The Panic-Proof Portfolio (Stockchase Research)Bunge Ltd.BGPAST TOP PICKJan 11, 2024

Stockchase Research Editor: Michael O'Reilly

With recently reported sales beating analyst estimates, we reiterate BG as a TOP PICK.  Tightening margins did shave something of the top end earnings for this international agribusiness company, but we liked that cash reserves continue to grow, while debt is aggressively retired and shares bought back.  It trades at 9x earnings, 1.5x book and supports a 20% ROE.  The dividend is backed by a payout ratio under 20% of cash flow.  We continue to recommend a stop at $95, looking to achieve $134 -- upside potential of 26%.  Yield 2.4%

(Analysts’ price target is $134.67)

Stockchase Research Editor: Michael O'Reilly

This Missouri based ag company has entered into a merger that will expand its global footprint.  Recently reported earnings were up 25% on the year.  We like that cash reserves are growing, while the company aggressively retires debt.  It trades at 9x earnings and 1.6x book, while supporting a 19% ROE.  We recommend placing a stop-loss at $95, looking to achieve $136 -- upside potential of 19%.  Yield 2.2%  

(Analysts’ price target is $136.45)

(A Top Pick Sep 03/20, Up 78.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BG has triggered its stop at $82. We recommend covering the balance of the holdings at this time. Combined with the previous recommendation to cover 50%, this secures a total investment return of 56%

(A Top Pick Sep 03/20, Up 93.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BG continues to make good progress. We now recommend trailing up the stop (from $72.50) to $82.00. If triggered, this would all but guarantee a minimum investment return of 56%, when considering the previous recommendation to cover half of the holding.

(A Top Pick Sep 03/20, Up 74.2%)Stockchase Research Editor: Michael O'Reilly We are recommending trailing up the stop to $72.50. This would all but guarantee a minimum investment return of 45%, including the previous recommendation to cover 50%.

(A Top Pick Sep 03/20, Up 33.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK BG has achieved its objective of $61, so we are being disciplined and recommending to cover 50% of the position. We would also recommend trailing the stop up to $53 -- currently at $51.

(A Top Pick Sep 03/20, Up 27.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK is progressing well. We now recommend trailing up the stop to $51 (from $38) -- this would all but insure a positive minimum 18% return.

Stockchase Research Editor: Michael O'Reilly BG operates as a agribusiness and food company worldwide. It is well diversified into five segments: agribusiness, edible oil, milling, sugar and bioenergy, and fertilizer. Recent reported EPS of $3.88, beat expectations of $1.31. Earnings growth is expected over 20% next year. It pays a nice dividend with a 44% payout ratio. Analysts see upside towards $61 -- over 30% upside. We would buy this now with a stop-loss at $38. Yield 4.40% (Analysts’ price target is $61.13)