Junior Market IC TOP10 stocks had some strong gains in the past week and losses that were lower than the gains, but Main Market stocks were more stable, with minor price changes while Lasco Financial in the Junior Market replaced Iron Rock Insurance.
CAC 2000 was the star performer in the Junior Market during the week, jumping 20 percent to $8.30, after dropping 14 percent in the previous week to $6.90. Caribbean Assurance Brokers declined 15 percent last week to $2.30, rebounded 13 percent to $2.60 and Access Financial recovered from a 9 percent decline last week, gaining 12 percent to $22.30. Elite Diagnostic climbed 8 percent to $3.58 last week, but fell 8 percent to $3.31, Lasco Distributors gained 5 percent last week to $3.10 but could not hold on and slipped 8 percent to $2.84 and Caribbean Cream jumped 18 percent last week to $4.70, fell 5 percent to close at $4.47.
In the Main Market Guardian Holdings rose 5 percent to $520, Berger Paints gained 4 percent to percent but Key Insurance fell 7 percent to $3.36 and Sygnus Credit Investments declined 5 percent to $13.08.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 13.9, while the Junior Market Top 10 PE sits at 5.9 versus the market at 12.8, important indicators of the level of undervaluation of the ICTOP10 stocks. The Junior Market is projected to rise by 245 percent and the Main Market TOP10 s projected to gain an average of 239 percent, to May 2023.
The Junior Market currently sells at an average PE of around 12.8 but already there are 15 stocks or a third of the market, with PEs from 16 to 33, averaging 21. The top half of the market has an average PE of 18. This data shows how much potential gains are in the top 10. The situation in the main market is similar, with the 15 highest valued stocks priced at a PE of 15 to 84, averaging 25 and 21 excluding the highest valued one.
Currently, the Junior Market is slightly negative but is poised to move higher in the weeks ahead but the main market is under negative clouds that could send the market index lower as NCB Financial and other financial companies continue to trade with inadequate support.
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 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.
During the week in the Junior Market, Caribbean Cream jumped 18 percent to $4.70, Elite Diagnostic climbed 8 percent to $5.84, Lasco Financial rose 7 percent to $2.95 and Lasco Distributors gained 5 percent to $3.10. Caribbean Assurance Brokers declined 15 percent to $2.30, CAC 2000 dropped 14 percent to $6.90, Access Financial dipped 9 percent to $20 while General Accident fell 7 percent to $5.05.
The Junior Market is projected to rise by 251 percent and the Main Market TOP10 is projected to gain an average of 238 percent, by May 2023.
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.
The average PE for the JSE Main Market TOP 10 is 6.2, well below the market average of 13.5, while the Junior Market Top 10 PE sits at 5.9 versus the market at 12.9, an important indicator of the level of undervaluation of the ICTOP10. The Junior Market is projected to rise by 245 percent and the Main Market TOP10 is projected to gain an average of 238 percent each, by May 2023.
ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
The moves follow funds previously tied up in the One on One IPO coming back to the market.
In the Junior Market ICTOP10 General Accident and Lasco Financial replaced Consolidated Bakeries and Lasco Manufacturing. There was one change in the Main Market with Radio Jamaica replacing 138 Student Living. 
ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
The Junior Market ICTOP10 welcomed Consolidated Bakeries, with projected earnings per share of 22 cents, with the company appearing to be breaking the old practice of limited revenue growth and small profits. See the latest profile of the company with full reporting and its prospects for the current year. General Accident says goodbye to the ICTOP10 following the recovery in the price. There were no changes in the Main market. 
ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
Investors reacted the first chance they had and drove the prices of both stocks higher on Friday.
The Main Market ended the week with 138 Student Living jumping 23 percent to $5 and is likely to rise further, with the company posting solid results after the market closed, with earnings of 21 cents for the June quarter and 58 cents per share for the nine months to June. Berger Paints rose 8 percent to $11.93, VM Investments popped 4 percent to $5.20 and Guardian Holdings reversed most of the previous week’s gain by dropping a sharp 22 percent from $650 to $506.
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 to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
Jetcon Corporation and Lasco Financial are out of the Junior Market TOP10, and Caribbean Cement left the Main Market list.
The Main Market ended the week with Guardian Holdings jumping a sharp 29 percent to $650 on limited volume. There are now less than 1,000 shares offered for sale. At the close, there was an offer of 76 shares at $594 and the highest bid was $505 to buy 2012 shares. Profit for the June Quarter was TT$256 million, up 220 percent from $80 million in 2021, with six months moving up by 70 percent from $256 million to TT$436 million. The EPS comes out at TT$1.88 or J$43. The other big move was by Productive Business Solutions, falling 12 percent to US$1.
ICInsider.com ranks stocks based on projected earnings to highlight winners from the rest, allowing investors to focus on potential winning stocks and helping to remove emotions in selecting stocks for investments that often result in costly mistakes.
The above shows that many investors are groping in the dark, hoping that a stock with the wind behind its back must be one to buy to make money. They ignore the simple but profound principle of buying low and selling high. The other factor that shows up in the judgement is why buy the stock after the split when it is more expensive than if purchased before. this is an age-old issue where investors feel that they are buying the stock cheaper than before but in fact, they are paying more for it and therefore reduce potential profit.
There was one change to the Junior Market TOP10 listings this past week, with General Accident returning at the expense of Dolphin Cove which rose 6 percent during the week to $15.93, the former price dropped to $5.07 from $5.99 at the close of the previous week.
The prospectus for One on One IPO is out with just over 125 million shares earmarked for the wider public. The PE ratio based on the company’s projections to August 2022 is just under 7 cents per share before tax for a PE ratio of around 14.5 just above the market average of 12.9. Based on where recent IPOs are valued investors can look for a price after listing around $1.50 but investors have priced many of them closer to 30 times 2022 earnings in which case a price of $2 is not out of the reckoning.
