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Latest Top Picks
Stockchase Research Editor: Michael O'Reilly OPEN is a new player to the real estate sales platform space and it promises to be a disruptor. Its platform offers both residential buyers and sellers to transact. What makes it different from its competitors is that they actually purchase inventory, which allows it to not only profit on the fees from both sides, but also to capture arbitrage profits. Several on the management team come from Uber. We would buy this with a stop-loss at $19, looking to achieve at least $38.00 -- over 38% upside. This one has enormous upside potential. Yield 0% (Analysts’ price target is $51.50)
Stockchase Research Editor: Michael O'Reilly VRTX is a pharmaceutical company that is world renowned in its treatment for cystic fibrosis. The company is estimated to have increased its cash position by almost $2 billion, leaving it plenty in the tank to develop other life changing drugs likes ones being developed for sickle cell disease and AAT deficiency. We would buy this with a stop-loss at $200, looking to achieve $290 -- over 25% upside potential. Yield 0% (Analysts’ price target is $289.66)
Stockchase Research Editor: Michael O'Reilly As COVID-19 vaccines roll out around the world, there is the expectation that economies will begin turning back up and energy demand will rise accordingly. DVN has managed to keep debt under control (with none due until after 2025), see positive cash flow over the past 12 months, and devise a dividend strategy that is market responsive. All this because of the quality of assets. We would buy this with a stop-loss at $14, looking to achieve $26 -- upside of 30%. Yield 2.25% (Analysts’ price target is $25.70)
(A Top Pick Dec 15/20, Up 36.8%)Stockchase Research Editor: Michael O'Reilly Following a 4:1 stock consolidation last month, which effectively made our recommended acquisition cost be $5.48, our PAST TOP PICK with HEXO has achieved its equivalent target of $7.50. We are recommending to cover 50% of the position to remain disciplined. We are also suggesting to trail up the stop to $4.50.
(A Top Pick Aug 18/20, Down 10.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with NGT has moved through our stop. We are recommending to cover the position. We will look for other opportunities.
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TOP PICK
TOP PICK
Stockchase Research Editor: Michael O'Reilly OPEN is a new player to the real estate sales platform space and it promises to be a disruptor. Its platform offers both residential buyers and sellers to transact. What makes it different from its competitors is that they actually purchase inventory, which allows it to not only profit on the fees from both sides, but also to capture arbitrage profits. Several on the management team come from Uber. We would buy this with a stop-loss at $19, looking to achieve at least $38.00 -- over 38% upside. This one has enormous upside potential. Yield 0% (Analysts’ price target is $51.50)
REAL ESTATE
TOP PICK
TOP PICK
January 19, 2021
Stockchase Research Editor: Michael O'Reilly VRTX is a pharmaceutical company that is world renowned in its treatment for cystic fibrosis. The company is estimated to have increased its cash position by almost $2 billion, leaving it plenty in the tank to develop other life changing drugs likes ones being developed for sickle cell disease and AAT deficiency. We would buy this with a stop-loss at $200, looking to achieve $290 -- over 25% upside potential. Yield 0% (Analysts’ price target is $289.66)
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Stockchase Research Editor: Michael O'Reilly VRTX is a pharmaceutical company that is world renowned in its treatment for cystic fibrosis. The company is estimated to have increased its cash position by almost $2 billion, leaving it plenty in the tank to develop other life changing drugs likes ones being developed for sickle cell disease and AAT deficiency. We would buy this with a stop-loss at $200, looking to achieve $290 -- over 25% upside potential. Yield 0% (Analysts’ price target is $289.66)
Pharma & Healthcare
TOP PICK
TOP PICK
January 19, 2021
Stockchase Research Editor: Michael O'Reilly As COVID-19 vaccines roll out around the world, there is the expectation that economies will begin turning back up and energy demand will rise accordingly. DVN has managed to keep debt under control (with none due until after 2025), see positive cash flow over the past 12 months, and devise a dividend strategy that is market responsive. All this because of the quality of assets. We would buy this with a stop-loss at $14, looking to achieve $26 -- upside of 30%. Yield 2.25% (Analysts’ price target is $25.70)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly As COVID-19 vaccines roll out around the world, there is the expectation that economies will begin turning back up and energy demand will rise accordingly. DVN has managed to keep debt under control (with none due until after 2025), see positive cash flow over the past 12 months, and devise a dividend strategy that is market responsive. All this because of the quality of assets. We would buy this with a stop-loss at $14, looking to achieve $26 -- upside of 30%. Yield 2.25% (Analysts’ price target is $25.70)
oil/gas
PAST TOP PICK
PAST TOP PICK
January 19, 2021
(A Top Pick Dec 15/20, Up 36.8%)Stockchase Research Editor: Michael O'Reilly Following a 4:1 stock consolidation last month, which effectively made our recommended acquisition cost be $5.48, our PAST TOP PICK with HEXO has achieved its equivalent target of $7.50. We are recommending to cover 50% of the position to remain disciplined. We are also suggesting to trail up the stop to $4.50.
