In 2022, our team of experts handpicked 10 top stocks to help you grow your portfolio. If you missed out on last year’s picks, don’t worry. There’s still time to make your dreams come true in 2023.
Take advantage of our 2023 picks and start creating a winning portfolio. Check out our top stock picks and the analysis behind them.
If you missed out on last year’s picks, don’t worry. There’s still time to make your dreams come true in 2022. Take advantage of our 2022 picks and start creating a winning portfolio. Check out our top stock picks and the analysis behind them.
Your Wins are our Wins. Let’s get you Growing.
| Top 10 Stock Picks for 2023 | ||||
| Company Name | Ticker | Price December 31, 2022 | Price Targets | Capital Appreciation (Possible Cap App. – If using price Targets |
| Jamaica Producers Group | JP | 21.95 | 35.89 | 63.51% |
| Wigton Windfarm | WIG | 0.71 | 1.13 | 59.15% |
| Tropical Battery Limited | TROPICAL | 2.21 | 3.46 | 56.56% |
| Regency Petroleum Limited | RPL | 1.59 | 2.43 | 52.83% |
| Jamaica Money Market Brokers | JMMB | 32.95 | 49.65 | 50.68% |
| Fontana Limited | FTNA | 8.93 | 13.10 | 46.70% |
| Jamaica Broilers Group | JBG | 31.00 | 43.68 | 40.90% |
| Future Energy Source Company Limited | FESCO | 5.44 | 6.74 | 23.90% |
| TransJamaican Highway | TJH | 1.40 | 1.71 | 22.14% |
| FosRich Limited | FOSRICH | 3.91 | 4.23 | 8.18% |
| Projected Portfolio Yield | 42.46% | |||
Top 10 Stock Picks Rationale
1. Tropical Battery (TROPICAL)
- Tropical battery has been experiencing year-over-year revenue growth and has maintained its position as the market leader for battery sales since listing on the stock market.
- Revenue diversification strategies are also underway as evidenced by the formation of three new subsidiaries – Tropical Energy (renewable energy), Tropical Finance (provide financial products to expand access to electric vehicles and renewable energy systems) and Tropical Mobility (electric mobility solutions).
- The company recently implemented a new inventory management system that has improved operational efficiencies and drive targeted sales initiatives.
2. The Jamaica’s Broilers Group (JBG)
- Despite challenges faced globally, the outlook for the poultry industry remains positive owing to its general adoration around the world to meet protein needs. This is supported by improved financial performance at JBG, driven by broader economic recovery within Jamaica and increasing production of its Best Dressed Chicken line of products.
- Positive results from overseas acquisitions in the US and a recovery in Jamaican operations have resulted in overall improved sales, net profit and operating cash flow.
- The company maintains a sound liquidity position and has a low debt balance which affords it the opportunity to execute on any potential acquisition and expansion opportunities.
3. TransJamaican Highway (TJH)
- Highway 2000 continues to be a stable and resilient commuting asset strategically located on the outskirts of Kingston, connecting the capital to other popular urban and industrial centres including Portmore, Spanish Town and May Pen.
- Toll rates are adjusted annually using an escalation formula based on the US inflation and the USD/JMD FX Rate which keeps financial performance stable.
- Growth prospects in the long-term are underpinned by its position as a strategic asset for the country, along with the fact that motorization rates in Jamaica are still low, so there is potential to increase.
- The company also recently acquired the highway’s operator (Jamaican infrastructure Operator Limited), which should help it create a more flexible cost structure that aligns with greater profitability and value for shareholders.
4. FosRich Company Limited (FOSRICH)
- FosRich has performed well year-over-year and has established relationships with suppliers. Its contract with the Jamaican Public Service, along with Phillips Lighting, should provide an additional boost to the company’s revenues over the short to medium term.
- There may be greater growth in revenues as the company is the sole manufacturer of PVC piping in Jamaica, a conduit for electrical wiring, since this financial year.
- A healthy housing economy leads to consumers being willing to spend more on their homes which bodes well for FosRich’s growth and development.
5. Jamaica Money Market Group Limited (JMMBGL)
- JMMBGL is well positioned to grow inorganically through the local and regional expansion of its banking business line driven by the Group’s intentions to seek out new banking operations within the Caribbean.
- With the addition Its 7th service centre, JMMBGL, is expected to enhance client experience and improve the overall group performance.
- JMMB also intends to pursue a share buyback programme that is anticipated to increase shareholder value as the stock becomes less diluted.
6. Wigton Windfarms Limited (WIG)
- Wigton is expected to benefit from the Ministry of Science, Energy and Technology’s Integrated Resource Plan (IRP) to procure up to 500MW of electrical energy by 2025.
- WIG recently received approval for the grant of a twenty (20) year generation license, slated to begin in April 2023; this will enable the continuity of Phase I, which was scheduled to expire in 2024. This means that WIG will continue to generate revenue from Phase I and is likely to place the company in a position to improve on its earnings and cash balance over the long-term.
- The 10% limitation on shareholding should expire in 2024 which would lead to an increase in demand or ownership by pension funds, institutional investors and high network clients as WIG pays stable dividends.
7. Fontana Limited (FTNA)
- FTNA invested US$1 million in the construction of its Portmore Location. This bodes well for the business, as the company will be able to unlock revenue growth opportunities from Portmore’s underserved population.
- FTNA’s year-over-year (18%) is more than what was recorded for the entire retail and wholesale sector over the last four quarters. The revenue growth was achieved even without the business opening its planned new location in Portmore.
- The business intends to expand its warehousing and distribution capacity utilizing some of the proceeds from its $500 million private placement raise.
8. Jamaica Producers (JP)
- JP intends to execute its initiatives geared towards increasing efficiency, particularly in the logistics side of the business.
- JP is well positioned to execute on potential acquisitions and other growth opportunities as it is well capitalized and has a strong liquidity position.
- JP recently disclosed that it intends to give up its operating assets to PJAM, which would include cash and other liquid assets, in exchange for a 34% stake in PJAM. The offer is expected to close within the first quarter of 2023 and will give JP direct exposure to PJAM, along with potential dividends and a Share of Profit.
9. Regency Petroleum Company Limited (RPL)
- The local petroleum sector continues to benefit from the upbeat economic rebound, while anchoring on generally elevated international oil and fuel prices.. Considering this, RPL is anticipated to continue growing its revenue line, as demand for its products remains robust.
- The company purchased a new service station in Paradise Pen in Q2 2022, which is slated to be fully operational by Q1 2023. This new location is anticipated to be a major source of income, as the company is poised to experience economies of scale.
- The company intends to expand its liquefied petroleum gas (LPG) arm of the business outside of Western Jamaica, into Kingston and St Andrew. These income generating factors are anticipated to enhance the company’s financial position by improving the cost-to-income ratio, further reducing debt, and strengthening cash holdings.
10. Future Energy Source Company (FESCO)
- Increased revenue generation from the new service stations along Beechwood Avenue and the Ocho Rios Bypass.
- FESCO will be growing its product offerings to include liquefied petroleum gas (LPG) by mid-year 2023. This move, alongside upgraded and additional service stations, is expected to improve the company’s operating margin.
- FESCO is expected to maintain or even grow its top line, through the provision of inelastic goods, that is automatic fuels. As the demand for car ownership increases (confirmed by data from Q4 2022 consumer confidence), with a slower take up of electric vehicles locally, automotive fuel will be a necessity for more individuals, notwithstanding the direction of price change.
