Investment Strategy - The focus is on constructing investment portfolios that generate additional income through dividends by identifying companies with significant competitive advantages and strong financials [1] - The strategy combines high Dividend Yield and Dividend Growth companies to reduce dependence on broader stock market fluctuations [1] - A well-diversified portfolio across various sectors and industries is emphasized to minimize volatility and mitigate risk [1] Risk Management - Incorporating companies with a low Beta Factor is suggested to further reduce the overall risk level of the investment portfolio [1] - The selection process for high dividend yield and dividend growth companies is meticulously curated, prioritizing total return, which includes both capital gains and dividends [1] Portfolio Composition - Suggested investment portfolios typically consist of a blend of ETFs and individual companies, emphasizing broad diversification and risk reduction [1] - The approach aims to maximize returns while considering the full spectrum of potential income sources [1]

Core Viewpoint - The investment strategy focuses on fundamental, bottom-up analysis with an emphasis on long-term quality growth, targeting companies in niche markets with strong growth potential and reasonable valuations [1]. Group 1: Investment Strategy - The investment style is characterized by a long-term approach, avoiding short-term stock performance as a measure of quality [1]. - The portfolio typically consists of 15-20 stocks, emphasizing diversification, risk management, and macro-driven sector weights [1]. - The target annual return for the portfolio is set at 15% [1]. Group 2: Company Characteristics - The ideal companies for investment are those with strong management teams, sound capital allocation policies, and significant growth potential [1].

Group 1 - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets [1] - Investment diversification has become a strategy for individuals, moving away from traditional savings in banks and properties [1] - The popularity of insurance companies in the Philippines has influenced investment choices since 2014 [1] Group 2 - Initial investments were made in blue-chip companies, but there is now a broader portfolio across various industries and market capitalizations [1] - The US market was entered in 2020, expanding investment opportunities beyond the Philippine market [1] - The use of analytical tools and resources, such as Seeking Alpha, has enhanced comparative analysis between the US and Philippine markets [1]

Core Viewpoint - Stocks priced under $10 offer an attractive entry point for investors looking to diversify their portfolios and maximize growth potential without significant capital outlay [1] Group 1: Ford Motor Company - Ford Motor Company is currently trading at $9.98 with a dividend yield of 6.02% and a P/E ratio of 6.83, indicating strong value [2][3] - The company reported record revenue of $185 billion for the full year of 2024 and has a positive outlook for 2025, with significant investments in electric vehicle (EV) infrastructure totaling up to $50 billion by 2026 [3] - Ford aims to achieve 2 million annual EV sales by 2026 while maintaining its internal combustion engine vehicle business [3] Group 2: Nokia Oyj - Nokia Oyj is trading at $5.14 with a dividend yield of 1.55% and a P/E ratio of 20.58, positioning it as a key player in telecommunications [5] - The company exceeded Q4 2024 earnings expectations and projects a Comparable Operating Profit between $2.1 billion and $2.7 billion for 2025, alongside strong free cash flow [6] - Nokia's leadership in 5G infrastructure and expansion into high-growth markets like data center networking enhances its revenue diversification [7] Group 3: Goodyear Tire & Rubber Company - Goodyear is currently priced at $9.67 with a P/E ratio of 40.29, indicating potential undervaluation [8][9] - The company reported a full-year 2024 segment operating income of $1.318 billion, reflecting a $350 million year-over-year increase, driven by its "Goodyear Forward" transformation plan [11] - Goodyear aims to achieve $1.5 billion in annual run-rate benefits by the end of 2025 through cost reductions and margin expansion [10] Group 4: Standard Lithium Ltd. - Standard Lithium is trading at $1.23 with a P/E ratio of 2.08, representing a high-risk, high-reward investment opportunity in the EV battery supply chain [12] - The company focuses on innovative Direct Lithium Extraction technology and has received a conditional $225 million grant from the U.S. Department of Energy for its South West Arkansas Project [14] - Standard Lithium's projects in Arkansas position it well to meet the surging demand for lithium in EV batteries [13] Group 5: Mereo BioPharma Group - Mereo BioPharma is priced at $2.45 and focuses on developing drug candidates for rare diseases, presenting a high-risk, high-reward investment opportunity [15] - The company's pipeline includes late-stage candidates Setrusumab and Alvelestat, with Setrusumab receiving Breakthrough Therapy Designation from the U.S. FDA [16] - Mereo has a cash runway extending into 2027, providing financial stability for its clinical programs [17] Group 6: Investment Opportunities - The five identified companies, all priced under $10, present compelling investment opportunities for Q2 2025, with established firms like Ford and Goodyear offering potential value and dividends, while Nokia, Standard Lithium, and Mereo BioPharma represent higher-risk, higher-reward prospects [18]

