Back in IC TOP 10
The vast majority of listed companies on the Jamaica Stock Exchange will be releasing quarterly results by the end of the week and that could result in significant price movements for some. The major moves should apply mostly in the Junior Market that has several undervalued stocks.
The main market TOP 10 has two new additions this week with Pulse Investments surging back into the list with robust first-quarter results, suggesting that profit for the year could reach 50 cents per share. Scotia Group also returned to the top flight while Eppley and Proven Investments exited the listing. There was no change to the Junior Market TOP 10 list.
The top three Junior Market stocks continue to be led by Caribbean Producers with projected gains of 254 percent, followed by Iron Rock Insurance with a potential rise of 232 percent and Main Event with 221 percent.
Radio Jamaica remains the lead stock with projected gains of 170 percent, followed by Carreras in the number two spot with likely increases of 106 percent and Berger Paints with projected growth of 95 percent is next.
The main market closed the week with the overall PE of 17.6, up from 17.2 and the Junior Market at 12.1 from 11.8, based on current year’s earnings. The PE ratio for Junior Market Top 10 stocks averages 7.5, with the main market PE at 10.6.
The TOP 10 stocks now trade at a discount of 38 percent to the average for Junior Market stocks and main market stocks trade at a discount of 40 percent to the overall market.
IC TOP 10 stocks are likely to deliver the best returns to March next year. Projected earnings, along with the PE ratio for each company’s current fiscal year are used in determining 
potential gains with the likely gains ranked in descending order with highest-ranked being the most attractive. The increased 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.
This report is compiled by persons who may have an interest in the securities commented on.