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Top stock pitches (Mon, Sep 23)
Connor Van Ooyen
September 23, 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:
CompoSecure, Inc. (CMPO)
Author: @hispanstreetcat | Price: $13.93 | Price Target: N/A | Market Cap: $1.10B | Timeframe: N/A | Industry: Tech Hardware Manufacturing
PRA Group (PRAA)
Author: Leahi Capital | Price: $22.10 | Price Target: N/A | Market Cap: $871M | Timeframe: N/A | Industry: Consumer Debt Buyer
VOXX International Corporation (VOXX)
Author: Treasure Hunting | Price: $6.02 | Price Target: N/A | Market Cap: $135M | Timeframe: N/A | Industry: Automotive Technologies
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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
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WINNING PITCH
350%+ returns in 2 months
Another “Elite Investor” pitch with massive returns in just a couple of months. There is a reason it’s called the Elite Investor Feed (link).
STOCK PITCHES
Author Returns
The below stock pitch is from @hispanstreetcat.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.
TWITTER - @hispanstreetcat
CompoSecure: A Dominant Market Player with Strong Financials and New Leadership
CompoSecure, Inc. manufactures and designs metal, composite, and proprietary financial transaction cards in the United States and internationally.
Ticker: CMPO | Price: $13.93 | Price Target: N/A
Market Cap: $1.10B | Timeframe: N/A
🖥️ Tech Hardware Manufacturing | 📈 Bullish Idea
CompoSecure, Inc. (CMPO) is a mid-to-high-end consumer/tech hardware manufacturing company with a $1 billion market cap and $1.2 billion enterprise value, trading at 7.5x NTM EBITDA. The company boasts impressive financials, including 50%+ gross margins, 35%+ EBITDA margins, high single to low double-digit topline growth, and low to mid-teens EBITDA growth. With only $25 million in net PP&E and minimal inventory risk, CMPO holds a dominant 70-80% market share, maintaining decades-long relationships with its two primary customers, one of which is exclusive. Recently, the family office of a top industrial CEO acquired over 60% of the business, removing sponsor and tax receivable overhangs, while also eliminating board members who had previously promoted a low-probability crypto cold wallet theme during the company's SPAC debut in 2021. The new Executive Chairman's potential to implement Honeywell-like changes, including improvements in manufacturing efficiency, customer service, corporate culture, and M&A opportunities, could significantly impact the company's future performance.
Read the full article here. Read time: 1 min
Share this stock pitch:
https://www.joinyellowbrick.com/sp/12218/?ref=PLACEHOLDER
Author Returns
The below stock pitch is from Leahi Capital.
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.
BLOG POST - Leahi Capital
PRA Group, Inc. - $PRAA
PRA Group, Inc., a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans worldwide.
Ticker: PRAA | Price: $22.10 | Price Target: N/A
Market Cap: $871M | Timeframe: N/A
💸 Consumer Debt Buyer | 🔄 Turnaround | 📈 Bullish Idea
PRA Group, a consumer debt buyer trading at 1.1x tangible book value and 58% EV/ERC, is positioned for a potential turnaround. The company, which posted its first loss as a public company in 2023, is benefiting from record US credit card delinquencies that are boosting supply. New management is improving pricing discipline and operational efficiency, with Q2 2024 showing an 8% ROE. Historical performance indicates potential upside to 2.5x P/TBV and 70% EV/ERC. The company's competitive advantages include proprietary data, regulatory compliance, and economies of scale. Key earnings drivers are volume of receivable purchases, pricing, portfolio performance, collection costs, and financing costs. Risks include capital intensity, cyclicality, and poor performance of 2021-2022 vintages. The European market shows mild encouragement with rising UK credit card delinquencies and improved pricing. With a favorable 18-24 month supply outlook, improving pricing, and potential for declining funding costs, PRA Group presents an attractive investment opportunity, supported by significant institutional ownership and insider stakes.
Read the full article here. Read time: 8 min
Share this stock pitch:
https://www.joinyellowbrick.com/sp/12237/?ref=PLACEHOLDER
Author Returns
The below stock pitch is from Treasure Hunting.
We have 13 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 - Treasure Hunting
Treasure Hunting: VOXX International Corporation
VOXX International Corporation manufactures and distributes automotive electronics, consumer electronics, and biometric products in the United States, Europe, and internationally.
Ticker: VOXX | Price: $6.02 | Price Target: N/A
Market Cap: $135M | Timeframe: N/A
🚗 Automotive Technologies | 📈 Bullish Idea
VOXX International Corporation (VOXX), an automotive and consumer electronics company, is currently trading at 0.2x tangible book value with a market cap of $130 million. The company experienced a significant post-COVID crash in revenue and earnings, prompting it to sell assets worth $53 million and explore strategic alternatives. Gentex, a major stakeholder, has increased its position to 25%, purchasing shares at $5 when the market price was $3, suggesting a potential full buyout. This move, along with VOXX's asset sales and strategic review, provides some downside protection for the stock. However, as a microcap company with 22.48 million shares outstanding and no meaningful P/E ratio for 2024, VOXX still carries inherent risks associated with smaller, less liquid stocks.
Read the full article here. Read time: 1 min
Share this stock pitch:
https://www.joinyellowbrick.com/sp/12146/?ref=PLACEHOLDER
Which stock idea was the most compelling to you? |
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Stock Market News
Intel shares pop on report Qualcomm has approached it about takeover - CNBC
Mercedes shares slump over 6% after carmaker cuts 2024 guidance on weak China demand - CNBC
Southwest Airlines warns staff of 'tough decisions' ahead, Bloomberg reports - Reuters
American Airlines in talks to pick Citigroup over rival bank Barclays for crucial credit card deal - CNBC
Former Amazon engineer says company's 5-day return-to-work policy causes employees to rethink jobs - Fox Business
LINKS YOU’LL LOVE
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THAT’S ALL FOLKS
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Connor
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