5 new IC TOP 10 BUY RATED

The past week, was fairly quiet for Jamaica Stock Exchange with earnings season for the second quarter just about ended.
In the process, both markets reached new highs before pulling back to close the week below the record highs achieved earlier. The market activity led to a number of changes to the TOP 10 list. Consolidated Bakeries reported disappointing results for the June Quarter from strong growth in revenues and resulted in a downgrade in projected earnings, the stock along with CAC2000 and Caribbean Flavours fell from the Junior Market TOP 10. General Accident reported strong revenues and profit increase for the June quarter and half-year, resulting in earnings upgrade to 80 cents per share for the year and putting it back in the TOP 10 along with Caribbean Cream and Lasco Financial that fell under $5 on Friday.
In the Main Market TOP 10, late bloomer, Sygnus Investments fell in price along with Seprod and return to the main market TOP 10, replacing by Pulse Investments and Palace Amusement.
The three most attractive Junior Market stocks are, Caribbean Producers with projected gains of 240 percent, followed General Accident with projected gains of 171 percent and by Iron Rock with likely gains of 167 percent.
Radio Jamaica with projected gains of 198 percent leads the main market followed by Berger Paints and Carreras with potential gains of 121 percent each.
The main market closed the week with the overall PE of 17 and the Junior Market inched higher to 12.8 current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 8.1 and the main market PE is now 10 3. These levels, point to big upside for TOP 10 stocks over the next 12 months and Junior Market stocks in particular as they lag, the values of the main market by a third.
The TOP 10 stocks now trade at an average discount of 37 percent to the average for the Junior Market Top stocks and 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. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked 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 as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have an interest in the securities commented on.