Show full opinionHide full opinion(A Top Pick Dec 15/20, Up 36.8%)Stockchase Research Editor: Michael O'Reilly Following a 4:1 stock consolidation last month, which effectively made our recommended acquisition cost be $5.48, our PAST TOP PICK with HEXO has achieved its equivalent target of $7.50. We are recommending to cover 50% of the position to remain disciplined. We are also suggesting to trail up the stop to $4.50.
PAST TOP PICK
PAST TOP PICK
January 19, 2021
(A Top Pick Aug 18/20, Down 10.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with NGT has moved through our stop. We are recommending to cover the position. We will look for other opportunities.
Show full opinionHide full opinion(A Top Pick Aug 18/20, Down 10.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with NGT has moved through our stop. We are recommending to cover the position. We will look for other opportunities.
PAST TOP PICK
PAST TOP PICK
January 19, 2021
(A Top Pick Oct 06/20, Down 7.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MCD has breached our $210 stop. We are recommending to cover the position at this time. We will look for other opportunities.
Show full opinionHide full opinion(A Top Pick Oct 06/20, Down 7.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MCD has breached our $210 stop. We are recommending to cover the position at this time. We will look for other opportunities.
food services
TOP PICK
TOP PICK
January 14, 2021
Stockchase Research Editor: Michael O'Reilly OGI is a cannabis producer serving the Canadian market. Recent earnings disappointed on the revenue side (down by 23%), but management is noting that adult recreational use is up 30% over the year. The company is now producing positive cash flows (in 2 of the last 3 quarters), building its cash position, and is successfully paying off debt. We would buy this with a stop-loss at $1.40, looking to achieve $3.50 -- upside potential of 55%. Yield 0% (Analysts’ price target is $3.43)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly OGI is a cannabis producer serving the Canadian market. Recent earnings disappointed on the revenue side (down by 23%), but management is noting that adult recreational use is up 30% over the year. The company is now producing positive cash flows (in 2 of the last 3 quarters), building its cash position, and is successfully paying off debt. We would buy this with a stop-loss at $1.40, looking to achieve $3.50 -- upside potential of 55%. Yield 0% (Analysts’ price target is $3.43)
Other Agricultural Products
TOP PICK
TOP PICK
January 14, 2021
Stockchase Research Editor: Michael O'Reilly KBH is a US homebuilder. Recently reported revenues were disappointing -- down over 23% -- but sales prices were 5% higher backed by the expectation of continued low interest rates. Overall, EPS of $1.12 came in $0.18 higher than analyst expectations. The company reported orders volumes increased 50% putting order backlogs at 15 year highs. It trades at 10x earnings compared to sector averages over 34x -- making this good value here. It pays a small dividend, backed by a 13% payout ratio. We would buy this with a stop-loss at $27, looking to achieve $44 -- over 22% upside. Yield 1.71% (Analysts’ price target is $43.13)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly KBH is a US homebuilder. Recently reported revenues were disappointing -- down over 23% -- but sales prices were 5% higher backed by the expectation of continued low interest rates. Overall, EPS of $1.12 came in $0.18 higher than analyst expectations. The company reported orders volumes increased 50% putting order backlogs at 15 year highs. It trades at 10x earnings compared to sector averages over 34x -- making this good value here. It pays a small dividend, backed by a 13% payout ratio. We would buy this with a stop-loss at $27, looking to achieve $44 -- over 22% upside. Yield 1.71% (Analysts’ price target is $43.13)
contractors
TOP PICK
TOP PICK
January 14, 2021
Stockchase Research Editor: Michael O'Reilly TSN is the world's largest meat producer, selling to over 140 countries. The pandemic caused operational issues with outbreaks at its numerous facilities, but those have been virtually all resolved. It pays a great dividend, backed by a 29% payout ratio. It trades at 13x earnings, compared to a sector average of 43x, making it good value here. We would buy this with a $50 stop-loss, looking to achieve $80 -- potential upside of over 22%. Yield 2.78% (Analysts’ price target is $80.00)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly TSN is the world's largest meat producer, selling to over 140 countries. The pandemic caused operational issues with outbreaks at its numerous facilities, but those have been virtually all resolved. It pays a great dividend, backed by a 29% payout ratio. It trades at 13x earnings, compared to a sector average of 43x, making it good value here. We would buy this with a $50 stop-loss, looking to achieve $80 -- potential upside of over 22%. Yield 2.78% (Analysts’ price target is $80.00)
food processing
PAST TOP PICK
PAST TOP PICK
January 14, 2021
(A Top Pick Nov 24/20, Up 23.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with INTC has achieved our $58 objective. To be disciplined, we recommend covering 50% of the position. We would also recommend trailing up the stop to $47 -- right around the initial suggested entry level.
