- 🟨 The Yellowbrick Road
- Posts
- Top stock pitches (Fri, Mar 29)
Top stock pitches (Fri, Mar 29)
Connor Van Ooyen
March 29, 2024
About // Sponsor YBR // Yellowbrick Website // Twitter
👋 Good Morning and Happy Easter Weekend!
I won’t be sending an investor interview on Sunday because it is Easter, but have an awesome interview in the works with an investor whose stock pitches have averaged over 80% 1-year returns.
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 129 stock pitches, 1043 news articles, and 152 insider trades and found:
A cannabis technology company with over 125% upside (stock pitch)
Amazon reportedly to spend $150B to build data centers needed for AI (news)
4 insiders at $HLF bought the 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
Access all 2,000+ stock pitches
The Yellowbrick website is the best way to find your next stock investment or to research a stock you’re interested in.
Every stock pitch that I add to my database is put on the website and you can easily search/filter them to find your next investment.
It’s free for everyone (with a 30-day delay) or you can upgrade to Yellowbrick Premium to access ALL of the stock pitches as soon as they are added. All Yellowbrick Road readers get 20% just by using the link below.
STOCK PITCHES
BLOG POST
JPMorgan Chase: The Fed Put May Propel Shares To New Records
JPMorgan Chase & Co. operates as a financial services company worldwide. It operates through four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM)
Ticker: JPM | Price: $200.03 | Price Target: $300 (+49%)
Market Cap: $575B | Timeframe: N/A
🏦 Banking | 💰 2.3% Dividend | 📈 Bullish Idea
JPMorgan Chase & Co. holds a bullish stance and is a strong buy with a price target of greater than $300 per share, which equates to roughly 20 times price-to-earnings, similar to the S&P 500 multiple. It has seen a bull run with a year-to-date increase of more than 15.6%, outperforming the S&P 500, which is up 10%. The company is likely to benefit from tailwinds, such as the Federal Reserve's dovish pivot and possible rate cuts that may boost bank lending. In 2024, net interest income is likely to be between $82 to $84 billion, and investment banking is set to surge with revenue increases in mergers and acquisitions, equity capital markets, and debt capital markets, potentially by $3 to $4 billion. JPMorgan's gains versus peers are somewhat constrained due to their losses and restructurings. The company has added $60 billion in deposits in 2023 and acquired First Republic at a bargain. Risks are mitigated by the 'Fed put' and a shift in investor risk perception, creating a favorable environment for financials.
Read the full article here. Read time: 5 min
BLOG POST
Australia: the spearhead of the mining industry - Grange Resources ($GRR.AX)
Grange Resources Limited owns and operates integrated iron ore mining and pellet production business in Australia and internationally. The company is involved in the mining, processing, and sale of iron ore; and exploration, evaluation, and development of mineral resources
Ticker: GRR.AX | Price: AUD 0.44 | Price Target: N/A
Market Cap: AUD 509M | Timeframe: N/A
⛏️ Mining | 💰 9% 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
Grange Resources Limited, trading as GRR.AX, is an Australian iron ore company boasting a robust 24% net margin with strong free cash flow at current prices. The company is supported by more than 12 years of proven reserves, with a production rate of 2.74 million tonnes per year of magnesite. There's also a positive net cash position of AU$280 million, which constitutes 57% of the market capitalization. Grange Resources posts high Return on Invested Capital figures and has a strategic 48% shareholder in Jiangsu Shagang Group. The company's stock price is affected by the volatility and price movements associated with Chinese and Indian steel demand. Currently trading at AU$0.425, the stock is undervalued with high growth potential. Risks include lease renewal by 2031 and potential environmental regulation changes. The author added it as a 1% position
Read the full article here. Read time: 5 min
SPONSORED BY RAD AI
Now is the Time to Add AI to Your Portfolio
Invest RAD AI, in the future of AI marketing
Marketing is an art, not a science — or, at least, it was.
AI is solving an age-old advertising pain point by pinpointing exactly what works and drives quantifiable ROI… aka marketing performance that moves the needle.
Dubbed the “essential AI” for brands — RAD AI analyzes extensive historical content patterns across different marketing channels.
They’re disrupting the $633B marketing technology and data analytics industry — solving one of the biggest problems for marketers.
RAD AI’s success is evident by the numbers…
$27M raised from 6,500+ investors, including VCs, and execs at Google, Amazon and Meta. Backed by Adobe Fund for Design.
~3X revenue growth in 2023 — while landing major clients, including Hasbro, Skechers, Sweetgreen and more.
