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Top stock pitches (Mon, Jul 1)
Connor Van Ooyen
July 01, 2024
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*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:
Corning ($GLW)
Author: @TMTMoats | Price: $38.99 | Price Target: N/A | Market Cap: $34.3B | Timeframe: N/A | Industry: Electronic Equipment
The Liberty SiriusXM Group ($LSXMA)
Author: Eagle Point Capital | Price: $22.01 | Price Target: N/A | Market Cap: $7.22B | Timeframe: N/A | Industry: Media
Tiptree Inc. ($TIPT)
Author: Leahi Capital | Price: $16.49 | Price Target: $42.70 (+159%) | Market Cap: $598M | Timeframe: 2-3 years | Industry: Insurance
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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 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.
WINNING PITCH
+130% returns in less than 3 months
This $SBBC.V pitch was shared in the Yellowbrick Premium email and on the website on April 15th and has shot up almost 130% in less than 3 months.
Shoutout to D&A Metropolitan for the pitch!
STOCK PITCHES
Author Returns
The below stock pitch is from @TMTMoats.
We have 3 stock pitches from them in our database and their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.
TWITTER - @TMTMoats
Corning ($GLW) thesis from Barron's article
Corning Incorporated engages in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses in the United States and internationally.
Ticker: GLW | Price: $38.99 | Price Target: N/A
Market Cap: $34.3B | Timeframe: N/A
⚡️ Electronic Equipment | 🔄 Turnaround | 📈 Bullish Idea
Corning Incorporated ($GLW) is poised for a turnaround, with the CEO expecting over $3 billion in incremental revenue within the next three years, driven by strong margins from existing capacity and tailwinds such as auto sector growth, a rebound in non-AI fiberoptic cable, a $42.5 billion federal government broadband program, and a tenfold increase in fiber demand for AI servers. The company's glass products are crucial for AI data centers and chips, and despite a 25% rally this year, the stock trades at a modest 2.3 times expected 2024 sales and about 20 times adjusted earnings, making it an attractive, under-the-radar AI play.
Read the full article here. Read time: 2 min
Author Returns
The below stock pitch is from Eagle Point Capital.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.
BLOG POST - Eagle Point Capital
VALUEx Vail 2024 Presentation: Liberty SiriusXM Group
The Liberty SiriusXM Group, through its subsidiaries, engages in the entertainment business in the United States, the United Kingdom, and internationally.
Ticker: LSXMA | Price: $22.01 | Price Target: N/A
Market Cap: $7.22B | Timeframe: N/A
🎥 Media | 📈 Bullish Idea
The Liberty SiriusXM Group (LSXMA) presents an attractive investment opportunity as SiriusXM trades at a trough valuation on trough earnings despite its stable business model. The pending transaction to simplify the ownership structure, increase liquidity, and widen the shareholder base serves as a catalyst for outsized stock returns. Potential index inclusion, passive inflows, strengthening car sales, and share repurchases provide additional catalysts. The stock is undervalued due to the complicated ownership structure, excessive short interest, and limited liquidity, rather than the fundamentals of the business. SiriusXM boasts a predictable and sticky recurring revenue model, high margins, attractive ROIC, and rational capital allocation. Key risks include competition, leverage, and potential selling pressure post-transaction. Notably, Berkshire Hathaway, John Malone, and Baupost own significant stakes in the company.
Read the full article here. Read time: 3 min
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Author Returns
The below stock pitch is from Leahi Capital.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.
BLOG POST - Leahi Capital
Tiptree Inc. - $TIPT
Tiptree Inc., through its subsidiaries, provides specialty insurance products and related services primarily in the United States. It operates through two segments: Insurance and Mortgage.
Ticker: TIPT | Price: $16.49 | Price Target: $42.70 (+159%)
Market Cap: $598M | Timeframe: 2-3 years
💸 Insurance | 📈 Bullish Idea
Tiptree Inc. (TIPT), a holding company trading at $16.09, is significantly undervalued with a sum-of-the-parts estimate of $25.7 per share, offering 60% upside potential. Its main asset, Fortegra, a specialty insurer contributing 96% of revenue, is valued at 16x P/E, equating to $1.48 billion for TIPT's 73% stake. Adding Tiptree Capital at book value and deducting the present value of bloated corporate costs, the fair value estimate is derived. Fortegra's business quality is strong, with a 15-year revenue CAGR of 25%, low capital intensity, improving scale, and a focus on niche products. The key risk is the rapid shift in premium mix. The catalyst for value realization is a likely exit of Fortegra within 2-3 years. If Fortegra is sold and TIPT liquidated, the upside potential could be as high as 165%, with a fair value of $42.7 per share.
Read the full article here. Read time: 6 min
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ The GEO Group ($GEO) [50%]
🟨🟨⬜️⬜️⬜️ UnitedHealth Corp ($UNH) [36%]
🟥⬜️⬜️⬜️⬜️ Detroit Legal News ($DTRL) [14%]
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 65% bullish
Stock Market News
Key Fed measure shows inflation rose 2.6% in May from a year ago, as expected - CNBC
Rural retailer Tractor Supply eliminates DEI roles, Pride support and carbon emissions goals - CNBC
Apple's May smartphone shipments in China up 39.6% y/y, data shows - Reuters
Ford CEO says a profitable $30,000 EV is coming in two and a half years - CNBC
Chevron Doctrine overturned: Republicans, big business praise Supreme Court decision - CNBC
US army awards Lockheed Martin $4.5 bln multi-year Patriot Missiles contract - Reuters
LINKS YOU’LL LOVE
THAT’S ALL FOLKS
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Connor
*Follow Yellowbrick on Twitter at @joinyellowbrick
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