IC Top 10 delivered rich 2018 gains

Barita Investments set to be 2018 best performing JSE stock.

With just one trading day left to go, before the 2018 ends, IC Insider.com TOP 10 selections enjoyed some healthy gains during the year, with former top tenner Barita Investments set to top the year with stunning gains of 567 percent. Palace Amusement moved up 159 percent to $1,450 and Salada Foods with 218 percent gain.
In the Junior Market, CAC2000 climbed 160 percent, Caribbean Flavours rose 73 percent and Stationery and Office Supplies gained 64 percent. The TOP 10 also saw others with lesser gains than the above ones. The list includes Caribbean Cement, NCB Financial, Pan Jam Investments, Grace Kennedy, Sterling Investments, with all of them trading at record highs during the year, Iron Rock, Key Insurance and General Accident. The outstanding performer in the Junior Market for 2018, Derrimon Trading was on the TOP 10 list on November 17, last year, but moved to $8 from $6.50 at the end of the following week and then exited the list and climbed in 2018 after a stock split and acquisition of new business.
Lasco Financial is back in the Junior Market list, having fallen to $4.50, so too is Consolidated Bakeries with the price down to $1.75 and Stationery and Office Supplies with a price mow at $8.10. Out goes Medical Disposables, with the price at $7.50 along with Iron Rock and Jamaican Teas. In the main market TOP 10, Sagicor Group returns to the list replacing Sterling Investments that closed the week at $4.09.
The main market and the Junior Market closed the week with the overall PE at 15.9. The PE ratio for Junior Market Top 10 stocks average 9.2 and the main market PE is now 10. The top Junior Market stocks continue to sell at a discount to main market stocks even as the overall average PE for both markets are equal. This is an indication that there may be more gains to be had from these Junior market stocks than those in the main market.
The TOP 10 stocks now trade at an average discount of 42 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings. The main market stocks trade at a discount of 37 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, 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 based on new information received that can result in changes in and out of the list as well.

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