JMMB hits $9, what’s next?

JMMB hit $9 per share today, and as somebody asked me yesterday, where is it going?! There has been renewed interest in this stock especially since NCBCM’s purchase of 29% of the company last week. JMMB also released good results recently, and their preference shares have been doing well on the exchange.

So how high will it go?

That is the big question. JMMB’s Book value is calculated at $7.54* (as at Friday Aug 5, 2011), so it is a little above the book value, which is only a guide. It also has one of the lowest P/E ratios in the Finance industry of 5.54x* versus the average of about 9x*. This suggests that it has a little way to go.

Performance

As at Monday August 8, 2011,  JMMB has gone up 107.5% Year to Date, meaning it has gone up that amount from the start of the year to now. If you bought it in the last 3 months you would have seen it appreciate 46.64%. Talk about phenomenal! This is a stock that traded as low as $3.40 in the last 52 weeks.

So when do you sell? Is now the right time to buy? Is it going to go up further? Nobody knows, ho high is high. The market is based on expectations. Right now, might be a good time to take your profits, but the downside is that you may miss out on potential gains if you sell too soon.

*Figures based on Barita’s weekly stock market report as at August 5, 2011