The Panic-Proof Portfolio (Stockchase Research)
Superior Industries International, Inc.
SUP-N
TOP PICK
Apr 04, 2023
Stockchase Research Editor: Michael O'Reilly
SUP is the world's leading aluminum wheel supplier, with sales diversified in North America and Europe. Net income doubled over the year as operating cash flow improved sharply. Growing cash reserves allowed sizable debt reductions. It trades under book value, while boasting a ROE of 22%. We recommend placing a stop loss at $4.00, looking to achieve $10.00 -- upside potential of 90%. Yield 0%
Largest aluminum wheel producer in the world. If the auto industry turns around this company will benefit. If things don't work out, they have big pile of cash and no debt. This is how he likes to play the automotive industry.
Aluminum wheel production for cars. This is a technical deep value play. No debt. Sitting on $250 million of cash of which they only need $50 million. Trades at under 10X, so it is cheap. A little over 3% dividend.
SUP is the world's leading aluminum wheel supplier, with sales diversified in North America and Europe. Net income doubled over the year as operating cash flow improved sharply. Growing cash reserves allowed sizable debt reductions. It trades under book value, while boasting a ROE of 22%. We recommend placing a stop loss at $4.00, looking to achieve $10.00 -- upside potential of 90%. Yield 0%
(Analysts’ price target is $10.50)