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Top stock pitches (Mon, Sep 30)
Connor Van Ooyen
September 30, 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:
Energy Transfer LP (ET)
Author: Travis Miller | Price: $16.04 | Price Target: $21 (+31%) | Market Cap: $54.89B | Timeframe: N/A | Industry: Natural Gas
The Westaim Corporation (WED.V)
Author: ToffCap | Price: 3.90 | Price Target: N/A | Market Cap: 499M | Timeframe: N/A | Industry: Private Equity
Customers Bancorp, Inc. (CUBI)
Author: @blondesnmoney | Price: $45.36 | Price Target: $53 (+17%) | Market Cap: $1.44B | Timeframe: N/A | Industry: Bank
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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.
YB Premium Portfolio returns - started mid-May
IN CASE YOU MISSED IT
China stock pitches
China stocks have been ripping…
So I collected 100+ Chinese stock pitches and put them on the website. Check them out at: https://joinyellowbrick.com/stock-pitches/location/china
STOCK PITCHES
Author Returns
The below stock pitch is from Travis Miller.
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.
ANALYST REPORT - Travis Miller
Energy Transfer LP: Energy Transfer Continues to Bulk Up Via M&A
Energy Transfer LP provides energy-related services. The company owns and operates natural gas transportation pipeline, and natural gas storage facilities in Texas and Oklahoma; and approximately 20,090 miles of interstate natural gas pipeline.
Ticker: ET | Price: $16.04 | Price Target: $21 (+31%)
Market Cap: $54.89B | Timeframe: N/A
🛢️ Natural Gas | 💰 8% Dividend | 📈 Bullish Idea
Energy Transfer LP (ET) is expanding through M&A and plans $3.1 billion in capex for 2024. The company is well-positioned in Texas power plant connections and potential data center demand, but faces delays in its Lake Charles LNG project due to regulatory pauses. Despite its size and diversification, ET lacks an economic moat due to commodity exposure and volatile earnings. The fair value estimate is $21, implying an 8x EV/EBITDA multiple for 2024. Key risks include legal and regulatory challenges, potential M&A overpayment, and interest rate sensitivity. The company has a Poor Capital Allocation Rating due to inconsistent strategies and impairments from past acquisitions. Management is considering a C-Corporation conversion to address the EBITDA multiple discount versus peers. Growth prospects include the Warrior gas pipeline project and increased value of gas storage assets, with normalized earnings and cash flow growth expected at 3%-4% long-term.
Read the full article here. Read time: 8 min
Share this stock pitch:
https://www.joinyellowbrick.com/sp/12321/?ref=PLACEHOLDER
Author Returns
The below stock pitch is from ToffCap.
We have 55 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 - ToffCap
Westaim Corporation: Cash-Rich, Shareholder-Friendly, and Poised for Growth
The Westaim Corporation is a private equity firm specializing in direct and indirect investments through acquisitions, joint ventures, secondary investments both direct and indirect, fund of fund investments, and other arrangements.
Ticker: WED.V | Price: 3.90 | Price Target: N/A
Market Cap: 499M | Timeframe: N/A
💸 Private Equity | 📈 Bullish Idea
* I recommend using Interactive Brokers link to trade international and OTC stocks if you can’t trade them in your current brokerage
The Westaim Corporation (WED.V) presents an attractive investment opportunity with a minimal downside, underscored by a solid financial position. Following the sale of its stake in Skyward, Westaim bolstered its balance sheet with an additional US$79 million, bringing its total cash reserves to approximately US$370 million against a market capitalization of US$380 million. The ongoing success of the Arena investment adds further momentum to the company’s outlook. Key highlights include: a substantial cash balance minimizing risk, potential for further asset monetization, and a management team intent on rewarding shareholders. Meanwhile, Westaim actively continues its share repurchase program.
Read the full article here. Read time: 1 min
Share this stock pitch:
https://www.joinyellowbrick.com/sp/12504/?ref=PLACEHOLDER
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Author Returns
The below stock pitch is from @blondesnmoney.
We have 34 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 - @blondesnmoney
Customers Bancorp Trading at $44: Undervalued with $53 Price Target Amid Solid Fundamentals
Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to individual consumers, and small and middle market businesses.
Ticker: CUBI | Price: $45.36 | Price Target: $53 (+17%)
Market Cap: $1.44B | Timeframe: N/A
🏦 Bank | 📈 Bullish Idea
Customers Bancorp, Inc. (CUBI) is currently trading at $44, with a price target of $53. The stock is undervalued at 6-7x earnings and trades below its $50 tangible book value. CUBI has strong liquidity and capital ratios, with 79% insured deposits and a low-risk loan portfolio. The company's tangible book value could potentially reach $52-$53 with $1.25 EPS and $0.50 AOCI accretion. The investor has a long position of 7,200 shares, hedged with $35 strike October puts to limit downside risk. Despite market fears and short-seller activity, the bank's fundamentals appear solid, with a liquid balance sheet and strong capital ratios. The main risks include potential panic and loan quality issues, although the latter seems unlikely given the bank's current portfolio. The investor sees similarities to a previous successful trade in NECB, which yielded a 60% return amid similar market fears.
Read the full article here. Read time: 2 min
Share this stock pitch:
https://www.joinyellowbrick.com/sp/12512/?ref=PLACEHOLDER
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ Taiwan Semiconductor Manufacturing (TSM) [53%]
🟨🟨⬜️⬜️⬜️ The Kraft Heinz Company (KHC) [33%]
🟥⬜️⬜️⬜️⬜️ FFB Bancorp (FFBB) [14%]
Your comments:
🍞 burkh*** ($KHC): “I have bought and sold KHC several times this year, made money each time. Looking for a better re-entry point, bought one share to keep an eye on it. I also like TSM, last held it in 2023, sold it at a small profit. Since then it has more than doubled. Looking for a better entry point, which regional volatility is sure to provide..
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 78% bullish
Stock Market News
Alibaba, Tencent rally as Beijing stimulus plans push China's tech stocks to 13-month high - CNBC
Key Fed inflation gauge at 2.2% in August, lower than expected - CNBC
Apple drops out of talks to join OpenAI investment round, WSJ says - Reuters
Acadia Healthcare Stock Drops on News of Federal Investigation - Investopedia
FDA approves Bristol Myers Squibb's schizophrenia drug, the first new type of treatment in decades - CNBC
LINKS YOU’LL LOVE
🎁 REFERRAL PROGRAM 🎁
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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
How would you rate today's newsletter?If you vote 1 or 3 stars, please leave a comment with what you didn't like so I can improve it! |
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