Now, you have a limited-time opportunity to get up to 15% bonus shares with your investment. But you’ll want to act quickly; this bonus will be gone soon!
Nvidia is valued at nearly $2 trillion, up 16% after reporting its earnings on February 21 - AND it added the value of Tesla in just six weeks. That's the market power of AI.
Learn more about how you can invest in the future of AI marketing by investing in RAD AI.
VALUE INVESTORS CLUB
WM TECHNOLOGY INC - $MAPS
WM Technology, Inc. provides ecommerce and compliance software solutions to retailers and brands in cannabis market in the United States and internationally
Ticker: MAPS | Price: $1.32 | Price Target: $4.30 (+126%)
Market Cap: $207M | Timeframe: N/A
🌳 Cannabis | 💻 Software | 📈 Bullish Idea
WM Technology Inc, trading under the ticker MAPS, is currently priced at $0.92 per share, with a market capitalization of $150 million and approximately $30 million in net cash, resulting in an enterprise value (EV) of $120 million. There is a bullish outlook on the cannabis sector with the potential rescheduling of cannabis in 2024, which could remove the tax burdens under Section 280E, thereby boosting profits for the sector and marketing revenue for MAPS. The stock trades at approximately 3 times its adjusted EBITDA with a past low of $0.65 and a historical high of $4.30. The leading Weedmaps platform, known for high margins, has survived a sector downturn and is poised for growth. However, risks include the possibility of no reschedule by the DEA and further industry troubles.
Read the full article here. Read time: 10 min
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ Sweetgreen - short ($SG) [34%]
🟨🟨⬜️⬜️⬜️ FormFactor ($FORM) [33%]
🟥⬜️⬜️⬜️⬜️ Pinterest ($PINS) [33%]
Your comments:
🥗 ebgoo*** ($SG - short): It is gonna wanna fill that huge gap eventually
⚡️ alpo*** ($FORM): Specialized, essential service with little competition
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 60% bullish
Two days in a row as the biggest loser for Reddit after their successful IPO and Trump Media & Technology ($DJT) flipped from the biggest gainer yesterday to one of the biggest losers today. A couple other popular stocks (Palantir and MicroStrategy) also find themself in the biggest loser list.
Two bullish days in a row, but the last two days haven’t felt super compelling as the indexes were just slightly green (and the Nasdaq was slightly red yesterday). The Fear v Greed index gained one more point and the news sentiment was surprisingly bullish (and well above the 7-day average) considering the market was barely green. Yellowbrick Road readers remain just above 60% bullish.
Stock Market News
Home Depot to buy SRS Distribution in $18.25 bln deal - Reuters
AMC Entertainment Shares Plunge On Proposed Stock Sale As Chain Cites Soft Box Office, Cash Burn - Deadline
Take-Two Interactive to acquire Borderlands maker Gearbox Entertainment from Embracer - Reuters
Tesla deliveries face hit from China slowdown, soft demand - Reuters
Amazon reportedly to spend $150B to build data centers needed for AI boom, ‘get closer to customers' - New York Post
Apple's new iPad Pro likely to launch in May, ramps up overseas production, Bloomberg News reports - Reuters
Automotive computer chip maker NXP rolls out new platform - Reuters
FEATURED INSIDER TRADE
The insider trade is brought to you by CEO Watcher (another free, weekly email I write). It’s the only newsletter that tracks insider returns to find the best ones. Subscribe here
EVP, General Counsel at HERBALIFE LTD. ($HLF)
The EVP, General Counsel purchased 2,778 shares at $9.30/share ($25,835.40 total) which increased their vested holdings by 1.6%. The current price is $9.47 (+1.8%). Their median purchase size is $28,838.30 and this is their 2nd largest purchase out of 2 all time. (trade link)
Historic Returns
1m returns: 33% weighted | 33% median | 100% win rate (1/1)
3m returns: 46% weighted | 46% median | 100% win rate (1/1)
6m returns: -6% weighted | -6% median | 0% win rate (0/1)
1y returns: 12% weighted | 12% median | 100% win rate (1/1)
Note: 3 other insiders also purchased the stock
SECRET QUESTION
(Or if you’d rather not answer, you can just reply and say hi!)
Secret Question: Any big plans for Easter? We will be heading to our hometown to celebrate with family.
LINKS YOU’LL LOVE
+15 POINTS - WEEKLY TOURNAMENT
$NVDA had it’s first red week all year
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
How would you rate today's newsletter?If you vote 1 or 3 stars, please leave a comment with what you didn't like so I can improve it! |
Reply