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Top stock ideas (Tue, Jan 9)
Connor Van Ooyen
January 09, 2024
YBR Portfolio // About // Sponsor YBR // YBR Premium
👋 Good Morning!
Welcome to the 113 new readers who joined yesterday!
Our AI read and summarized 166 stock ideas, 1451 news articles, and 191 insider trades and found:
Charter is likely to re-accelerate (featured stock idea)
Stock ideas for $META, $AVRO, and $INDI (bonus stock ideas)
Nvidia to launch China-focused chip next quarter (news)
3 insiders at $GLPI sold stock (insider trade)
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
BLOG POST
Charter: Mid-Single-Digit Underlying Growth; Likely Reacceleration in 2024
Charter Communications, Inc. is a leading broadband connectivity company and cable operator serving more than 31 million customers in 41 states through its Spectrum brand
Ticker: CHTR | Price: $375.43 | Price Target: $656.86 (+75%) | Timeframe: 2026
📞 Telecommunications | 🏷️ Undervalued | 📈 Bullish Idea
Charter Communications (CHTR) is undervalued due to one-time events that have skewed its financial performance. Despite these, residential revenues continue to grow in the mid-single digits when excluding the low-margin video segment. Adjusted EBITDA growth similarly reflects a mid-single-digit ascent once one-offs are discounted. The company's Free Cash Flow (FCF) stands strong at a 4.1% yield post-CapEx, or 5.6% excluding high-split CapEx expenditure. The expectation is for EBITDA growth to pick up in 2024, with the potential for even further gains should Fixed Wireless falter. The share price, currently at $388.68, presents a substantial upside of 69%, translating to an annualized return of 19.0% by 2026. This optimistic forecast hinges on mid-single-digit Cable EBITDA growth, $750m in Mobile EBITDA by 2026, and a reduction in CapEx to 2021 levels post-2025, all culminating in a potential $8bn FCF, or $67 per share in 2026. The analysis suggests an even higher upside if current market conditions change favorably, such as constraints in Fixed Wireless or if Mobile profit surpasses projections. The recommendation remains a strong Buy.
Read the full article here. Read time: 9 min
+3 POINTS - WEEKLY TOURNAMENT
How do you rate the featured stock idea? |
Yesterday’s Featured Stock Idea
Flywire ($FLYW)
🟩🟩🟩⬜️⬜️ - Buy (38%)
🟥⬜️⬜️⬜️⬜️ - Pass (33%)
🟨🟨⬜️⬜️⬜️ - Watchlist (29%)
There are 3 more stock ideas after “Today’s Sponsor”
TODAY’S SPONSOR
+15 POINTS - WEEKLY TOURNAMENT
Time to Add AI to Your Portfolio
AI is changing every aspect of our lives and investors are taking note, pouring billions into the sector. Here is your opportunity to join an elite pool of investors in the earliest stages of a promising AI startup’s growth.
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Click here to learn more about how you can get in on the ground floor. Invest before Midnight (PST) on Jan. 10 and get 10% in bonus shares!
BONUS STOCK IDEAS
HEDGE FUND
Top 5 picks 2024: $META
Meta Platforms, known for its social media and advertising services, incorporates AI for content recommendation and ad monetization. Its collaboration with Ray-Ban on smart glasses and investments in mixed reality and conversational AI signify steps towards innovative tech products.
Ticker: META | Price: $357.29 | Price Target: N/A | Timeframe: 2024
📱 Social Media | 📢 Advertising | 📈 Bullish Idea
$META (Meta Platforms) - One of our Top 5 Picks for 2023 & the second best performing stock in the S&P 500 in 2023, may still have one of the best balances between valuation and revenue growth among the Magnificent 7. Meta has 15% rev growth at only a 23x PE for CY23 vs the S&P at 4% at a 22x PE for comparison. Meta is also using AI to help drive monetization of ads & for content recommendation. With a contentious election cycle coming in 2024, we believe ad prices will increase as we go through the year and advertising dollars continue to follow consumers spending increasing amounts of time online. Finally, Meta’s collaboration with Ray-Ban could be the surprise hit in the convergence of mixed reality and AI at a mass market price point. Meta AI is a conversational assistant in your Ray-ban sunglasses that you can prompt by simply saying, “Hey Meta.” There is no need to unlock your phone or “press and hold” for assistance.
Read the full article here. Read time: 1 min
FUND LETTER
$AVRO: at least $2/share of value
AVROBIO is a biotechnology company focused on developing gene therapies for rare diseases and cancer, using its proprietary lentiviral platform to potentially cure patients with a single dose treatment. The company's pipeline includes treatments for Fabry disease, Gaucher disease, cystinosis, and others.
