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Top stock pitches (Fri, Aug 23)

Top stock pitches (Fri, Aug 23)

Connor Van Ooyen
August 23, 2024

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

*This newsletter is for entertainment purposes only. Nothing in this newsletter is financial advice or recommendations.

👋 Good Morning!

Thanks for reading the Yellowbrick Road where I share the best stock pitches from fund letters, analyst reports, blogs, and more!

The three stock pitches you’ll read about in today’s email are:

OSB Group Plc (OSB.L)

Spotify (SPOT)

Boston Omaha Corporation (BOC)

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

YBR PORTFOLIO

The YBR Portfolio copies the trades of the top 10 investors (based on the average returns of their previous stock pitches) in our database of 1,000+ investors. If you want to be alerted when the best investors buy/sell a stock, then this section is for you.

*All investments in the YBR Portfolio will be for ~3% of the portfolio value (which allows us to hold a maximum of 33 stocks at a time).

**I use Interactive Brokers (link) for the portfolio because it makes it easy to trade international and OTC stocks. If you decide to open an account with them, use this link so they know I sent you.

The YBR Portfolio is only available to Premium Subscribers. If you want to know which stocks the top investors are investing in, upgrade to Yellowbrick Premium.

YB Premium Portfolio returns - started mid-May

WINNING PITCH

+50% in less than 3 months

Voss Capital pitched $GENI in their Q1 fund letter and is already up almost 50% in less than 3 months.

This pitch was also in our Big Money Elite Investor Feed which only includes stock pitches from the best professional investors.

Check out our Elite Investor Feeds here. They are the best way to find stock pitches from top investors.

STOCK PITCHES

Author Returns

The below stock pitch is from ArmsGarrett.

We have 7 stock pitches from them in our database and their historic returns are:

Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.

TWITTER - ArmsGarrett

OSB Group: Retaining Strong ROE and High Upside Potential

OSB Group Plc, through its subsidiaries, operates as a specialist mortgage lending and retail savings company in the United Kingdom and the Channel Islands.

Ticker: OSB.L | Price: GBP 3.84 | Price Target: GBP 7.90 (+106%)
Market Cap: GBP 1.48B | Timeframe: 1 year

💸 Financial Services | 💰 8% 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

OSB Group Plc, trading under the ticker OSB.L, is once again proving to be a reliable investment. Despite revising its loan growth guidance down from 5% to 3% and reducing its 2024 Net Interest Margin (NIM) forecast from 2.5% to between 2.3-2.4%, the company's efficiency ratio remains at a robust 35%. This efficiency allows OSB Group to sustain a noteworthy 17% return on equity (ROE), potentially reaching 18% in the first half of 2024. The market capitalization is currently 65% of the tangible book value (TBV) at £392 million. The company offers an attractive 8% dividend yield alongside an 8% buyback yield. There's also positive commentary predicting macroeconomic improvements that could facilitate OSB Group's re-entry into higher-margin sub-segments. The sell-side consensus is for the ROE to stay in the mid-teens, indicating a 20%+ earnings yield, despite expectations of a temporary dip in the share price. If the NIM were to normalize to 260 basis points, which isn't a far-fetched scenario, the company could return to a 20%+ ROE. Also, considering the five-year average PE of 6, which is deemed too low, OSB Group could be worth £2.9 billion plus dividends one year out compared to its current £1.5 billion market cap, suggesting a potential upside of over 100%.

Read the full article here. Read time: 1 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/11006/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from JDP Capital Survivor & Thriver Fund.

Their historic returns are:

Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.

FUND LETTER - JDP Capital Survivor & Thriver Fund

JDP Capital Survivor & Thriver Fund Portfolio Holding: Spotify Technology S.A.

Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide.

