The ICTOP listing is meant to remove dreaming from investors’ arsenal of investment tools and place them on more solid grounds. The performance of Fosrich last week illustrates that vividly, with the stock hitting the pre-split equivalent of $54.20 on Wednesday only for the price to fall back to a low of $3 on Friday or the equivalent of $30 on a pre-split basis.
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.
Fosrich may have a bright future but what about the many stocks that are undervalued in the market, why chase expensive ones? When Fosrich reports second quarter earnings this coming week investors will get a glimpse to see whether it was smart to buy the stocks at the elevated prices last week. Investors made the same error with Salada Foods buying it at $10 when it was not worth much more than $3 now the stock is slowly adjusting to reality. Investors in Fesco at $8 are feeling the paid as the stock slowly retreats and is now under $6. Investors in SSL Venture Capital will soon discover some nastiness of speculating in the dark.
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.
Elite Diagnostic fell 9 percent to $3.21 and CAC 2000 dipped 3 percent to $8.25. Jetcon Corporation rose 9 percent to $1.27 and Caribbean Assurance Brokers rallied 8 percent to $2.60 after the company reported six months results showing a profit of $4.45 million, up from a loss of $31 million last year for the same period, ICInsider.com upgraded earnings to 45 cents per share, from 40 cents previously. The Main Market ended the week, with no significant price changes.
Investors should keep a careful watch on Caribbean Assurance Brokers, Dolphin Cove, Express Catering, General Accident, Jamaica Broilers, Lasco Distributors, Lasco Financial, Lasco Manufacturing, Stationery and Office Supplies and Paramount Trading. Dolphin Cove, Caribbean Producers, Express Catering will be major beneficiaries of the strong rebound in tourist arrivals and the supply of General Accident has declined sharply over the past few weeks, but investors may be reluctant to pile into the stock ahead of the hurricane season.
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 6 versus the market at 12.9. The Junior Market is projected to rise by 238 percent and the Main Market TOP10 is projected to gain an average of 235 percent each to May 2023.
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.
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.
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.
Overall, 1,735,411 shares traded for US$33,791 up from 117,636 units at US$21,357 on Thursday. Trading averaged 173,541 units at US$3,379, compared to 23,527 shares at US$4,271 on Thursday, with the month to date averaging 49,665 shares at US$3,449 versus 40,062 units at US$3,454 on the previous day. June ended with an average of 71,901 units for US$8,793. The JSE US Denominated Equities Index gained 3.86 points to end at 209.88.
gained 0.06 of a cent in closing at 0.96 US cents while exchanging 1,634,177 units.
Overall, 117,636 shares were traded for US$21,357 down from 474,951 units at US$37,897 on Wednesday. Trading averaged 23,527 units at US$4,271, compared to 59,369 shares at US$4,737 on Wednesday, with a month to date average of 40,062 shares at US$3,454 versus 40,729 units at US$3,421 on the previous day. Wednesday. June ended with an average of 71,901 units for US$8,793. The JSE US Denominated Equities Index lost 2.09 points to end at 206.02.
At the close, First Rock Capital USD share declined 0.5 of a cent to close at 6.5 US cents with 19,841 shares crossing the market, Proven Investments lost 0.95 of one cent after ending at 22.05 US cents with 64,947 units clearing the market, Sygnus Credit Investments USD share finished at 11.11 US cents in exchanging 4,762 stock units and Transjamaican Highway dropped 0.03 of a cent in closing at 0.9 of one US cent in an exchange of 23,586 stocks.
A total of 474,951 shares traded for US$37,897 versus 516,424 units at US$42,336 on Tuesday.
At the close, First Rock Capital USD share rose 0.05 of a cent to close at 7 US cents, with 344,935 shares clearing the market, Margaritaville rallied 2.98 cents to 14.98 US cents while a mere one stock crossed the exchange, MPC Caribbean Clean Energy fell 10 cents to US$1.30 with one stock unit trading. Productive Business Solutions ended unchanged at US$1.14 with just one stock unit crossing the market, Proven Investments advanced 0.41 of a cent to end at 23 US cents after an exchange of 55,481 stocks, Sygnus Credit Investments USD share declined 0.88 of one cent after ending at 11.11 US cents with the swapping of 4,603 units and Transjamaican Highway remained at 0.93 US cents with an exchange of 69,928 shares.
