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Top stock pitches (Fri, May 24)

Top stock pitches (Fri, May 24)

Connor Van Ooyen
May 24, 2024

New Trade Alert!

We just made a new investment in the YBR Portfolio and copied a trade from the #2 investor in our database who averages 67%+ 1-year returns on their stock pitches.

The new stock is…

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 (you get a 20% discount using that link or the button below).

STOCK PITCHES

Author Returns

The below stock pitch is from Praetorian Capital.

We have 38 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. Upgrade for 20% off.

FUND LETTER

Praetorian Capital holding: Tidewater ($TDW)

Tidewater Inc., together with its subsidiaries, provides offshore support vessels and marine support services to the offshore energy industry through the operation of a fleet of marine service vessels worldwide.

Ticker: TDW | Price: $102.07 | Price Target: N/A
Market Cap: $5.55B | Timeframe: N/A

🛢️ Oil/Gas | 📈 Bullish Idea

Tidewater (TDW), an offshore energy services company, is poised for significant upside potential as oil producers increase exploration and production spending to combat high prices. The industry's consolidation and reduced capacity due to recent bankruptcies have positioned TDW to benefit from rising demand. With a restored balance sheet and positive free cash flow, TDW's valuation, currently at a deep discount to equipment replacement cost, is expected to improve as cash flows increase and rigs are valued closer to their replacement cost. The delayed increase in global oilfield services spending by producers only extends the thesis, and as the sector's spending recovers, TDW's potential for cash flow growth will become more apparent, leading to a re-rating of the stock.

Read the full article here. Read time: 1 min

Author Returns

The below stock pitch is from Fat_Tony on Value Investors Club.

We have 9 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. Upgrade for 20% off.

VALUE INVESTORS CLUB

CoStar Group, Inc. - $CSGP

CoStar Group, Inc. provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canada, Europe, the Asia Pacific, and Latin America.

Ticker: CSGP | Price: $85.69 | Price Target: N/A
Market Cap: $35.84B | Timeframe: N/A

🏡 Real Estate Services | 📈 Bullish Idea

CoStar Group (CSGP) presents a compelling investment opportunity due to the potential windfall for its homes.com business from the NAR (National Association of Realtors) settlement, which is experiencing rapid traffic growth and monetization tracking above 2024 guidance. The core business is valued in-line with historical levels at 42x earnings, excluding homes.com losses, and the company has a strong balance sheet with $4 billion in net cash for M&A. Homes.com could benefit significantly if buy-side commissions erode post-settlement, and the company is expanding internationally through its proven M&A playbook. The commercial real estate cycle also serves as a tailwind, and CEO Andy Florance is a proven capital allocator. With homes.com monetization surpassing initial guidance and the NAR settlement potentially driving the market towards homes.com's model, the stock offers attractive upside potential.

Read the full article here (free login required). Read time: 8 min

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Author Returns

The below stock pitch is from Praetorian Capital.

We have 38 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. Upgrade for 20% off.

FUND LETTER

Praetorian Capital holding: A-Mark Precious Metals, Inc

A-Mark Precious Metals, Inc., together with its subsidiaries, operates as a precious metals trading company. It operates through three segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending.

Ticker: AMRK | Price: $38.38 | Price Target: N/A
Market Cap: $854M | Timeframe: N/A

💎 Precious Metals | 💰 2% Dividend | 📈 Bullish Idea

A-Mark Precious Metals, Inc. (AMRK) is a leading supplier of coins to dealers and online platforms like JM Bullion, with stakes in two mints. The company benefits from periods of chaos, experiencing increased transaction volumes and wider spreads. Over the past three years, A-Mark earned approximately $7 per share, adjusted for non-recurring items and non-cash intangible amortization, and was acquired at a bargain price of four times earnings, despite being a high-return-on-capital business. Although earnings have recently declined due to lower transaction volumes and spreads, A-Mark provides a unique counter-cyclical investment opportunity and a hedge against future crises. Management believes the company can earn up to $10 per share during a crisis and command a healthy multiple. A-Mark is an ideal proxy for anticipated increases in precious metal prices without the risks associated with owning a mine, and as investors discover its potential, the valuation is expected to re-rate.

Read the full article here. Read time: 2 min

Which stock idea was the most compelling to you?

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ Sow Good ($SOWG) [42%]

🟨🟨⬜️⬜️⬜️ St Joe Corporation ($JOE) [42%]

🟥⬜️⬜️⬜️⬜️ AerCap Holdings ($AER) [16%]

Your Comments:

🛩️ burkh***: You guys have me going against Mr. Buffet, buying stocks at their all-time high. But so far it's paid off. I'm buying AER today, and probably JOE as well

MARKET OVERVIEW / NEWS

Market Overview

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

Yesterday’s Poll Results: 46% bullish

All of our sentiment checks have now fallen out of bullish territory with Yellowbrick Road readers only 46% bearish and the Fear v Greed index falling out of “greed” territory into “neutral”. The news sentiment is also negative for the second day in a row and all of the indexes are negative for the second day in a row. This is an even bigger deal considering Nvidia crushed earnings and still couldn’t save the market.

Stock Market News

Snowflake sees second-quarter product revenue above estimates - Reuters

Boeing expects negative free cash flow, slow recovery in aircraft deliveries, CFO says - CNBC

Dow plunges over 600 points as Wall Street worries rates will stay high - New York Post

Medtronic beats quarterly profit estimates on medical devices strength - Reuters

Alibaba's Hong Kong shares drop 5% after report of possible $5 billion convertible bond sale - CNBC

Elon Musk has lost his focus, former Tesla board member says - CNBC

Xiaomi reports 27% rise in Q1 revenue on strong smartphone sales - Reuters

Nvidia's shares soar after blowout earnings as booming AI demand fuels chip sector rally - New York Post

Workday cuts full-year subscription revenue forecast - 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

Director at TELOS CORP ($TLS)

The Director purchased 247,005 shares at $3.96/share ($979K total) which increased their vested holdings by 21.2%. The current price is $4.06 (+2.4%). Their median purchase size is $499K and this is their 2nd largest purchase out of 8 all time. (trade link)

LINKS YOU’LL LOVE

The business of super apps (podcast)

Ray Dalio’s principles for graduates

Mining for gems in overlooked small caps

THAT’S ALL FOLKS

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Connor

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