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Top stock pitches (Thu, May 23)
Connor Van Ooyen
May 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!
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).
New Trade Alert!
We just made a new investment in the YBR Portfolio and copied a trade from the #2 investor in our database who averages 67%+ 1-year returns on their stock pitches.
The new stock is…
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).
STOCK PITCHES
Author Returns
The below stock pitch is from Praetorian Capital.
We have 38 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.
FUND LETTER
Praetorian Capital holding: The St. Joe Company
The St. Joe Company, together with its subsidiaries, operates as a real estate development, asset management, and operating company in Northwest Florida. It operates through three segments: Residential, Hospitality, and Commercial.
Ticker: JOE | Price: $57.49 | Price Target: N/A
Market Cap: $3.42B | Timeframe: N/A
🏡 Real Estate Development | 💰 0.8% Dividend | 📈 Bullish Idea
The St. Joe Company (JOE) owns 168,000 acres in the Florida Panhandle, trading below liquidation value, and is poised for rapid revenue and even faster earnings growth due to the accelerating population growth in the region. The company is attractively valued on Adjusted Funds from Operations (AFFO) with hidden asset value and operates a high Return on Invested Capital (ROIC) business that should benefit from inflation and migration from cities. Land appreciation during high inflation periods, coupled with the potential for wealthy individuals fleeing urban areas, could drive JOE shares higher.
Read the full article here. Read time: 1 min
Author Returns
The below stock pitch is from Cooper Investors Global Equities Fund.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author. Upgrade for 20% off.
FUND LETTER
Cooper Investors new portfolio holding: AerCap Holdings N.V.
AerCap Holdings N.V. engages in the lease, financing, sale, and management of commercial flight equipment in China, Hong Kong, Macau, the United States, Ireland, and internationally.
Ticker: AER | Price: $91.38zx | Price Target: N/A
Market Cap: $18.41B | Timeframe: N/A
🛩️ Commercial Flight Equipment | 💰 1% Dividend | 📈 Bullish Idea
AerCap Holdings N.V. (AER), the world's largest commercial aircraft owner and lessor, presents an attractive investment opportunity amidst ongoing supply challenges in the commercial aviation industry. With major OEMs struggling to meet strong demand, the scarcity of aircraft has led to rising market values and lease rates, benefiting AER as it owns an increasingly valuable asset base. Despite this, AER trades at roughly net book value, which undervalues the company considering recent sales of used aircraft at an 80% premium to net book value. CEO Aengus Kelly's impressive track record of value creation through astute capital allocation, including well-timed orders, opportunistic share repurchases, and effective balance sheet risk management, further strengthens the investment thesis. As supply challenges persist, AER is well-positioned to capitalize on industry tailwinds and deliver compelling returns for investors.
Read the full article here. Read time: 2 min
Author Returns
The below stock pitch is from the Multibagger Monitor blog.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author. Upgrade for 20% off.
BLOG POST
Sweet or Sour? Candy Co. Doubling Rev YoY at 6x NTM P/E ($SOWG)
Sow Good Inc. produces and sells freeze-dried candy, snacks, smoothies, and granola in the United States. It markets its products through direct-to-consumer focused websites, as well as through the business-to-business sales channels. The company offers its products under the Sow Good and Sustain Us brands.
Ticker: SOWG | Price: $16.72 | Price Target: $25 (+50%)
Market Cap: $113M | Timeframe: N/A
🍬 Freeze Dried Candy | 📈 Bullish Idea
Sow Good Inc. (SOWG), a freeze-dried candy company, has grown revenues at a 200% CAGR and trades at a NTM P/E of under 6x after uplisting to the Nasdaq and raising capital. The company's products offer taste and dental health advantages, and untapped growth levers include TikTok marketing and retail expansion, suggesting a fair value of $20-25 per share. Sow Good's first-mover advantage, strong retail partnerships, and the management team's prior success in a similar space (freeze-dried dog treats) position the company well for growth. Key risks include management execution, the potential for the product to be a fad, and competition from larger companies, although these risks appear manageable given the company's unique manufacturing capabilities and strong consumer appeal.
Read the full article here. Read time: 8 min
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ Ducommun Incorporated ($DCO) [43%]
🟨🟨⬜️⬜️⬜️ Enhabit ($EHAB) [30%]
🟥⬜️⬜️⬜️⬜️ Microstrategy ($MSTR) [27%]
Your comments:
🛩️ burkh***: I like aerospace companies. This one has a solid history of increases going back 10 years and may still be cheap. It's at the top of its 52-week range and Pre-market is up 2%. I'm in for 100 shares.
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 56% bullish
Looks like the sentiment readings in yesterday’s were correct, as all of the indexes took a turn and were red yesterday. The Fear v Greed index fell by 5 points, Yellowbrick Road readers remain just slightly bullish, and the news sentiment took a dive from slightly bullish to slightly bearish.
Stock Market News
Nvidia reports a 262% jump in sales, signals continuing AI boom - CNBC
Off-price retailer TJX lifts annual profit forecast on strong demand, lower costs - Reuters
Lululemon Stock Sinks As Chief Product Officer Resigns - Investopedia
Temu-operator PDD Holdings beats first-quarter revenue estimates - Reuters
Amazon plans AI-led overhaul of Alexa voice assistant, CNBC reports - Reuters
E.l.f. Beauty posts first $1 billion year, buts shares fall on weaker than expected guidance - CNBC
NewsCorp and OpenAI strike 'multi-year partnership' deal to use journalistic content to improve ChatGPT - CNBC
Fed Minutes Show Officials Were Wary About Inflation at May Meeting - NYTimes
BIGGEST INSIDER TRADES
The insider trades are brought to you by CEO Watcher (another free, weekly email I write). It’s the only newsletter that tracks insider returns to find the best ones. Subscribe here
10% Owner at ProFrac Holding Corp. ($ACDC) purchased 1,013,930 shares at $13.15/share ($13.34M total) which increased their vested holdings by 1.4%. Their median purchase size is $6.12M and this is their 2nd largest purchase out of 12 all time (link). 1 other insiders also purchased the stock
10% Owner at Vestis Corp ($VSTS) purchased 100,000 shares at $12.50/share ($1.25M total) which increased their vested holdings by 0.6%. Their median purchase size is $3.04M and this is their 4th largest purchase out of 4 all time (link)
VP - Chief Human Resources Off at CUMMINS INC ($CMI) purchased 1,745 shares at $286.04/share ($499K total) which increased their vested holdings by 0.0%. Their median purchase size is $499K and this is their 1st largest purchase out of 1 all time (link)
LINKS YOU’LL LOVE
THAT’S ALL FOLKS
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Connor
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