The Main Market gained 1.3 percent and the Junior Market 2.4 percent over the previous week, the first sign that stocks may be coming back to life, following the end of earning season with a mixed bag of results and the sounding of prospects for a better period ahead, with cost pressures that existed last year in stockpiling supplies to meet demand that squeezed margins have started to recede, with the promise of higher profit margins ahead.
Everything Fresh tops ICTOP10
The period saw many companies reporting solid gains in profit that investors are yet to award with better prices than the results demand, which is not expected to last for long as supplies of many stocks have been declining in recent weeks.
ICTOP10 has three new additions to the Junior Market TOP10 while the Main Market remains steady.
The week closed with rising stocks dominating the Junior Market TOP10. Paramount Trading fell 9 percent in the prior week, led rising stocks this past week, with a gain of 18 percent to $2.35, followed by Main Event, put on 15 percent to land at a new high of $12.39, Lasco Distributors and Lasco Manufacturing rose 8 percent to $2.81 and $4.30, respectively. Iron Rock Insurance fell 13 percent to $2.08 and Tropical Battery dipped 4 percent to $2.20.
Six stocks rose in the Main Market TOP10, with 138 Student Living rising 10 percent to $5.50, the price of Jamaica Broilers rose 9 percent to $36 as investors warmed to the stock following release of outstanding second quarter numbers and the price having a long way to run. Caribbean Producers, that is undervalued, rose 6 percent to $10 as selling pressure eased somewhat.
Price changes resulted in Paramount Trading, Main Event and Lasco Manufacturing exiting the Junior Market TOP10 and replaced by AMG Packaging, Everything Fresh and Stationery and Office Supplies.
AMG Packaging enjoyed improved profit margin in the November quarter compared with that in 2021, even as sales fell slightly in the latest quarter to November, which augurs well for increased profit in the current year, with revenues projected to rise in the year with more business opportunities as the economy continues to grow at a healthy pace. Everything Fresh and Stationery and Office Supplies (SOS) earnings reflect that for the current year. Everything Fresh now heads the Junior market TOP10, having reported profit for an entire year in 2022 for the first time since they released a depressed $16 million profit in 2018. Profit came in at $48 million before tax for 2022, a modest change from $47 million reported for the nine months to September after finance costs rose 43.5 percent in the December quarter over the nine months to September. With 2023 setting up to be the strongest tourist season since 2019, the company is set to see a big jump in business from that sector and profit in 2023, that should see the company earned 30 cents per share, that is why it is in ICTOP10. SOS posted record profits for 2022 with a 169 percent increase before tax from a 55 percent jump in revenues. Of note are a 35 percent increase in fourth quarter revenues and a deal struck with a company in Trinidad to cross sell products that should add to revenues in 2023 and push earnings to $2 per share for the year. With improving profits and shrinking supplies outside of the TOP 10 shareholders, who control 91 percent of the issued shares, the stock is setting up for a stock split that cannot be far off and, when given, will catapult the stock price upwards.
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 13.9, while the Junior Market Top 10 PE sits at 6.1 compared with the market at 11.8. The differences are important indicators of the level of the undervaluation of the ICTOP10 stocks. The Junior Market is projected to rise by 240 percent and the Main Market TOP10 by an average of 284 percent to May 2024, now that TOP10 stocks earnings are based on 2023 profits.
The Junior Market has 13 stocks representing 27 percent of the market, with PEs from 15 to 26, averaging 19.5, well above the market’s average. The top half of the market has an average PE of 17. The above average shows the extent of potential gains for the TOP 10 stocks.
The situation in the Main Market is similar, with the 12 highest valued stocks priced at a PE of 15 to 115, with an average of 32 and 23 excluding the highest valued stocks and 21 for the top half excluding the highest valued stocks.
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 will likely 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.
A total of 12,468,915 shares were exchanged for $30,380,321 compared with 9,243,451 units at $25,870,454 on Thursday.
The PE Ratio, a measure of computing appropriate stock values, averages 11.8. The PE ratios of Junior Market stocks are computed using the last traded stock price in conjunction with ICInsider.com projected earnings for the financial years ending between November 2022 and August 2023.
