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Top stock pitches (Mon, Mar 25)

Top stock pitches (Mon, Mar 25)

Connor Van Ooyen
March 25, 2024

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

👋 Good Morning!

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 155 stock pitches, 1099 news articles, and 185 insider trades and found:

A casual diner stock set to turn things around (stock pitch)
Mortgage demand down 9.4% (news)
An insider with almost 200% 3-month returns bought stock (insider trade)
and more…

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

Find your next stock investment on the Yellowbrick website

The Yellowbrick website is the best way to find your next stock investment or to research a stock you’re interested in.

Every stock pitch that I add to my database is put on the website and you can easily search/filter them to find your next investment.

It’s free for everyone (with a 30-day delay) or you can upgrade to Yellowbrick Premium to access ALL of the stock pitches as soon as they are added. All Yellowbrick Road readers can upgrade to premium for 20% off just by using the link below.

STOCK PITCHES

BLOG POST

Pernas Research establishes position with Red Robin Gourmet Burgers, Inc.

Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises casual-dining restaurants, in North America and one Canadian province

Ticker: RRGB | Price: $6.50 | Price Target: N/A
Market Cap: $104M | Timeframe: N/A

🧑‍🍳 Resturant | 📈 Bullish Idea

Red Robin is a casual diner with approximately 500 restaurants and a market capitalization of $100 million at $6.5 per share, trading at 3.7x EV/EBITDA. The stock is down 45% year-to-date due to concerns about interest rates and consumers shifting spending to groceries. New management has ended discounts and Virtual Brands, guiding for $65 million in EBITDA for fiscal year 2024, with about $30 million going to capital expenditure and $22 million towards interest payments. The company is using sale-leasebacks to reduce debt. The risk/reward profile is attractive following the recent sell-off.

Read the full article here. Read time: 1 min

TWITTER

Driving Growth: Salesforce, Inc. - $CRM

Salesforce, Inc. provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide

Ticker: CRM | Price: $307.77 | Price Target: $400 (+30%)
Market Cap: $296B | Timeframe: 2025

📇 CRM | 📈 Bullish Idea

Salesforce, Inc. ($CRM) has 31% upside potential by calendar year 2025 based on bullish feedback from integrators. The new UE+ bundles are resonating well with customers, and the company's Generative AI (GenAI) products are progressing rapidly with strong customer pilot interest. Service growth is expected to accelerate to 5-7% in fiscal year 2024 after a sluggish fiscal year 2023. The company is seeing strength in the public sector, while the marketing cloud has been soft post-COVID. The stock is trading at a discount to 25x calendar year 2025/2026 free cash flow.

Read the full article here. Read time: 2 min

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TWITTER

Strategic Advantage: IGIC's Strong Position in Specialty Insurance

International General Insurance Holdings Ltd. provides specialty insurance and reinsurance solutions worldwide. It operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance

Ticker: IGIC | Price: $13.32 | Price Target: N/A
Market Cap: $610M | Timeframe: N/A

💸 Specialty Insurer | 📈 Bullish Idea

$IGIC is a specialty insurer trading at 1x book value and 6x EPS. The company has an 87.7% 10-year average combined ratio and a 13% ROE. The scaled business now has 1.1x premium/equity (+400bps ROE) and a 4.3% investment yield. Management sees the best underwriting environment ever. With an 85% 5-year average combined ratio, there is potential for a 22%+ ROE. IGIC trades at a 30% discount to peers (1.5x book value) due to its SPAC IPO and low volume. Buybacks and a re-rating to 1.3x book value could result in a 25%+ IRR.

Read the full article here. Read time: 3 min

Which stock idea was the most compelling to you?

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ Cognyte Software ($CGNT) [38%]

🟨🟨⬜️⬜️⬜️ SPS Commerce ($SPSC) [31%]

🟥⬜️⬜️⬜️⬜️ Despegar.com ($DESP) [31%]

MARKET OVERVIEW / NEWS

Market Overview

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

Yesterday’s Poll Results: 62% bullish

A rough end to the week for the market as all of the indexes except except the Nasdaq were red on Friday. Surprisingly, the stock news sentiment actually jumped again above 0.5, but the Fear v Greed index and YBR readers’ bullishness fell. We had a couple of super bullish days after the Fed meeting, but things cooled off a bit heading into the weekend. Will be interesting to see how the market opens this week.

Stock Market News

Tesla trims output of cars in China amid slower EV sales growth, Bloomberg reports - Reuters

Apple scraps plan to design watch displays in-house, Bloomberg News reports - Reuters

Reddit dips day after strong NYSE debut - Reuters

Indian IT stocks tumble as Accenture ‘pours water’ on hopes of rebound in demand - Reuters

Santander expects over 6 bln euros in dividends, buybacks against 2024 results - 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

10% Owner at ISSUER DIRECT CORP ($ISDR)

The 10% Owner purchased 10,498 shares at $11.90/share ($125K total) which increased their vested holdings by 1.9%. The current price is $11.99 (+0.8%). Their median purchase size is $299K and this is their 13th largest purchase out of 15 all time. (trade link)

SECRET QUESTION

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

Secret Question: How was your weekend? I did end up getting to play golf, but it was in the rain and cold. However, Purdue easily won both their games this weekend, so that’s good.

LINKS YOU’LL LOVE

+15 POINTS - WEEKLY TOURNAMENT

Jurny is an AI-powered platform automating hotel and short-term rental operations. With $2.2M in ARR, industry partnerships with major companies including Airbnb, Vrbo, and Expedia, and more than $35 million in bookings processed through their platform last year alone, it's no surprise that Jurny has the backing of leading venture capitalists and over 1,000 individual investors. Read their full pitch*

Exploring the average, status quo, and public vs private

Top insider trade from last week

A better way to balance risk and return

* Sponsored link

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

*Follow Yellowbrick on Twitter at @joinyellowbrick

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