Edufocal suffered a major drop in price in the past week to $1.05 from $1.13 at the start and landed in an ICTOP10 Junior Market, in position number 7, at the same time, AMG Packaging gained just 5 percent to close at $3.44 and dropped out of the top tier to sit at the twelfth position.
In a week of more moderate price movements, the Junior Market ICTOP10 ended, with a 6 percent jump in the price of Lasco Manufacturing to $5.53 with Access Financial falling 9 percent to $20 and ISP Finance slipping 8 percent to $28.10, while in the Main Market, Key Insurance surged 12 percent to $2.57 and JMMB Group fell 8 percent to $25.
Investors may question why Caribbean Cream is in the ICTOP10. A closer look at earnings for the nine months to November shows the full cost of interest being expensed, most if not all should be a part of the cost of building out the cold room and the cogeneration plant. If interest is capitalized, earnings for the full year would be in the 55 cents per share region rather than 25 cents, with the full interest cost being expensed. More importantly with the 2025 fiscal year having commenced, earnings for the new fiscal year should be around 95 cents, which is the real reason for owning the stock at this time.
There were no changes to the list of companies in the Main Market TOP10 this past week.
For the full list of weekly percentage changes for the ICTOP10 stocks, check the attached charts for the weekly percentage price movements.
The average PE for the JSE Main Market ICTOP 10 stands at 5.6, well below the market average of 13.9 and the Junior Market TOP10 sits at 7.4 over half of the market, with an average of 13.
The Main Market ICTOP10 is projected to gain an average of 270 percent by May 2024, based on 2023 forecasted earnings, providing better values than the Junior Market with the potential to gain 175 percent over the same period.
In the Main Market ICTOP 10, a total of 15 of the most highly valued stocks representing 31 percent of the Main Market are priced at a PE of 15 to 115, with an average of 37 and 25 excluding the highest PE ratios, and a PE of 29 for the top half and 21 excluding the stocks with overweight values.
In the Junior Market IC TOP10 are 11 stocks, or 23 percent of the market, with PEs ranging from 15 to 44, averaging 21, well above the market’s average. The top half of the market has an average PE of 17, possibly the lowest fair value for stocks, currently.
Of great import is that the averages of both markets are now converging around a PE of 20 for close to a third of the market, as the year is coming to a close and with more information available on the full year’s earnings.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns on or around May 2024 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.
