In this weeks Vantage Point, we look at some of our recent recommendations to see if they are still valid, as well as make some long term recommendations.

We recommended Jamaica Broilers a couple of weeks ago, but believe at its 52 week high of $4.80it is in danger of becoming overbought, and we would not buy it here, but on a pullback closer to $4.

We liked Seprod as a way to play our strong preference for companies in the real as opposed to the financial sector, and despite its disappointing earnings of 25 cents this quarter, the stock is up at $17.01since we recommended it. However, while we still like Seprod for the longer term on the basis of its improved manufacturing and highly improved earnings from distribution for this nine months over the comparable nine months last year, we would currently rate it a hold waiting for greater clarity on its future earnings.

Congratulations for those who sold Carreras at its recent 52 high. It can be bought back as an income play when it gets a little cheaper than the current $47.

Experiencing Resistance

Jamaica Producers shares appear to be experiencing resistance at their recent $46 high, due to their high PE ratio, and even though I believe that long term the value is there, we were cautious at its $42 price, and thought a lower entry point below $40 was desirable. The stock closed at $37 Friday.

I would argue that on a value basis they are better buys than Life of Jamaica, which currently appears a little expensive at $8 per share.

At their current prices of $34.50 and $45.50, respectively, First Jamaica and Pan Jamaican are both excellent value and real estate plays.

In addition, one is getting Jamaica's best quoted commercial real estate portfolio, and cash and other investments, including a large stake in Hardware and Lumber which should turn around next year. Life of Jamaica's key subsidiary Pan Caribbean at $22.75 looks a better buy than its parent Life of Jamaica, and longer term is likely to do better than most of its money market competitors as a result of its regional prospects, strong capital base and more diversified businesses.

Both Desnoes and Geddes/Red Stripe and Lascelles are good real sector plays, with continuing strong export potential.

While Lascelles is arguably that rare breed of being both a value and growth stock, at $260 it can no longer be described as cheap on an earnings basis as full year earning per share of $26.62 include a significantly increased pension credit of $618.2 million.

Desnoes and Geddes/Red Stripe ($8.50) has an excellent dividend yield and the quality of its earnings has even improved. But, as we feared, the tax charge has negatively impacted its earnings per share for the quarter despite an apparently improving fundamental business.

The commercial banking sector is attractive due to increased loan growth and still very attractive spreads.

FirstCaribbean and Bank of Nova Scotia (BNS) are both definitely undervalued, but super cheap FirstCaribbean has the drawback of low liquidity as it is a hard to find stock. BNS deserves to be higher than its current price of $25. It should at least be $26 per share, particularly if its deal to purchase Dehring Bunting and Golding closes as expected. NCB is attractive below $20 as one of the few stocks posting good earnings right through the market downturn.

Investors should also begin looking closely at Trinidad shares, which have also been going through a downtrend because of rising interest rates rising and pension fund restrictions on purchases of equities.

A stock such as Trinidad Cement Limited at $65.27looks undervalued on the basis of expected earnings prospects, and is lower risk than its local subsidiary Caribbean Cement Limited ($8.07).

RBTT at $280also deserves another look, whilst poorly performing Guardian at $205is likely to benefit substantially from any upturn in regional stock markets, particularly Trinidad, when it comes, due to its large stock market holdings.

keithcollister@cwjamaica.com