Limners and Bards the latest IPO to hit the market, made it to the Junior Market TOP 10 with the potential to double in price, notwithstanding the critical information that is missing from the prospectus.
Jamaica Broilers returns to the main market list as Grace Kennedy graduated with a rise in the stock price. AMG Packaging released nine months results that showed 28 percent rise in pretax profit for the third quarter but that was not good enough. Earnings for the 2019/20 fiscal year, were downgraded to 20 cents per share. That level of earnings was not good enough to keep it in the TOP 10 list.
In the past week, the main market continues to hit new record highs, closing the week at another all-time high on its way to over 700,000 points for the All Jamaica Index. 
Momentum continues to move the market away from long-term resistance at 520,000 points.
The Junior Market is struggling, with few new company results out to help with upward move. Fontana and Elite Diagnostic two TOP 10 listings hit new record highs during the week with a few others hitting 52 weeks’ lows.
Junior Market stocks continue to struggle to get investors’ attention. With the market consolidating and the expectation of mostly positive results to the market is poised for a takeoff soon with the market highly undervalued.
The three most attractive Junior Market stocks are, Iron Rock with gains of 243 percent, followed by Caribbean Producers with projected gains of 233 percent and tTech with possible gains of 191 percent.
Sterling Investments heads the main market with 179 percent potential gains followed by Radio Jamaica with expected gains of 173 percent and Sygnus Credit Investments in third spot with the potential to gain 154 percent by March next year.
The main market, closed the week with the overall PE at 15.6 and the Junior Market remains for the second week at 10. The PE ratio for Junior Market Top 10 stocks averages 7.2 and the main market PE 8.9. These levels, point to a big upside for TOP 10 stocks over the next 12 months and Junior Market stocks in particular.
The TOP 10 stocks now trade at an average discount of 28 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 43 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked 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 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 interest in the securities commented on.
