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Top stock pitches (Thu, Aug 22)
Connor Van Ooyen
August 22, 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:
Caesars Entertainment (CZR)
Author: JDP Capital Survivor & Thriver Fund | Price: $36.89 | Price Target: $100 (+171%) | Market Cap: $7.87B | Timeframe: N/A | Industry: Casino
Sendas Distribuidora S.A (ASAI)
Author: LATAM Stocks | Price: $9.00 | Price Target: N/A | Market Cap: $2.42B | Timeframe: N/A | Industry: Food Distribution
LandBridge Company (LB)
Author: Special Situation Investing | Price: $37.91 | Price Target: $135.33 (+257%) | Market Cap: $2.75B | Timeframe: 3-5 years | Industry: Land Royalty
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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 📢
5 Micro-cap Stock Pitches You Probably Missed
I shared five under-the-radar micro-cap stock pitches on Twitter/X yesterday. Check it out at the link below.
5 non-US micro-cap companies you probably missed:
— Yellowbrick Investing (@joinyellowbrick)
3:56 PM • Aug 21, 2024
As a reminder, to find the best stock pitches, check out the Elite Investor Feeds, which only include stock pitches from the best-performing investors → joinyellowbrick.com/feeds.
If you like micro-caps, we even have an Elite Investor Feed for micro-cap stock pitches.
STOCK PITCHES
Author Returns
The below stock pitch is from JDP Capital Survivor & Thriver Fund.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.
FUND LETTER - JDP Capital Survivor & Thriver Fund
JDP Capital Survivor & Thriver Fund Portfolio Holding: Caesars Entertainment, Inc.
Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker.
Ticker: CZR | Price: $36.89 | Price Target: $100 (+171%)
Market Cap: $7.87B | Timeframe: N/A
🎰 Casino | 📈 Bullish Idea
Caesars Entertainment (CZR) is a leading casino and hotel company with 52 properties and a growing online gaming business, currently trading at a 20%+ forward free cash flow yield. The company has potential for $1.5B+ in free cash flow by 2025, driven by four new casino openings, online gaming profitability, and reduced capex. Key catalysts include a possible $1.5B+ Centaur sale-leaseback, land sales, a potential 20%+ stock buyback, and ongoing debt reduction. The online segment is expected to generate $350-450 million in run-rate EBITDA by 2025, up from $60 million currently. Management, led by CEO Tom Reeg, is focused on shareholder value and financial discipline. Risks include a consumer slowdown and high leverage. With a $100+ price target, CZR appears undervalued despite its strong position in both physical casinos and the growing online gaming market.
Read the full article here. Read time: 5 min
Share this stock pitch:
https://www.joinyellowbrick.com/sp/10982/?ref=PLACEHOLDER
Author Returns
The below stock pitch is from LATAM Stocks.
We have 2 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 - LATAM Stocks
Assaí - LATAM Stocks Investment Analysis #25
Sendas Distribuidora S.A. engages in the retail and wholesale sale of food products, bazaar items, and other products primarily in Brazil.
Ticker: ASAI | Price: $9.00 | Price Target: N/A
Market Cap: $2.42B | Timeframe: N/A
🍞 Food Distribution | 🏪 Retail Stores | 📈 Bullish Idea
Sendas Distribuidora S.A (ASAI), the second largest retailer in Brazil and the country's 24th largest company, presents a bullish investment opportunity despite recent market volatility. The company operates in the cash & carry segment, which offers strong growth potential. Assaí is expanding its store count and converting Extra hypermarkets to its format. The stock's valuation is attractive compared to its peers. However, potential risks include economic slowdown and competition. A detailed analysis and video discussion of Assaí are available on the Variant Perception website, providing additional insights for investors interested in this Brazilian retail giant.
Read the full article here. Read time: 20 min
Share this stock pitch:
https://www.joinyellowbrick.com/sp/10916/?ref=PLACEHOLDER
Author Returns
The below stock pitch is from Special Situation Investing.
We have 10 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 - Special Situation Investing
LandBridge Company - $LB
LandBridge Company LLC owns and manages land and resources to support and enhance oil and natural gas development in the United States. It owns surface acres in and around the Delaware Basin in Texas and New Mexico.
Ticker: LB | Price: $37.91 | Price Target: $135.33 (+257%)
Market Cap: $2.75B | Timeframe: 3-5 years
⛰️ Land Royalty | 📈 Bullish Idea
LandBridge Company (LB) is a Permian Basin land royalty company owning 220,000 acres, with a market cap of $2.4B and $361M in debt. The company has a 90% FCF margin and focuses on two unique opportunities: produced water processing and data center development. The water processing opportunity, leveraging regulatory differences between Texas and New Mexico, could generate $200-300M in annual FCF. LB plans to develop six data center locations, each potentially generating $30-40M annually. With a current revenue of $93M (2023 pro forma), LB could reach $350M in revenue within 3-5 years. Compared to Texas Pacific Land's (TPL) $600M revenue and $20B market cap, LB could potentially justify a $10B valuation, representing a 4x upside. Risks include execution challenges and regulatory changes. The company's S-1 filing provides detailed information about its operations and future prospects.
Read the full article here. Read time: 9 min
Share this stock pitch:
https://www.joinyellowbrick.com/sp/10873/?ref=PLACEHOLDER
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ Sky Harbour Group Corporation (SKYH) [42%]
🟨🟨⬜️⬜️⬜️ Enterprise Group, Inc. (E.TO) [29%]
🟥⬜️⬜️⬜️⬜️ FTAI Aviation Ltd. (FTAI) [29%]
Your comments:
🛩️ donin*** ($FTAI): Compelling 5-year chart!
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 60% bearish
Stock Market News
Target CEO Brian Cornell weighs in on price gouging accusations in retail - CNBC
U.S. job growth revised down by the most since 2009. Why this time is different - CNBC
Macy's lowers annual revenue forecast on weak demand - Reuters
Ford delays new EV plant, cancels electric three-row SUV - CNBC
Fed minutes point to ‘likely' rate cut coming in September - CNBC
Chipmaker Analog Devices forecasts strong Q4 results as demand recovers - Reuters
U.S. Added 818,000 Fewer Jobs Than Reported Earlier - NYTimes
Top US oilfield firm Halliburton hit by cyberattack - 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
CEO at Tourmaline Bio, Inc. ($TRML)
The CEO purchased 5,221 shares at $13.79/share ($71,997.59 total) which increased their vested holdings by 0.0%. The current price is $14.34 (+4.0%). Their median purchase size is $71,997.60 and this is their 2nd largest purchase out of 3 all time. link
Historic Returns
1m returns: 33% weighted | 28% median | 100% win rate (2/2)
3m returns: 163% weighted | 159% median | 100% win rate (2/2)
6m returns: 4% weighted | 0% median | 50% win rate (1/2)
1y returns: N/A
LINKS YOU’LL LOVE
@QCompounding on X
🎁 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.
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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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