The Panic-Proof Portfolio (Stockchase Research)

Stockchase Research Editor: Michael O'Reilly This 720,000 boepd producer saw a four fold increase in net earnings over the year. The company has announced a deal to divest their UK and Norwegian assets for over $400 million. The new CEO has pledged to improve the company's safety record. It currently trades at 10x earnings and 1.5x book value and supports a ROE of 24%. It pays a good dividend, backed by a payout ratio under 40% of cash flow. We recommend placing a stop-loss at $32, looking to achieve $50 -- upside potential over 24%. Yield 4.79% (Analysts’ price target is $49.95)

Stockchase Research Editor: Michael O'Reilly This North American producer of packaging and tissue products recently beat earnings estimates by 50%. It trades under book value and only 7x earnings -- good value here. Its dividend is strong and growing, backed by a payout ratio under 40% of cash flow. We recommend placing a stop-loss at $8.00, looking to achieve $13.50 -- upside potential over 38%. Yield 5.3% (Analysts’ price target is $13.31)

Stockchase Research Editor: Michael O'Reilly This supplier of heavy equipment maintenance and service has had issues during the pandemic with staffing, but has been able to weather the effects of rising costs and still generate positive free cash flow. It trades at 10x earnings, 1.5x book, and supports a ROE of 18%. It pays a small dividend backed by a payout ratio under 20% of cash flow. We recommend placing a stop-loss at $12.00, looking to achieve $23.00 -- upside potential over 45%. Yield 2.1% (Analysts’ price target is $23.25)

(A Top Pick Jun 16/22, Down 13%)Stockchase Research Editor: Michael O'Reilly This PAST TOP PICK has triggered its stop at $14. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 15%.

Stockchase Research Editor: Michael O'Reilly This $124 billion market cap manufacturer of medical devices ranging from insulin pumps to pacemakers is the world's largest in its class. It has raised dividends for 46 consecutive years. It has been buying back stock while maintaining steady cash reserves and trades at just 2.4x earnings. The resumption in surgical procedures as the pandemic calms down is expected to lead to substantial uplift in EPS going forward. We recommend setting a stop loss at $79, looking to achieve $117 -- upside over 25%. Yield 2.92% (Analysts’ price target is $117.13)

Stockchase Research Editor: Michael O'Reilly Demand for luxury clothing lines in on the upswing as the ending of pandemic lockdowns welcomes back party gatherings. Recently reported earnings reflected that with EPS that beat expectations by over 60%, while supporting a ROE of 23%. It pays a good dividend yield that is backed by a payout ratio under 40% of cash flow. We recommend a stop loss at $85, looking to achieve $121 -- upside potential over 25%. Yield 2.99% (Analysts’ price target is $121.23)

Stockchase Research Editor: Michael O'Reilly This dividend Aristocrat trades at 16x earnings compared to peers at 33x. It has increased dividends for 48 consecutive years and boasts a payout ratio under 35% of cash flow. An aging home inventory suggests future home improvement demand should be sustained, even during a market down turn. We recommend a stop loss at $172, looking to achieve $238 -- upside potential over 21%. Yield 2.11% (Analysts’ price target is $237.53)

Stockchase Research Editor: Michael O'Reilly We reiterate CIEN, a 5G, router, and switches infrastructure company as a TOP PICK. No doubt supply chain delays, including sourcing out of China has been an issue, but the company has $4 billion in order backlogs. The company trades at 15x next year's earnings compared to peers at 34x. We recommend trailing up the stop loss (from $35) to $42, looking to achieve $72.50 -- upside potential over 42%. Yield 0% (Analysts’ price target is $72.35)

Stockchase Research Editor: Michael O'Reilly We reiterate AMAT, a bell-weather semiconductor maker, as a TOP PICK. Now trading at 14x earnings, compared to peers at 20x, it remains good value here, supporting a 57% ROE. Analysts expect earnings growth over 8% this year and 13% next. We recommend trailing up the stop loss (from $80) to $82, looking to achieve $146 - upside potential over 40%. Yield 1% (Analysts’ price target is $146.04)

Stockchase Research Editor: Michael O'Reilly We reiterate HMC as a TOP PICK. Its partnership with SONY is expected to roll out a series of electric vehicles in the next year ready for retail by 2025. It trades at 7x earnings, compared to peers at 29x and is trading under book value. Recently released earnings showed a build of over $900 million in cash reserves, while retiring over $300 million in debt and purchasing back $60 million worth of shares. We recommend trailing up the stop loss from ($21) to $23, looking to achieve $31.50 - upside over 22%. Yield 3.89% (Analysts’ price target is $31.51)

(A Top Pick Jul 14/22, Up 23.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with FSLR has achieved its target of $87. To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $50) to $65.

Stockchase Research Editor: Michael O'Reilly This producer of semiconductors used in EV for power management and for powering 5G infrastructure -- both set for explosive growth going forward is reiterated as a TOP PICK. The second largest supplier of chips to the automobile sector sees demand remaining strong and is reporting sales up 28% over the year. It is prudently using some cash reserves to buy back shares in support of a 40% ROE. We recommend trailing up the stop loss (from $135) to $140, looking to achieve $213 -- upside potential over 20%. Yield 1.93% (Analysts’ price target is $213.14)

Stockchase Research Editor: Michael O'Reilly As a safe, steady dividend payer TD is selected as a TOP PICK. Trading at 10x earnings and with a PEG ratio under 1.0, it is good value here. It also trades presently at under 2x book value. It continues to beat analyst earnings expectations and supports a 15% ROE. It pays a valuable dividend backed by a payout ratio of under 45% of cash flow. We recommend setting a stop loss at $68, looking to achieve $102 -- upside over 20%. Yield 4.3% (Analysts’ price target is $102.33)

Stockchase Research Editor: Michael O'Reilly With a reliable dividend growing annually at 5%, BNS is selected as a TOP PICK. Analysts expect earnings grow of 7% over the year. It trades at 9x earnings and only 1.3x book value. Earnings continue to beat expectations and support a 15% ROE. The dividend yield is great and is backed by a payout ratio under 50% of cash flow. We recommend a stop loss at $67.50, looking to achieve $90 -- upside potential over 18%. Yield 5.45% (Analysts’ price target is $90.04)

Stockchase Research Editor: Michael O'Reilly Recently reported earnings in this transportation company proved demand is on the rise. Revenues were up over 48% and margins widened, while operating income improved over 70% and net income increased 43%. We like that cash reserves increased over the quarter, while buying back shares and retiring debt. We recommend placing a stop loss at $43, looking to achieve $62.50 -- upside potential over 18%. Yield 0.95% (Analysts’ price target is $62.16)