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Today's top stock ideas (Thu, Jan 4)
Connor Van Ooyen
January 04, 2024
YBR Portfolio // About // Sponsorships // Twitter // Upgrade
👋 Good Morning!
Welcome to the 167 new readers who joined yesterday!
Our AI read and summarized 141 stock ideas, 1099 news articles, and 144 insider trades and found:
Battery company with 156% upside (featured stock idea)
Mortgage demand down 9.4% (news)
An insider bought $200k of his own stock (insider trade)
3 bonus stock ideas
and much more…
Thanks for reading! Have a great day.
Connor
* If you missed yesterday’s email, don’t forget to read it here
FEATURED STOCK IDEA
VALUE INVESTORS CLUB
Enovix - ENVX
Enovix is a battery manufacturer specializing in advanced silicon anode lithium-ion batteries, with a focus on consumer electronics and potential expansion into electric vehicles. The company's patented technology promises higher energy density and safety, offering significant advantages over traditional lithium-ion batteries.
Ticker: ENVX | Price: $11.72 | Price Target: $30 (+156%) | Timeframe: N/A
🔋 Batteries | 📈 Bullish Idea
Enovix (ENVX) specializes in manufacturing advanced batteries with a patented 100% silicon anode design, offering 30% more energy density over traditional lithium-ion batteries, catering to the expanding consumer electronics industry where features like AI, health monitoring, and 5G demand higher energy storage. The company's cutting-edge technology, which won't be matched by competitors for at least five years, commercial viability, and premium pricing model position it to achieve superior market share and margins. Current mispricing stems from initial poor management communication, skepticism about the technology and the ability to ramp production, compounded by negative sentiment towards SPACs. However, Enovix's management – notably experienced in silicon-based technology – is adeptly overcoming manufacturing precision challenges with semiconductor techniques, laser-cutting electrodes, and plans to ramp up production with a global expansion in facilities like Fab 2 in Malaysia. Valuation estimates peg ENVX at $30/share based on conservative market capture rates in consumer electronics. Despite not currently targeting the EV sector, the potential for future expansion into this market could significantly enhance the company's value, solidifying Enovix as a high-potential investment at the cusp of major growth.
Read the full article here. Read time: 3 min
+3 POINTS - WEEKLY TOURNAMENT
How do you rate the featured stock idea? |
Yesterday’s Featured Stock Idea
Alphabet Inc ($GOOGL)
🟩🟩🟩⬜️⬜️ - Buy (60%)
🟥⬜️⬜️⬜️⬜️ - Pass (8%)
🟨🟨⬜️⬜️⬜️ - Watchlist (32%)
samb**** (buy) - Google seems to be benefitting from the AI surge. Their advertising revenue is predicted to continue growing along with the surge in their other associated businesses should increase their market share.
alpo**** (pass) - Big tech is overvalued
prpp**** (buy) - GOOGL is definitely on my list once we get a pullback in indices
There are 3 more stock ideas after “Today’s Sponsor”
TODAY’S SPONSOR
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Please support my sponsors. It’s how I pay the bills to keep this newsletter free :)
BONUS STOCK IDEAS
Fundamentals and technicals align in $MXCT
MaxCyte is a biotechnology company that specializes in cell engineering technologies used in the development of gene therapies, drug discovery, and cell-based research. They provide products and services for cell modification to biopharmaceutical companies. MXCT supports advancements in gene editing, immune-oncology, and other growing scientific fields.
Ticker: MXCT | Price: $4.42 | Price Target: N/A | Timeframe: long-term
🧪 Biotech | 📈 Bullish Idea
I get excited when fundamentals and technicals align. Taking a position in $MXCT in my long term account. Happy to have exposure to gene therapy (via picks n shovels) + chart looks great. Volume picking up. First FDA approval. Could be analogous to buying $AAPL after first iPhone
Read the full article here. Read time: 1 min
It's possible $BUR overearns
Burford Capital is a company that provides finance to the legal market. They offer risk management, post-settlement and judgment financing, and litigation finance for businesses and law firms. Burford is known for navigating complex legal and financial landscapes and has gained attention for investing in legal claims where they receive a portion of the judgment if the case is won.
