The Panic-Proof Portfolio (Stockchase Research)

Following better than expected Q4 earnings, we again reiterate DAL as a TOP PICK.  EPS growth was 45% over the year and the partnership with AMEX added another $2 billion to the bottom line.  Management expects 10% earnings growth in 2025 as premium routes allow margins to continue to grow.  We recommend trailing up the stop (from $54) to $60, looking to achieve $83 — upside potential of 19%.  Yield 0.7%

The Greece based container ship company trades under 2x earnings, under book value and supports a ROE of 25%.  We like that cash reserves are growing, while shares are bought back.  The healthy dividend is backed by a payout ratio under 20% of cash flow.  We recommend setting a stop-loss at $17, looking to achieve $30 — upside potential of 36%.  Yield 7.2%

This operator of midsized tankers used for refined petroleum and chemicals has reduced its daily cost of operations by 30% to deal with tight market conditions.  This has allowed the company to generate growth in cash reserves, while retiring debt.  The healthy dividend is backed by a payout ratio under 40% of cash flow.  We recommend setting a stop-loss at $8.50, looking to achieve $17.00 — upside potential of 41%.  Yield 8.6%

Our PAST TOP PICK with ATKR has triggered its stop at $66.  To remain disciplined, we recommend covering the position at this time.  

Our PAST TOP PICK with DOO has triggered its stop at $67.  To remain disciplined, we recommend covering the position at this time.

Our PAST TOP PICK with AEM has achieved its target at $140.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $92) to $112 at this time.

Our PAST TOP PICK with LULU is progressing well.  To remain disciplined, we recommend trailing up the stop (from $310) to $367 at this time.  

Our PAST TOP PICK with DE is progressing well.  To remain disciplined, we recommend trailing up the stop (from $401) to $441 at this time.

AOMR invests in first lien mortgages not qualified for conventional financing within the US.  It provides a tax effective distribution combed with a return of capital.  As such its  robust dividend has a high payout ratio.  We like that cash reserves are holding steady as the company aggressively retires debt.  It trades at 8x earnings, under book value and supports a ROE of 29%.  We recommend setting a stop-loss at $8.00, looking to achieve $12.50 -- upside potential of 21%.  Yield 12.5%  

Recently reported earnings for GRBK, a builder of new homes in the US southern states, showed all time record high quarterly home closings and EPS -- both increasing 25% over the year.  It trades at 8x earnings, under 2x book and supports a 25% ROE.  The company is prudently using cash reserves to retire debt and buy back shares.  We recommend setting a stop-loss at $43, looking to achieve $74 -- upside potential of 19%.  Yield 0% 

HY manufactures robotic forklifts, trucks and other automated material handling products for sale globally.  The company has made significant investment into AI enhancements and the company possesses a backlog of $2.3 billion in orders.  We like that cash reserves are holding steady as the company aggressively retires debt and buys back shares.  It trades at 10x earnings, 1.8x book and supports a ROE of 37%.  We recommend setting a stop-loss at $40, looking to achieve $72 -- upside potential over 30%.  Yield 2.5%

Our PAST TOP PICK with CMCSA has triggered its stop at $35.  To remain disciplined, we recommend covering the position at this time.  

The insurer of private homes and autos in the Los Angeles area has traded down aggressively as the wildfires have raged.  Although analysts expect EPS to be reported at near zero this quarter, the outlook for the end of the fires looks positive and we think the news is fully discounted in the share price now.  It trades at 5x earnings, 1.5x book and supports a 34% ROE.  We recommend setting a stop-loss at $35, looking to achieve $70 -- upside potential of 40%.  Yield 2.5%

AGIO is a biopharma company focusing on various cancer treatments.  It continues to advance its pipeline of new rare disease treatments include one for anemia blood disorder.  It has recently sold a royalty for one of its drugs that is increasing cash reserves dramatically.  We like that it trades at 3x earnings, 1.2x book and supports a ROE of 53%.  We recommend setting a stop-loss at $21, looking to achieve $43 -- upside potential of 28%.  Yield 0%

We reiterate SBS, Brazil's largest provider of environmental and sanitation services as a TOP PICK.  We like that cash reserves continue to grow, it trades at 6x earnings, under 2x book and supports a 27% ROE.  We recommend trailing up the stop (from $11.25) to $14.00, looking to achieve $20.00 -- upside potential of 23%.  Yield 1.6%