New ICTOP10 listings, JBG upgraded

While the Jamaica Stock Exchange Main Market recorded a modest decline during the past week, the Junior Market Index closed slightly higher, both markets enjoyed some sizable price movements for the ICTOP10 lists, while earnings for Jamaica broilers were upgraded to $6 from $4.50 following the release of exceptional second quarter profits, as a result, it is now the second most attractive stock on the Main Market.
Four Junior Market TOP10 stocks declined between 2 and 4 percent and five gained this past week, while the Main Market 10 had three rising and five declining.
Elite Diagnostic dropped 4 percent to $2.91 and so did Lasco Distributors, closing at $2.91. CAC2000 jumped 19 percent to $8.49, followed by Access Financial with a rise of 17 percent to $24.50, Lasco Manufacturing rose 7 percent to $4.20 and is worth watching o see if the recent selloff in the low $4 region has ended. Lasco Financial rose 6 percent to close at $2.90, while Dolphin Cove rose 5 percent to $14.18.
In the Main Market, Guardian Holdings led with a rise of 9 percent to $540, BergerPaints was next with an increase of 6 percent to $10, but Key Insurance slipped 5 percent to $3.50 and JMMB Group dipped 6 percent to $32.
Access Financial jumped to $24.90 and dropped out of the Junior Market TOP10 after re-entering last week, while Lasco Manufacturing, with the price closing higher, also slipped from the Junior Market TOP10. Medical Disposables returns to the list and so has General Accident. There were no new listing for the Main Market 10.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.5, well below the market average of 14. At the same time, the Junior Market Top 10 PE sits at six versus the market at 11.9, an important indicator of the undervaluation of the ICTOP10 stocks. The Junior Market is projected to rise by 237 percent and the Main Market TOP10, an average now of 280 percent, to May 2023.
The Junior Market has 13 stocks, 28 percent of the market, with PEs from 15 to 33, averaging 20.5 compared with the above average of the market. The top half of the market has an average PE of 17 and shows the extent of potential gains that lie ahead for the TOP 10 stocks. The situation in the Main Market is similar, with the 16 highest valued stocks priced at a PE of 15 to 105, with an average of 32 and 22.6 excluding the highest valued ones and 19 for the top half excluding the highest valued stock.
ICTOP10 focuses on likely yearly winners, accordingly, the list includes some of the best companies in the market but not always. 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 are likely to deliver the best returns up to the end of May 2023 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, resulting 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.