The Panic-Proof Portfolio (Stockchase Research) Tower Semiconductor Ltd. TSEM-Q TOP PICK Feb 08, 2022

Stockchase Research Editor: Michael O'Reilly TSEM is a producer of semiconductors -- a space much in the news for the shortage of supply. With a focus on chips for the auto manufacturing sector, they are particularly well positioned. Trading at 30x earnings, it is very competitive to its peers at over 62x. Earnings are expected to grow another 60% this year. We would buy this with a stop loss at $23, looking to achieve $38 -- upside potential over 38%. Yield 0% (Analysts’ price target is $38.25)

Stockchase Research Editor: Michael O'Reilly We reiterate TSEM as a TOP PICK. The producer of semiconductors -- a space much in the news for the shortage of supply -- focuses on chips for the auto manufacturing sector. They are trading at 30x earning compared to peers at 35x and are valued just over 2x book value. It continues to pay down debt. We would buy this with a stop loss at $23, looking to achieve $38 -- upside potential over 28%. Yield 0% (Analysts’ price target is $37.75)

Stockchase Research Editor: Michael O'Reilly We again reiterate TSEM as a TOP PICK. The producer of semiconductors -- a space much in the news for the shortage of supply -- focuses on chips for the auto manufacturing sector. The US Infrastructure Bill (with emphasis on EV transportation going forward) bodes well for the company. They are trading at 31x earning compared to peers at 80x and are valued just under 3x book value. We like that they continue to pay down debt. We recommend trailing up the previously recommended stop (from $23) to $31, looking to achieve $44.50 - 18% upside potential Yield 0% (Analysts’ price target is $44.25)

(A Top Pick Feb 08/22, Up 33.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with TSEM has achieved its $47 objective. To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $31) to $35.

Stockchase Research Editor: Michael O’Reilly We again reiterate TSEM as a TOP PICK following the announcement by Intel to acquire the company for $53 per share. This acquisition helps Intel’s foundry strategy and would give it capacity and expertise to pursue its expansion plans particularly in the US where Tower already has fabrication facilities in California and Texas. With Intel’s cash it can expand faster than TSEM by itself - a win-win. We recommend trailing the stop up from $35 to $40, waiting for the deal to close — upside potential over 12%. Yield 0% (Analysts’ price target is $53.00)

(A Top Pick Feb 08/22, Up 35.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with TSEM is progressing well. We now recommend trailing up the stop (from $40) to $45 at this time.

(A Top Pick Mar 08/22, Down 4.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with TSEM has triggered its stop at $45. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 25%, when combined with the previous buy recommendations.