Show full opinionHide full opinion(A Top Pick Nov 24/20, Up 23.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with INTC has achieved our $58 objective. To be disciplined, we recommend covering 50% of the position. We would also recommend trailing up the stop to $47 -- right around the initial suggested entry level.
electrical/electronic
PAST TOP PICK
PAST TOP PICK
January 14, 2021
(A Top Pick Dec 17/20, Up 24.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with APHA has achieved our $12.50 objective. To be disciplined, we recommend covering 50% of the position. We also recommend trailing up the stop to $8.00.
Show full opinionHide full opinion(A Top Pick Dec 17/20, Up 24.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with APHA has achieved our $12.50 objective. To be disciplined, we recommend covering 50% of the position. We also recommend trailing up the stop to $8.00.
agriculture
TOP PICK
TOP PICK
January 12, 2021
Stockchase Research Editor: Michael O'Reilly RBC recently upgraded home builder DHI based on current trends in the housing market and its affordable regional focus (largely in Texas) is well positioned. It trades at only 10.5x earnings, compared to 32x for the construction space. With a PEG ratio of 0.72, it is good value based on EPS growth expected to be over 13% next year, following a 49% increase this year. It pays a small dividend backed by a payout ratio of only 10%. We would buy this with a stop-loss at $59, looking to achieve $89 -- over 30% upside potential. Yield 1.18% (Analysts’ price target is $89.21)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly RBC recently upgraded home builder DHI based on current trends in the housing market and its affordable regional focus (largely in Texas) is well positioned. It trades at only 10.5x earnings, compared to 32x for the construction space. With a PEG ratio of 0.72, it is good value based on EPS growth expected to be over 13% next year, following a 49% increase this year. It pays a small dividend backed by a payout ratio of only 10%. We would buy this with a stop-loss at $59, looking to achieve $89 -- over 30% upside potential. Yield 1.18% (Analysts’ price target is $89.21)
contractors
TOP PICK
TOP PICK
January 12, 2021
Stockchase Research Editor: Michael O'Reilly VZ is a defensive stock that pays you to hold it with a great dividend, backed by a payout ratio of only 56%. The company provides internet, cable and phone services -- all of which are deemed essential in today's world. It has already been launching 5G giving it an early advantage over competitors like AT&T. We would buy this with a stop-loss of $51, looking to achieve $67 -- upside of over 17%. Yield 4.37% (Analysts’ price target is $62.06)
Stockchase Research Editor: Michael O'Reilly VZ is a defensive stock that pays you to hold it with a great dividend, backed by a payout ratio of only 56%. The company provides internet, cable and phone services -- all of which are deemed essential in today's world. It has already been launching 5G giving it an early advantage over competitors like AT&T. We would buy this with a stop-loss of $51, looking to achieve $67 -- upside of over 17%. Yield 4.37% (Analysts’ price target is $62.06)
telephone utilities
TOP PICK
TOP PICK
January 12, 2021
Stockchase Research Editor: Michael O'Reilly This well known household product continues to put up solid results. Latest reported revenue was up over 26%, aggressively beating expectations, and gross margin continues to expand with increased cost efficiencies. Management just raised 2021 earnings guidance, above market expectations. The dividend is modest, but has increased in each of the past 11 years (backed by a payout ratio of 51%) and is due for another increase shortly. We would buy this with a stop-loss of $240, looking to target $353 -- over 20% upside. Yield 0.89% (Analysts’ price target is $353.00)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly This well known household product continues to put up solid results. Latest reported revenue was up over 26%, aggressively beating expectations, and gross margin continues to expand with increased cost efficiencies. Management just raised 2021 earnings guidance, above market expectations. The dividend is modest, but has increased in each of the past 11 years (backed by a payout ratio of 51%) and is due for another increase shortly. We would buy this with a stop-loss of $240, looking to target $353 -- over 20% upside. Yield 0.89% (Analysts’ price target is $353.00)
chemicals
PAST TOP PICK
PAST TOP PICK
January 12, 2021
(A Top Pick Sep 08/20, Down 9.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK has triggered our stop-loss at $60. We are recommending covering the position at this time. We will look for better opportunities.
Show full opinionHide full opinion(A Top Pick Sep 08/20, Down 9.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK has triggered our stop-loss at $60. We are recommending covering the position at this time. We will look for better opportunities.
food processing
PAST TOP PICK
PAST TOP PICK
January 12, 2021
(A Top Pick Nov 10/20, Up 29.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with COP has achieved its target of $46. We are recommending to cover 50% of the position to remain disciplined and to trail up the stop from $25 to $33.
Show full opinionHide full opinion(A Top Pick Nov 10/20, Up 29.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with COP has achieved its target of $46. We are recommending to cover 50% of the position to remain disciplined and to trail up the stop from $25 to $33.
integrated oils
PAST TOP PICK
PAST TOP PICK
January 12, 2021
(A Top Pick Oct 13/20, Up 40.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LEVI has achieved its $22 target. We are recommending to cover 50% of the position, to remain disciplined and to trail up the stop to $19. This would all but guarantee a 31% return on the investment.
