Lumber Depot set to leave IC TOP 10

Newly listed Lumber Depot traded for the first time after listing on Friday to close at $1.59, up 32.5 percent from the IPO issue price of $1.20. The stock remains in the TOP Junior Market listing at 6th position from third, last week, but may not be in it much longer.
 Honey Bun that jumped ship at the end of the prior week, returns to sit at 10th spot with the fall of tTech while the JSE Main Market welcomed back Stanley Motta to the TOP 10 at the expense of NCB Financial.
IC has upgraded the target PE ratios to 25 with several stocks trading at that around 22 currently. The average projected gains for the IC TOP 10 stocks are 187 percent for Junior Market stocks and 145 percent for JSE Main market Top 10 companies.
The top three Junior Market stocks are Medical Disposables with projected gains of 252 percent, followed by Main Event with a potential appreciation of 246 percent and Jamaican Teas with 233 percent.
Radio Jamaica holds the lead of Main Market stocks with projected gains of 238 percent, followed by Carreras in the number two spot with projected growth of 168 percent and Pulse Investments with likely increases of 167 percent is next.
The JSE Main Market closed the week, with an overall PE of 20.8 and the Junior Market at 14.9, based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 9.1 with the Main Market PE at 10.4.
The TOP 10 stocks now trade at a discount of 39 percent of the average for Junior Market stocks and Main Market stocks trade at a discount of 50 percent to the overall market.
IC TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, along with the PE ratio for each company’s current fiscal year, are used in determining potential gains with the likely gains ranked in descending order with highest-ranked being the most attractive. Future 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 an interest in the securities commented on.

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