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Top stock pitches (Fri, Sep 27)
Connor Van Ooyen
September 27, 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:
FFB Bancorp (FFBB)
Author: Bonhoeffer Capital Management | Price: $89 | Price Target: $160 (+80%) | Market Cap: $282M | Timeframe: N/A | Industry: Bank
The Kraft Heinz Company (KHC)
Author: Erin Lash | Price: $34.78 | Price Target: $57 (+64%) | Market Cap: $42B | Timeframe: N/A | Industry: Food Products
Taiwan Semiconductor Manufacturing (TSM)
Author: Munro Global Growth Fund | Price: $186.65 | Price Target: N/A | Market Cap: $839B | Timeframe: N/A | Industry: Semiconductors
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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).
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
100%+ returns in 1 months
This pitch for GFP.TO from River Oaks Capital was included on the website and in the Elite Investor Feed (link) for Premium Subscribers in mid-August and is up over 100% in just 1 month.
STOCK PITCHES
Author Returns
The below stock pitch is from Bonhoeffer Capital Management.
We have 15 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 - Bonhoeffer Capital Management
Bonhoeffer Capital Management Portfolio Holding: FFB Bancorp
FFB Bancorp operates as a bank holding company for FFB Bank that provides various banking products and services for individuals and small and middle-market businesses in the United States.
Ticker: FFBB | Price: $89 | Price Target: $160 (+80%)
Market Cap: $282M | Timeframe: N/A
🏦 Bank | 📈 Bullish Idea
* I recommend using Interactive Brokers link to trade international and OTC stocks if you can’t trade them in your current brokerage
FFB Bancorp (FFBB) is a California-based regional bank with a 20%+ 5-year EPS growth rate, trading at 9x earnings. The company boasts a 23% annual loan growth, 5.2% net interest margin, 47% efficiency ratio, and 25% ROE. FFBB aims to grow assets 6x in three regions over 7-10 years, expand geographically, and develop new tech services. With a 19% CET1 ratio, the bank is well-capitalized and has announced a 5% share buyback. The $160 price target represents a 75% upside, based on a 15x earnings multiple. Key risks include California's economic performance and potential loan losses, while catalysts include new product adoption and M&A opportunities. FFBB's loan portfolio quality is strong, with only 1.6% criticized plus watch list loans and 0.5% non-performing loans. The company's growth is driven by transaction processing, SME lending, and real estate loans, with management targeting a 25% annual growth rate over the next 7-10 years.
Read the full article here. Read time: 9 min
Share this stock pitch:
https://www.joinyellowbrick.com/sp/12174/?ref=PLACEHOLDER
Author Returns
The below stock pitch is from Erin Lash.
We have 5 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.
ANALYST REPORT - Erin Lash
The Kraft Heinz Company: Even Amid the Macro and Competitive Malaise, We Think Shares Look Tasty
The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally.
Ticker: KHC | Price: $34.78 | Price Target: $57 (+64%)
Market Cap: $42B | Timeframe: N/A
🍔 Food Products | 📈 Bullish Idea
The Kraft Heinz Company (KHC) is currently undervalued, trading 40% below the $57 fair value estimate. Under new management, the company has shifted focus from cost-cutting to strategic brand investments, increasing R&D and marketing spend. This has resulted in improved market share and shelf space gains. Kraft Heinz is expected to achieve low-single-digit organic sales growth and maintain low-20s operating margins. The company benefits from a narrow moat based on brand strength and cost advantages, with a 30% direct operating margin. Risks include ongoing inflation, particularly in coffee, dairy, and meats, as well as potential competition intensification. Kraft Heinz has authorized a $3 billion share buyback program and offers a 4-5% dividend yield. The stock carries a Medium Uncertainty Rating, reflecting the company's ability to counter competitive and macro pressures.
Share this stock pitch:
https://www.joinyellowbrick.com/sp/12204/?ref=PLACEHOLDER
Author Returns
The below stock pitch is from Munro Global Growth Fund.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.
FUND LETTER - Munro Global Growth Fund
Munro Global Growth Fund Portfolio Holding: Taiwan Semiconductor Manufacturing Company Limited
Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally.
Ticker: TSM | Price: $186.65 | Price Target: N/A
Market Cap: $839B | Timeframe: N/A
⚡️ Semiconductors | 📈 Bullish Idea
Taiwan Semiconductor Manufacturing Company Limited (TSM), the world's largest semiconductor foundry with over 60% market share, presents an attractive investment opportunity at 25x forward P/E. The company is well-positioned to benefit from the growing AI market, with AI server revenue expected to grow at a 50% CAGR over the next 5 years, potentially representing over 20% of total revenue by 2028. This target has been revised upwards twice since Q2 2023, indicating rapid market growth. Additionally, the proliferation of AI in consumer and business applications is driving higher semiconductor content in devices, further benefiting TSMC. Despite a slowdown in key end markets like smartphones, IoT, and automotive in 2023, Munro added TSM to their portfolio in December 2023, anticipating a cyclical rebound in 2024 and beyond. The company has a potential path to over $60 in EPS by 2026, making it an attractive long-term investment in the semiconductor industry.
Read the full article here. Read time: 2 min
Share this stock pitch:
https://www.joinyellowbrick.com/sp/12453/?ref=PLACEHOLDER
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ Builders FirstSource (BLDR) [50%]
🟨🟨⬜️⬜️⬜️ FitLife Brands (FTLF) [35%]
🟥⬜️⬜️⬜️⬜️ Net Lease Office Properties (NLOP) [15%]
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 78% bullish
Stock Market News
Super Micro shares tumble 12% after DOJ reportedly opens probe into company - CNBC
CarMax misses quarterly profit estimates as average price per vehicle dips - Reuters
Major global chip stocks rally on Micron's 15% surge; ASML up 4% - CNBC
U.S. new vehicle sales expected to have struggled during third quarter - CNBC
Klarna partners with fellow fintech Adyen to bring buy now, pay later into physical stores - CNBC
Alibaba and Baidu Stocks Surge. Stimulus Sets China Up for Best Week in a Decade. - Barrons
LINKS YOU’LL LOVE
🎁 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.
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Connor
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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! |
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