Show full opinionHide full opinion(A Top Pick Oct 13/20, Up 40.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LEVI has achieved its $22 target. We are recommending to cover 50% of the position, to remain disciplined and to trail up the stop to $19. This would all but guarantee a 31% return on the investment.
Consumer Products
TOP PICK
TOP PICK
January 7, 2021
Stockchase Research Editor: Michael O'Reilly CALM produces and distributes eggs for sale to national grocery and food service companies. With more people cooking at home, sales have been strong -- up over 11% over the year and beating analyst expectations by 4%. EPS of $0.25, also beat expecations of a $0.08 loss. As restaurants re-open sales should grow further. Analysts expect the dividend to be re-instated soon. We would buy this with a stop-loss at $34, looking to achieve $47 -- just over 20% upside. Yield 0% (Analysts’ price target is $47.00)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly CALM produces and distributes eggs for sale to national grocery and food service companies. With more people cooking at home, sales have been strong -- up over 11% over the year and beating analyst expectations by 4%. EPS of $0.25, also beat expecations of a $0.08 loss. As restaurants re-open sales should grow further. Analysts expect the dividend to be re-instated soon. We would buy this with a stop-loss at $34, looking to achieve $47 -- just over 20% upside. Yield 0% (Analysts’ price target is $47.00)
food processing
TOP PICK
TOP PICK
January 7, 2021
Stockchase Research Editor: Michael O'Reilly With the economy looking to get back on its feet, this is a good entry for a high-quality energy producer. Trading at 85% of book value and with a PEG of 0.34, it is strong value now. We would buy with a stop-loss at $4.50, looking to achieve $8.75 -- upside potential of over 34%. Yield 4.64% (Analysts’ price target is $8.63)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly With the economy looking to get back on its feet, this is a good entry for a high-quality energy producer. Trading at 85% of book value and with a PEG of 0.34, it is strong value now. We would buy with a stop-loss at $4.50, looking to achieve $8.75 -- upside potential of over 34%. Yield 4.64% (Analysts’ price target is $8.63)
oil/gas
TOP PICK
TOP PICK
January 7, 2021
Stockchase Research Editor: Michael O'Reilly As the roll out of vaccines is falling behind projections in North America, the prospect of continued growth in electronic document signings could likely continue, contrary to several analyst opinions. Pipe Sandler has taken this view and has upgraded their outlook on the stock to $300. We would buy this with a stop-loss at $190, looking to achieve $285 -- about 20% upside. (Analysts’ price target is $275.39)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly As the roll out of vaccines is falling behind projections in North America, the prospect of continued growth in electronic document signings could likely continue, contrary to several analyst opinions. Pipe Sandler has taken this view and has upgraded their outlook on the stock to $300. We would buy this with a stop-loss at $190, looking to achieve $285 -- about 20% upside. (Analysts’ price target is $275.39)
Technology
PAST TOP PICK
PAST TOP PICK
January 7, 2021
(A Top Pick Oct 20/20, Up 21%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with JBH has progressed nicely to our $150 target. We are now recommending trailing up the stop to $124 (originally set at $110)-- the initial recommended entry level.
Show full opinionHide full opinion(A Top Pick Oct 20/20, Up 21%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with JBH has progressed nicely to our $150 target. We are now recommending trailing up the stop to $124 (originally set at $110)-- the initial recommended entry level.
Transportation
PAST TOP PICK
PAST TOP PICK
January 7, 2021
(A Top Pick Aug 25/20, Up 46.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with FL is progressing nicely. We are recommending trailing the stop up to $38, which should but all guarantee a minimum return of 23%, including covering 50% of the position last September.
Show full opinionHide full opinion(A Top Pick Aug 25/20, Up 46.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with FL is progressing nicely. We are recommending trailing the stop up to $38, which should but all guarantee a minimum return of 23%, including covering 50% of the position last September.
clothing stores
PAST TOP PICK
PAST TOP PICK
January 7, 2021
(A Top Pick Aug 25/20, Up 47.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PE continues to advance and has achieved our $16 target. To be disciplined, we are recommending covering 50% of the position and trailing up the stop to $12. This would all but guarantee an minimum return of 29%.
Show full opinionHide full opinion(A Top Pick Aug 25/20, Up 47.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PE continues to advance and has achieved our $16 target. To be disciplined, we are recommending covering 50% of the position and trailing up the stop to $12. This would all but guarantee an minimum return of 29%.
Energy
PAST TOP PICK
PAST TOP PICK
January 7, 2021
(A Top Pick Aug 25/20, Up 15.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with UNH is moving well. We are recommending to trail up the stop to $330, which should all but guarantee a minimum return of 10%.
