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Best stock pitches (Thu, Apr 4)

Best stock pitches (Thu, Apr 4)

Connor Van Ooyen
April 04, 2024

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 132 stock pitches, 1442 news articles, and 127 insider trades and found:

A customer engagement SaaS company with 176% upside (stock pitch)
Spotify shares up on report it plans to raise prices (news)
The 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)

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STOCK PITCHES

VALUE INVESTORS CLUB

ON24, Inc. - $ONTF

ON24, Inc. provides a cloud-based intelligent engagement platform that enables businesses to convert customer engagement into revenue through interactive webinar, virtual event, and multimedia content experiences worldwide

Ticker: ONTF | Price: $6.90 | Price Target: $19.06 (+176%)
Market Cap: $300M | Timeframe: 2025

☁️ Cloud | 📊 Customer Engagement | 💻 Enterprise SaaS | 📈 Bullish Idea

ON24, Inc. (NYSE: ONTF) is a cloud-based SaaS platform for digital engagement via interactive webinars and virtual event experiences. It trades at 0.8x NTM sales, has approximately 65% of its market cap in net cash, and its core ARR, excluding the tech vertical, is growing at a high single-digit percentage. ONTF's 'digital transformation' offerings in healthcare and financials are a hidden asset, and the company has authorized a $100M+ buyback. The upside potential is 140% in the base case, 46% in the bear case, and -2% in the worst case. ON24 is also a strategic M&A candidate.

Read the full article here. Read time: 5 min

BLOG POST

$6807:TW a true one foot hurdle with a good catalyst

FY Group Ltd. engages in the research, development, manufacture, and sale of indoor furniture in Taiwan, Europe, the United States, and Japan. Its products portfolio includes sofas, beds, chairs, and solid wood furniture. The company was founded in 2019 and is based in Taipei, Taiwan.

Ticker: 6807.TW | Price: TWD 41.45 | Price Target: N/A
Market Cap: TWD 2.2B | Timeframe: N/A

🛋️ Furniture | 💰 4.5% Dividend | 📈 Bullish Idea

* I recommend using Interactive Brokers (link) to trade international and OTC stocks if you can’t trade them in your current brokerage

FY Group, a couch ODM with over 80% of sales from IKEA in 2022, is trading at an EV/EBIT of 3.71 with a dividend yield of 6.28%, near an all-time high. Despite red flags such as being a manufacturer, having a concentrated customer with strong bargaining power, and being newly listed, the company has been profitable for six years in a row and has a healthy balance sheet. The catalyst is a 14% drop in shareholders from September 2022 to March 2022, indicating less selling pressure going forward. FY Group has a solid relationship with IKEA and is expanding to Costco and other customers. The company's R&D foam team helps cut shipping costs, and competitors are less focused on couches. This simple idea, with a cheap valuation and strong catalyst potential, is worth attention.

Read the full article here. Read time: 4 min

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ANALYST REPORT

Goldman Sachs: Cameco Corp. - Attractive Exposure to Uranium Supply/Demand Fundamentals Given Integrated Business Across Value Chain; Initiate at Buy

Cameco Corporation provides uranium for the generation of electricity. It operates through Uranium, Fuel Services, Westinghouse segments. The Uranium segment is involved in the exploration for, mining, and milling, purchase, and sale of uranium concentrate

Ticker: CCJ | Price: $49.86 | Price Target: $55 (+10%)
Market Cap: $20B | Timeframe: N/A

⛏️ Uranium | 📈 Bullish Idea

Cameco Corporation (CCJ) initiated with a Buy rating and $55 price target by Goldman Sachs, implying 30% upside potential. The company is seen as an attractive means to gain exposure to the entire nuclear fuel value chain in an environment where increased demand (+14% vs base case) and higher prices ($95/lb spot, $68/lb realized) are expected to drive meaningful consensus estimate revisions. Geopolitical challenges may shift uranium sourcing requirements from other regions to Canada/Cameco. Goldman's estimates for EBITDA and EPS are 15% above consensus on average for 2024-2027.

Read the full article here. Read time: 1 min

Which stock idea was the most compelling to you?

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ Alarum Technologies ($ALAR) [40%]

🟨🟨⬜️⬜️⬜️ Greenlight Capital ($GLRE) [32%]

🟥⬜️⬜️⬜️⬜️ Restaurant Brands International ($QSR) [28%]

MARKET OVERVIEW / NEWS

Market Overview

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

Yesterday’s Poll Results: 64% bullish

We’ve entered earnings season, so the biggest winners and losers will mostly be companies that beat/missed their earnings. A couple of beauty brands struggled and Reddit found itself back on the biggest loser list after a one-day break.

A little bit of a mixed bag as the indexes were mostly green (just slightly though) and Yellowbrick Road readers’ bullishness jumped back up into the 60s, but the news sentiment fell into the negative for the first time in a few weeks and the Fear v Greed index fell another point.

Stock Market News

Spotify shares up on report it plans to raise prices - CNBC

TSMC evacuates some factory lines after Taiwan's strongest earthquake in 25 years - CNBC

Fed's Powell emphasizes need for more evidence that inflation is easing before cutting rates - CNBC

Ulta shares fall as CEO warns beauty demand is slowing - CNBC

Trump Media sues its co-founders, accuses them of 'severe mismanagement' - CNBC

Paramount Global board discusses exclusive sale talks with Skydance: report - New York Post

Amazon ditches cashierless checkout system at its grocery stores - CNBC

Nearly half of Levi's sales are now direct to consumer, a major shift as department stores fade - CNBC

Ford's first-quarter US auto sales rise 6.8% - Reuters

Intel drops almost 8% after chipmaker reports hefty loss in foundry business - CNBC

Apple reportedly exploring personal home robots - 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

10% Owner at Citi Trends Inc ($CTRN) purchased 18,000 shares at $27.10/share ($488K total) which increased their vested holdings by 1.1%. Their median purchase size is $541K and this is their 40th largest purchase out of 74 all time (link)

Chief Financial Officer at DOLLAR TREE, INC. ($DLTR) purchased 1,800 shares at $136.00/share ($245K total) which increased their vested holdings by 10.4%. Their median purchase size is $245K and this is their 2nd largest purchase out of 3 all time (link)

EVP and Global CFO at Walgreens Boots Alliance, Inc. ($WBA) purchased 6,000 shares at $19.38/share ($116K total) which increased their vested holdings by 3.7%. Their median purchase size is $116K and this is their 1st largest purchase out of 1 all time (link)

LINKS YOU’LL LOVE

+15 POINTS - WEEKLY TOURNAMENT

Chris Hansen: The Long & Short of Investing (podcast)

Notes from Buffett: The Making of an American Capitalist

10 notes from Buffett’s favorite founder: Rose Blumkin