Ticker: SPOT | Price: $342.20 | Price Target: N/A
Market Cap: $68.72B | Timeframe: N/A

🎧 Audio Streaming | 📈 Bullish Idea

Spotify (SPOT) is experiencing margin expansion driven by price hikes on premium subscription tiers and its 2-Sided Marketplace, which has a 100% contribution margin. The company's audiobooks product has become the global #2 player, and an e-learning beta has launched in the UK. Spotify has a long growth runway as radio declines and the audio-video monetization gap narrows. The company is focusing on monetization in the near term, with potential for top-of-the-funnel user growth in the future.

Read the full article here. Read time: 2 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/10981/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from River Oaks Capital.

We have 22 stock pitches from them in our database and their historic returns are:

Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.

FUND LETTER - River Oaks Capital

River Oaks Capital Portfolio Holding: Boston Omaha Corporation

Boston Omaha Corporation, together with its subsidiaries, engages in the outdoor billboard advertising business in the southeast United States.

Ticker: BOC | Price: $13.43 | Price Target: $0.90
Market Cap: $422M | Timeframe: N/A

📢 Billboard Ads | 📈 Bullish Idea

Boston Omaha Corporation (BOC), a $410M market cap holding company, recently underwent significant changes with co-CEO Alex Rozek's departure and the winding down of its asset management business. Sole CEO Adam Peterson is now focused on core businesses: billboards (valued at $325M+), rural broadband ($175M+ invested), and a stake in Sky Harbour ($135M). The company's billboard segment, Link Media, generates $20M+ in free cash flow, while the rural broadband segment is expected to produce $20M+ in future free cash flow. BOC's 20% ownership in Sky Harbour, a rapidly expanding private aircraft hangar company, could be worth multiples of its current value. The company is trading at an 11-14% free cash flow yield, with a $20M share buyback program in place. Management sees 70%+ upside potential, valuing the company at $720M based on conservative estimates of its assets, including its insurance business, CB&T Bank ownership, real estate investments, and cash on hand.

Read the full article here. Read time: 6 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/11217/?ref=PLACEHOLDER

Which stock idea was the most compelling to you?

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ LandBridge Company (LB) [48%]

🟨🟨⬜️⬜️⬜️ Caesars Entertainment (CZR) [33%]

🟥⬜️⬜️⬜️⬜️ Sendas Distribuidora S.A (ASAI) [29%]

Your comments:

🎰 loril*** ($CZR): People love to gamble in beautiful environments

MARKET OVERVIEW / NEWS

Market Overview

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

Yesterday’s Poll Results: 60% bullish

Stock Market News

Peloton beats fourth-quarter revenue estimates, shares jump - Reuters

Walmart adds a Burger King benefit to its membership program - CNBC

GM-owned Cruise will partner with Uber to offer driverless rides - CNBC

Philadelphia Fed President Harker advocates for interest rate cut in September - CNBC

Treasury yields rally as Federal Reserve signals readiness for September rate cut - CNBC

Peloton to start charging subscribers with used equipment $95 activation fee - CNBC

Apple to let iPhone users in Europe choose own browser, delete apps after crackdown - New York Post

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

CEO at Tourmaline Bio, Inc. ($TRML)

The CEO purchased 5,221 shares at $13.79/share ($71,997.59 total) which increased their vested holdings by 0.0%. The current price is $14.34 (+4.0%). Their median purchase size is $71,997.60 and this is their 2nd largest purchase out of 3 all time. link

LINKS YOU’LL LOVE

Lessons on kickstarting and scaling a B2B/enterprise business from one of the greatest go-to-market machines of all time (Atlassian - $TEAM).

ROIC and the Investment Process

Benjamin Graham's low P/E stock selection criteria delivered 38% annual returns vs. 14% for the market

🎁 REFERRAL PROGRAM 🎁

Use your unique URL below or the share URL for any of the stock pitches to unlock insanely valuable awards.

Premium members have access to these awards here.

THAT’S ALL FOLKS

Thank you so much for reading today’s email! Your support is the only way I can write this email for free every day.

Give me feedback in the poll below and share the newsletter with other investors if you find it useful!

Connor

*Follow Yellowbrick on Twitter at @joinyellowbrick

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