Buy Rated Junior Market stocks have two new entrants this week with Honey Bun and Jamaican Teas returning to the top listing. Both companies’ fiscal year ended September, with earnings for the 2020 fiscal year, used in valuing them.
The new listings are expected to benefit from growth in the core business, with Honey Bun continuing to benefit above the norm from the expansion of the factory late last year and new products being manufactured while Jamaican Teas could benefit from investment gains from the portfolio of QWI Investments.
Dropping from the Junior Market TOP 10 are Elite Diagnostic and Express Catering. There were no changes to the main market TOP 10.
Market activity, left Caribbean Producers with projected gains of 240 percent as the leading Junior Market stock with likely gains, followed by Iron Rock Insurance with potential gains of 204 percent and Medical Disposables with projected gains of 184 percent.
Radio Jamaica (RJR) share price slipped during the week to a low of $1.35 but bounced to close the week at $1.60, pushing projected gains to 213 percent, to remain the leading main market stock. RJR is benefiting from increasing revenues, resulting from a more buoyant economy, the rollout of new services, the signing of an agreement with Flow that will add to revenues without the added cost and lower costs in a number of areas, with more to come. 
Carreras sits at the number two spot with projected gains of 125 percent with the price slipping a bit during the week and Berger Paints with projected gains of 115 percent in next.
The main market, closed the week with the overall PE of 17.1 down from 17.7 the previous week and the Junior Market is at 11.1 from 11.7 based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 7.7 compared to 7.9 the previous week and the main market PE remains at 10.4.
The TOP 10 stocks now trade at an average discount of 31 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 to March next year. Projected earnings, along with the PE ratio for each company’s current fiscal year are used in determining potential gains with the likely gains ranked in descending order with highest-ranked being the most attractive. 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.
