The Panic-Proof Portfolio (Stockchase Research) Sonic Automotive SAH-N PAST TOP PICK Mar 11, 2021

Stockchase Research Editor: Michael O'Reilly SAH operates car dealerships. Its EchoPark used car business has benefitted from the pandemic, where sales were up 25% over the year and prices rose. They have plans to expand this segment further. New car dealerships held steady as lower volumes were offset by higher prices as well. Margins overall hit a record high at 68%, allowing EPS to beat expectations, up 52% on the year. It pays a small dividend backed by an expected payout ratio of 15% of cash flow. We would buy this with a stop-loss at $30, looking to achieve $51.50 -- 35% potential upside. Yield 0.97% (Analysts’ price target is $51.14)

(A Top Pick Feb 18/21, Up 39.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SAH is progressing well. We now recommend trailing the stop (from $40) to $500. If triggered, this would all but guarantee a net investment return of 27%, considering our recommendation to previously cover half the position.

(A Top Pick Feb 18/21, Up 25.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SAH has triggered its stop at $50. To remain disciplined, we recommend covering the balance of the position at this time. When combined with the previous recommendation to cover half the position, this results in a net investment gain of 27%.