Productive Business Solutions surged 45 percent to close at US$2 from US$1.38 at the close of the previous week and dropped out of the TOP10, having entered at the beginning of April at $1.06 and has now recorded a gain of 89 percent. Caribbean Assurance Brokers slipped out of the Junior Market TOP10 following a downgrade of earnings per share with the release of nine months’ results.
138 Student Living made it back in the Main Market TOP 10 following reporting strong full year results with the promise of more in 2023 as students return to on campus training and Medical Disposables returns to the Junior Market list.
The Junior Market had five top 10 stocks gaining between 4 percent and 14 percent, with two declining over five percent. The Main Market list had only two stocks gaining from 10 and 45 percent with five losses but with four ranging from 4 to 9 percent.
Notable price changes during the week include Lasco Distributors rising 14 percent to $3.10, General Accident and Lasco Financial popped 10 percent to close at $5.05 and $3, respectively, Elite Diagnostic was up 6 percent to $3.72 and Caribbean Cream rose 4 percent to $4. Caribbean Assurance Brokers lost 8 percent to close the week at $2.39, following the release of nine months results that rose 33 percent to 40 cents, with the crucial third quarter results being flat in contrast to solid growth in the first half of the year.
In the Main Market, Productive Business Solutions rose 45 percent during the week to $2, followed by Radio Jamaica, that jumped 10 percent to $2. VVM Investments dropped 9 percent to $4.39 while Caribbean Producers slipped 5 percent to $12.33, Berger Paints also dipped 5 percent and ended at$10.40 and Guardian Holdings fell 4 percent to $500.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.3, well below the market average of 13.4. At the same time, the Junior Market Top 10 PE sits at 6.2 versus the market at 12.4, an important indicator of the level of undervaluation of the ICTOP10stocks. The Junior Market is projected to rise by 224 percent and the Main Market TOP10 an average now of 298 percent, to May 2023, following an upgrading of Guardian Holdings earnings per share to $173.50 from $92 previously.
The Junior Market has 14 ; stocks representing a third of the market, with PEs from 16 to 38, averaging22 compared with the above average of the market. The top half of the market has an average PE of 18. This data shows the extent of potential gains that the TOP 10 stocks possess. The situation in the Main Market is similar, with the 15 highest valued stocks priced at a PE of 15 to 80, with an average of 28 and 24.3 excluding the highest valued one and 22.5 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.
