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Top stock pitches (Mon, Jul 29)

Top stock pitches (Mon, Jul 29)

Connor Van Ooyen
July 29, 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:

Antero Midstream Corporation (AM)

Kaspi.kz (KSPI)

Clarivate Plc (CLVT)

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).

**I use Interactive Brokers (link) for the portfolio because it makes it easy to trade international and OTC stocks. If you decide to open an account with them, use this link so they know I sent you.

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

The best stock pitch in July

Antarctic Capital pitched a relatively unknown, but super cheap, Swedish real estate company at the beginning of the month.

The stock pitch was added to the database and shared with premium subscribers in the Premium email on July 3rd and is already up 88% in less than one month!

STOCK PITCHES

Author Returns

The below stock pitch is from Stock Pickers Journey.

We have 4 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.

BLOG POST - Stock Pickers Journey

Finding Nirvana? - Antero Midstream - AM

Antero Midstream Corporation owns, operates, and develops midstream energy assets in the Appalachian Basin. It operates in two segments, Gathering and Processing, and Water Handling.

Ticker: AM | Price: $14.49 | Price Target: N/A
Market Cap: $6.97B | Timeframe: N/A

🛢️ Oil/Gas | 💰 6% Dividend | 📈 Bullish Idea

Antero Midstream Corporation (AM) offers a stable 6%+ yield stock, functioning as a low-risk 'utility substitute' for cautious value investors. The company collects tolls from its sister company, Antero Resources (AR), for gas and NGL processing, with 20+ year reserves and a safe 3.1x EBITDA leverage ratio. AM pays out 70-80% of its earnings in dividends, benefiting from LNG exports and strong NGL demand. As a non-LP entity that operates similarly to one, AM provides more predictability than utilities due to the absence of regulatory commissions. The company's consistent business model, coupled with AR's low-cost gas production in Appalachia, positions AM as a reliable investment option. While further analysis is needed, AM could potentially offer a better 6% yield opportunity compared to alternatives like Northwest Natural Gas (NWN), making it an attractive choice for portfolio managers seeking stable, low-risk investments.

Read the full article here. Read time: 2 min

Share this stock pitch:

https://www.joinyellowbrick.com/stock-pitches/7134/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from Kathmandu Capital.

We have 8 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 - Kathmandu Capital

Kathmandu Capital Portfolio Holding: Kaspi.kz ($KSPI)

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan. It operates through three segments: Payments Platform, Marketplace Platform, and Fintech Platform.

Ticker: KSPI | Price: $130.75 | Price Target: N/A
Market Cap: $25.13B | Timeframe: N/A

💸 Fintech | 💰 6% Dividend | 🇰🇿 Kazakhstan | 📈 Bullish Idea

Kaspi.kz (KSPI), Kazakhstan's dominant fintech, is experiencing 20%+ revenue and profit growth, driven by strong payment momentum and income growth. The company is well-positioned to leverage its extensive database and top engineering talent in Central Asia for AI opportunities, a potential that the market has yet to fully recognize. KSPI operates as a regional monopoly and government-like entity, effectively taxing the entire Kazakhstani population. The company's international expansion plans are expected to materialize after the Ukraine war, with management's strong track record of strategic investments supporting this growth. Kazakhstan's importance as a trade corridor and resource hub further enhances KSPI's prospects. Given its status as a high-quality compounder, the stock warrants at least a 20x P/E multiple. However, risks include potential war-related disruptions and execution challenges in international expansion.

Read the full article here. Read time: 1 min

Share this stock pitch:

https://www.joinyellowbrick.com/stock-pitches/7261/?ref=PLACEHOLDER

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Author Returns

The below stock pitch is from avocadork.

Their historic returns are:

Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.

VALUE INVESTORS CLUB - avocadork

Clarivate Plc - $CLVT

Clarivate Plc operates as an information services provider in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. It operates through three segments: Academia & Government, Life Sciences & Healthcare, and Intellectual Property.

Ticker: CLVT | Price: $7.03 | Price Target: $9.65 (+37%)
Market Cap: $4.7B | Timeframe: N/A

📊 Information Services | 📈 Bullish Idea

Clarivate (CLVT), an information services company, offers potential 70% upside trading at 7.4x 2025 EBITDA compared to peers at 15x. The company operates in three segments: Academia & Government, Intellectual Property, and Life Sciences & Healthcare, providing mission-critical data and analytics. Despite low single-digit organic growth, Clarivate maintains high margins (40.8% EBITDA 2025E) and is improving its balance sheet post-debt refinancing and preferred stock conversion. Catalysts include consistent low single-digit subscription growth, potential share buybacks, and a possible dividend initiation. The company's moat stems from its curated data and limited competition. Risks are mitigated by the mission-critical nature of its offerings and focus on debt reduction. Management targets 4-6% long-term organic growth, but even conservative 2% growth projections support significant upside. The $9.65 price target implies 11x 2025 EBITDA, still below peer averages.

Read the full article here. Read time: 11 min

Share this stock pitch:

https://www.joinyellowbrick.com/stock-pitches/7132/?ref=PLACEHOLDER

Which stock idea was the most compelling to you?

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ Superior Industries International (SUP) [54%]

🟨🟨⬜️⬜️⬜️ Clean Harbors, Inc. (CLH) [28%]

🟥⬜️⬜️⬜️⬜️ Laird Superfood (LSF) [18%]

MARKET OVERVIEW / NEWS

Market Overview

Which stock idea was the most compelling to you?

Yesterday’s Poll Results: 60% bullish

We had one of the most bearish days of the year last week and then ended the week with a very bullish day. The market continues to yo-yo and we have a ton of big earnings this week that will dictate the market going forward.

Stock Market News

Short seller Andrew Left charged with fraud by prosecutors, SEC - CNBC

Apple's no longer among top 5 smartphone vendors in China as domestic brands dominate market - CNBC

Fed's key inflation gauge rose 2.5% in June from a year ago, in line with expectations - CNBC

Treasury yields slip after release of key inflation data for June - CNBC

CrowdStrike CEO says 97% of Windows sensors back online after major outage - CNBC

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

PRESIDENT & CEO at SCHOLASTIC CORP ($SCHL)

The PRESIDENT & CEO purchased 1,674 shares at $30.46/share ($50,996.74 total) which increased their vested holdings by 1.6%. The current price is $31.35 (+2.9%). Their median purchase size is $75,844.50 and this is their 2nd largest purchase out of 2 all time. link

Note: 1 other insiders also purchased the stock

LINKS YOU’LL LOVE

Top insider trades from last week

Insights on Warren Buffett From His Friend and Editor

The Power of Incentives; SVB and Berkshire

🎁 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.

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

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