The Panic-Proof Portfolio (Stockchase Research)
America's Car-Mart, Inc.
CRMT-Q
PAST TOP PICK
Feb 18, 2021
(A Top Pick Nov 17/20, Up 27.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with CRMT has achieved its $134 target. To be disciplined, we recommending covering 50% of the position and trailing up the stop (from $85) to $120. This would all but guarantee an minimum investment return of 21%.
Stockchase Research Editor: Michael O'Reilly CRMT is a unique auto dealer, selling through e-commerce and brick & mortar locations. Recently released earnings showed EPS of $3.05 -- beating expectations by $0.70. Revenues are up over 17% over the year -- again beating expectations. The company is accumulating cash, while keeping debt flat. With peers trading at 23 times earnings, CRMT trades only 10 times. We would trade this with an $85 stop-loss, looking to achieve $134 -- over 20% upside. Yield 0% (Analysts’ price target is $134.00)
(A Top Pick Nov 17/20, Up 42%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with CRMT is progressing well. We are recommending to trail up the stop to $140. This would all but ensure a minimum investment return exceeding 30%, including the recommendation to cover 50% previously.
(A Top Pick Nov 17/20, Up 33.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with CRMT has triggered its stop at $140. We recommend covering any holdings at this time. Combined with our previous recommendation to cover 50% of the position, this results in a total investment return of 30%.
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