Scotai Dropped out of TOP 10 with a big prioce surge.
The main market indices jumped 5.6 percent this past week as big gains in NCB Financial Group, Sagicor Group and Scotia Group pushed the market strongly on Thursday and Friday to close at new record high.
Junior Market stocks on the other hand continued to struggle to get investors’ attention, slipping a few points from the previous week’s close. The market is consolidating and is poised for a takeoff very soon with the market highly undervalued currently.
The market movement for the week resulted in five changes to the top 10 lists. The main market lost Caribbean Cement, Sagicor Group and Scotia Group that enjoyed price gains. 
Entering the main market TOP 10 list are Carreras, Jamaica Broilers and Pulse Investments. The Junior Market bid good-bye to CAC200 and Jamaican Teas and welcomed back Lasco Financial and Everything Fresh.
Price changes this past week, did little change to projected gains for most of the leading stocks compared the prior week. The three leading Junior Market stocks for the coming week are, Iron Rock with projected gains of 243 percent, followed by Caribbean Producers 237 percent and AMG Packaging with possible gains of 202 percent.
Sterling Investments with 178 percent leads main market stocks followed Radio Jamaica with potential gains of 173 percent and Victoria Mutual Investments in third spot with the potential to gain 144 percent by March next year.
The main market, closed the week with the overall PE remaining at 15.2 but the Junior Market inched higher to 11.2. The PE ratio for Junior Market Top 10 stocks averages 7.4 and the main market PE 9.1. 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 34 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 40 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.