Honey Bun lost 9 cents in ending at $7.20 with a transfer of 1,649 units, Indies Pharma shed 29 cents in closing at $2.75 with the swapping of 295,573 stock units, Iron Rock Insurance dipped 30 cents to $2 after 10,340 shares passed through the market. ISP Finance climbed $5.35 to $26.35 in switching ownership of 2 stocks, JFP Ltd rallied 10 cents in closing at $1.70 after 20,001 units were traded, Main Event rose 39 cents to close at a 52 weeks’ high of $12.39 in exchanging 66,710 stock units. MFS Capital Partners popped 10 cents to close at $3.60 with a transfer of 19,024 units, Paramount Trading rallied 16 cents to $2.35 after an exchange of 6,451 stocks, Spur Tree Spices lost 10 cents to end at $2.65 with 40,398 stock units changing hands. Stationery and Office Supplies rose 97 cents to $14.95 in switching ownership of 1,904 shares and 
Tropical Battery dipped 16 cents to end at $2.20 trading 126,960 stock units.
A total of 9,243,451 shares were exchanged for $25,870,454 compared with 7,248,801 units at $17,264,479 on Wednesday.
The PE ratios of Junior Market stocks are computed using the last traded stock price in conjunction with ICInsider.com projected earnings for the financial years ending between November 2022 and August 2023.
Future Energy Source fell 15 cents to end at $4.60 in switching ownership of 553,438 shares. Honey Bun lost 11 cents to end at $7.29 with the swapping of 4,888 units, Iron Rock Insurance rose 30 cents to $2.30 with 5 stock units changing hands, JFP Ltd lost 10 cents to close at $1.60 trading 645,983 stock units. Lasco Distributors gained 9 cents in closing at $2.79 with a transfer of 1,200 shares, Lumber Depot popped 18 cents to end at $2.43 after 79,209 units passed through the market, MFS Capital Partners dipped 31 cents to $3.50 in switching ownership of 544,484 stocks. Paramount Trading advanced 14 cents to $2.19 in transferring 2,009 units, 
Stationery and Office Supplies gained 20 cents to close at $13.98 with an exchange of 13,011 stocks and tTech rose 10 cents to $2.65 after 5 shares cleared the market.
A total of 7,248,801 shares were traded for $17,264,479 compared to 15,831,268 units at $44,907,966 on Tuesday.
At the close, Access Financial fell 36 cents to close at $25.59 with 5,228 shares being traded, Cargo Handlers popped 49 cents in closing at $15 after 2,048 stock units cleared the market, Caribbean Cream gained 18 cents to finish at $3.49 following investors trading 76 units. Caribbean Flavours rallied 25 cents to $1.70 with 78 stocks changing hands, Consolidated Bakeries lost 24 cents to end at $2.18 in switching ownership of 5,065 stock units, Dolla Financial shed 11 cents to end at $2.85 in an exchange of 105,206 stocks. Fosrich lost 11 cents ending at $2.99 with the swapping of 882,264 units, General Accident rose 39 cents in closing at $4.99 with 8,097 shares changing hands, Iron Rock Insurance fell 30 cents to $2 after a transfer of 50 shares. ISP Finance gained 51 cents to settle at $21 after switching ownership of 1,500 stocks, JFP Ltd dipped 25 cents to $1.70 in trading 487,595 units, Knutsford Express declined $1.13 to $11.87 after exchanging 7,445 stock units. 
Lasco Distributors lost 9 cents to finish at $2.70 with investors transferring 31,250 stock units, Lasco Financial advanced 28 cents to end at $2.74 in exchanging 750 stocks, Lasco Manufacturing gained 25 cents in closing at $4.22, with investors transferring 16,549 shares. Limners and Bards popped 10 cents to end at $2.75 with the swapping of 5,417 units, Lumber Depot dipped 15 cents to $2.25 after 54,162 stock units were traded, Main Event rose 75 cents to close at $11.95 with an exchange of 51,844 units. Medical Disposables shed 29 cents in closing at $4.85, with 5,300 shares changing hands, Regency Petroleum fell 52 cents to end at $1.91 after investors traded 2,970,829 stocks, following release of full year results, showing higher administrative costs that wiped out increased gross profit and Spur Tree Spices shed 23 cents in closing at $2.75 exchanging 348,494 shares.
