IC TOP10 stocks to drive JM over 2800

The Junior Market is expected to blast pass the 2,800 the index mark, this coming week, following positive results just released by Lasco Manufacturing, Lasco Distributors and Jamaican Teas, to help the market to continue the 2021 rise after reaching a new eleven-month high, on Friday.
The market index closed just under 2,800 points, on Friday with a 5.8 percent gain for the year to date.
The market should continue to benefit from strong interest in Caribbean Flavours, Mailpac that traded at a record high on Friday at $4.43 before closing at $3.99 and from Lumber Depot.
Lasco Manufacturing and Honey Bun keep changing places in IC TOP10 best performing Junior Market stocks. At the close of the previous week, Lasco Manufacturing replaced Honey Bun, but this past week, the roles are reversed with both companies seeing a reversal of fortune in prices.
Lasco Manufacturing closed at $4.32 up from $3.90 last week, while Honey Bun price fell from $6 to $5.88. In addition, Lasco earnings per share were adjusted down to 35 cents from 37 cents, with the company reporting nine months results showing revenues rising 6 percent but being up 3.5 percent for the December quarter and earnings per share moving to 25 cents from 19 cents in 2019. Lasco Distributors earnings were also adjusted down, with the release of the nine months results showing earnings per share of 21 cents and 7 cents for the December quarter, putting the full-year numbers at 30 cents per share.
The Main Market TOP10 stocks continue with the same stocks as the week before, but Grace Kennedy price continues upward as interest in the stock remains strong.
The Junior Market is up 5.8 percent for 2021 and is currently powered by a bullish golden cross, setting to take the market beyond 3,000 points and likely beyond 4,000. The release of company results in the next week will play a big role in the next few weeks that will add fuel to the current rally. In this regard, based on 2020 release of results, interim financials are expected this week, from Access Financial, Barita Investments, General Accident, Iron Rock Insurance, Lasco Financial, Fontana, Elite Diagnostics, Honey Bun, JMMB Group and RJR.
The current TOP 10 report is based on earnings for 2020/21 as there are substantial gains ahead, for many stocks in the listings.
The top three Junior Market stocks with the potential to gain between 208 and 373 percent are Caribbean Producers followed by Elite Diagnostic and Lasco Financial. With expected gains of 132 to 324 percent, the top three Main Market stocks are, Berger Paints followed by Scotia Group and Sygnus Credit Investments.
The local stock market’s targeted average PE ratio is 20 based on profits of companies reporting full year’s results, from now to the second quarter in 2021. The Junior and Main markets are currently trading well below the market average, indicating strong gains ahead. The JSE Main Market ended the week, with an overall PE of 18.8 and the Junior Market 15, based on ICInsider.com’s projected 2020-21 earnings. The PE ratio for the Junior Market Top 10 stocks average a mere 8.3 at just 55 percent of the market average. Main Market TOP 10 stocks trade at a PE of 9.1 or 48 percent of the PE of that market.
The average projected gain for the Junior Market IC TOP 10 stocks is 169 percent and 133 percent for the JSE Main Market, based on 2020-21 earnings. IC TOP10 stocks are likely to deliver the best returns up to March 2021 and ranked in order of potential gains, based on likely gain for each company, taking into account the earnings and PE ratios for the current fiscal year. Expected values will change as stock prices fluctuate and result in movements in and out of the lists weekly. 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.

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