The Panic-Proof Portfolio (Stockchase Research)

We reiterate EQNR, a North Sea energy producer based in Norway, as a TOP PICK.  Management sees 250-350 incremental LNG cargoes being required this year to make up for depletion of commercial and strategic reserves in Europe.  The stock trades at 7x earnings, 1.4x book and supports a ROE 0f 19%.  The robust dividend is backed by a payout ratio under 30% of cash flow.  We recommend trailing up the stop (from $18) to $22, looking to achieve $29 -- upside potential of 23%.  Yield 5.6%  

We reiterate this outdoor sports retailer as a TOP PICK.  Recently reported earnings, showed a 68% increase in free cash flow.  It trades at 9x earnings, under 2x book and supports a 24% ROE.  We like that cash reserves continue to grow as the company aggressively buys back shares and retires debt.  We recommend trailing up the stop (from $45) to $47, looking to achieve $63 -- upside potential of 17%.  Yield 0.7%

We reiterate NVDA as a TOP PICK.  News of a new Chinese AI competitor shook the value of the stock off its highs, but analysts feel US tech giants will continue to invest in American AI -- especially based on recent US Administration pledges to keep the US the king of AI.  The drop in share price has brought value to under 30x earnings -- compared to highs near 50x.  We like that recent reported earnings showed cash reserves building as shares are aggressively bought back and debt is retired.  We continue to recommend a stop at $116, looking to achieve $175 -- upside potential of 29%.  Yield 0.1% 

Our PAST TOP PICK with LUCK (formerly BOWL as of Dec. 2024) is progressing well.  We recommend trailing up the stop (from $9.50) to $11.00 at this time.  

Our PAST TOP PICK with LNG has triggered its stop at $215.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 33%, when combined with our previous guidance.  

Our PAST TOP PICK with ROIV has triggered its stop at $10.50.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment loss of 9%, when combined with our previous guidance.  

Our PAST TOP PICK with STCN is stagnating.  To remain disciplined, we recommend trailing up the stop (from $10) to $11 at this time.  

As a leader of metal resources production, we reiterate RIO as a TOP PICK.  Management is optimistic that a commitment to aluminum smelter development in Australia is supportive for the company's plans.  We like that cash reserves are growing, while debt is retired.  It trades at 9x earnings, under 2x book and supports a 20% ROE.  The robust dividend is backed by a payout ratio of 70% of cash flow.  We recommend trailing up the stop (from $49) to $58 at this time, looking to achieve $82 -- upside potential of 32%.  Yield 6.2%  

We reiterate PHYS as a TOP PICK.  This trust holds physical gold bullion that is unencumbered, trades in Canadian dollars and avoids operational risk associated to owning a gold producer.  Given uncertainty in world trade and geopolitics, it is a good holding at the moment.  We recommend trailing the stop up (from $25) to $29, looking to achieve $38 -- upside of 18%.  Yield 0%

We reiterate PSLV as a TOP PICK.  This trust holds physical silver that is unencumbered, trades in Canadian dollars and avoids operational risk associated to owning a metals producer.  Given uncertainty in world trade and geopolitics, it is a good holding at the moment.  We recommend trailing the stop up (from $11.50) to $13.00, looking to achieve $18.50 -- upside of 18%.  Yield 0%

Our PAST TOP PICK with DVN is progressing well.  To remain disciplined, we recommend trailing up the stop (from $25) to $31 at this time.  

Our PAST TOP PICK with JNJ is progressing well.  To remain disciplined, we recommend trailing up the stop (from $133) to $146 at this time.  

Our PAST TOP PICK with BRK/B is progressing well.  To remain disciplined, we recommend trailing up the stop (from $400) to $440 at this time.  

We reiterate RPRX as a TOP PICK.  The company is the largest holder of pharma based royalties, providing late stage funding for forward cash royalties.  The company just monetized a recent investment that netted $230 million -- a 76% return on investment -- allowing for a pay down in debt, continuation in share buy backs, and further product development.  The company trades at 8x earnings, 1.8x book and supports a ROE of 24%.  We recommend trailing up the stop (from $22) to $26, looking to achieve $40 -- upside potential of 25%.  Yield 2.6% 

We reiterate SNY as a TOP PICK.  Recently reported earnings showed sales growth for the third consecutive quarter that exceeded 10%.  Cash reserves are prudently being drawn down to retire debt and buy back shares.  It trades at 13x earnings, 1.6x book and supports a 25% ROE.  We recommend trailing up the stop (from $42) to $47, looking to achieve $64 -- upside potential of 20%.  Yield 2.7%