Latest Stock Buy or Sell?

Stockchase Research Editor: Michael O'Reilly The recent sell off in some key retailers (WMT and TGT, for example), are casting doubt on the strength of consumer spending -- a key driver in the US economy. Along with the threat of further interest rate increases, these concerns are signaling further market downside may be coming. It has never been more important to use a trailing stop to protect against sizable capital erosion that may take years to recover if a recession or stagflation take hold. We will continue to use the same metrics to identify good investment candidates (cash flow management; comparative valuation; earnings growth prospects; and good management strategy).

Stockchase Research Editor: Michael O'Reilly With the largest liquified natural gas portfolio and network of service stations, SHEL is ideally situated to benefit from global energy rebalancing caused by the conflict in Ukraine and is reiterated again as a TOP PICK. Recently reported earnings beat analyst expectations and support a good 14% ROE. It trades at only 1.25x book value. It pays a good dividend backed by a payout ratio under 35% of cash flow. We like how it has built up cash reserves while aggressively retiring debt and buying back shares. We continue to recommend a stop loss at $45, looking to achieve $69.50 -- upside potential over 28%. Yield 3.32% (Analysts’ price target is $69.39)

Stockchase Research Editor: Michael O'Reilly We again reiterate WCP as a TOP PICK. With a current cash flow breakeven level of $40 US, WCP expects to generate over $1.4 billion in excess cash flow after dividends. It should be debt-free by year end, analysts expect. It trades at 1.42x book value and pays a good dividend, backed by a payout ratio under 10% of cash flow. We continue to recommend a stop loss at $8.75, looking to achieve $13.50 -- upside potential of 34%. Yield 3.48% (Analysts’ price target is $13.54)

Stockchase Research Editor: Michael O'Reilly STLD is expected to benefit from the trend towards "onshoring" -- security of supply for key infrastructure -- and is again reiterated as a TOP PICK. As one of the largest US steel producers, it will also benefit from the Biden Administration infrastructure focus to easy supply chain delays and boost automobile production. It trades at 4x earnings, compared to peers at 10x. Most recent earnings again beat analyst expectations and supports a ROE of 70%. Its cash reserves are relatively unchanged, while it aggressively buys back shares and retire debt early. We continue to recommend a stop loss at $68, looking to achieve $101.50 -- upside potential over 30%. Yield 1.81% (Analysts’ price target is $101.50)

(A Top Pick Sep 14/21, Up 23.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LMT has triggered its stop at $425. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 21%, when considering the previous buy recommendation.

(A Top Pick Mar 31/22, Down 5.5%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with XLP has triggered its stop at $72. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 1%, when considering the previous buy recommendation.

(A Top Pick Jan 27/22, Up 6.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with DLTR has triggered its stop at $138. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 30%, when considering the previous buy recommendation.