- 🟨 The Yellowbrick Road
- Posts
- Top stock pitches (Tue, May 28)
Top stock pitches (Tue, May 28)
Connor Van Ooyen
May 28, 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!
I hope you had a great, long weekend! Mine was dealing with 36 hours of flight delays. At least airports have wifi!
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 #8 investor in our database who averages 53%+ 2-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).
WINNING PITCH
+160% Returns in 3 Months for $SG
This (controversial) Sweetgreen ($SG) pitch (link) is up 160% in just 3 months since it was added to the Yellowbrick database and shared on the website for YBR Premium members (upgrade for 20% off) in February.
Shoutout to Brad Freeman for the killer pitch.
If you have made money from a Yellowbrick pitch, reply to this email with your returns (and a picture of the trade from your brokerage if you want) and it may get featured in the email.
STOCK PITCHES
Author Returns
The below stock pitch is from Value Punks.
We have 27 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
Hingham Institution for Savings - $HIFS
Hingham Institution for Savings provides various financial products and services to individuals and small businesses in the United States. It offers savings, checking, money market, demand, and negotiable order of withdrawal accounts, as well as certificates of deposit.
Ticker: HIFS | Price: $171.26 | Price Target: N/A
Market Cap: $409M | Timeframe: N/A
🏦 Regional Bank | 💰 1.3% Dividend | 📈 Bullish Idea
Hingham Institution for Savings (NASDAQ:HIFS), a US regional bank specializing in commercial real estate lending, has demonstrated superior economic performance compared to its peers in the SDPR S&P Regional Banking Index (KRE). Led by owner-operators CEO Robert H. Gaughen and COO Patrick R. Gaughen, Hingham has achieved the highest average return on equity (ROE) and efficiency ratio in the dataset, despite lower net interest margins (NIM). The bank's loan book, focused on multifamily, 1-4 family, and mixed-use properties in Boston, San Francisco, and Washington D.C., has proven resilient during economic downturns, with the lowest peak net charge-offs during the Great Financial Crisis (GFC). Hingham's balance sheet strength, conservative underwriting standards, and ability to access low-cost Federal Home Loan Bank (FHLB) advances provide protection against rising interest rates. Trading at just 1.04x book value, a level last seen in June 2009, Hingham presents an attractive investment opportunity with a projected 10-year CAGR between 15.17-16.06% based on conservative growth value model assumptions. Key risks include the potential loss of key personnel, interest rate sensitivity, and the risk of increased multifamily housing supply in its core markets.
Read the full article here. Read time: 26 min
Author Returns
The below stock pitch is from Chalkbaggery on Value Investors Club.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author. Upgrade for 20% off.
VALUE INVESTORS CLUB
Metalpha Technology Holding Limited - $MATH
Metalpha Technology Holding Limited, together with its subsidiaries, provides wealth management services in Hong Kongs.
Ticker: MATH | Price: $1.42 | Price Target: $5.60 (+292%)
Market Cap: $52.84M | Timeframe: N/A
🪙 Crypto Exchange | 🇭🇰 Hong Kong | 📈 Bullish Idea
Metalpha Technology Holding Limited (NASDAQ:MATH), the only listed APAC crypto exotic derivative broker, is undervalued at 10-15x growing PE due to low liquidity and perception. As a 1-2% take-rate business with oligopoly potential, Metalpha is positioned to capture the unoccupied blue-ocean market with its experienced team from top traditional finance firms and strategic backing from Bitmain. The company targets $0.35-0.50 EPS by 2024/25, translating to a $5.60 price target (4x upside) based on a 12x multiple and $0.80/share cash balance, with potential for 10-15x upside or a strategic take-out. Risks include regulation, competition, counterparty exposure, expenses, staff turnover, majority holder influence, multiples, and exit liquidity. Near-term catalysts are 1H23 results, increased investor relations, and a rise in Bitcoin price.
Read the full article here. Read time: 5 min
*SPONSORED BY INTERACTIVE BROKERS
Trade global stocks with Interactive Brokers
Why limit your portfolio to the US (or whichever country you live in)?
Expand your trading reach with their advanced platform, offering competitive rates and a variety of investment options, including stocks, options, futures, and more.
