Dolphin Cove returns to the ICInsider.com TOP10 list after a very long absence. The company’s half year results show a major upturn in fortunes, with prospects of good full year results. The stock replaces CAC2000 that slipped out of the top list.
Dolphin Cove reported a profit of US$1.24 million in the June quarter or 49 cents in Jamaican currency, thus wiping out the first quarter loss of US$155,000 and seems on target to generate around $3.3 million in profit for the year.
Last week’s number one Main Market stock – RJR, dropped to position 7 this week, with the price jumping to $3.50 from $2.25 last week. It could be out of the TOP10 next week if buying interest continues to come into the market, with the stock gaining 60 percent for the week and a respectable 91 percent for the year to date. That is not a bad performance for a stock sold for $1.10 in December last year and one that not many investors looked at until recent results were released. Interestingly, while many investors looked elsewhere, the smart money was laser focused on the future and the boom in revenues that was to come from growth in various areas of the economy that would increase advertising spend and push quarter profits to record levels. The smart money bought 52 million shares on April 6 last year, at an average of $1.33. On April 13, 95.4 million units were picked up and 67.7 million on April 27 at $1.26. The next big buy was August 17^th, with 10 million units at $1.30 and 0n October 19 with 20 million units.
Outside the Junior and Main markets TOP10, investors should watch AMG Packaging and Sterling Investments.
After more than a year and a half at the top of the ICTOP10 listing Radio Jamaica finally broke lose this week, with the price hitting new daily 52 weeks’ highs and ended at $3.50 on Friday. The top three Main Market stocks are now headed by Berger Paints, with the potential to gain 277 percent, followed by JMMB Group and Guardian Holdings, with expected gains of 202 to 277 percent for the three, versus last weeks’ 200 to 300 percent.
The top three stocks in the Junior Market are Elite Diagnostic, followed by Stationery and Office Supplies that fell on Friday to $5.75, from $7.43 last week and General Accident, with all three having the potential to gain between 221 percent and 295 percent, compared to 256 and 336 percent, last week.
Last week, a few companies’ profit results were highlighted; one that was not and came out with less than exciting profit numbers is Elite that is top of the Junior Market listing. The company came to the market with much promise but has failed to deliver on its promise. A close assessment of the June results shows an increase in revenue in each quarter in the last fiscal year over the prior quarter, suggesting that if the trend continues, the current fiscal year should see a big rise in revenues and profits. The paying of a dividend that is greater than the reported profit for the last fiscal year is an indication that things are likely to be better in the current year. The other factor is that EBITA is strong with a fairly stable depreciation charge of 20 percent of revenues.
This past week the average gains projected for the Junior Market moved from 193 percent to 207 percent and Main Market stocks from 180 percent to 172 percent.
The Junior Market closed the week with an average PE of 11.4 based on ICInsider.com’s 2021-22 earnings and currently trades well below the target of 20 and the recent historical average of 17 for the period to March this year, based on 2020 earnings.
The JSE Main Market ended the week with an overall PE of 15.6, a little distance from the 19 the market ended at in March, suggesting a 17 percent rise at a PE of 19 and 23 percent at a PE of 20 from now to March 2022. The Main Market TOP 10 trades at a PE of 7.6, with a 41 percent discount to the PE of that market, well off the potential of 20.
The TOP10 stocks are not always the best in the market but are likely to be the best winners within a fifteen-month period. IC ranked stocks to filter out the big winners, allowing investors to focus on potentially big winners and help to keep out emotional attachments to stocks.
 IC TOP10 stocks are likely to deliver the best returns up to March 2022 and ranked in order of potential gains, based on likely increase for each company, considering the earnings and PE ratios 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 per share are ongoing, based on receipt of new information.

Persons who compiled this report may have an interest in securities commented on in this report.