The Panic-Proof Portfolio (Stockchase Research) Shell plc SHEL-N TOP PICK Apr 07, 2022

We reiterate SHEL as a TOP PICK.  The new CEO re-committed to deploying capital into the highest returns that play to their strengths.  This is after the previous CEO vowed to reduce production annually through 2030.  Cash reserves are growing and the company is generating $45 billion in free cash flow annually.  It trades at 6x earnings, at book value, and supports a 23% ROE.  We continue to recommend a stop-loss at $55, looking to achieve $72 --upside potential of 22%.  Yield 1.8%

With growing cash reserves, a 15% ROE and trading at 1.1x book value, we reiterate SHEL as a TOP PICK.  The company is introducing the fastest EV recharging stations at its Singapore stations, using renewable solar sources.  We recommend trailing up the stop (from $56) to $57, looking to achieve $72, upside potential of 17%.  Yield 1.8%  

Our PAST TOP PICK with SHEL is progressing well. To remain disciplined, we recommend trailing up the stop (from $57) to $62 at this time.  

Our PAST TOP PICK with SHEL has triggered its stop at $62.  To remain disciplined, we recommend covering the position at this time.  When combined with our previous recommendations, this will result in a net investment gain of 5%.