Show full opinionHide full opinion(A Top Pick Aug 25/20, Up 15.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with UNH is moving well. We are recommending to trail up the stop to $330, which should all but guarantee a minimum return of 10%.
medical services
TOP PICK
TOP PICK
January 5, 2021
Stockchase Research Editor: Michael O'Reilly This is a bit of a contrarian play. After hitting highs over $550 per share in mid-October, ZM is now trading just above $355 -- over 35% cheaper. Although vaccines are rolling out, it could be that remote meetings may still be necessary until late summer. Other competitors have emerged in the space, but the platform of ZM remains the preference. Current operations have allowed them to accumulate over $700 million in cash over the year. We would buy this with a stop-loss at $250, looking for a return to $435 -- over 20% upside. Yield 0% (Analysts’ price target is $435.00)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly This is a bit of a contrarian play. After hitting highs over $550 per share in mid-October, ZM is now trading just above $355 -- over 35% cheaper. Although vaccines are rolling out, it could be that remote meetings may still be necessary until late summer. Other competitors have emerged in the space, but the platform of ZM remains the preference. Current operations have allowed them to accumulate over $700 million in cash over the year. We would buy this with a stop-loss at $250, looking for a return to $435 -- over 20% upside. Yield 0% (Analysts’ price target is $435.00)
Technology
TOP PICK
TOP PICK
January 5, 2021
Stockchase Research Editor: Michael O'Reilly LI is a manufacturer of smart electric SUVs in China, where EV sales there are expected to grow by 40% next year. December deliveries of EVs in general set new records. Sales by LI were up 530% over the year, which is now generating some significant cash flows. The company is heard to be a potential partner with Apple in their EV project. We would buy this with a stop-loss at $20, looking to target $44 -- over 40% upside. Yield 0% (Analysts’ price target is $44.20)
Stockchase Research Editor: Michael O'Reilly LI is a manufacturer of smart electric SUVs in China, where EV sales there are expected to grow by 40% next year. December deliveries of EVs in general set new records. Sales by LI were up 530% over the year, which is now generating some significant cash flows. The company is heard to be a potential partner with Apple in their EV project. We would buy this with a stop-loss at $20, looking to target $44 -- over 40% upside. Yield 0% (Analysts’ price target is $44.20)
Automotive
TOP PICK
TOP PICK
January 5, 2021
Stockchase Research Editor: Michael O'Reilly With branded outlets like Fatburger and Johnny Rockets, this restaurant franchiser is well known. As vaccines roll out, demand should continue returning for the franchise owners. System wide sales grew over 50% over the quarter with 12 new locations opening, bringing the total to 678 outlets. Another 26 outlets are fully committed for first-half 2021. This is expected to begin adding significantly to cash flows. We would buy this with a stop-loss at $4.00, looking to target $8.00 -- upside of 30%. Yield 0% (Analysts’ price target is $8.00)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly With branded outlets like Fatburger and Johnny Rockets, this restaurant franchiser is well known. As vaccines roll out, demand should continue returning for the franchise owners. System wide sales grew over 50% over the quarter with 12 new locations opening, bringing the total to 678 outlets. Another 26 outlets are fully committed for first-half 2021. This is expected to begin adding significantly to cash flows. We would buy this with a stop-loss at $4.00, looking to target $8.00 -- upside of 30%. Yield 0% (Analysts’ price target is $8.00)
food services
COMMENT
COMMENT
December 31, 2020
To all our loyal followers, from all the team at Stockchase, we wish you all a very Happy and Prosperous New Year!!!!
Show full opinionHide full opinionTo all our loyal followers, from all the team at Stockchase, we wish you all a very Happy and Prosperous New Year!!!!
TOP PICK
TOP PICK
December 31, 2020
Stockchase Research Editor: Michael O'Reilly BJ is a wholesale membership club that trades at about half the PE of WMT, at only 14x earnings. We think this space still has legs as we head into the new year. EPS grew by 31% this year, providing a PEG ratio of only 0.66 -- excellent value. We would buy this with a stop-loss of $24, looking to achieve over $51 -- over 33% upside potential. Yield 0% (Analysts’ price target is $51.37)
Stockchase Research Editor: Michael O'Reilly BJ is a wholesale membership club that trades at about half the PE of WMT, at only 14x earnings. We think this space still has legs as we head into the new year. EPS grew by 31% this year, providing a PEG ratio of only 0.66 -- excellent value. We would buy this with a stop-loss of $24, looking to achieve over $51 -- over 33% upside potential. Yield 0% (Analysts’ price target is $51.37)
department stores
TOP PICK
TOP PICK
December 31, 2020
