Opinions The Panic-Proof Portfolio (Stockchase Research)
Shell plcSHELTOP PICKJul 06, 2023
Stock price when the opinion was issued
As of Oct 28, 2026. Market Open.
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Probably the biggest weight across his firm's portfolios is in energy producers -- poster children for the type of market we're in right now. These names are generating gobs of cash, raising dividends, paying down debt. Refining margins appear to be staying strong for an extended time.
Biggest risk to investors is inflation, with CPI and PPI data picking up globally. Strong-performing position. Leave well enough alone and hold.
See his Top Picks.
He took some profits. Canada's jurisdiction is safe, and we have ample resources. Money's now being made in energy, people like the dividend, and ESG pushback has declined. Applauds growing its portfolio by purchasing ARX.
Attractive here, but wait for the "new normal" of oil pricing to kick in if there's peace in Iran.
Darren Sissons
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Premium contentPremium contentWe reiterate SHEL, a global integrated producer of all things energy - including LNG and renewables, as a TOP PICK. Its global presence makes it an excellent candidate during the current geopolitical uncertainty. Recent quarterly earnings showed the company is prudently using some cash reserves to aggressively buy back shares and analysts expect a 40% income boost in the next earnings report. It trades at 15x earnings, 1.4x book and supports a 10% ROE. We recommend trailing up the stop (from $73) to $85, looking to achieve $108 — upside potential of 18%. Yield 1.6%
(Analysts’ price target is $94.91)Premium contentSHEL is a global integrated producer of all things energy - including LNG and renewables. It can make money in high and low oil price environments as it controls the supply chain from wellhead to gas pump. It is nearing an agreement to begin investment in Venezuela following the removal of their president recently. It trades at 15x earnings, 15x book and supports a 10% ROE. We recommend setting a stop-loss at $73, looking to achieve $106 — upside potential over 19%. Yield 3.2%
(Analysts’ price target is $86.17)The technical fundamentals in the oil sector are rising with increasing returns on invested capital. It is at a good valuation and actually very cheap. There are growth catalysts in new fields: the lubricants business, carbon capture, LNG. It has taken almost $4 billion in costs out of the business. It is doing the right things in an out-of-favour sector. Buy 11 Hold 9 Sell 0
(Analysts’ price target is $83.68)Darren SissonsDemand for carbon energy is still there within the broader, increasing demand for all energy. Plus, a place like Canada doesn't have the grid to support EVs the way some other countries can. People want nuclear, but not in their backyards. So what's the alternative?
Buying back shares in significant quantities. You make $$ when you buy, not when you sell. Good value, likes it long term. Dividend is safe. Yield is 3.84%.
Darren SissonsThey exited the renewables business. Huge share buybacks. Attractive price now and would hold long term.
Darren SissonsHis favourite name in the space. Performed extremely well. Chart is much more attractive than, say, BP. Fundamental and quant measures also point to this name.
Stan Wong
Very strong dividend. Excellent assets with ability for long term growth. Consistent share buyback program excellent for long term investors. Sector currently "out of favor" which is creating opportunity for investors. Would recommend buying, and owns shares.
Darren SissonsPremium contentOur 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%.
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%
(Analysts’ price target is $72.40)