Big gains for some IC TOP 10 stocks

During the past week, Grace Kennedy was the top 10 best performer rising 16 percent to 67 percent, followed by Caribbean Producers 12 percent gain to close the week at $2.63, during a period when stocks continue their climb higher to their highest level since early-April on the Jamaican Stock Exchange Main Market in the past week.

Grace Kennedy gained 16% for the week.

The Junior Market continues to fight in continuing to build on the gains in recent weeks, with moves in both markets confirming the bullish signal technical indicators been flashing.
The movement in the markets resulted in Stanley Motta coming into the Main Market IC TOP 10, replacing Jamaica Producers. The Junior Market Top 10 remained without any new movement in and out, but Jamaican Teas started trading ex split on Friday and closed at $2.05, down from last weeks’ adjusted closing price of $2.23.
This week’s focus: 2020 is now drawing to a close and should lead investors to start the focus on 2021 and some companies that could deliver superior returns. Many of the companies that suffered badly from reduced sales could be some that should be on the investors’ list. Access Financial, Caribbean Producers, Express Catering, Elite Diagnostic, Lasco Financial, NCB Financial are some that could enjoy above-average recovery and then there are entities such as Grace Kennedy, Carib Cement, Berger Paints and Lumber Depot that should get added push from continued buoyancy in the construction sector.
The top three stocks in the Junior Market with the potential to gain between 231 to 394 percent by March 2021 are Caribbean Producers, followed by Elite Diagnostic and Limber Depot. With expected gains of 149 to 260 percent, the top three Main Market stocks are, Berger Paints followed by Radio Jamaica and Carreras in the third position.
The local stock market’s targeted average PE ratio is 20based on profits of companies reporting full year’s results, from now to the second quarter in 2021. The Junior and Main markets are currently trading well below the market average, indicating the potential gains ahead. The JSE Main Market ended the week, with an overall PE of 15.5, The Junior Market 13.3, based on ICInsider.com’s projected 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 7.2 at just 54 percent to the average of the Junior Market. The Main Market TOP 10 stocks trade at a PE of 9 or 58 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 201 percent and 132 percent down from140 percent last week for the JSE Main Market, based on 2020-21 earnings, indicating greater likely gains for Junior Market stocks than the Main Market.
IC TOP 10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year.  Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. Revisions to earnings per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.

 

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