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Top stock pitches (Tue, Jun 11)
Connor Van Ooyen
June 11, 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:
iBio, Inc. ($IBIO)
Author: Multibagger Monitor | Price: $2.40 | Price Target: "potential multibagger" | Market Cap: $$20.78M | Timeframe: N/A | Industry: Biotech
GoDaddy ($GDDY)
Author: Sea Capital | Price: $142.30 | Price Target: $171 (+03%) | Market Cap: $19.77B | Timeframe: N/A | Industry: Web Hosting
JAKKS Pacific ($JAKK)
Author: @SchopenhauerCap | Price: $18.23 | Price Target: N/A | Market Cap: $195M | Timeframe: N/A | Industry: Toys
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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).
New Trade Alert!
We just made a new investment in the YBR Portfolio and copied a trade from the #8 investor in our database who averages 29%+ 1-month 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).
WINNING PITCH
+19% returns in 1 month for $CCRD
This CoreCard Corp ($CCRD) pitch from the May 7th email (link) is up 19% in 1 month.
Shoutout to Long Cast Advisers for the pitch.
STOCK PITCHES
Author Returns
The below stock pitch is from Multibagger Monitor.
We have 4 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.
BLOG POST - Multibagger Monitor
10x or Bust? Pure Play Fighting GLP-1 Side Effects ($IBIO)
iBio, Inc., a biotechnology company, engages in the development of precision antibodies in the United States. It offers IBIO-100, a preclinical anti-fibrotic program for the treatment of systemic scleroderma and idiopathic pulmonary fibrosis; and EngageTx platform, which provides an optimized CD3 T-cell engager antibody panel.
Ticker: IBIO | Price: $2.40 | Price Target: "potential multi-bagger"
Market Cap: $20.78M | Timeframe: N/A
🧪 Biotech | 📈 Bullish Idea
iBio, a $20 million market cap biotech company, presents a speculative opportunity in the development of myostatin inhibitors to spare muscle during GLP-1 weight loss treatments. The company's key upsides include proven technology (as seen with Biogen and Eli Lilly), an aligned team with cardiometabolic expertise, a recent $15 million PIPE at a premium to market, and upcoming Biogen data as a catalyst. However, risks include limited cash lasting only until 2026 and a low probability of success. Despite these risks, iBio's focus on the growing sub-trend of muscle-sparing drugs during GLP-1 treatment, its AI-driven drug discovery platform, and the potential for partnerships or acquisitions make it a potential multi-bagger opportunity, albeit with very high risk.
Read the full article here. Read time: 9 min
Author Returns
The below stock pitch is from Sea Capital.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author. Upgrade for 20% off.
BLOG POST - Sea Capital
NYSE: GDDY | 90% Recurring Revenue & Retention Rate for An Essential Service
GoDaddy Inc. engages in the design and development of cloud-based products in the United States and internationally. It operates through two segments: Applications and Commerce, and Core Platform.
Ticker: GDDY | Price: $142.30 | Price Target: $171 (+20%)
Market Cap: $19.77B | Timeframe: N/A
💻 Web Hosting | 📈 Bullish Idea
GoDaddy (GDDY), a digital marketing platform for entrepreneurs, boasts a strong financial profile with 90% recurring revenue, 88% ARR, and high retention rates. Management targets 33% EBITDA margins and $5B in revenue by 2026, with the company currently trading at a 5% EBITDA/EV yield and 95% FCFF/EBITDA. FCFF/share has grown 20% since 2020 through buybacks, and the business requires minimal reinvestment, generating a 25% ROIC. GoDaddy's share price has increased 87% during CEO Aman Bhutani's tenure, and the company's valuation, based on a 5-year RIM with an 8.5% discount rate and 18% long-term growth rate, suggests a price target of $171, representing a 22% upside.
Read the full article here. Read time: 6 min
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Author Returns
The below stock pitch is from @SchopenhauerCap.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author. Upgrade for 20% off.
BLOG POST - @SchopenhauerCap
JAKKS Pacific Presents Compelling Value with 3x Operating Earnings
JAKKS Pacific, Inc. designs, produces, markets, sells, and distributes toys and related products, electronic products, and other consumer products worldwide. It operates through two segments, Toys/Consumer Products and Costumes.
Ticker: JAKK | Price: $18.23 | Price Target: N/A
Market Cap: $195M | Timeframe: N/A
🧸 Toys | 📈 Bullish Idea
JAKKS Pacific (JAKK), a toy company trading at an all-time low of $4 per share, is significantly undervalued at just 3x base operating earnings (40M EBIT), excluding potential upside from its content slate in 2025/2026 (Sonic, Mario). The company is now debt-free and has recently eliminated its preferred shares, enabling capital returns to shareholders, which management has clearly indicated as a priority. Despite the market's myopic focus on weaker individual quarters, JAKK's annual results demonstrate a predictable, growing free cash flow business, with a base year EBITDA of $50M ($40M EBIT) and additional earnings potential in years with a strong content slate.
Read the full article here. Read time: 2 min
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ Alta Equipment Group ($ALTG) [38%]
🟨🟨⬜️⬜️⬜️ Portillo's ($PTLO) [33%]
🟥⬜️⬜️⬜️⬜️ Arrow Electronics ($ARW) [29%]
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 48% bullish
A pretty flat day overall. GameStop continues its fall and we have the first time a YBR Premium Portfolio holding is in the biggest winners list (Tidewater). The indexes were all slightly green while all of the sentiment checks were pretty neutral.
Stock Market News
Apple to use its own server chips for AI features - Reuters
Elliott takes $1.9 billion stake in Southwest Airlines, seeks to oust CEO and chair - CNBC
Moderna's combination Covid, flu vaccine is more effective than existing shots in late-stage trial - CNBC
AMD Downgraded by Morgan Stanley on Concerns About AI Expectations - Investopedia
OpenAI hires new CFO and product chief, announces Apple deal to integrate ChatGPT - CNBC
Nokia CEO makes world's first 'immersive' phone call - Reuters
BIGGEST INSIDER PURCHASES
The insider trades are brought to you by CEO Watcher (another free, weekly email I write). It’s the only newsletter that tracks insider returns to find the best ones. Subscribe here
Director at Inhibrx Biosciences, Inc. ($INBX) purchased 57,549 shares at $17.32/share ($997K total) which increased their vested holdings by 5.3%. Their median purchase size is $997K and this is their 2nd largest purchase out of 3 all time (link)
Chief Executive Officer at BOSTON OMAHA Corp ($BOC) purchased 42,900 shares at $14.17/share ($608K total) which increased their vested holdings by 0.6%. Their median purchase size is $368K and this is their 27th largest purchase out of 74 all time (link)
Director at FORD MOTOR CO ($F) purchased 24,790 shares at $12.08/share ($299K total) which increased their vested holdings by 6.8%. Their median purchase size is $100K and this is their 1st largest purchase out of 3 all time (link)
LINKS YOU’LL LOVE
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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