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Best stock pitches (Thu, Apr 11)

Best stock pitches (Thu, Apr 11)

Connor Van Ooyen
April 11, 2024

In partnership with

About // Sponsor YBR // Yellowbrick Website // Twitter

👋 Good Morning!

This is the Yellowbrick Road where I share the best stock pitches from billion-dollar hedge funds, professional analysts, millionaire investors, and more!

Our AI read and summarized 128 stock pitches, 1431 news articles, and 91 insider trades and found:

A Canadian cannabis company with 200%+ upside (stock pitch)
March inflation tops estimates (news)
3 biggest insider trades (insider trade)
and more…

Thanks for reading! Feel free to share this email with any other investors that may like it.

Connor (follow the Yellowbrick Twitter account - @joinyellowbrick)

* If you missed yesterday’s email, don’t forget to read it here

TCL Electronics is up 38% in 3 weeks

Pyramids and Pagodas pitched TCL Electronics on Mar 19th when the stock price was HKD 3.04. In just three weeks, it’s jumped nearly 40%!

Great pick by them.

Upgrade to Yellowbrick Premium to get real-time access to the Yellowbrick website and a daily email with a short rundown of every stock pitch added to the website each day.

Yellowbrick Premium is the only way to make sure you see every great stock pitch posted online every day.

STOCK PITCHES

BLOG POST

AT&T: Uptrending With A 6.4% Yield, This Is A Buy-Every-Dip Stock

AT&T Inc. provides telecommunications and technology services worldwide. The company operates through two segments, Communications and Latin America

Ticker: T | Price: $16.71 | Price Target: $20 (+20%)
Market Cap: $121B | Timeframe: N/A

🗼 Telecommunications | 💰 6.4% Dividend | 📈 Bullish Idea

AT&T, a streamlined wireless provider, is raising prices and cutting costs. While debt is a concern, the 6.4% yield and potential upside from lower interest rates make new 52-week highs likely. The stock has a near-term target of $20 based on a price-to-earnings ratio of 8, which is at tobacco company levels despite AT&T's superior business. Investors should accumulate shares on dips or sell $17 put options.

Read the full article here. Read time: 6 min

BLOG POST

Idea Brunch with Altay Capital - Marufuji Sheet Piling Co.,Ltd.

Marufuji Sheet Piling Co.,Ltd., together with its subsidiaries, engages in the sale, rental, and repair processing of temporary materials for construction work in Japan.

Ticker: 8046.T | Price: JPY 2960 | Price Target: N/A
Market Cap: JPY 10.3B | Timeframe: N/A

🏗️ Construction Materials | 🏷️ Undervalued | 💰 6% Dividend | 📈 Bullish Idea

* Idea Brunch, the weekly newsletter where professional investors shares a couple of their stock pitches (it’s where this pitch is from), is offering Yellowbrick Road readers a 20% discount for life (link).

Marufuji Sheet Piling (8046.T) trades at 0.3x tangible book value, a P/E ratio of 7.4x, and 0.5x net current asset value (NCAV) despite being profitable for 10 out of the last 12 years. The company's net current assets of $138 million are double its $69 million market capitalization, making it a rare 'double net-net' with consistent profitability, unlike most U.S. net-nets.

Read the full article here. Read time: 1 min

*SPONSORED BY RYSE

Missed out on Ring and Nest? Don’t let RYSE slip away!

Ring 一 Acquired by Amazon for $1.2B

Nest 一 Acquired by Google for $3.2B

If you missed out on these spectacular early investments in the Smart Home space, here’s your chance to grab hold of the next one.

RYSE is a tech firm poised to dominate the Smart Shades market (growing at an astonishing 55% annually), and their public offering of shares priced at just $1.50 has opened.

They have generated over 20X growth in share price for early shareholders, with significant upside remaining as they just launched in over 100 Best Buy stores.

Retail distribution was the main driver behind the acquisitions of both Ring and Nest, and their exclusive deal with Best Buy puts them in pole position to dominate this burgeoning industry.