Ticker: AVRO | Price: $1.46 | Price Target: $2 (+36%) | Timeframe: N/A
🧪 Biotech | 📈 Bullish Idea
AVROBIO (AVRO) announced strategic alternatives in July and is still determining its next steps. As of 9/30, the company has ~$100MM of NCAV, assuming another $10MM of cash burn (they further reduced their workforce in October) before a deal can be commenced would equate to $2/share of value without any value attributed to their IP. AVRO sold one of their programs to Novartis for $80+MM, the other, HSC gene therapy for Gaucher, might have some value as a kicker. Shares currently trade for $1.32/share, making it an attractive risk/reward.
Read the full article here. Read time: 1 min
Buying dip in $INDI after $MBLY poor pre-release
Indie Semiconductor is an innovator in the automotive technology sector, specializing in delivering next-generation semiconductor solutions with a focus on advanced driver assistance systems (ADAS), user experience enhancements, and vehicle electrification. The company boasts over 400 patents and has shipped over 140 million semiconductor products, establishing itself as a significant presence in the auto-tech industry.
Ticker: INDI | Price: $7.53 | Price Target: N/A | Timeframe: N/A
⚡️ Semiconductor | 🔄 Buy the Dip | 📈 Bullish Idea
Took advantage of the dip in $INDI due to today's $MBLY pre-release on their earnings -- here are some reasons why I'm bullish on the company: 1) They're on a path to achieve $1B in revenue by 2028 w/ 60% gross margins, driven by a 40% CAGR w/ GAAP profitability coming in 2025, 2) With over 400 patents, the company is focusing on key areas in auto production like ADAS, user experience & electrification, 3) The company is making significant inroads in the market, with strategic partnerships and having shipped 140M semiconductor products, positioning itself as a key player in the rapidly evolving auto-tech industry.
Read the full article here. Read time: 1 min
+3 POINTS - WEEKLY TOURNAMENT
Which bonus stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ Alphabet ($GOOGL) [43%]
🟨🟨⬜️⬜️⬜️ ASML ($ASML) [31%]
🟥⬜️⬜️⬜️⬜️ Citi ($C) [26%]
Your comments:
aeise*** ($GOOGL): Proven leader/innovator sitting on boatloads of cash and dedicated to putting $10B into AI. Great timing.
MARKET OVERVIEW
Today’s market overview is brought to you by Public. Add fixed income to your portfolio with corporate, Treasury, and municipal bonds. Get started with Public today.
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 58% bullish
Welp, the bearishness is fading away. All of the indexes were up for the first time this year, YBR readers jumped another 4 points in bullishness, and the news sentiment is above the 7-day average for the second day in a row. The Fear v Greed index is still in the “Greed” section, but I wouldn’t be surprised if it jumps to “Extreme Greed” tomorrow.
STOCK MARKET NEWS
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 $8.
Nvidia to launch China-focused AI chip in Q2 2024 -sources - Reuters
Apple Vision Pro headset launches in U.S. on Feb. 2, pre-orders begin Jan. 19 - CNBC
Unity Software to lay off 1,800 employees as part of a corporate restructuring - CNBC
Americans' inflation expectations drop to lowest level in 3 years, NY Fed survey shows - Fox Business
Wells Fargo is bullish on residential solar with these stocks primed to rebound - CNBC
JetBlue CEO to Step Down as Airline Awaits Judge's Ruling on Spirit Airlines Merger - WSJ
Twilio CEO Lawson steps down after bruising activist battles - CNBC
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CFO and Treasurer at Gaming & Leisure Properties, Inc. ($GLPI)
The CFO and Treasurer sold 12,972 shares at $48.92/share ($635K total) which decreased their holdings by 8.7%. The current price is $48.17 (-1.5%). (trade link)
Historic Returns
1m returns: -19% weighted | -19% median | 13% win rate (2/15)
3m returns: -24% weighted | -13% median | 7% win rate (1/15)
6m returns: -22% weighted | -12% median | 0% win rate (0/15)
1y returns: -19% weighted | -6% median | 33% win rate (5/15)
Note: First sale as part of a 10b5-1 plan initiated in August 2023. The Chief Investment Officer and Chief Development Officer also sold stock
QUIZ
+3 POINTS - WEEKLY TOURNAMENT
Who founded the successful hedge fund SAC Capital Advisors, which later became Point72 Asset Management? |
Yesterday’s Question: What was the original name of Twitter when it was created in 2006?
Answer: Twttr
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🏆 This Week’s Leaderboard
jmelo**** (49 points)
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