Top stock pitches (Tue, Apr 9)

Connor Van Ooyen
April 09, 2024

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👋 Good Morning!

For those of you in the path of the eclipse yesterday, I hope you got to see it! We were right in the path of totality which was awesome.

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 171 stock pitches, 1132 news articles, and 130 insider trades and found:

Air transportation stock with 200% upside (stock pitch)
Oil prices turn higher as Middle East ceasefire hopes wane (news)
3 biggest insider purchases (insider trade)
and more…

Thanks for reading! 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

Added 42 new stock pitches to the database

Premium subscribers get real-time access to the stock pitch database (2,000+ stock pitches and 25+ new ones each day) and a daily email with a one-liner about each new stock pitch.

Yesterday, I added 42 new pitches including pitches from:

Kathmandu Capital’s fund letter
A Spanish IT company that grew EBITDA 68%
A Japanese warehouse company with a market cap of $52M despite owning warehouses worth more
and more…

It’s the best way to “turn over more rocks”.

STOCK PITCHES

TWITTER

Blade Air Mobility, Inc. - $BLDE

Blade Air Mobility, Inc. provides air transportation alternatives to the congested ground routes in the United States. It provides its services through charter and by-the-seat flights using helicopters, jets, turboprops, and amphibious seaplanes. The company was founded in 2014 and is headquartered in New York, New York.

Ticker: BLDE | Price: $3.73 | Price Target: $11.40 (+206%)
Market Cap: $281M | Timeframe: N/A

🚁 Air Transportation | 📈 Bullish Idea

Blade Air Mobility, Inc. (BLDE) is an unappreciated air mobility play with a market cap of $209 million and $166 million in cash. Revenue grew 3x to $225 million, driven by medical transport. The company is on a path to profitability with no funding risk. Blade's tech platform connects operators and demand, with eVTOL optionality as Airbus invests. A $20 million buyback has been announced. $11.50 warrants (BLDEW) offer cheap long-dated options. The estimated value is $1 billion or more, representing a 4x+ upside potential.

Read the full article here. Read time: 2 min

FUND LETTER

Dassault Aviation société anonyme - $AM.PA

Dassault Aviation société anonyme designs and manufactures military aircraft, business jets, and space systems in France, the Americas, and internationally.

Ticker: AM.PA | Price: EUR 210 | Price Target: N/A
Market Cap: EUR 16.2B | Timeframe: N/A

🛩️ Military Aircraft | 💰 1.5% Dividend | 🇪🇺 EU | 📈 Bullish Idea

* I recommend using Interactive Brokers (link) to trade international and OTC stocks if you can’t trade them in your current brokerage

Dassault Aviation, a French defense company, produces the Rafale fighter jet, which is the only fifth (or fourth and a half) generation aircraft not manufactured by Lockheed Martin or the Russians. The company's order book is growing, and there is no real competition for the Rafale, as the Eurofighter is not expected to be available soon. Excluding Dassault's stake in Thales and normalizing earnings, the company trades at around 16 times distributable free cash flow. Dassault Aviation continues to buy back stock, with the share count potentially decreasing by 3% this year. The company is expected to benefit from tailwinds in EU defense budgets, regardless of the outcome of the US election.

Read the full article here. Read time: 1 min

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BLOG POST

Strategic Insights: Maximizing Returns with IGIC

International General Insurance Holdings Ltd. provides specialty insurance and reinsurance solutions worldwide. It operates through three segments: Specialty Long-tail, Specialty Short-tail, and Reinsurance.

Ticker: IGIC | Price: $13.91 | Price Target: N/A
Market Cap: $631M | Timeframe: N/A

💸 Specialty Insurance | 📈 Bullish Idea

IGIC is a specialty insurer trading at 1x book value and 6x EPS. The company has an 87.7% 10-year average combined ratio and a 13% ROE. The scaled business now has 1.1x premium/equity (+400bps ROE) and a 4.3% investment yield. Management sees the best underwriting environment ever. With an 85% 5-year average combined ratio, there is potential for a 22%+ ROE. IGIC trades at a 30% discount to peers (1.5x book value) due to its SPAC IPO and low volume. Buybacks and a re-rating to 1.3x book value could result in a 25%+ IRR.

Read the full article here. Read time: 1 min

Which stock idea was the most compelling to you?

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ Take-Two Interactive Software ($TTWO) [56%]

🟨🟨⬜️⬜️⬜️ Roivant Sciences ($ROIV) [27%]

🟥⬜️⬜️⬜️⬜️ One Group Hospitality ($STKS) [17%]

Your comments:

🕹️ fortu*** ($TTWO): GTA 6. Come on! That game has stood the test of time! Will be great for their bottom line.

MARKET OVERVIEW / NEWS

Market Overview

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

Yesterday’s Poll Results: 69% bullish

MakeMyTrip flipped from the biggest gainer list on Friday to being the biggest loser yesterday and Trump Media continues to fall like a rock.

A bit of a mixed day yesterday with with all of the indexes fairly flat (except for the Russell which was up half a percent) and the news sentiment taking a massive dive from very bullish on Friday to slightly bearish yesterday. However, the Fear v Greed index gained a few points and Yellowbrick Road readers are 8 points more bullish.

Stock Market News

U.S. offers TSMC up to $6.6 billion for Arizona factories as Biden pushes for chip security - CNBC

Jamie Dimon warns inflation, interest rates may remain elevated - Fox Business

Spirit Airlines will defer Airbus orders, furlough 260 pilots in race to shore up liquidity - CNBC

EV firm Lotus Tech reports quarterly revenue jump on strong demand for luxury cars - Reuters

Applied Materials may postpone or cancel $4 bln California R&D facility, SF Chronicle reports - Reuters

BofA says its virtual financial assistant used more than 2 billion times - Reuters

Oil prices turn higher as Middle East ceasefire hopes wane - Reuters

LARGEST 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 Eagle Bulk Shipping Inc. ($EGLE) purchased 169,635 shares at $62.81/share ($10.65M total) which increased their vested holdings by 12.2%. Their median purchase size is $10.65M and this is their 1st largest purchase out of 1 all time (link)

10% Owner at AMERICAS CARMART INC ($CRMT) purchased 8,500 shares at $57.85/share ($492K total) which increased their vested holdings by 1.2%. Their median purchase size is $349K and this is their 31st largest purchase out of 72 all time (link)

PRESIDENT AND CEO at BRT Apartments Corp. ($BRT) purchased 24,598 shares at $16.85/share ($415K total) which increased their vested holdings by 0.6%. Their median purchase size is $36,333.30 and this is their 2nd largest purchase out of 80 all time (link). 2 other insiders also purchased the stock

LINKS YOU’LL LOVE

+15 POINTS - WEEKLY TOURNAMENT

Yellowbrick interview with Pernas Research (stock pitches averaged 80% 1-year returns)

8 takeaways from Richard Feynman

Lucky v repeatable by Morgan Housel