In the preference segment, CAC 2000 9.5% preference share gained 8 cents to end at $1.08 with a transfer of 294 units.
A total of 15,831,268 shares were exchanged for $44,907,966 up from 9,033,630 units at $24,644,140 on Monday.
The PE Ratio, a measure of computing appropriate stock values, averages 12.2. PE ratios of Junior Market stocks are computed using the last traded price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2022 and August 2023.
Consolidated Bakeries popped 22 cents in closing at $2.42 after a transfer of265 stock units, Dolphin Cove declined 64 cents to $14.56 as investors exchanged 87,758 units, Future Energy Source rallied 15 cents to end at $4.70 with the swapping of 385,383 units. iCreate gained 8 cents in ending at $1.79 after investors exchanged 35,554 stock units, Indies Pharma rose 15 cents to $3.05 in switching ownership of 1,731,974 shares, JFP Ltd gained 23 cents to close at $1.95 in trading 3,024,280 stocks. Knutsford Express advanced $2.90 to a 52 weeks’ high of $13 in an exchange of 111,135 shares, Lasco Distributors gained 9 cents to end at $2.79 with the swapping of 131,491 units, Limners and Bards popped 15 cents in closing at $2.65 with 12,735 stocks changing hands. Lumber Depot rose 13 cents ending at $2.40 with a transfer of 251,965 stock units, Main Event dipped 64 cents to $11.20 after exchanging 111 stock units, Medical Disposables popped 29 cents to finish at $5.14 after trading 18 stocks. 
Regency Petroleum rallied 24 cents in closing at a record high of $2.43 with 1,393,928 shares crossing the exchange, Spur Tree Spices rose 18 cents to close at $2.98 in switching owners of 1,559,762 units and Tropical Battery gained 12 cents to end at $2.34 trading 339,627 stock units.
A total of 9,033,630 shares were traded for $24,644,140, down from 32,804,091 units at $91,381,630 on Friday.
The PE Ratio, a measure used to compute appropriate stock values, averages 11.6. The PE ratios of Junior Market stocks are computed using the last traded stock price in conjunction with ICInsider.com’s projected earnings for the financial years ending between November 2022 and August 2023.
Elite Diagnostic gained 26 cents to settle at $2.71 after 27,851 units passed through the market, Fosrich rose 10 cents to $3.09 as investors traded 3,395,464 stocks. General Accident shed 38 cents to end at $4.61 with a transfer of 6,100 shares, Honey Bun gained 27 cents to finish at $7.37 in exchanging 878 stock units, iCreate lost 8 cents to close at $1.71 in switching ownership of 66,005 stocks. Indies Pharma rallied 11 cents in closing at $2.90 with the swapping of 20,635 units, JFP Ltd gained 12 cents to close at $1.72 in an exchange of 554,074 stock units, Knutsford Express declined $1 to $10.10 in trading just 505 shares. Lasco Distributors popped 10 cents in ending at $2.70 with an exchange of 216,724 stock units, Lasco Financial lost 29 cents in closing at $2.46 with investors transferring 95,902 stocks, Main Event advanced $1.04 to $11.84 with 1,558 shares changing hands. 
Regency Petroleum gained 24 cents in ending at a record $2.19 after 1,116,676 units passed through the market, Stationery and Office Supplies dipped 30 cents to end at $13.70 in switching ownership of 1,093 stocks and Tropical Battery lost 8 cents in closing at $2.22 while trading 132,449 stock units.
ICTOP10 has only one new addition this week, in the Junior Market TOP10 and none in the Main Market, following major volatility in price movements in the listings.
Earnings per share for Elite Diagnostic was revised down to 28 cents per share for the current year, following a small loss of $7 million in the December quarter, even as revenues rose a solid 20 percent or $30 million over the same quarter in 2021, resulting in the stock dropping out of the ICTOP10, to be replaced by Tropical Battery that is returning after a short absence.
The situation in the Main Market is similar, with the 17 highest valued stocks priced at a PE of 15 to 109, with an average of 32 and 23 excluding the highest valued stocks and 21 for the top half excluding the highest valued stocks.
