Mostly price gains for ICTOP10

The Main Market of the JSE rose around two percent and Junior Market just under one percent for the week and led the top 10 mostly higher, with 7 Main Market and 4 Junior Market stocks rising with declining stocks recording losses of 4 percent or less, at the same time one stock moved out of the TOP10.
The Main Market ICTOP10 ended with, General Accident declined 11 percent to $4.50. Buying interest picked up during the week for Scotia Group pushing the stock to several 52 weeks’ highs and a rose of 7 percent for the week to a 52 weeks’ closing high of $38.40. This stock has much more juice left that should take it into the $40 range by early 2024. Caribbean Producers rallied 6 percent to $9, while Margaritaville also rose 6 percent and closed at $17 and Pulse Investments rose 5 percent to $2.09 and Key Insurance slipped 4 percent to $2.40.
The Junior Market ended the week, with AMG Packaging climbing 17 percent to $2.70, buying is not aggressive currently while supplies up to $3.15 is limited, with none on offer until $10. Investors should expect a big bounce in the first quarter profits due by mid-January. The company states that they are exploring the possibility of new equipment and expanded facilities that could shape a future expansion of momentous proportions. Caribbean Cream rose 10 percent to $3.64 and Stationery and Office Supplies gained 9 percent and dropped out of the TOP10 and is replaced by Tropical Battery. There were no notable declines at the end of the week.
There was no new addition to the IC Main Market TOP10.
Indications of where stock prices could be by May 2024 can be seen from stocks with the highest values in the Main and Junior Markets.
The average PE for the JSE Main Market ICTOP 10 stands at 5.3, well below the market average of 13.1. The Main Market ICTOP10 is projected to gain an average of 288 percent by May 2024, based on 2023 forecasted earnings and now provides better values than the Junior Market with the potential to gain 195 percent over the same time frame.
In the Main Market ICTOP10, 15 of the most highly valued stocks,  31 percent of the Main Market are priced at a PE of 15 to 108, with an average of 29 and 18 excluding the highest PE ratios, and a PE of 24 for the top half and 16 excluding the stocks with overweight values.
The PE of the Junior Market TOP10 sits at 7, just over half of the market, with an average of 13.2. There are 14 stocks, or 29 percent of the market, with PEsfrom 15 to 49, averaging 21, well above the market’s average. The top half of the market has an average PE of 18, possibly the lowest fair value for stocks.
Of great import is that the averages of both markets are now converging around a PE of 20 for close to a third of the market, as the year is coming to a close and with more information available on the full year’s earnings.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market, but this is not always so. ICInsider.com ranks stocks based on projected earnings, allowing investors to focus on the most undervalued stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
IC TOP10 stocks will likely deliver the best returns on or around May 2024 and are ranked in order of potential gains, computed using projected earnings for the current fiscal year. Expected values will change as stock prices fluctuate and result in weekly movements in and out of the lists. Revisions to earnings are ongoing, based on receipt of new information.
Persons who compiled this report may have an interest in securities commented on in this report.