECOMMENDATION: BUY
RATIONALE. The price of corn has declined to 5year lows and, given the global economic
outlook, we expect that this relatively low corn
price will continue. JBG is more resistant to a
tougher economic climate as demand for its
products is more inelastic. We see JBG
continuing to expand.
SGJ
RECOMMENDATION: BUY
51
50
49
48
LAST TRADED PRICE: J$4.05
YTD CHANGE: -10.60%
P/E RATIO: 5.22x
4.4
4.2
4
3.8
P/B RATIO: 0.46x
LAST TRADED PRICE:
J$19.73
YTD CHANGE: -2.08%
SGJ
Scotia Group
Jamaica
P/E RATIO: 6.28x
P/B RATIO: 0.81x
21
20
19
18
RATIONALE: NCBJ reported a net profit increase
of 36% to $11.6B for the year ended Sep 30,
2014, which should give investors comfort that
the recent IDT ruling didn’t materially adversely
affect results. Still, the P/E multiple is among
the lowest in the market. The Board of Directors
has declared a dividend of $0.96 per share with
an Ex-Dividend date of Dec 9, 2014.
PJAM
P/B RATIO: 0.55x
JBG
Jamaica Broilers
Ltd
RECOMMENDATION: BUY
RATIONALE: Revenue and Profits grew 18% and
nd
26% respectively for the 2 quarter ended Sep
30, 2014, showing a rebound in profitability,
which we expect to continue. CAR’s Board has
declared an interim dividend of $1.20 & a
further cash distribution of $1.00 per share
payable on December 11, 2014 & December 18,
2014 respectively.
P/B RATIO: 5.66x
LAST TRADED PRICE:
J$18.00
RECOMMENDATION & RATIONALE
RATIONALE: For the year ended October 31,
2014, SGJ recorded a 7.11% decline in profits to
$10.1B. The decline was due to lower Net Gains
on Foreign Currency Activities of approx $800M
and an increase in operating expenses.
However, given an improving economy, low
valuation and stable dividend payments, we
have a favorable outlook for SGJ.
Page 1 of 2
52 Week
Range ($)
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 Investments Ltd
2.00 - 2.60
2.18
5.89
3.09
1.38%
4.40%
Berger Paints
1.60 - 1.86
1.60
2.96
1.96
5.00%
7.43%
3.86% HOLD
Caribbean Cem ent Company Ltd
2.00 - 5.25
2.47
20.58
-0.35
0.00%
0.00%
0.00% HOLD
33.00 - 39.00
36.82
6.16
6.50
16.00%
18.94%
4.00 - 5.50
4.69
4.04
3.38
5.33%
6.86%
Carreras
Desnoes & Geddes
Gleaner
14.98% HOLD
67.78% BUY
22.18% BUY
3.01% HOLD
1.00 - 1.20
1.00
9.59
2.14
8.00%
6.36%
GraceKennedy
53.50 - 63.00
61.88
5.67
105.36
2.39%
3.96%
10.70% BUY
Hardw are & Lum ber
Jamaica Broilers Group
4.20 - 11.80
3.51 - 5.10
6.50
4.05
0.83
5.22
15.93
8.88
4.62%
1.98%
2.13%
3.09%
12.22% BUY
0.00% BUY
Jamaica Money Market Brokers
6.50 - 8.10
7.10
4.47
12.80
2.39%
3.47%
15.08 - 19.80
16.00
9.93
33.08
1.25%
1.05%
12.33% BUY
4.42% HOLD
Jamaica Stock Exchange
1.55 - 2.50
1.55
NA
3.98
0.00%
0.00%
-1.21% SELL
Kingston Properties
3.50 - 4.50
4.00
4.88
12.20
0.00%
0.00%
0.11% HOLD
Kingston Wharves
4.90 - 6.50
6.00
9.49
9.19
1.67%
2.97%
LIME
0.14 - 0.70
0.43
-1.75
-2.86
0.00%
0.00%
5.48% BUY
0.00% BUY
Jamaica Producers
Mayberry Investm ents Ltd
1.36 - 2.01
1.48
5.10
3.05