Stockchase Research Editor: Michael O'Reilly LMT is focused on defense and aerospace. It trades at only 15 times earnings (compared to 90x for the aerospace sector) and pays a strong dividend backed by a 41% payout ratio. It just signed a $1.29 billion contract with the US Navy and has maintenance agreements with the Army and Navy that exceed $1 billion. It has set its sights on further space development, with a recent $4.4 billion acquisition that now includes deep-space rockets. We would buy this with a stop-loss at $320, looking to achieve $451 -- over 27% upside. Yield 2.94% (Analysts’ price target is $451.71)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly LMT is focused on defense and aerospace. It trades at only 15 times earnings (compared to 90x for the aerospace sector) and pays a strong dividend backed by a 41% payout ratio. It just signed a $1.29 billion contract with the US Navy and has maintenance agreements with the Army and Navy that exceed $1 billion. It has set its sights on further space development, with a recent $4.4 billion acquisition that now includes deep-space rockets. We would buy this with a stop-loss at $320, looking to achieve $451 -- over 27% upside. Yield 2.94% (Analysts’ price target is $451.71)
Transportation
TOP PICK
TOP PICK
December 31, 2020
Stockchase Research Editor: Michael O'Reilly The pandemic has helped revenues for grocers and SFM is no exception. Cash flow from operations is up 27% and it trades at less than 10x earnings. The grocer has been investing in digital marketing and new technology and continues to expand its reach, opening 6 new locations last quarter. Rumours abound that at these valuation levels, it could be ripe for being acquired. We would trade this with a stop-loss at $15, looking to acheive $25 -- about 25% upside. Yield 0% (Analysts’ price target is $24.63)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly The pandemic has helped revenues for grocers and SFM is no exception. Cash flow from operations is up 27% and it trades at less than 10x earnings. The grocer has been investing in digital marketing and new technology and continues to expand its reach, opening 6 new locations last quarter. Rumours abound that at these valuation levels, it could be ripe for being acquired. We would trade this with a stop-loss at $15, looking to acheive $25 -- about 25% upside. Yield 0% (Analysts’ price target is $24.63)
PAST TOP PICK
PAST TOP PICK
December 31, 2020
(A Top Pick Nov 05/20, Down 26.1%)Stockchase Research Editor: Michael O'Reilly OSTK has triggered our recommended stop-loss at $50. To be disciplined, we are recommending to cover the position at this time. We will look for better opportunities.
Show full opinionHide full opinion(A Top Pick Nov 05/20, Down 26.1%)Stockchase Research Editor: Michael O'Reilly OSTK has triggered our recommended stop-loss at $50. To be disciplined, we are recommending to cover the position at this time. We will look for better opportunities.
investment companies/funds
PAST TOP PICK
PAST TOP PICK
December 31, 2020
(A Top Pick Sep 01/20, Up 30.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK in PE has progressed nicely. We are recommending trailing up the stop to $11.50 -- just above the initial recommended buy level.
Show full opinionHide full opinion(A Top Pick Sep 01/20, Up 30.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK in PE has progressed nicely. We are recommending trailing up the stop to $11.50 -- just above the initial recommended buy level.
Energy
PAST TOP PICK
PAST TOP PICK
December 31, 2020
(A Top Pick Sep 15/20, Up 33.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BANF is progressing nicely. We recommend trailing up the stop to $50 (from $39 presently), which should all but guarantee a minimum return of over 13%.
Show full opinionHide full opinion(A Top Pick Sep 15/20, Up 33.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BANF is progressing nicely. We recommend trailing up the stop to $50 (from $39 presently), which should all but guarantee a minimum return of over 13%.
banks
PAST TOP PICK
PAST TOP PICK
December 31, 2020
(A Top Pick Oct 01/20, Up 32.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SU is advancing nicely. We recommend trailing the stop up to $17.75 (currently at $13.50). This would all but guarantee a minimum return over 9%.
Show full opinionHide full opinion(A Top Pick Oct 01/20, Up 32.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SU is advancing nicely. We recommend trailing the stop up to $17.75 (currently at $13.50). This would all but guarantee a minimum return over 9%.
integrated oils
PAST TOP PICK
PAST TOP PICK
December 31, 2020
(A Top Pick Oct 13/20, Up 29.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LEVI is doing well. We are recommending trailing up the stop to $17.50 (currently at $12.00). This would all but guarantee a minimum return exceeding 11%.
Show full opinionHide full opinion(A Top Pick Oct 13/20, Up 29.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LEVI is doing well. We are recommending trailing up the stop to $17.50 (currently at $12.00). This would all but guarantee a minimum return exceeding 11%.
Consumer Products
PAST TOP PICK
PAST TOP PICK
December 31, 2020
(A Top Pick Aug 04/20, Up 24%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with WCLD is progressing well. We are now recommending to add a trailing stop at $44. This will all but guarantee the initial investment.
Show full opinionHide full opinion(A Top Pick Aug 04/20, Up 24%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with WCLD is progressing well. We are now recommending to add a trailing stop at $44. This will all but guarantee the initial investment.
E.T.F.'s
PAST TOP PICK
PAST TOP PICK
December 31, 2020
(A Top Pick Jul 30/20, Up 21.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK in BAC continues to do well. We are recommending setting a trailing stop at $25, just above the initial recommending entry level.