Core Insights - Investors should focus on financially healthy companies with competitive advantages and established industry positions that provide dividend income [1] Investment Strategy - The investment strategy emphasizes constructing portfolios aimed at generating additional income through dividends by identifying companies with strong financials and significant competitive advantages [1] - A combination of high Dividend Yield and Dividend Growth companies is recommended to reduce dependence on broader stock market fluctuations [1] - The strategy includes diversification across various sectors and industries to minimize portfolio volatility and mitigate risk [1] Portfolio Composition - Suggested investment portfolios typically consist of a blend of ETFs and individual companies, focusing on broad diversification and risk reduction [1] - The selection process for high dividend yield and dividend growth companies is meticulously curated, prioritizing total return, which includes both capital gains and dividends [1] - The approach aims to maximize returns while considering a full spectrum of potential income sources [1]

Financial Data and Key Metrics Changes - For Q4 2024, net revenues were $4.4 billion with adjusted EBITDA of $536 million and an adjusted EBITDA margin of 12% [5][34] - For the fiscal year 2024, net revenues were $17.9 billion with adjusted EBITDA of $2.2 billion, translating into an adjusted EBITDA margin of 12.4% [8][34] - Adjusted EBITDA in the U.S. for Q4 was $371.6 million with adjusted EBITDA margins at 14.2% [35] - The U.S. business maintained momentum with net revenues of $10.63 billion and adjusted EBITDA of $1.56 billion, achieving a 14.7% margin [39] Business Line Data and Key Metrics Changes - The U.S. Fresh portfolio improved, with Big Bird expanding margins due to strong commodity cutout values and operational excellence [6] - Prepared Foods sales grew due to increased interest in brand offerings in retail and food service [6][25] - In Europe, margins expanded through optimization of the manufacturing network, with stable sales in retail [7][40] - Mexico's adjusted EBITDA for Q4 was $36.9 million, significantly up from $6.8 million last year, with an 11.8% adjusted EBITDA margin [41] Market Data and Key Metrics Changes - U.S. chicken production is projected to increase by 2.5% compared to Q4 2023, with production growth driven by increased headcount [10] - The USDA indicated that overall protein availability is expected to grow by only 1.2%, with a significant decline in beef availability, supporting demand for chicken [12] - Fresh proteins in retail benefited as the cost of eating out increased, leading to strong consumer demand for chicken [13] Company Strategy and Development Direction - The company is focused on a diversified portfolio to capture market upside and meet consumer demand [5] - Continued investment in operational excellence and innovation is prioritized to drive profitable growth [29][45] - The company aims to expand its capacity in the U.S. Prepared Foods business to meet growth trajectories [45] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand for chicken in both retail and food service, driven by its affordability [54] - The company expects continued strong demand for chicken products, particularly during the summer [82] - Management acknowledged challenges in hatchability and livability but is optimistic about improving management practices over time [104] Other Important Information - The company reported $476 million in CapEx for the year, with plans to spend between $450 million and $500 million in 2025 [44] - The company has a strong liquidity position with approximately $3.1 billion in total cash and available credit [43] Q&A Session Summary Question: Market dynamics in Q4 and early Q1 - Management highlighted strong demand for chicken due to its affordability and menu penetration in food service, despite some production challenges [54][55] Question: Capital allocation and CapEx guidance - Management indicated that the CapEx guidance of $450 million to $500 million is focused on sustaining operations and smaller growth projects, with further discussions expected at the Investor Day [58][59] Question: U.S. margins and grain pricing - Management explained that their diversified portfolio allows them to capture upside while protecting against downside volatility, with operational excellence initiatives contributing to improved performance [62] Question: Mexico's market dynamics - Management expressed confidence in Mexico's growing economy and continued investment, noting that demand for chicken products remains strong [72][76] Question: Impact of weather disruptions - Management acknowledged that weather events can disrupt operations but emphasized their geographic diversification helps mitigate significant impacts [110]