Jetcon Corporation returns the Junior Market TOP10 after the price slipped from $1.39 last week to $1.35 at the close of the week, replacing tTech that enjoyed a slight price bounce from $4.40 last week to $4.75 this week, while in the 
JSE Main Market Grace Kennedy returns after a week’s absence and replaces Jamaica Broilers that is now out.
Jamaica Broilers reported full year results, with profits of $2.3 billion up 67 percent from $1.4 billion in 2020 for earnings per share of $2.30. ICInsider.com now projects $3.30 earnings per share for the 2022 fiscal year and that is not enough to keep it in the TOP10.
The performance of the Jamaica Stock Exchange Main Market continues to lag well behind the Junior Market, with the fall in the financial sector led by NCB Financial Group being a major drag on the main market, but values in the Junior Market are far more favourable than those in the main market and that is eloquently told by the average PE ratios of both markets.
This past week the average gains projected for the Junior Market rose from 200 percent last week to 202 percent and Main Market stocks edged down from last week’s 171 percent to 168 percent.
The top three Junior Market stocks are Elite Diagnostic, Caribbean Ass. Brokers and General Accident, with potential gains between 240 and 282 percent, following the range of 223 and 287 percent last week. The top three Main Market stocks are Radio Jamaica in the number one spot, followed by JMMB Group and Guardian Holdings, with expected gains of 169 to 379 percent versus last weeks’ 188 to 385 percent.
The Junior Market closed the week with an average PE 12.9 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 as well as the recent historical average of 17 for the period to March this year based on 2020 earnings. 
For the Junior Market to trade at the historical average, the PE Ratio would have to rise by 32 percent and requires a rise of 53 percent to reach the targeted PE of 20 by March 2022. Main Market stocks would need to rise by 11 percent to hit a PE of 19 and 17 percent to get to the target of 20.
The Junior Market Top 10 stocks average PE is a mere 6.8, just 53 percent of the market average, indicating substantial gains ahead. The JSE Main Market ended the week with an overall PE of 17, a little distance from the 19 the market ended at in March, suggesting just a 12 percent rise at a PE of 19 and 18 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.9 or 47 percent of the PE of that market, well off the potential of 20.
IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase 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.