Show full opinionHide full opinion(A Top Pick Jul 30/20, Up 21.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK in BAC continues to do well. We are recommending setting a trailing stop at $25, just above the initial recommending entry level.
banks
PAST TOP PICK
PAST TOP PICK
December 31, 2020
(A Top Pick Sep 17/20, Up 17.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with XRX is progressing well. We are recommending trailing up the stop to $21 (currently at $15). This will all but guarantee a minimum return exceeding 7%, based on our initial recommended entry.
Show full opinionHide full opinion(A Top Pick Sep 17/20, Up 17.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with XRX is progressing well. We are recommending trailing up the stop to $21 (currently at $15). This will all but guarantee a minimum return exceeding 7%, based on our initial recommended entry.
misc industrial products
TOP PICK
TOP PICK
December 29, 2020
Stockchase Research Editor: Michael O'Reilly DISH is positioning itself to be the fourth largest US wireless carrier and is keenly involved in 5G rollout. The stock was hit this month when it issued $2 billion in convertible notes. Recent earnings of $0.86 EPS, exceeded analysts calls for $0.53, backed by revenues that were up over 40% on the year. This has allowed cash holdings to rise to $2.8 billion. The company also continues to rank #1 in J.D. Power customer satisfaction surveys. We would buy this with a stop-loss at $22, looking to achieve $40 -- upside of 25%. Yield 0% (Analysts’ price target is $40.32)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly DISH is positioning itself to be the fourth largest US wireless carrier and is keenly involved in 5G rollout. The stock was hit this month when it issued $2 billion in convertible notes. Recent earnings of $0.86 EPS, exceeded analysts calls for $0.53, backed by revenues that were up over 40% on the year. This has allowed cash holdings to rise to $2.8 billion. The company also continues to rank #1 in J.D. Power customer satisfaction surveys. We would buy this with a stop-loss at $22, looking to achieve $40 -- upside of 25%. Yield 0% (Analysts’ price target is $40.32)
communications/media
TOP PICK
TOP PICK
December 29, 2020
Stockchase Research Editor: Michael O'Reilly BABA is China's equivalent to AMZN. Its value came under pressure with President Trump took direct aim at such non-US based company after the signing of the Holding Foreign Companies Accountable Act. However, if you believe a change in US Administration may leave room for a softening of tension, then this is a very good entry point. EPS was recently reported up 67%, exceeding the 5 year average EPS growth of 42%. Sales are growing over 30% annually. We would buy this with a stop-loss at $190, looking to achieve $340 -- over 44% upside potential. Yield 0% (Analysts’ price target is $338.82)
Stockchase Research Editor: Michael O'Reilly BABA is China's equivalent to AMZN. Its value came under pressure with President Trump took direct aim at such non-US based company after the signing of the Holding Foreign Companies Accountable Act. However, if you believe a change in US Administration may leave room for a softening of tension, then this is a very good entry point. EPS was recently reported up 67%, exceeding the 5 year average EPS growth of 42%. Sales are growing over 30% annually. We would buy this with a stop-loss at $190, looking to achieve $340 -- over 44% upside potential. Yield 0% (Analysts’ price target is $338.82)
TOP PICK
TOP PICK
December 29, 2020
Stockchase Research Editor: Michael O'Reilly SWI is a contrarian TOP PICK and is a bit more speculative in nature. Its Orion security platform was the victim of a much publicized cyber attack out of Russia, causing share value to understandably plummet over 40% from earlier in the month. However, only 25 customers out of 19,000 have actually had a breach and the company has since rolled out patches for the malware. Prior to all this, sales were growing by 180% and gross margins were over 70%. Their one-stop service offering makes it very inconvenient for subscribers to quickly move to competitors and its online subscriptions have been solid. We would buy this with a stop-loss at $12.50, looking to target analyst calls for $20 -- 33% upside potential. Yield 0% (Analysts’ price target is $19.91)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly SWI is a contrarian TOP PICK and is a bit more speculative in nature. Its Orion security platform was the victim of a much publicized cyber attack out of Russia, causing share value to understandably plummet over 40% from earlier in the month. However, only 25 customers out of 19,000 have actually had a breach and the company has since rolled out patches for the malware. Prior to all this, sales were growing by 180% and gross margins were over 70%. Their one-stop service offering makes it very inconvenient for subscribers to quickly move to competitors and its online subscriptions have been solid. We would buy this with a stop-loss at $12.50, looking to target analyst calls for $20 -- 33% upside potential. Yield 0% (Analysts’ price target is $19.91)
computer software
PAST TOP PICK
PAST TOP PICK
December 29, 2020
(A Top Pick Oct 22/20, Up 22.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GPK has achieved its $17 target. To be disciplined we are recommending covering 50% of the position. We are also recommending trailing the stop to $14 -- just above the original recommended entry level.
Show full opinionHide full opinion(A Top Pick Oct 22/20, Up 22.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GPK has achieved its $17 target. To be disciplined we are recommending covering 50% of the position. We are also recommending trailing the stop to $14 -- just above the original recommended entry level.