Ticker: BUR | Price: $14.86 | Price Target: N/A | Timeframe: N/A
🏦 Legal Financing | 🔄 Turnaround | 📈 Bullish Idea
To me the most interesting part was: 'We believe the lingering effects of the pandemic on courts and legal processes are finally falling away. While we are loath to predict the future in something as uncertain as litigation, we may be at a turning point for the portfolio.' Burford has been under earning for the past 4 years. 2024 may well be the year that $BUR's portfolio returns and cash realizations return to their long run averages. I think it's possible that Burford over earns for a period of time as they catch up on all the cases that were delayed during the pandemic.
Read the full article here. Read time: 2 min
BLOG POST
Coupang (CPNG): An undervalued diamond in the rough
Coupang, also known as the 'Amazon of South Korea,' is a leading e-commerce platform in South Korea offering a wide range of products and services, including Coupang Play, a streaming service similar to Amazon Prime Video. The company is known for its fast delivery and customer service, often referred to as 'rocket delivery.'
Ticker: CPNG | Price: $15.48 | Price Target: N/A | Timeframe: N/A
🇬🇧 South Korea | 📦 E-commerce | 🎥 Streaming | 📈 Bullish Idea
I'm BULLISH on CPNG, drawing parallels with the early stages of AMZN/BABA, noting that the market undervalues CPNG's potential, hampered by an overly pessimistic narrative. Coupang’s recent dip in earnings, attributed to rising 'content costs' for its 'Coupang Play' service, is poised for reversal given the service's burgeoning growth in downloads and engagement, which suggests upcoming revenue increases that could offset these costs. Additionally, CPNG's stock price has stabilized, indicating a potential breakout. The stock is currently undervalued, making it an attractive buy—akin to finding a 'diamond in the rough.'
Read the full article here. Read time: 1 min
+3 POINTS - WEEKLY TOURNAMENT
Which bonus stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ Intel ($INTC) [48%]
🟨🟨⬜️⬜️⬜️ KBR ($KBR) [33%]
🟥⬜️⬜️⬜️⬜️ Microstrategy ($MSTR) [29%]
FEEDBACK
Do you like this layout better?I moved the Featured Stock idea above the ad and moved the Bonus Stock Ideas to just after the ad |
MARKET OVERVIEW
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 60% bullish
Everybody is starting to turn more bearish (except for Yellowbrick Road readers apparently). All of the indexes were down, we finally fell out of the “Extreme Greed” section of the Fear v Greed index, and the news sentiment fell below 0 for the first time since we started tracking it.
Yellowbrick Road readers remained at 60% bullish, though the comments were more negative with many readers mentioning that they believe we are due for a short-term pullback (nobody seemed to believe the pullback would last long though).
STOCK MARKET NEWS
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Today’s stock market news is brought to you by IBD. If you want to beat Wall Street, you need an edge––IBD Digital gives you the tools to invest with success. Try 8 weeks today for just $8.
Xerox to cut 15% of its workforce - CNBC
Mortgage demand down 9.4% for final week of 2023, despite recent drop in interest rates - CNBC
US chip stocks tumble after strongest year since 2009 - Reuters
Tech stocks start 2024 with steep sell off, Apple hits 7-week low - Yahoo Finance
GM offers $7,500 incentive for EVs losing tax credit - Reuters
Oil prices rise more than 3% on mounting Middle East tensions, OPEC pledge to support market - CNBC
QUIZ
+3 POINTS - WEEKLY TOURNAMENT
Which company, initially a maker of playing cards, evolved into one of the most influential video game companies? |
Yesterday’s Question: Who is the co-founder of the Oracle Corporation, along with Larry Ellison and Ed Oates?
Answer: Bob Miner
FEATURED INSIDER TRADE
The insider trade is brought to you by CEO Watcher (another free, weekly email I write). It’s the only newsletter that tracks insider returns to find the best ones. Subscribe here
10% Owner at Zivo Bioscience, Inc. ($ZIVO)
The 10% Owner purchased 157,692 shares at $1.30/share ($205K total) which increased their holdings by 88.0%. The current price is $1.48 (+13.8%). (trade link)
Historic Returns
1m returns: 39% weighted | 6% median | 54% win rate (25/46)
3m returns: 31% weighted | 17% median | 70% win rate (32/46)
6m returns: 8% weighted | 17% median | 67% win rate (31/46)
1y returns: 16% weighted | 17% median | 65% win rate (32/49)
LINKS YOU’LL LOVE
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WEEKLY TOURNAMENT
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🏆 This Week’s Leaderboard
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MY OTHER FREE NEWSLETTERS
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