2024 Quarter 2

Albatross 1.4 is a proprietary algorithm that identifies optimal stocks in terms of cash flow and price.

In the first quarter of 2024, the U.S. economy experienced a modest growth, with GDP increasing at an annual rate of 1.3%. Inflation, as indicated by the Consumer Price Index (CPI), stands at approximately 3.2%, which is above the Federal Reserve’s target inflation rate of 2%. To manage inflation, the Federal Reserve has set the base interest rate at 5.5%. The unemployment rate is currently at 4.1%, reflecting a relatively stable labor market.

1. **Agilysys Inc (AGYS)**: Agilysys is a technology company that provides software solutions for the hospitality industry, including property management, point of sale, and inventory systems. Financially, Agilysys has a P/E (TTM) ratio of 35, indicating growth expectations. It has a strong current ratio of 2.4, reflecting solid liquidity, and maintains a return on equity (ROE,TTM) of 53% and return on assets (ROA, TTM) of 32 %, showcasing moderate profitability.

2. **Check Point Software Technologies Ltd (CHKP)**: An Israeli-based cybersecurity firm offering network security solutions such as firewalls and advanced threat prevention. The company has a P/E ratio of 18, suggesting it is valued modestly compared to its earnings. With a current ratio of 1.82, Check Point is in a stable financial position. It has a robust ROE of 21% and ROA of 14%, indicating strong profitability. Has earnings growth for more than 3 years.

3. **CSW Industrials, Inc. (CSWI)**: A diversified industrial growth company operating in industrial products, specialty chemicals, and construction materials. CSW Industrials boasts a P/E ratio of 46, showing healthy earnings growth prospects. The company has a high current ratio of 2.7, signifying strong liquidity, with an ROE of 18% and ROA of 10%, reflecting solid returns. Has earnings growth for more than 3 years.

4. **Electronic Arts Inc. (EA)**: A leading video game company known for franchises like FIFA and The Sims. EA has a P/E (TTM) ratio of 35, indicating moderate growth expectations. Its current ratio of 1.4 shows good liquidity, while its ROE of 16 % and ROA of 7% highlight its profitability in the gaming industry. Does not have earnings growth for more than 3 years.

5. **EnerSys (ENS)**: A global leader in stored energy solutions, providing industrial batteries for various applications. EnerSys has a P/E ratio of 15, suggesting reasonable earnings valuation. The company’s current ratio is 2.7, indicating sufficient liquidity. EnerSys also reports an ROE of 16% and ROA of 7%, demonstrating steady profitability. Does not have sustained revenue growth for last three years.

6. **Hawkins Inc (HWKN)**: A chemical distribution and manufacturing company serving various industries, including agriculture and energy. Hawkins has a P/E ratio of 32, reflecting balanced earnings growth. With a current ratio of 2.3, the company is financially healthy, and it has an ROE of 20% and ROA of 11%, indicating strong financial performance. Does not have sustained revenue growth for last three years.

7. **Modine Manufacturing Co (MOD)**: A company specializing in heat transfer products like radiators and HVAC systems. Modine’s P/E ratio is 38, indicating a more conservative valuation. It has a current ratio of 1.8, showing adequate liquidity. Modine’s ROE is 23%, with an ROA of 9%, pointing to efficient asset use and profitability.

8. **Oracle Corp (ORCL)**: A multinational technology company known for its database management systems, cloud services, and enterprise software. Oracle has a P/E ratio of 22, reflecting positive earnings growth potential. The current ratio stands at 2.1, indicating a solid liquidity position. Oracle boasts a high ROE of 194% and ROA of 7%, signifying strong profitability and effective use of assets. Has sustained revenue growth for last three years.

9. **RBC Bearings Inc (RBCP)**: A manufacturer of precision bearings and components for industrial, aerospace, and defence sectors. RBC Bearings has a P/E ratio of 30.45, indicating high growth expectations. Its current ratio of 3.0 reflects strong liquidity, while an ROE of 8% and ROA of 5% demonstrate solid financial returns.

10. **TJX Companies Inc (TJX)**: An off-price retailer offering discounted apparel and home goods through stores like T.J. Maxx and Marshalls. TJX has a P/E ratio of 29, suggesting steady earnings growth. With a current ratio of 1.6, the company has stable liquidity. TJX shows strong profitability with an ROE of 66% and ROA of 13%. Has earnings growth for more than 3 years.

11. **Advanced Drainage Systems, Inc. (WMS)**: A leading manufacturer of thermoplastic corrugated pipes and water management products. The company has a P/E ratio of 25, indicating growth expectations. With a current ratio of 2.9, Advanced Drainage Systems is financially robust. It also reports an ROE of 45% and ROA of 14%, reflecting strong financial health. Does not have sustained revenue growth for last three years.

12. **WillScot Mobile Mini Holdings Corp (WSC)**: A provider of modular space and portable storage solutions, serving industries like construction and healthcare. WillScot Mobile Mini has a P/E ratio of 40, showing moderate growth expectations. The current ratio of 1.7 indicates sufficient liquidity, and the company has an ROE of 14% and ROA of 6%, highlighting its profitability.

Below portfolio was constructed 8/27/2024, CHKP was bought on 8/23/2024.The portfolio consists of CHKP, CSWI, MOD, ORCL, RBCP, TJX, WSC. Some items mentioned above were not included due to lack of revenue growth.

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