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Top stock pitches (Thu, Jun 13)

Top stock pitches (Thu, Jun 13)

Connor Van Ooyen
June 13, 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:

Navios Maritime Partners ($NMM)

MoneyHero Limited ($MNY)

Allovir ($ALVR)

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 (you get a 20% discount using that link or the button below).

WINNING PITCH

+47% return in 3 months for $HEAR

This $HEAR pitch is up 47% in just over 3 months since it was shared in the March 6th email (link).

Shoutout to bluesky_24 on VIC for the pitch.

STOCK PITCHES

Author Returns

The below stock pitch is from Lake Cornelia Research Management.

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. Upgrade for 20% off.

ANALYST REPORT - Lake Cornelia Research

Lake Cornelia Research Management, Inc. - Navios Maritime Partners L.P.

Navios Maritime Partners L.P. owns and operates dry cargo vessels in Asia, Europe, North America, and Australia. The company offers seaborne transportation services for a range of liquid and dry cargo commodities, including crude oil, refined petroleum, chemicals, iron ore, coal, grain, fertilizer, and containers, as well as charters its vessels under short, medium, and longer-term charters.

Ticker: NMM | Price: $50.76 | Price Target: $200 (+294%)
Market Cap: $1.51B | Timeframe: N/A

🚢 Shipping | 📈 Bullish Idea

Navios Maritime Partners (NMM), a diversified shipping company trading at a significant discount to net asset value and cash flow multiples, presents a compelling investment opportunity. The company's exposure to the inflecting capesize market, where rates are expected to rise due to limited supply growth until 2028, coupled with its long-term contracted container and tanker fleets, provide both upside potential and downside protection. Despite concerns about the company's governance and capital allocation, the recent consolidation of Navios entities, the CEO's increased stake in NMM, and her ownership of incentive distribution rights (IDRs) suggest improved alignment with shareholders. With a price target of $100 in the near-term and $200+ over the multi-year period, NMM offers the potential for substantial returns, albeit with risks related to a global recession and poor capital allocation decisions.

Read the full article here. Read time: 46 min

Author Returns

The below stock pitch is from Clark Square 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. Upgrade for 20% off.

TWITTER - @ClarkSquareCap

MoneyHero Limited: Revenue Growth and Cash Reserves Suggest Significant Upside

MoneyHero Limited operates as a personal finance company. It engages in operation of online financial comparison platforms and related services. The company offers its products under Money Hero, SingSaver, Money101, MoneyMax, CompareHero, Seedly, and Creatory brands.

Ticker: MNY | Price: $2.05 | Price Target: $4.18 (+104%)
Market Cap: $82.8M | Timeframe: N/A

💵 Personal Finance | 💻 Online Products | 📈 Bullish Idea

MoneyHero Limited ($MNY), the largest online financial product lead generator in Asia, presents a compelling investment opportunity at 0.2x EV/sales and a market cap of $94 million, with $70 million in cash (75% of market cap). The company exited Q4 with revenue growth of 53% year-over-year and is well-positioned in its markets, with 75% of customers coming from organic channels. Management guides for adjusted EBITDA breakeven by the second half of 2024. At a conservative 1x sales multiple, the stock could double from its current price of $2.09, with peers trading at 1.5-3x sales. Risks include the uncertainty of returns from aggressive spending to gain market share, reliance on search engine traffic, foreign exchange exposure, and the company's controlled structure.

Read the full article here. Read time: 3 min

*SPONSORED BY INTERACTIVE BROKERS

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*I personally use Interactive Brokers because it allows me to trade international and OTC stocks

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Author Returns

The below stock pitch is from ToffCap.

We have 45 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. Upgrade for 20% off.

TWITTER - @ToffCap

$ALVR setup for acquisition?

Allovir, Inc., a clinical-stage cell therapy company, engages in the research and development of allogeneic, off-the-shelf multi-virus specific T cell (VST) therapies to prevent and treat devastating viral-associated diseases.

Ticker: ALVR | Price: $0.79 | Price Target: N/A
Market Cap: $84.6M | Timeframe: N/A

🧪 Biotech | 🚨 Special Situation | 📈 Bullish Idea

Allovir ($ALVR), a speculative biotech play, has seen its stock price plummet and faces potential delisting from the Nasdaq. With $165 million in cash, a 95% workforce reduction, and the discontinuation of clinical development, the company is now assessing strategic alternatives. Potential outcomes include a reverse stock split to regain compliance, liquidation, or a takeover if the company's intellectual property holds value. A recent insider bonus scheme, which grants $100,000 to each of the CEO, CFO, and General Counsel upon the execution of a definitive agreement for a change of control transaction during fiscal year 2024, hints at a possible upcoming acquisition. While the situation presents a high-risk, high-reward opportunity, investors should exercise caution due to the speculative nature of the investment.

Read the full article here. Read time: 1 min

Which stock idea was the most compelling to you?

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ SentinelOne ($S) [47%]

🟨🟨⬜️⬜️⬜️ Peakstone Realty Trust ($PKST) [33%]

🟥⬜️⬜️⬜️⬜️ Genius Sports Limited ($GENI) [20%]

MARKET OVERVIEW / NEWS

Market Overview

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

Yesterday’s Poll Results: 68% bullish

CPI came in cool and the market is back off to the races. All of the indexes were super green except for the Dow, the Fear v Greed index gained a point, Yellowbrick Road Readers are bullish, and the news sentiment jumped to its most bullish sentiment in over a week.

Stock Market News

Fed holds rates steady, indicates only one cut coming this year - CNBC

Consumer prices unchanged in May and up 3.3% from a year ago - CNBC

Apple surpasses Microsoft as world's most valuable company after unveiling AI plans - CNBC

JPMorgan expects investment banking revenue to jump as much as 30% in second quarter - Reuters

Amazon's AWS to launch new infrastructure region in Taiwan amid rapid Asia-Pacific expansion - CNBC

Oracle stock pops 10% on AI demand, new deals with Google and OpenAI - 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

Director at ZILLOW GROUP, INC. ($Z)

The Director purchased 2,338,040 shares at $42.76/share ($99.97M total) which increased their vested holdings by 34.1%. The current price is $42.81 (+0.1%). Their median purchase size is $24.80M and this is their 1st largest purchase out of 11 all time. (trade link)

LINKS YOU’LL LOVE

The Revised Psychology of Human Misjudgment, by Charlie Munger

Stock Market Concentration - How much is too much?

How does Bill Ackman structure a stock pitch

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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