Hey Guys! It’s Fridaaaaaaaaaaaaaaaay! Let’s get straight into the biz!
APO CRAZE AND THE DEMAND
We had an APO crazy fun filled week… Both Proven Investments (JSE: PIL) and Derrimon Trading (JSE: DTL) closed successfully and were oversubscribed. Some further similarities, both deals closed on the same day, January 26, 2020, and both were oversubscribed and upsized!
Now, not all APOs will be winners’ folks… As we mentioned in a previously carried newsletter, it is clear, there is a ton of liquidity on the side lines, but the liquidity isn’t just going to look for something with the acronym APO beside its name. These two (2) deals show that the track record, the team, the governance, the absolute net profit, and net profit growth are what the liquidity is hunting in Jamaica.
You may still here from a few analysts’ or even in a few research websites that Company “ABC” that Earnings were just down 50% (still reported a profit) or Company “XYZ” that reported a Loss for the Quarter, is considering the buzz acronym, “APO” – folks don’t believe this, it isn’t going to happen. Unless the Company is coming good, do not expect them to get Pension or Institutional monies in 2021 or 2022…
THE COVID DEFERMENT SITUATION
Approximately in the middle of 2020, and towards September 2020, most investors/ most analysts were predicting life would normalize and therefore so would financial markets and travel. As Covid-19 kept pressing on, many analysts, kept deferring their normalization deadline by 2/3 months, every so often until this essentially became boring or just downright crazy. As if the revenues were not normalizing after 3/6/9 months, and the fixed costs were the same (rent and/or staff expenses), then some may say, you are still doing the same crazy thing. Reason being, Covid-19 is still here, and in some Countries increasing (especially major trading partners of Jamaica), new strains, etc.
If we use Carnival Corp as a prime example, the dates have not only been continuously pushed out by 2/3 months every few months on their Instagram Page, and are now signaling around April 2021 or so, subject to change. Mentally, a 2/3 month deferment does not seem bad, but for Jamaica Covid, March 2021 is approx. the 1-year Anniversary, and it may very well become exhausting for many.
TREATING YOUR PORTFOLIO LIKE COVID IS HERE TO STAY
We recently published out Top 5 JMD$ JSE stocks for 2021 and got these out of the box early in 2021. A few similarities to our first list published early November 2020, but some differences as mentioned.
The heavy message we want to get across, similar to what we are all seeing in the U.S. Markets is:
(1) No longer pick up those stocks by saying “Covid Resistant”,
(2) Start thinking that Covid is here to stay. So, get your Portfolio on Board with this reality and position yourself accordingly.
Let us even more closely examine the JSE and get even more “absolute and opportunistic” for this Friday, as we close the week out strong. What is really, really doing well right now… and what is really, really going to do well over the next few quarter and potentially even past that…
- We have had Mailpac (JSE: MAILPAC) in November 2020 and our 2021 list and Yup, they are the digital, the Amazon of Jamaica. We do not even think the word “courier” anymore should be used with them…
- Limners and Bards (JSE: LAB) continues to excel and breakout… So, we may have to pivot more, as the Lab represents this under this theme…
- Caribbean Cream (JSE: KREMI), despite Schools being out and Tourism shutting down, beat the Street…
So, we really, really refining in on what is showing innovation, research & development, and what feels like a U.S. digital/ tech/ companies moving with the times, etc.
Two (2) of these would be new, to ItsMoneyMark JMD$ Portfolio but it is time to be very Absolute in the Markets and Decisive folks.
MoneyMark Specials Coming:
- In February 2021, we are going to be launching our Preliminary Website and it will have newsletter subscription directly on the site! ItsMoneyMark Web will also be allocating some time and space to:
- We are going to be tracking our “Mock Portfolio” – JMD$ for the JSE
- We will be adding a “New Dimension” – USD$ Mock Portfolio as well
- Currently, we have launched the SUPER 6 and the SIGNIFICANT 5
- We will be tracking these Mock portfolios into 2021 on our Website as we get going and may break them up for each Theme to represent a Portfolio as indicated above
We are looking forward to 2021 with you!
Happy investing and Happy markets.
Enjoy the It’s Money Experience.
Until Next Week!
ItsMoneyMark Weekly Newsletter
These opinions and thoughts are solely of ItsMoneyMark and does not constitute investment advice.
Ensure to always speak to a Licensed Financial Advisor.
Thank you for reading!
ITSMONEYMARK 