Investors from over 200 countries can access over 150 markets at the lowest commissions.
*I personally use Interactive Brokers because it allows me to trade international and OTC stocks
Please support my sponsors. It’s how I pay the bills to keep this newsletter free :)
Author Returns
The below stock pitch is from Alberto’s Substack.
Their historic returns are:
Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author. Upgrade for 20% off.
Blog Post
Ero Copper Update: Raising Price Target
Ero Copper Corp. engages in the exploration, development, and production of mining projects in Brazil. The company is involved in the production and sale of copper concentrate from the Caraíba operations located in the Curaçá Valley, northeastern Bahia state, Brazil, as well as gold and silver by-products.
Ticker: ERO | Price: $22.98 | Price Target: $81 (+252%)
Market Cap: $2.46B | Timeframe: 2025
⛏️ Copper | 📈 Bullish Idea
Ero Copper Corp. (ERO) raised its price target to $81 (134% upside) based on record Q1 gold production with low costs, the ramping up of the Tucuma copper project (97% complete, with commercial production expected in Q3), and significant exploration upside. Copper production is expected to grow 35-64% year-over-year in 2024 with expanded operations, and the price target is $145 at $15,000/t copper. Despite a net income loss in Q1 due to foreign exchange losses, management expects higher copper grades and lower costs throughout the year. The balance sheet remains strong, with the company able to cover interest expenses. Ero Copper is viewed as an asymmetrical bet, with a skilled management team and significant growth potential even if they fall short of guidance. Further catalysts for the share price include news from the Furnas JV with Vale and updates on their nickel discovery.
Read the full article here. Read time: 3 min
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ Tidewater ($TDW) [43%]
🟨🟨⬜️⬜️⬜️ A-Mark Precious Metals ($AMRK) [36%]
🟥⬜️⬜️⬜️⬜️ CoStar Group ($CSGP) [21%]
Your Comments:
🛢️ burkh*** ($TDW): I like companies that own physical assets. This one is showing an uptrend after years of essentially flat valuation. I'll start with a small position and keep an eye on it
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 52% bullish
A slightly better end to the week after a few days of blood in the markets. All of the indexes closed green on Friday (although the Dow barely made it), but all of our other sentiment checks remain pretty neutral. The Fear v Greed index is still in “neutral” territory, Yellowbrick Road readers are slightly bullish, and the news sentiment remains slightly bearish.
Stock Market News
Hoka-owner Deckers' shares breach $1,000 mark for the first time - Reuters
Intuit lifts annual forecasts on demand for AI-powered financial products - Reuters
Workday cuts full-year subscription revenue forecast - Reuters
Gildan Activewear shares climb after board resigns, ousted CEO returns - New York Post
Ross Stores beats quarterly estimates on steady demand for discounted products - Reuters
EV maker Lucid to cut workforce by 6% - Reuters
Walmart, Capital One end consumer credit card agreement - Reuters
Tesla slashes Model Y production in Shanghai, data shows - Reuters
British retail sales plunge 2.3% in April, missing estimates - CNBC
US equity funds see massive weekly inflows on rate cut expectations - Reuters
The Fed probably won't be delivering any interest rate cuts this summer - CNBC
FEATURED INSIDER TRADE
The insider trade is brought to you by CEO Watcher (another free, weekly email I write). It’s the only newsletter that tracks insider returns to find the best ones. Subscribe here
Chief Executive Officer at ASTEC INDUSTRIES INC ($ASTE)
The Chief Executive Officer purchased 2,000 shares at $33.70/share ($67,400.00 total) which increased their vested holdings by 2.8%. The current price is $33.32 (-1.1%). Their median purchase size is $60,750.00 and this is their 1st largest purchase out of 4 all time. (trade link)
Historic Returns
1m returns: 6% weighted | 9% median | 67% win rate (2/3)
3m returns: 21% weighted | 39% median | 67% win rate (2/3)
6m returns: 39% weighted | 39% median | 100% win rate (3/3)
1y returns: 70% weighted | 95% median | 100% win rate (3/3)
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.
Give me feedback in the poll below and share the newsletter with other investors if you find it useful!
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! |
Reply