IPO closure lifts ICTOP10

The Jamaica Stock Main Market recorded gains to close out the past week on a positive note, but the performance only resulted in moderate changes in prices of ICTOP10 Main Market stocks, the Junior Market Index was flat compared with the prior week but resulted in some sizable price changes with one stock dropping out of the TOP10 as the Initial Public offer of Regency Petroleum shares was oversubscribed and closed and liquidity started returning to the market.
Access Financial dropped out of the Junior Market TOP10 after rising 11 percent for the week in making way for Medical Disposables to return.
Unlike last week when seven Junior Market TOP10 stocks declined between 3 percent and 20 percent, with only one rising this week. Rising stocks dominated, with five gaining 3 percent or more while three declined. CAC2000 ordinary share fell 15 percent to $7.06, Iron Rock Insurance was down 5 percent to $2.18 and Dolphin Cove lost 3 percent to close at $13.13. In the Junior Market, Paramount Trading recovered some of last week’s loss by rising 13 percent to $1.71, Lasco Financial popped 11 percent to close at $3, while Elite Diagnostic rose 4 percent to $3.49.
The Main Market 10 had just two stocks rising for a second week and six declining between four and nine percent last week. This past week, four rose 2 percent and 3 percent.
At the end of the week, the average PE for the JSE Main Market TOP 10 is 5.7, well below the market average of 13.4. At the same time, the Junior Market Top 10 PE sits at 5.9 versus the market at 12, an important indicator of the level of undervaluation of the ICTOP10 stocks. The Junior Market is projected to rise by 246 percent and the Main Market TOP10, an average now of 269 percent, to May 2023.
The Junior Market has 12 stocks representing a third of the market, with PEs from 15 to 35, averaging 20 compared with the above average of the market. The top half of the market has an average PE of 17. This data shows the extent of potential gains that the TOP 10 stocks possess. The situation in the Main Market is similar, with the 16 highest valued stocks priced at a PE of 15 to 73, with an average of 24.7 and 21.7 excluding the highest valued one and 19 for the top half excluding the highest valued stock.
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 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, 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.

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