The Panic-Proof Portfolio (Stockchase Research)

We again reiterate MAL as a TOP PICK.  The Canadian company sees its defense industry products having lots of runway ahead.  Recently reported earnings showed a 52% increase in net income over the year, growing cash reserves and they plan to continue to buy back shares.  We recommend trailing up the stop (from $22) to $26, looking to achieve $41 -- upside potential over 30%.  Yield 0.6%  

We again reiterate KINS, a regional property and casualty insurance provider as a TOP PICK.  The company plans to expand into California very soon.  It recently reported a 28% increase in net premiums collected and management expects ROE to continue in the 20-24% range for 2026.  It trades at 7x earnings and 2x book.  We continue to recommend a stop at $14, looking to achieve $21 -- upside potential over 28%.  Yield 1.2%

We again reiterate CGI as a TOP PICK.  The company holds a basket of specially selected companies in the technology, healthcare, energy and financial sectors with no single entity representing more than 5% of the portfolio.  We recommend trailing up the stop (from $45) to $50, looking to achieve $63 -- upside potential of 18%.  Yield 2.2%

Our PAST TOP PICK with RPRX has triggered its stop at $52.  To remain disciplined, we recommend covering the position at this time.  When combined with previous guidance, this will result in a net investment gain of 61%.  

Our PAST TOP PICK with EQNR has triggered its stop at $33.  To remain disciplined, we recommend covering the position at this time.  When combined with previous guidance, this will result in a net investment gain of 20%.  

Our PAST TOP PICK with PDBC has triggered its stop at $16.50.  To remain disciplined, we recommend covering the position at this time.  When combined with previous guidance, this will result in a net investment loss of 9%.  

Our PAST TOP PICK with CNQ has triggered its stop at $60.  To remain disciplined, we recommend covering the position at this time.  When combined with previous guidance, this will result in a net investment gain of 3%.  

Our PAST TOP PICK with APA has triggered its stop at $34.  To remain disciplined, we recommend covering the position at this time.  When combined with previous guidance, this will result in a net investment gain of 7%.  

As the Canadian economy appears more resilient than analysts estimate, we reiterate RY again as a TOP PICK.  Most recent quarterly earnings showed growing cash reserves, while debt was retired and shares bought back.  The Capital Markets division saw a 23% increase in earnings over the year.  The dividend has grown over 10% annually over the past five years.  We recommend trailing up the stop (from $242) to $251, looking to achieve $333 -- upside potential of 18%.  Yield 2.2%

We reiterate ELF as a TOP PICK.  It trades at 5x earnings, under book value and supports a 14% ROE.  Latest earnings showed a healthy growth in cash reserves, all on the back of improving operations.  We continue to recommend a stop at $15.50, looking to achieve $20.00 - upside potential of 17%.  Yield 0.9%

Following recently reported earnings that set records for commercial loans and deposits, we reiterate BLX as a TOP PICK.  The Panama based bank is growing business in the the South American market while growing cash reserves and aggressively retiring debt.  It trades at 10x earnings, 1.3x book and supports a 14% ROE.  The dividend is backed by a payout ratio under 50% of cash flow and has been growing 30% annually over the past five years.  We recommend trailing up the stop (from $50) to $53, looking to achieve $71 -- upside potential of 18%.  

Our PAST TOP PICK with AVGO has triggered its stop at $378.  To remain disciplined, we recommend covering the position at this time.  When combined with our previous guidance, this will result in a net investment gain of 2%.

We reiterate MRK as a TOP PICK.  Sales of its top cancer treatment drug, which accounts for the marjority of its revenues, is expected to more than triple its current $8 billion sales by 2028 and it has a long pipeline of new drugs, with plans to release over 20 by 2030.  It trades at 23x earnings and supports a ROE of 27%.  Cash reserves are growing, while shares are bought back, albeit with an increase in debt.  We continue to recommend a stop at $110, looking to achieve $143 -- upside potential of 18%.  Yield 2.7%

We again reiterate GL,  a Texas based personal insurance and medicare supplemental provider as a TOP PICK.  It's a steady performer that trades at 11x earnings, 2x book and supports a 21% ROE.  The company is prudently using some cash reserves to aggressively buy back shares and retire debt.  We recommend trailing up the stop (from $136) to $150, looking to achieve $195 -- upside potential of 18%.  Yield 0.7%  

We reiterate NVDA as a TOP PICK.  Whether it is robotics, self-driving vehicles or new data centres, their chips are central to growth in these and many other sectors.  It trades at 37x earnings and supports an amazing ROE of 97%.  Cash reserves are at the highest levels in at least 5 years and the company continues to aggressively buy back shares.  We continue to recommend a stop at $182, looking to achieve $263 -- upside potential of 28%.  Yield 0%