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Top stock pitches (Fri, Mar 22)
Connor Van Ooyen
March 22, 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 123 stock pitches, 915 news articles, and 244 insider trades and found:
A LATAM online travel company with 100% upside (stock pitch)
Reddit pops on the IPO (news)
An insider with 600% returns bought his own stock (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
YBR reader up 50% on $STLA
I got this awesome email from a reader yesterday who bought $STLA last summer from my email and is up nearly 60%!
You can see that stock pitch here and you can see all of the stock pitches we have in our database for $STLA at https://www.joinyellowbrick.com/?ticker=STLA.
If you aren’t using the Yellowbrick website, you are missing out on killer stock pitches!
STOCK PITCHES
BLOG POST
SPS Commerce, Inc. - $SPSC
SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States and internationally
Ticker: SPSC | Price: $183.49 | Price Target: $225 (+23%)
Market Cap: $6.7B | Timeframe: N/A
⛓️ Supply Chain Management | ☁️ Cloud | 📈 Bullish Idea
SPS Commerce (SPSC) is a cloud-based supply chain network that simplifies retail electronic data interchange (EDI). The company has achieved 92 quarters of year-over-year growth and maintains a 21% EBITDA margin. SPS Commerce differentiates itself through its full-service model, setting it apart from competitors like IBM and OpenText. With a target growth rate of 15% and a substantial total addressable market runway, SPS Commerce is well-positioned for future expansion. The company recently appointed a new CEO, Chad Collins, who brings experience from Korber. Based on a discounted cash flow analysis, SPS Commerce's stock has a potential upside of 26%, with a price target of $225.
Read the full article here. Read time: 23 min
*SPONSORED STOCK IDEA
Austin Gold Corp
Austin Gold Corp., a gold exploration company, focuses on the acquisition, exploration, and evaluation of mineral property interests in Nevada.
Ticker: AUST | Price: $1.10 | Price Target: N/A
Market Cap: $12.44M | Timeframe: N/A
⛏️ Gold Exploration | 📈 Bullish Idea
Austin Gold Corp., a junior mining company, presents a unique investment opportunity with its focus on gold exploration in Nevada and Oregon. The company's key projects include Kelly Creek in Humboldt County, NV, Lone Mountain in Elko County, NV, and Stockade Mountain in Malheur County, OR. These sites were selected for their significant geological potential and previous exploration data compilations. Austin Gold Corp.'s approach is underpinned by experienced leadership and alignment with the Lassonde Curve, a foundational model in junior mining, predicting value growth through company life stages. Their exploration strategy, grounded in technical expertise, positions Austin Gold for potential discoveries and advancements in the gold mining industry, making it an attractive option for investors looking at junior mining companies.
Read the full deck here. Read time: 4 min
VALUE INVESTORS CLUB
Cognyte Software Ltd. - $CGNT
Cognyte Software Ltd. provides an investigative analytics software to governments and enterprises worldwide. Its Actionable Intelligence for a Safer World, an open software designed to help governments and enterprises accelerate and enhance the effectiveness of investigations
Ticker: CGNT | Price: $7.91 | Price Target: $12.66 (+60%)
Market Cap: $556M | Timeframe: 2025
📊 Analytics Software | 🏛️ Government | 📈 Bullish Idea
Cognyte Software Ltd. (NASDAQ: CGNT) is down more than 75% from its 2021 spin-off price and trades at approximately 1.4 times next twelve months sales. Cognyte's mission-critical government analytics software can realistically accelerate to a 10% or higher growth rate. The company has a net cash balance sheet and is expanding margins. Cognyte has beat estimates and raised guidance in the last four quarters. There is 60% upside potential to fiscal year 2025 at 1.5 to 3 times segment sales, with only 5% downside in a bear case scenario. Merger and acquisition optionality exists as well.
Read the full article here. Read time: 6 min
Despegar.com's Undervaluation and Growth Prospects
Despegar.com, Corp., an online travel company, provides a range of travel and travel-related products to leisure and corporate travelers through its websites and mobile applications in Latin America and the United States. The company operates in two segments, Travel Business and Financial Services Business
Ticker: DESP | Price: $11.80 | Price Target: $24 (+103%)
Market Cap: $779M | Timeframe: N/A
🛩️ Online Travel | 📈 Bullish Idea
Despegar.com, a Latin American Online Travel Agency trading at 4-5x 2025 EV/EBITDA, is significantly undervalued compared to peers like Expedia at 7x and Booking Holdings at 15x. The company is well-positioned to benefit from tailwinds such as a fragmented market, a shift towards higher-margin hotel and package bookings, the growing vacation rental opportunity, the high-growth financial services revenue, and untapped advertising revenue potential. Despite these positive factors, the stock remains cheap, likely due to its small cap status, the emerging market discount, and a complex capital structure. As margins expand and the capital structure simplifies, the stock has the potential to double in value.
Read the full article here. Read time: 3 min
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ OneMain Financial ($OMF) [45%]
🟨🟨⬜️⬜️⬜️ Danaos Corporation ($DAC) [33%]
🟥⬜️⬜️⬜️⬜️ Mineros S.A ($MSA.TO) [22%]
Your comments:
🏦 loril*** ($OMF): Great dividend and earnings
🏦 ebgoo*** ($OMF): love that dividend and the chart looks good
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 85% bullish
An absolutely massive jump in bullishness after the Fed meeting yesterday. Yellowbrick Road readers hit their highest bullish level ever at 85%, the Fear v Greed index jumped back up to Extreme Greed levels, the news sentiment remains bullish, and all of the indexes were green again. A couple of readers commented saying that it looks like the Fed is going to keep the party going, and I’d have to agree.
Stock Market News
Very light news day. Basically all of the news was about Reddit’s IPO
Lululemon's North America growth stagnates, retailer issues weak guidance - CNBC
Redditors bank millions of dollars as a group on stock's opening day - CNBC
Target doubles bonuses for salaried employees as profits recover - CNBC
Amazon more worried about Chinese rivals Temu, Shein than Walmart, Target: report - 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
**This stock was shared in yesterday morning’s CEO Watcher and is already up over 10% since then
10% Owner at NEXTNAV INC. ($NN)
The 10% Owner purchased 483,000 shares at $4.52/share ($2.18M total) which increased their vested holdings by 4.1%. The current price is $5.20 (+15%). Their median purchase size is $1.24M and this is their 1st largest purchase out of 5 all time. (trade link)
Historic Returns
1m returns: 61% weighted | 6% median | 100% win rate (3/3)
3m returns: 132% weighted | 252% median | 100% win rate (2/2)
6m returns: 483% weighted | 607% median | 100% win rate (2/2)
1y returns: 324% weighted | 575% median | 100% win rate (2/2)
Note: 1 other insiders also purchased the stock
SECRET QUESTION
(Or if you’d rather not answer but still want the points, you can just reply and say hi!)
Secret Question: Any big plans this weekend? I’m hoping to see Purdue get a couple of March Madness wins and play some golf.
LINKS YOU’LL LOVE
+15 POINTS - WEEKLY TOURNAMENT
Returns for Renaissance Technologies’ Medallion Fund. The greatest fund of all time
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THAT’S ALL FOLKS
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Connor
*Follow Yellowbrick on Twitter at @joinyellowbrick
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