ICTOP10 has four new additions this week. The changes followed release of new company results that saw upward and downward movements in earnings per share, while the price of one stock rose to exit the list.
At the end of the week, Paramount Trading jumped 17 percent to $2.58 after the supply of stocks in the market fell sharply during the week as the stock hit a 52 weeks’ intraday high of $2.95 before pulling back by the end of the week and Honey Bun rose 4 percent to $7.35. Lasco Manufacturing fell 8 percent to close at $4.33, General Accident slipped 6 percent to $4.70, Lasco Distributors lost 5 percent to end at $2.60 and Iron Rock Insurance fell 4 percent to $2.39.
Stocks rising in the Main Market TOP10 were hard to come by as losers outgunned winners. Jamaica Broilers jumped 8 percent to close at 52 weeks’ high of $32.50, but 138 Student Living dropped 10 percent to $5.00, as investors reacted negatively to a board decision to raise added capital by issuing more shares to the public. Radio Jamaica fell 7 percent to $1.90 after reporting poor results to December, while Caribbean Producers and Sygnus Investments fell 6 percent to $10.80 and $12.25, respectively, followed by a 5 percent decline for Guardian Holdings to close at $505.70.
Tropical Battery returns to ICTOP10 after a one week absence, Main Event posted better than expected full year results and moved into the TOP10 with projected earnings of $1.45 for the 2023 fiscal year and One on One Education moved into the TOP10, while Lasco Manufacturing moved out followed by Lasco Financial and Paramount Trading. In the Main Market, Radio Jamaica slipped out of the TOP10 and Scotia Group reentered after a brief respite.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.6, well below the market average of 14.7, while the Junior Market Top 10 PE sits at 6.6 compared with the market at 12.3, important indicators of the level of the undervaluation of the ICTOP10 stocks. The Junior Market is projected to rise by 207 percent and the Main Market TOP10, an average of 280 percent, to May this year. The primary concern for the Main Market achieving such gains by May is that the list is dominated by financial companies that are out of favour and may need to see the summer months before the total interest of investor start to show.
The Junior Market has 15 stocks representing 31 percent of the market, with PEs from 15 to 30, averaging 20 compared with the above average of the market. The top half of the market has an average PE of 18. The above average shows the extent of potential gains for the TOP 10 stocks.
The situation in the Main Market is similar, with the 18 highest valued stocks priced at a PE of 15 to 90, with an average of 27 and 22 excluding the highest valued stocks and 27 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.
Overall, 75,479 shares were traded for US$10,720 compared with 768,092 units at US$20,748 on Thursday.
At the close, Proven Investments climbed 0.47 of a cent in closing at 19 US cents after 38,351 shares were traded, Sygnus Credit Investments USD share gained 0.01 of a cent to close at 9.52 US cents with 20,400 stocks changing hands and Sygnus Real Estate Finance USD share remained at 8.5 US cents after investors traded 16,728 stock units.
Overall, 768,092 shares were exchanged for US$20,748 compared with 301,506 units at US$4,280 on Wednesday.
Proven Investments declined 0.46 of a cent to close at 18.53 US after trading 1,780 stock units, Sterling Investments climbed 0.18 of a cent in closing at 1.99 US cents with an exchange of 9,531 stocks. Sygnus Credit Investments USD share ended at 9.51 US cents after investors exchanged 40,960 units and Transjamaican Highway dropped 0.06 of a cent after ending at 0.9 of one US cent after a transfer of 709,811 stocks.
Overall, 301,506 shares were traded for US$4,280 compared to 110,724 units at US$19,925 on Tuesday.
Proven Investments rose 0.48 of a cent to close at 18.99 US cents after a transfer of 3,524 stocks, Sygnus Credit Investments USD share fell 0.49 of a cent to end at 9.51 US cents, with 7,600 stock units changing hands. Sygnus Real Estate Finance USD share ended at 8.5 US cents trading 1,166 units and Transjamaican Highway dipped 0.01 of a cent, ending at 0.96 of one US cent while exchanging 287,907 units.
Sterling Investments declined 0.18 of a cent to close at 1.81 US cents, with 1,500 stocks crossing the market, Sygnus Credit Investments USD share climbed 0.02 of a cent in ending at 10 US cents, with 45,232 units passing through the exchange, Sygnus Real Estate Finance USD share ended at 8.5 US cents closed after 5,949 shares changed hands and Transjamaican Highway remained at 0.97 of one US cent with 8,668 stocks clearing the market.
After just one week in the ICTOP10, Tropical Battery price rose this week and resulted in the stock falling outside the top flight, to be replaced by Lasco Manufacturing that dropped out during the previous week. In the Main Market, Scotia Group slipped out of the TOP10 and Radio Jamaica reentered.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.6, well below the market average of 14.7, while the Junior Market Top 10 PE sits at 6.6 versus the market at 12.8, important indicators of the level of the undervaluation of the ICTOP10 stocks currently. The Junior Market is projected to rise by 208 percent and the Main Market TOP10 an average of 275 percent, to May this year. The major concern for the Main Market achieving such gains by May is that the list is dominated by financial companies that are out of favour and may need to see the summer months before full interest of investor start to show.
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.
Overall, 291,324 shares were exchanged for US$20,906 compared with 260,566 units at US$12,989 on Thursday.
Sygnus Real Estate Finance USD share lost 0.6 of one cent in closing at 8.9 US cents and trading 13,505 stocks and Transjamaican Highway remained at 0.92 of one US cent in an exchange of 230,000 stock units.
Overall, 260,566 shares were traded for US$12,989 compared with 287,125 units at US$19,364 on Wednesday.
Proven Investments lost 0.84 of a cent to end at 19.16 US cents while exchanging 16,700 stock units, Sterling Investments popped 0.18 of a cent in closing at 1.99 US cents as 494 stocks passed through the market. Sygnus Credit Investments USD share ended at 9.51 US cents 16,850 units crossing the market and Transjamaican Highway remained at 0.92 of one US cent with investors exchanging 187,273 stocks.
Proven Investments ended at 20 US cents after 11,350 units were traded. Sterling Investments popped 0.01 of a cent to close at 1.81 US cents with 63,007 stock units changing hands, Sygnus Credit Investments USD share ended at 9.51 US cents after exchanging 12,385 stock units and Transjamaican Highway lost 0.07 of a cent to 0.92 of one US cent while exchanging 169,103 units.
Overall, 1,121,685 shares were traded for US$37,070 compared with 571,649 units at US$267,767 on Monday.
Proven Investments popped 0.01 of a cent to 20 US cents with the swapping of 8,932 stocks. Sterling Investments lost 0.07 of a cent to end at 1.8 US cents with an exchange of 36,993 units, Sygnus Credit Investments USD share rallied 0.01 of a cent to end at 9.51 US cents with an exchange of 20,712 stocks and Transjamaican Highway rose 0.02 of a cent to close at 0.99 of one US cent and closed with an exchange of 1,020,720 shares.