Kremi surges to top IC TOP 10

Caribbean Cream outlet in Kingston.

Investors pushed Caribbean Cream down to $6.16 on Friday to surge to the top of the list this week, while Stanley Motta was pushed down to $4.50 to reenter this Top 10 stock list.
JMMB Group jumped sharply to close at a new record high of $37 on Friday and was pushed out of the top tier main market list while Iron Rock shot to a record $5 and dropped out of the Junior Market listing. The market could be making a big mistake with Stanley Motta that is clearly undervalued. IC upgraded Caribbean Cream earnings to 85 cents from 70 cents with a sharp fall in the price of milk solids since May by nearly 24 percent that should cut the direct input cost of producing ice cream.
Gains in the two markets are driving the PE ratio of the market higher with the overall PE for the Junior and main market, both rising to 15.8 as of Friday, up from just over 15 last week, as the valuation multiple grows with historically low interest rates and high liquidity abounding in the financial market.
The PE ratio for Junior Market Top 10 stocks average 9.2 and the main market PE is now 9.4, just marginally lower than the prior week’s level, even as the market continues to see an upward revaluation of the multiple.
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 40 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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