Secure your stake before the offer closes.

BLOG POST

High Tide: Potential For Long-Term Compounding Through Its Differentiated Ecosystem

High Tide Inc. engages in the cannabis retail business in Canada, the United States, and internationally. The company operates through Retail and Wholesale segments. It operates licensed retail cannabis stores; and provides data analytics services

Ticker: HITI | Price: CAD 2.57 | Price Target: CAD 7.46 (+190%)
Market Cap: CAD 187M | Timeframe: 3 years

🌳 Cannabis | 📈 Bullish Idea

High Tide Inc., a scalable Canadian cannabis retailer with 168 stores and a $500M+ revenue run rate, is prioritizing free cash flow to fund growth. With a 3.53% average FCF margin in the last 3 quarters, the company generates a 22% ROIC opening new stores that add $88k FCF per year to the ecosystem. High Tide can potentially triple to a $900M market cap in 3 years if execution continues, assuming a 5% FCF margin and 300 stores. The company also has upside options in Germany and the US. While it meets Chuck Akre's investment criteria, High Tide has a short track record.

Read the full article here. Read time: 11 min

Which stock idea was the most compelling to you?

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ Xometry ($XMTR) [52%]

🟨🟨⬜️⬜️⬜️ Citizens Bancshares ($CZBS) [31%]

🟥⬜️⬜️⬜️⬜️ Medical Facilities Corp ($DR.TO) [17%]

Your comments:

🏦 drmud*** ($CZBS): I think this has room to expand in the markets they serve
⚙️ alpot*** ($XMTR): Growth, retention of customers, financials

MARKET OVERVIEW / NEWS

Market Overview

Are you short-term bullish or bearish on the market?

Yesterday’s Poll Results: 62% bullish

Easily the most bearish day of the year after inflation came in hot. All of the indexes were down significantly, led by the Dow falling 1.09% and the Russell falling 2.52%. The news sentiment is also the lowest it’s been (by a lot) since we started tracking it. The Fear v Greed index fell out of bullish territory and is hovering in neutral. We’ve had a few head fakes already this year, so we will see if this dip is another head fake or the markets have started to turn.

Stock Market News

10-year Treasury yield jumps back above 4.5% after March inflation tops estimates - CNBC

Delta tops quarterly earnings expectations, focuses on efficiency as growth steadies - CNBC

Barclays reduces Fed rate cut view to one in 2024 - Reuters

TSMC says Q1 revenue up 16.5% y/y - Reuters

SoundHound AI Sinks Following Stock Sale Announcement - Investopedia

Alibaba founder Jack Ma steps out from shadows with long internal post - Reuters

Three Paramount board members to step down amid talks to merge with Skydance, WSJ reports - Reuters

BMW Group sales up slightly in Q1 - Reuters

Mercedes-Benz Q1 sales drop on supply bottlenecks in Asia - Reuters

Nvidia enters correction territory as stock falls 10% from all-time highs - CNBC

BIGGEST INSIDER TRADES

The insider trades are brought to you by CEO Watcher (another free, weekly email I write). It’s the only newsletter that tracks insider returns to find the best ones. Subscribe here

CEO at Flora Growth Corp. ($FLGC) purchased 526,315 shares at $1.90/share ($1M total) which increased their vested holdings by 64.7%. Their median purchase size is $1M and this is their 1st largest purchase out of 1 all time (link)

Chief Revenue Officer at Pagaya Technologies Ltd. ($PGY) purchased 60,000 shares at $10.17/share ($610K total) which increased their vested holdings by 25.0%. Their median purchase size is $610K and this is their 1st largest purchase out of 1 all time (link). 5 other insiders also purchased the stock

10% Owner at TILE SHOP HOLDINGS, INC. ($TTSH) purchased 77,500 shares at $6.97/share ($540K total) which increased their vested holdings by 1.2%. Their median purchase size is $568K and this is their 40th largest purchase out of 77 all time (link)

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