8.11%
0.00%
12.13% BUY
Montego Bay Ice Co
17.95 - 17.95
17.95
35.20
19.12
0.00%
0.00%
National Comm ercial Bank
16.00 - 19.50
18.00
3.81
32.68
5.67%
3.85%
2.26% SELL
14.44% BUY
Palace Am usem ent Co (1921) Ltd
77.00 - 95.00
66.00
-8.20
192.57
2.65%
1.84%
Pan-Jam aican Investment Trust
48.00 - 54.00
50.74
4.05
91.55
3.74%
3.87%
10.45% BUY
Pulse Investments
0.30 - 0.99
0.35
-7.00
5.51
0.00%
0.00%
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
5.20 - 7.20
7.00 - 10.00
1.18
9.99
6.83
7.50
5.90
5.95
11.24
7.43
3.44
10.75
6.09
7.07
4.24%
6.31%
0.00%
0.00%
0.00%
0.00%
0.00%
9.88%
12.81% SELL
4.02% HOLD
3.61% BUY
10.37% HOLD
14.93% HOLD
Scotia Group Jam aica
17.06 - 22.00
19.73
6.28
24.21
8.11%
7.94%
12.96% BUY
Scotia Investments Jamaica Ltd
20.00 - 27.99
22.50
5.33
32.23
8.00%
7.15%
13.12% BUY
Seprod
10.00 - 13.50
12.00
5.91
19.39
7.50%
7.90%
11.82% BUY
1.60 - 2.78
1.83
7.12
1.47
4.92%
7.55%
Trinidad Cement Ltd
15.60 - 17.61
17.61
-56.08
29.18
0.00%
0.00%
23.15% BUY
8.05% HOLD
Access Financial Services
8.00 - 13.50
10.01
8.86
2.71
3.70%
8.00%
47.22% HOLD
AMG Packaging & Paper Company Ltd
2.15 - 3.60
2.15
4.78
3.09
9.30%
0.00%
Blue Pow er Group
6.80 - 10.00
6.05
4.62
8.37
2.48%
1.50%
15.02% HOLD
22.82% BUY
84.96% SELL
Supreme Ventures Ltd
4.56% SELL
JUNIOR INDEX
C2W
0.29 - 0.93
0.40
9.11
0.02
0.00%
0.00%
13.00 - 15.00
14.57
4.15
4.80
12.35%
12.44%
Caribbean Cream Ltd
0.61 - 1.02
0.71
14.20
0.65
0.00%
0.00%
Caribbean Flavours & Fragrances Ltd
2.35 - 2.85
2.35
3.92
1.98
0.00%
0.00%
24.24% HOLD
28.36% HOLD
Caribbean Producers Jam aica
1.95 - 3.10
2.20
6.08
1.35
1.36%
1.85%
15.01% BUY
Consolidated Bakeries (Ja) Ltd
0.70 - 1.39
0.82
9.11
2.34
0.00%
0.00%
Dolphin Cove
7.50 - 9.00
8.80
9.35
5.37
5.11%
4.75%
4.53% HOLD
32.45% BUY
380.00
1.51
2.12
4.81
4.31
5.17
425.95
2.71
3.47
4.74%
5.30%
2.36%
0.00%
8.59%
4.70%
Cargo Handlers Ltd
Eppley Limited
General Accident Insurance Company
Honey Bun (1982) Ltd
65.83% BUY
Jamaican Teas
3.02 - 4.00
2.85
5.57
5.04
0.00%
1.25%
16.03% HOLD
20.95% BUY
17.50% HOLD
11.50% HOLD
Knutsford Express Services Ltd
5.00 - 5.85
5.85
10.09
1.77
0.00%
0.00%
40.57% BUY
Sw eet River Abattoir and Supplies Limited
3.86 - 3.90
3.86
19.82
0.80
0.00%
0.00%
24.24% N/A
K.L.E. Group Ltd
0.90 - 1.10
1.00
-1.79
0.34
0.00%
0.00%
Lasco Distributors
0.96 - 1.50
1.50
11.19
0.77
0.00%
1.54%
-79.87% SELL
18.06% BUY
Lasco Financial
0.85 - 1.45
0.96
6.04
0.59
3.13%
2.34%
32.50% BUY
Lasco Manufacturing
0.80 - 1.55
1.02
8.03
0.68
0.00%
0.00%
20.17% BUY
Paramount Trading Ltd
2.50 - 3.65
2.60
3.66
2.46
0.00%
3.94%
Derrrim on Trading Co. Ltd
2.05 - 2.58
2.15
22.24
1.86
0.00%
0.00%
15.01% BUY
4.88% HOLD
Proven Investm ents
0.12 - 0.19
0.18
11.11
0.15
5.56%
7.69%
Margaritaville (Turks) Ltd
0.10 - 0.12
0.10
7.96
0.06
0.00%
0.00%
380.00 - 380.00
1.28 - 1.89
2.12 - 3.41
US INDEX
18.31% BUY
25.67% BUY
Page 2 of 2

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