Top stock pitches (Mon, Apr 1)

Connor Van Ooyen
April 01, 2024

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

👋 Good Morning!

This email is a bit shorter because the market was closed on Friday.

I’ve also added a few extra filters to the website that were requested by users. You can now filter by sentiment, min/max stock price, and sort by the highest price target.

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 122 stock pitches and 3 of them were included in this email.

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

“He who turns over the most rocks wins”

This quote by investing legend Peter Lynch exemplifies what Yellowbrick is all about.

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But if you upgrade to premium, you will get the new stock pitches as soon as they are added plus a daily email with a quick rundown of the new stock pitches that were added to the site.

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STOCK PITCHES

BLOG POST

GEN Restaurant (GENK) – Kura Sushi 2.0

GEN Restaurant Group, Inc. operates restaurants in California, Arizona, Hawaii, Nevada, Texas, New York, and Florida. Its restaurants specialize in various flavored meats for Korean barbeque. The company was founded in 2011 and is based in Cerritos, California.

Ticker: GENK | Price: $11.68 | Price Target: $59.70 (+411%)
Market Cap: $377M | Timeframe: N/A

🧑‍🍳 Restaurants | 📈 Bullish Idea

GEN Restaurant Group (GENK) is a Korean BBQ restaurant chain that appears to be significantly undervalued, trading at just 0.7x sales and 6x 2027 estimated EBIT. The company operates an efficient model where customers cook their own food, resulting in cash-on-cash returns of 40% and store-level margins exceeding 20%. With only 37 locations currently, GENK is targeting an expansion to over 250 restaurants. Insiders have been buying shares, suggesting strong confidence in the company's prospects. Given these factors, GENK has the potential to deliver a 5x return on investment.

Read the full article here. Read time: 6 min

BLOG POST

The Dividend Note – BOOT.L

Henry Boot PLC engages in property investment and development, land promotion, and construction activities in the United Kingdom. The company operates through three segments: Property Investment and Development, Land Promotion, and Construction

Ticker: BOOT.L | Price: GBP 180 | Price Target: N/A
Market Cap: GBP 244M | Timeframe: N/A

🏡 Property Investment / Development | 💰 4% Dividend | 📈 Bullish Idea

BOOT.L reported FY23 results with revenue increasing 5%, profit decreasing 18%, and NAV rising 3% to 300p. The dividend was raised 10% despite higher debt levels resulting from land investments and extended housebuilder payment terms. The company's 10-year average ROCE is 12.7%, and its land bank holds £710m in pipeline profit. Stonebridge homes saw a 43% increase, and the commercial development pipeline stands at £1.3bn. Profits in 2024 are expected to be H2-weighted, with recovery anticipated in 2025 and beyond. The 40% discount to NAV presents an attractive entry point for this well-managed business, although low margins and cyclicality remain risks.

Read the full article here. Read time: 4 min

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TWITTER

Qualcomm: AI PC Option Play

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI)

Ticker: QCOM | Price: $169.30 | Price Target: N/A
Market Cap: $189B | Timeframe: N/A

🤖 AI | 💰 1.9% Dividend | 📈 Bullish Idea

QUALCOMM Incorporated has rallied to $170 but is not priced like an AI play yet, still trading below the market multiple. The company has a new deal with Samsung for AI smartphone features and an upcoming AI PC chip in mid-2024 to rival Intel, AMD, and Apple. Qualcomm's automotive order book is over $30 billion, with sales expected to reach $4 billion by fiscal year 2026. The stock is trading at only 15 times fiscal year 2025 earnings per share of $10.76, despite growth ahead in 5G, IoT, and automotive sectors before AI PCs even kick in. Qualcomm appears cheap with significant upside potential on profit rebound and multiple expansion.

Read the full article here. Read time: 3 min

Which stock idea was the most compelling to you?

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ JPMorgan Chase ($JPM) [47%]

🟨🟨⬜️⬜️⬜️ WM Technology ($MAPS) [31%]

🟥⬜️⬜️⬜️⬜️ Grange Resources Limited ($GRR.AX) [22%]

SECRET QUESTION

(Or if you’d rather not answer, you can just reply and say hi!)

Secret Question: How was your Easter weekend? We had stellar weather and were able to go for a bike ride and had a great time with family on Sunday.

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