At the close, the Junior Market Index fell 60.43 points to 3,801.46.
Consolidated Bakeries dipped 29 cents to close at $2.20 after trading 1,540 stock units. EduFocal lost 8 cents to end at $2.12 with 332,545 units changing hands, Elite Diagnostic shed 65 cents to a 52 weeks’ low of $2.45 with investors swapping 67,561 shares, Fontana fell 16 cents to end at $8.63 with an exchange of 16,122 shares. Fosrich lost 11 cents in closing at $2.99 with the swapping of 26,088,566 stock units, with the price hitting an intraday 52 weeks’ low of $2.50, Future Energy Source dipped 17 cents to $4.53 with 678,920 units changing hands, GWest Corporation gained 10 cents in ending at $1.02 in transferring 186 stocks. Honey Bun declined 32 cents to end at $7.10 trading 11,435 units, Indies Pharma advanced 19 cents to $2.79 in switching ownership of 615,619 shares, ISP Finance dropped $7.45 to settle at $20.49 after an exchange of 3,200 stock units. Knutsford Express rose 30 cents to end at $11.10, with 503,687 stocks clearing the market, Lasco Financial gained 30 cents to close at $2.75 as investors exchanged 995,363 stock units, 
Limners and Bards shed 20 cents in closing at $2.50 in an exchange of 2,700 shares. Lumber Depot popped 8 cents to end at $2.27 after a transfer of 18,960 stocks, Mailpac Group rallied 15 cents to $2.05 with the swapping of 86,536 units, MFS Capital Partners lost 13 cents to close at $3.78 trading 389,770 shares and Stationery and Office Supplies fell 90 cents to $14 after 23,543 units passed through the market.
A total of 9,069,058 shares were traded for $25,793,774 compared to 7,929,253 units at $24,724,504 on Tuesday.
At the close, the Junior Market Index rallied 17.71 points to end at 3,861.89.
Fontana fell 10 cents to $8.79 in transferring 57,625 shares. GWest Corporation slipped 12 cents to 92 cents after an exchange of 57,562 units, Knutsford Express declined 30 cents to $10.80 with investors transferring 2,271 stocks, Lasco Distributors fell 10 cents in closing at $2.60 with 41,568 stocks changing hands. Lasco Manufacturing lost 7 cents in closing at $4 after an exchange of 31,913 shares, Lumber Depot climbed 7 cents to $2.19 after 49,469 stock units changed hands, Main Event gained 25 cents to end at $10.80 with 174,381 stock units crossing the market. Medical Disposables dipped 35 cents to $4.80 in trading 2,128 shares, Paramount Trading shed 20 cents in ending at $2 in switching ownership of 33,560 units,
Regency Petroleum popped I cent higher in closing at a record of $2 trading 385,688 shares and Stationery and Office Supplies lost 10 cents to close at $14.90 after 51,537 units cleared the market.
A total of 7,929,253 shares were traded for $24,724,504 compared to 6,142,842 units at $16,297,687 on Monday.
The PE Ratio, a measure of computing appropriate stock values, averages 11.9. The PE ratios of Junior Market stocks are computed using the last traded price and ICInsider.com’s projected earnings for the financial years ending between November 2022 and August 2023.
Dolphin Cove rallied 13 cents to $14.58 as investors exchanged 2,297 shares, EduFocal dropped 33 cents to $1.87 with 226,226 stocks clearing the market. Elite Diagnostic rose 30 cents to $3.10 in switching ownership of 1,000 stock units, Express Catering lost 8 cents after ending at $5 with 5,500 units changing hands, Fosrich fell 28 cents to close at $3.06 with 1,343,496 shares crossing the market. iCreate dipped 10 cents to end at $1.80 with investors transferring 103,487 stocks, Image Plus Consultants lost 8 cents to finish at $1.90 in exchanging 1,360,944 stock units, Limners and Bards advanced 30 cents to $2.70 in trading 152,493 units. Lumber Depot fell 20 cents in closing at $2.12 in an exchange of 24,150 stocks and 
Main Event climbed $1.35 to $10.55 with a transfer of 612,570 shares.