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Top stock pitches (Tue, May 21)
Connor Van Ooyen
May 21, 2024
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*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 who 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 #6 investor in our database who averages 38%+ 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).
STOCK PITCHES
Author Returns
The below stock pitch is from L1 Capital Long Short Fund.
We have 35 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
L1 Capital Long Short Fund Portfolio Holding: CRH plc
CRH plc, together with its subsidiaries, provides building materials solutions in Ireland and internationally. It operates through four segments: Americas Materials Solutions, Americas Building Solutions, Europe Materials Solutions, and Europe Building Solutions.
Ticker: CRH | Price: $81.22 | Price Target: $107.83 (+33%)
Market Cap: $56.63B | Timeframe: N/A
🔨 Building Materials | 💰 2.5% Dividend | 📈 Bullish Idea
CRH plc (CRH) shares are poised for a 25% upside, driven by strong Q4 FY23 results and FY24 guidance that exceeds consensus expectations by 5%. The company is well-positioned to benefit from the $2 trillion U.S. infrastructure spending boost, including the Infrastructure Investment and Jobs Act (IIJA), Inflation Reduction Act (IRA), and the Chips and Science Act, which will fuel robust demand for many years. These favorable market conditions, coupled with CRH's ability to execute value-accretive M&A, are expected to deliver consistent double-digit earnings growth over the medium term.
Read the full article here. Read time: 1 min
Author Returns
The below stock pitch is from Xiao Capital.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author. Upgrade for 20% off.
BLOG POST
Alphawave Semi (AWE.LN) – The Beginnings of a Semiconductor Powerhouse
Alphawave IP Group plc develops and sells connectivity solutions in North America, China, the Asia Pacific, Europe, the Middle East, Africa, and the United Kingdom. The company offers silicon IP solutions, chiplets, custom silicon, and connectivity products.
Ticker: AWE.L | Price: GBp 129.60 | Price Target: N/A
Market Cap: GBp 947M | Timeframe: N/A
⚡️ Semiconductor | 🤖 AI | 📈 Bullish Idea
* I recommend using Interactive Brokers (link) to trade international and OTC stocks if you can’t trade them in your current brokerage
Alphawave IP Group (AWE.L), a semiconductor company specializing in connectivity IP for AI chips, is significantly undervalued at its current enterprise value of 3.3x 2027 EBIT, despite having a top-tier management team, 90% R&D staff, and a potential custom silicon deal with Amazon that could bring in $100-200 million per year by Q3 2024. The company sees $1 billion in revenues by 2027 (a modest market share in the $30 billion+ market growing at 40%+) and has a potential 10x upside by 2026 if execution continues, with downside largely priced in at 1.5x. Despite some concerns about related party transactions and accounting issues, the company's strong relationships with customers, impressive design wins, and leading-edge products in the pipeline suggest that the risk of not producing desirable technology is low. The confirmation of the Amazon product in H2 2024 serves as a major near-term catalyst, while long-term execution and bookings will drive the company's rerating by the market.
Read the full article here. Read time: 13 min
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Author Returns
The below stock pitch is from @LogicalThesis.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author. Upgrade for 20% off.
Fundamentals and technicals align in $MXCT
MaxCyte is a biotechnology company that specializes in cell engineering technologies used in the development of gene therapies, drug discovery, and cell-based research. They provide products and services for cell modification to biopharmaceutical companies. MXCT supports advancements in gene editing, immune-oncology, and other growing scientific fields.
Ticker: MXCT | Price: 4.87 | Price Target: N/A
Market Cap: $506M | Timeframe: N/A
🧪 Biotech | 📈 Bullish Idea
I get excited when fundamentals and technicals align. Taking a position in $MXCT in my long term account. Happy to have exposure to gene therapy (via picks n shovels) + chart looks great. Volume picking up. First FDA approval. Could be analogous to buying $AAPL after first iPhone
Read the full article here. Read time: 1 min
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ Evolve Technologies Holding ($EVLV) [54%]
🟨🟨⬜️⬜️⬜️ TSS Inc ($TSSI) [26%]
🟥⬜️⬜️⬜️⬜️ Xponential Fitness ($XPOF) [20%]
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 63% bullish
A pretty green start to the week as all of the indexes except the Dow were green. The biggest loser’s list is also very tame with only one stock losing more than 5 percent. The news sentiment did fall below the 7-day average, but it remains slightly bullish while Yellowbrick Road readers are bullish and the Fear v Greed index is in the “greed” range.
Stock Market News
Palo Alto Networks forecasts quarterly billings above estimates - Reuters
Ryanair sees flat to modestly higher summer fares after record FY profit - Reuters
Jamie Dimon says JPMorgan stock is too expensive: 'We're not going to buy back a lot' - CNBC
Target lowering prices on 5,000 items in bid to lure more shoppers - Reuters
Hims & Hers Health adds compounded GLP-1 injections to weight loss program - CNBC
Dell Introduces Comprehensive Portfolio of Copilot+ AI PCs - PRNewsWire
Zoom Video raises full-year revenue forecast - Reuters
Wall Street bets on stellar quarterly results from Nvidia - Reuters
Exclusive: Top U.S. natural gas producer Chesapeake Energy cuts jobs - Reuters
Wendy's will offer $3 breakfast deal, as rivals like McDonald's test value meals to drive sales - CNBC
FEATURED INSIDER TRADE
The insider trade is brought to you by CEO Watcher (another free, weekly email I write). It’s the only newsletter that tracks insider returns to find the best ones. Subscribe here
10% Owner at CSP INC /MA/ ($CSPI)
The 10% Owner purchased 2,505 shares at $14.15/share ($35,456.77 total) which increased their vested holdings by 0.2%. The current price is $14.34 (+1.3%). Their median purchase size is $43,411.90 and this is their 34th largest purchase out of 58 all time. (trade link)
Historic Returns
1m returns: 11% weighted | 2% median | 58% win rate (32/55)
3m returns: 32% weighted | 9% median | 62% win rate (32/52)
6m returns: 50% weighted | 8% median | 69% win rate (35/51)
1y returns: 87% weighted | 44% median | 74% win rate (29/39)
LINKS YOU’LL LOVE
THAT’S ALL FOLKS
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Connor
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