Consumer Products
TOP PICK
TOP PICK
December 24, 2020
Stockchase Research Editor: Michael O'Reilly URBN has established a strong online presence. New digital customers rose 45% last quarter. The company has had to hire extra workers to fulfill the demand. This is resulting in a sizable increase in cash holdings -- estimated at over $450 million on the year. With vaccines on the way, there is a lot of pent up consumer demand in general. We would trade this with a stop-loss at $21, looking to target $32 -- 18% upside. Yield 0% (Analysts’ price target is $31.41)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly URBN has established a strong online presence. New digital customers rose 45% last quarter. The company has had to hire extra workers to fulfill the demand. This is resulting in a sizable increase in cash holdings -- estimated at over $450 million on the year. With vaccines on the way, there is a lot of pent up consumer demand in general. We would trade this with a stop-loss at $21, looking to target $32 -- 18% upside. Yield 0% (Analysts’ price target is $31.41)
clothing stores
TOP PICK
TOP PICK
December 24, 2020
Stockchase Research Editor: Michael O'Reilly BDT operates as a contractor in the Canadian construction market. As new vaccines roll out, we bet work on infrastructure projects will ramp up quickly in the new year. It pays a good dividend that is backed by a 71% payout ratio. We would buy this with a $6.50 stop-loss, looking to target $10 -- over 25% upside. Yield 4.96% (Analysts’ price target is $9.58)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly BDT operates as a contractor in the Canadian construction market. As new vaccines roll out, we bet work on infrastructure projects will ramp up quickly in the new year. It pays a good dividend that is backed by a 71% payout ratio. We would buy this with a $6.50 stop-loss, looking to target $10 -- over 25% upside. Yield 4.96% (Analysts’ price target is $9.58)
REAL ESTATE
TOP PICK
TOP PICK
December 24, 2020
Stockchase Research Editor: Michael O'Reilly AP.UN is a REIT that manages office space primarily in Toronto and Montreal. As vaccines are rolling out, we expect the worst is now over for this space, signaling a time to re-enter. It trades at less than 7x earnings and pays a good dividend backed by a 29% payout ratio. We would buy this with a stop-loss at $33, looking to achieve $48 -- over 26% upside. Yield 4.38% (Analysts’ price target is $47.53)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly AP.UN is a REIT that manages office space primarily in Toronto and Montreal. As vaccines are rolling out, we expect the worst is now over for this space, signaling a time to re-enter. It trades at less than 7x earnings and pays a good dividend backed by a 29% payout ratio. We would buy this with a stop-loss at $33, looking to achieve $48 -- over 26% upside. Yield 4.38% (Analysts’ price target is $47.53)
investment companies/funds
COMMENT
COMMENT
December 24, 2020
To all the loyal followers of Stockchase Research, very merry Seasons Greetings! We wish you all an ever prosperous 2021.
Show full opinionHide full opinionTo all the loyal followers of Stockchase Research, very merry Seasons Greetings! We wish you all an ever prosperous 2021.
TOP PICK
TOP PICK
December 22, 2020
Stockchase Research Editor: Michael O'Reilly With the pandemic leading to people working at home, retail sales of MLHR office furniture were up 270% over the year. Although traditional commercial sales are down by a third. The company has focused on reducing expenses to help as well -- down $18 million over the year. Combined this has allowed cash holdings to rise over $200 million. We would buy this with a stop-loss at $22, looking for potential to $45 -- over 32% upside. Yield 2.20% (Analysts’ price target is $45.00)
Show full opinionHide full opinionStockchase Research Editor: Michael O'Reilly With the pandemic leading to people working at home, retail sales of MLHR office furniture were up 270% over the year. Although traditional commercial sales are down by a third. The company has focused on reducing expenses to help as well -- down $18 million over the year. Combined this has allowed cash holdings to rise over $200 million. We would buy this with a stop-loss at $22, looking for potential to $45 -- over 32% upside. Yield 2.20% (Analysts’ price target is $45.00)
Consumer Products
TOP PICK
TOP PICK
December 22, 2020
Stockchase Research Editor: Michael O'Reilly NRG is an electric utility that services 3.7 million customers. It trades at an 8x PE and earnings are expected to grow 12% next year -- pretty good for a conservative holding. It pays a great dividend backed by a payout ratio of 30%. We would buy this with a $28 top-loss looking to achieve $45 -- 30% upside. Yield 3.56% (Analysts’ price target is $44.67)
Show full opinionHide full opinion
Stockchase Research Editor: Michael O'Reilly OPEN is a new player to the real estate sales platform space and it promises to be a disruptor. Its platform offers both residential buyers and sellers to transact. What makes it different from its competitors is that they actually purchase inventory, which allows it to not only profit on the fees from both sides, but also to capture arbitrage profits. Several on the management team come from Uber. We would buy this with a stop-loss at $19, looking to achieve at least $38.00 -- over 38% upside. This one has enormous upside potential. Yield 0% (Analysts’ price target is $51.50)