Top stock pitches (Tue, Apr 2)

Author

Connor Van Ooyen
April 02, 2024

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👋 Good Morning!

This is the Yellowbrick Road where I share the best stock pitches from billion-dollar hedge funds, professional analysts, millionaire investors, and more!

Our AI read and summarized 141 stock pitches, 1112 news articles, and 180 insider trades and found:

  • A fund pitches a loan servicing stock with 100%+ upside (stock pitch)

  • Trump Media shares fall sharply after company reports net loss of $58 million in 2023 (news)

  • The 3 biggest insider purchases (insider trade)

  • and more…

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Connor (follow the Yellowbrick Twitter account - @joinyellowbrick)

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STOCK PITCHES

FUND LETTER

Symmetry Invest A/S Portfolio Holding: Nelnet, Inc.

Nelnet, Inc. engages in loan servicing, communications, education technology, services, and payment processing businesses worldwide

Ticker: NNI | Price: $94.65 | Price Target: $196 (+107%)
Market Cap: $3.5B | Timeframe: 3-5 years

💸 Loan Servicing | 💰 1.2% Dividend | 📈 Bullish Idea

Nelnet, Inc. (NNI) trades near its net asset value despite a 16% book value growth over 19 years. Earnings in 2023 are dragged down by one-off expenses, understating the company's intrinsic value. Nelnet owns two asset-light businesses worth $2 billion above their book value. The company's 45% stake in Allo Fiber is booked at $0 due to accounting reasons, but is estimated to be worth $300-500 million. Nelnet's 20% stake in Hudl is booked at a $170 million Covid valuation, but is now estimated to be worth $0.5-1 billion. Overall, there is an estimated 2x book value upside potential in the next 3-5 years.

Read the full article here. Read time: 2 min

BLOG POST

A Beacon of Opportunity: Sunshine Biopharma's Promising Future

Sunshine Biopharma, Inc., a pharmaceutical company, focuses on the research and development of life-saving medicines in various therapeutic areas, including oncology and antivirals.

Ticker: SBFM | Price: $0.10 | Price Target: $0.68 (+580%)
Market Cap: $10.4M | Timeframe: N/A

🧪 Biotech | 📈 Bullish Idea

Sunshine Biopharma, Inc. (SBFM) is a generic drug company that trades at a negative enterprise value with $23 million in cash. In Q4, revenue was $7.7 million, up 30.5% quarter-over-quarter, and the company expects 2023 revenue of $24 million. Sunshine Biopharma plans to launch 32 new drugs in 2024 and 2025. For 2025, the company estimates revenue of $100 million, EBITDA of $16 million, and EPS of $0.17. At a current enterprise value of zero, the stock price should be $0.21, representing a 160% upside. With a 1x 2024 EV/Sales ratio, the price target is $0.68, a potential 750% increase. The company is planning a reverse split to reduce the share count to 500,000 shares.

Read the full article here. Read time: 2 min

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FUND LETTER

Symmetry Invest A/S Portfolio Holding: Gaming Innovation Group Inc.

Gaming Innovation Group Inc., an iGaming technology company, together with its subsidiaries, provides solutions, products, and services to iGaming operators in Nordic countries, other European countries, and internationally. It operates through two segments, Platform Offering Front-End Services (Platform), and Affiliate Marketing (Media)

Ticker: GIG.OL | Price: Nkr 34 | Price Target: Nkr 80 (+135%)
Market Cap: Nkr 4.39B | Timeframe: N/A

🕹️ iGaming Tech | 📈 Bullish Idea

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Gaming Innovation Group Inc. (GIG.OL) grew revenue by 41% and EBITDA by 49% in 2023. The company's Media segment alone is worth approximately SEK 80 per share and is set to be split off in June 2024. The Platform business is launching growth initiatives, suggesting 100%+ upside potential from the current price of SEK 35. Insiders appear to agree with this assessment, as they have been the top buyers of the stock over the past 12 months.

Read the full article here. Read time: 1 min

Which stock idea was the most compelling to you?

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Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ QUALCOMM ($QCOM) [48%]

🟨🟨⬜️⬜️⬜️ GEN Restaurant ($GENK) [38%]

🟥⬜️⬜️⬜️⬜️ Henry Boot ($BOOT.L) [14%]

MARKET OVERVIEW / NEWS

Market Overview

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

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Yesterday’s Poll Results: 55% bullish

Trump Media is the biggest loser for the 3rd day in a row and Reddit finds itself on the biggest loser list for the 3rd day in a row as well. Not a great day for the new social media stocks!

Another odd day in that the indexes were mostly red, but the News Sentiment and Fear v Greed index both increased in bullishness. Yellowbrick Road reader sentiment actually fell a little bit from the low 60s to mid-50% bullish, but the news sentiment jumped to 0.614 which is the highest it’s been in a few weeks and the Fear v Greed index jumped up to 73 and is nearing the “Extreme Greed” level.

Stock Market News

Trump Media shares fall sharply after company reports net loss of $58 million in 2023 - CNBC 

Nio deliveries tank 40% in Q1: former MI6 chief says Chinese EVs a ‘serious problem' - Invezz 

UPS Replaces FedEx as USPS' Primary Air Cargo Provider - Investopedia

Relentless US credit demand seen driving second-quarter rally - Reuters

Oil prices edge lower after booking strong first quarter - CNBC

Canoo raises doubts about its ability to continue as a going concern - Reuters 

Bud Light brand slowly recovering in U.S. - CNBC Television 

FEATURED INSIDER TRADE

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Director at Nkarta, Inc. ($NKTX) purchased 2,000,000 shares at $10.00/share ($20.00M total) which increased their vested holdings by 150.0%. Their median purchase size is $6.71M and this is their 1st largest purchase out of 10 all time (link). Was part of a public offering

10% Owner at TILE SHOP HOLDINGS, INC. ($TTSH) purchased 218,993 shares at $7.02/share ($1.54M total) which increased their vested holdings by 3.4%. Their median purchase size is $577K and this is their 16th largest purchase out of 73 all time (link)

Director at lululemon athletica inc. ($LULU) purchased 3,700 shares at $389.05/share ($1.44M total) which increased their vested holdings by 4.2%. Their median purchase size is $1.15M and this is their 2nd largest purchase out of 4 all time (link)

LINKS YOU’LL LOVE

+15 POINTS - WEEKLY TOURNAMENT

THAT’S ALL FOLKS

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