Today, The Panic-Proof Portfolio (Stockchase Research) and Keith Richards commented about whether CASH.TO, PPL.TO, AA, HIVE.TO, BYD.TO, OKTA, BCE.TO, WM, MDA.TO, MRK, KO, MSFT, CTVA, DOL.TO, CIGI.TO, TOU.TO, EFR.TO, LNC, CSU.TO, ENB.TO, T.TO, GSK, IGF, GL, ANDG, EOG are stocks to buy or sell.
He's not bullish yet. Since early summer, he has moved from neutral to high risk, when there's more market volatility. The S&P is below 7,600; if it stays here, it becomes technical support, and likely fall to 7,300. The crowd is getting very bearish because they've seen the market fall for the past month. He predicts a little more downside before we reach capitulation, which is the time he will buy. We're getting there. He still holds 20% cash, and is ready to deploy it.
The Texas based oil and gas producer recently reported a doubling of net income and a 24% increase in production over last year. At a time of rising energy prices, this allowed an aggressive cash reserve build up last quarter as shares were aggressively bought back. It trades at 12x earnings, 2.5x book and supports a 22% ROE. We recommend setting a stop-loss at $133, looking to achieve $181 -- upside potential of 18%. Yield 2.6%
(Analysts’ price target is $163.59)