BLX is the largest commercial bank operating in Panama. Recently reported earnings showed a 23% increase in deposits as well as net income. It trades at 7x earnings, at book value and supports a 16% ROE. Cash reserves are growing, while supporting a robust dividend yield whose payout ratio is under 40% of cash flow. We recommend setting a stop-loss at $32, looking to achieve $47 — upside potential of 24%. Yield 5.6%
Our PAST TOP PICK with BLX is progressing well. To remain well, we recommend trailing up the stop (from $32) to $36 at this time.