tTech & Honey Bun leaves IC TOP 10

Lumber Depot is back in TOP 10 with the price at $1.50.

Jamaican stocks are off to a positive start for 2020, with the JSE all Jamaica Composite Index rising 2,715.02 points and Junior Market adding 29.23 points in two days.
This year’s movements are much stronger than for the same period in 2019 when the All Jamaica Index rose 796.77 points and the Junior Market gained 14.52 points.
Word reaching IC is that the prospectus for the Initial Public Offer for Caribbean Assurance Brokers should be out in a matter of days, but it could be as early as Monday.
At the close of the market this past Friday, the Junior Market had two new listings while the Main Market listings remained unchanged. Lasco Distributors and Lumber Depot that fell to $1.50, reentered the TOP 10, replacing Honey Bun that closed the week at $8.49 and tTech that ended the week at $5.50.
The JSE Main Market ended the week, with an overall PE of 21.2 and the Junior Market 14.6, based on current 2019 earnings. The PE ratio for Junior Market Top 10 stocks averages 9.4 with the Main Market 10.2.
The targeted average PE ratio is 25, with several stocks trading at that level or just under, in 22 times region, currently. The TOP 10 stocks now trade at a discount of 37 percent of the average for Junior Market and Main Market stocks trade at a discount of 48 percent to the overall market.
The average projected gain for the IC TOP 10 stocks is 177 percent for the Junior Market and 132 percent for JSE Main Market based mostly on 2019 earnings.
The top three Junior Market stocks currently are Medical Disposables with projected gains of 257 percent, followed by Main Event with 246 percent and Jamaican Teas with 204 percent likely capital growth.
Radio Jamaica still holds on to the lead of Main Market stocks with projected gains with 178 percent, followed by Carreras in the number two spot, with 174 percent and Sygnus US dollar-denominated stock, with 167 percent.
IC TOP 10 stocks are likely to deliver the best returns to March next year. Forecasted earnings and PE ratio for the current fiscal year are in determining potential gains. The projected increase for each stock is ranked, with highest-ranked being the most attractive. Expected values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

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

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