A total of eight securities traded, compared to six on Monday with three rising, one declining and four ending unchanged.
Margaritaville rallied 2 cents in closing at 12 US cents in trading a mere one unit, Productive Business Solutions ended unchanged at US$1.14 and closed trading with 24 stocks. Proven Investments advanced 0.08 of a cent to 22.59 US cents in exchanging 169,160 stock units, Sygnus Credit Investments USD share finished at 11.99 US cents, with 13,005 stock units crossing the market, Sygnus Real Estate Finance USD share remained at 13 US cents while exchanging 191 stocks and Transjamaican Highway fell 0.02 of a cent in closing at 0.93 of one US cent after 334,032 shares changed hands.
Overall, 19,706 shares traded for US$3,207 down from 755,182 units at US$24,741 on Friday. Trading averaged 3,284 units at US$535, versus 151,036 shares at US$4,948 on Friday, with a month to date average of 37,583 shares at US$3,185 compared to 39,601 units at US$3,341 on the previous trading day. June ended with an average of 71,901 units for US$8,793.
At the close, Margaritaville ended at 10 US cents with 3,200 shares traded, MPC Caribbean Clean Energy rose 2 cents to close at US$1.40 with an exchange of 9 stock units, Proven Investments lost 0.49 of a cent in closing at 22.51 US cents while exchanging 4,443 stocks. Sygnus Credit Investments USD share shed 0.01 of a cent to end at 11.99 US cents in trading 11,437 units and Transjamaican Highway advanced 0.06 of a cent to 0.95 of one US cent in an exchange of 145 stock units.
Investors should keep a careful watch on Dolphin Cove, Express Catering, General Accident, 
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 JSE US Denominated Equities Index lost 3.17 points to end at 208.06. The PE Ratio, a measure used in computing appropriate stock values, averages 8.6. The PE ratio uses ICInsider.com earnings forecasts for companies with financial year ending, up to August 2023.
At the close, First Rock Capital USD share remained at 6 US cents while exchanging 87,279 shares, Proven Investments fell 1.13 cents to close at 23 US cents with 6,603 stocks crossing the exchange, Sygnus Credit Investments USD share ended unchanged at 12 US cents after trading 12,257 stock units and Transjamaican Highway lost 0.05 of a cent to end at 0.9 US cents with 100,000 units crossing the market.
The JSE US Denominated Equities Index fell 0.99 points to close at 211.23. The PE Ratio, a measure used in computing appropriate stock values, averages 8.5. The PE ratio uses ICInsider.com earnings forecasts for companies with financial years ending up to August 2023.
Proven Investments shed 0.12 of a cent in ending at 24.13 US cents after trading 909 stock units. Sterling Investments fell 0.11 cents to 2 US cents with 4,700 units changing hands, Sygnus Credit Investments USD share increased 0.58 of one cent to end at 12 US cents with 9,412 shares clearing the market, Sygnus Real Estate Finance USD share fell 0.15 of a cent in closing at 13 US cents after finishing trading 383 stocks and Transjamaican Highway ended at 0.95 of one US cent, with 46,834 units crossing the market.
Overall, 73,220 shares were traded for US$8,686 compared to 88,015 units at US$8,502 on Monday. Trading averaged 9,153 units at US$1,086, versus 17,603 shares at US$1,700 on Monday, with month to date average of 35,405 shares at US$3,566 versus 38,169 units at US$3,827 on the previous day. June ended with an average of 71,901 units for US$8,793.
Proven Investments increased 1.25 cents to close at 24.25 US cents, with 6,755 stocks crossing the exchange. Sygnus Credit Investments USD share popped 0.02 of a cent in ending at 11.42 US cents in exchanging 10,000 units and Transjamaican Highway remained at 0.95 of one US cent, with four stock units changing hands.