The Panic-Proof Portfolio (Stockchase Research)

Recently reported operating income was up 33%, despite their exit from Russia in 2022.  Cash reserves are stable, while debt is retired and shares bought back.  It trades at 13x earnings, 3.5x book (a little expensive), and supports a robust 30% ROE.  Its dividend is backed by a payout ratio under 25% of cash flow.  We recommend setting a stop-loss at $28, looking to achieve $47 -- upside potential of 28%.  Yield 1.7%   

ALK has estimated the grounding by Boeing of its Max 9 fleet will likely hinder some of its capacity for a while.  For this the market clipped its share price by 20%, but now it is recovering following recently released earnings.  The company is reporting expanding margins in both passenger and cargo.  It trades at only 1.1x book and 13x earnings.  Quarterly cash reserves are growing as debt is retired and shares bought back.  We recommend setting a stop-loss at $31, looking to achieve $51 -- upside potential of 36%.  Yield 0%     

CNC provides healthcare to under-insured families and military personnel in the US.  Healthcare is a sector expected to grow for years to come as the population ages.  It trades at 1.6x book and 17x earnings.  Cash reserves are growing as stock is aggressively bought back and debt is retired.  We recommend placing a stop-loss at $63, looking to achieve $88 -- upside potential of 20%.  Yield 0% 

Our PAST TOP PICK with ATD has achieved its target at $82.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $70) to $74.  

CNHI is the global leader in the manufacturing of agricultural combine harvesters.  It continues to improve efficiency of its production line processes and integrate new technology to help farmers.  It trades at 7x earnings, under 2x book value and supports a robust 32% ROE.  It pays a good dividend, backed by a payout ratio under 25% of cash flow.  It is prudently using some cash reserves to aggressively retire debt and buy back shares.  We recommend placing a stop-loss at $9.50, looking to achieve $15.00 -- upside potential of 25%.  Yield 3.2%

The Singapore based company just completed its divestiture of its Nextracker subsidiary and now trades as Flex Ltd.  It partners with commercial and government entities to employ hi-tech supply chain solutions in 30 countries.  It trades at 13x earnings, under 2x book and supports a 22% ROE.  We recommend placing a stop-loss at $16, looking to achieve $33 -- upside potential of 40%.  Yield 0%      

LSXMA produces radio entertainment over satellite in the US and Canada and has over 34 million subscribers.  It trades at 12x earnings and at book value.  Quarterly cash reserves are growing, while debt is retired and shares bought back.  We recommend placing a stop-loss at $21.50, looking to achieve $40.00 -- upside potential of 28%.  Yield 0% 

Our PAST TOP PICK with ADM has triggered its stop at $67.  To remain disciplined, we recommend covering the position at this time.  Along with our previous recommendation, this will result in a net investment loss of 13%.

The UK insurance and financial services provider has over 18 million customers in 24 global markets.  Recently reported earnings were up 37% on the year as strong sales in Hong Kong and Chinese markets fueled growth.  It trades at 10x earnings, 1.6x book and supports a robust 20% ROE.  We recommend placing a stop-loss at $17, looking to achieve $30 -- upside potential of 48%.  Yield 0.9%  

RNR is a reinsurance provider, managing risks for property, casualty and specific perils.  The company managed its way way through this years severe storms in Q4.  It trades at 10x earnings, 1.6x book and supports a 20% ROE.  We recommend placing a stop-loss at $170, looking to achieve $242 -- upside potential of 16%.  Yield 0.7%  

EG is a Bermuda based reinsurance company who recently reported earnings of $678 million, 20% ROE and 23% growth in premiums written.  January is a big month in renewals and the company believes they are well positioned.  It trades at 7x earnings and 1.4x book.  We recommend placing a stop-loss at $315, looking to achieve $447 -- upside potential of 22%.  Yield 1.8%    

As the company once again increased its dividend for the 24th consecutive year, we again reiterate this US energy infrastructure giant as a TOP PICK.  It pays a great dividend, is retiring debt aggressively, while still growing cash reserves.  It trades at 11x earnings, 2.2x book and supports a 19% ROE.  We recommend maintaining the stop at $24, looking to achieve $32 -- 18% potential upside.  Yield 7.3%  

We reiterate PKI as a TOP PICK.  It trades at 18x earnings, 2.5x book and supports a 15% ROE -- healthy for a retailer.  It has secured low cost government funding to expand its EV charging infrastructure in BC.  We like that cash reserves are growing, which is allowing them to continue to retire previous debt.  We recommend trailing up the stop (from $38) to $41, looking to achieve $53 -- upside potential of 19%.  Yield 3.0%   

LUN mines base metals such as copper and zinc in Brazil. Chile, Portugal, Sweden and the US.  Management just reaffirmed 2024 guidance on production and is hitting an all time high in copper production for the company.  It trades at 1.3x book, 18x earnings and is growing cash reserves as debt is aggressively retired.  It pays a small dividend backed by a payout ratio under 60% of cash flow.  We recommend setting a stop-loss at $7.50, looking to achieve $12.50 -- upside potential of 20%.  Yield 2.5%   

Our PAST TOP PICK with VZ is progressing well.  To remain disciplined, we recommend trailing up the stop (from $33) to $36 at this time.