4 new entrants in IC Top 10

Seprod shares now trades at $32 each.

There are three changes to the TOP 10 main market list and one Junior Market stock. Increased prices during the week, pushed out Access Financial, Salada Foods, Stanley Motta and Scotia Group.
Medical Disposables returns to the TOP 10 Junior Market list with the price at $6.20, down from $7.50 the previous week, as it pushed out Access that rose to $52 during last week. Berger Paints and Seprod moved up modestly in price but that was not sufficient to prevent them from returning to the TOP, with other stocks rising in price during the week. Palace Amusement also returned to the TOP 10 main market list.
For the nine months to September, Seprod generated $15.50 billion in revenues, an increase of $3.36 billion or 28 percent over the similar period in 2017. Net profit for the period was $970 million, an increase of $387 million or 66 percent over 2017. Earnings per share came out at $2.03 with the third quarter rising to 85 cents from 38 cents in 2017. For the full year earnings could hit $3 per share. That should put the stock back in the $40 range before too long.
Berger Paints profit for the nine months to September was below expectations, with $9 million profit in the third quarter versus $54 million in 2017 and $43 million for the nine months to September, down sharply from $143 million in 2017. The company now enters the busiest period of the year when the bulk of income and profits are made. Last year company was closed for sales for several days for stock taking in December, resulting in lost sales and profit. The company should not suffer the same fate this year as the new owners would be aware of the problem and work at preventing same. That should result in better sales and profit than in the 2017 final quarter. In the final quarter of 2016 pretax profit was $233 million compared to just $67 million for the similar period in 2017, when the disruptions occurred.
The main market closed the week with the overall PE remains at 15.3, the PE of the Junior market is at 15.5.
The PE ratio for Junior Market Top 10 stocks average 9 and the main market PE is now 9.3.
The TOP 10 stocks now trade at an average discount of 42 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings. The main market stocks trade at a discount of 39 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis based on new information received that can result in changes in and out of the list as well.

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