Top stock pitches (Wed, Apr 3)

Author

Connor Van Ooyen
April 03, 2024

👋 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 151 stock pitches, 1192 news articles, and 117 insider trades and found:

  • An AI company growing revenue 75%+ YoY (stock pitch)

  • Tesla's first-quarter deliveries miss expectations (news)

  • An insider with 30% returns buys stock (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: Greenlight Capital Re, Ltd.

Greenlight Capital Re, Ltd., through its subsidiaries, operates as a property and casualty reinsurance company worldwide. The company offers various property reinsurance products and services, including automobile physical damage, personal lines, and commercial lines

Ticker: GLRE | Price: $12.27 | Price Target: $20.50 (+65%)
Market Cap: $441M | Timeframe: 12 months

💸 Property/Casualty Reinsurance | 📈 Bullish Idea

Greenlight Reinsurance, David Einhorn's reinsurance company in which he owns about 20% of the shares and invests the float, has turned around after a terrible performance from 2015-2020. The company shows consistent low combined ratios in a tough insurance market, strong investment returns with a 10.5% 5-year average and no down years, and high interest income on its cash. Despite these strong fundamentals that should warrant a price-to-book ratio above 1, Greenlight trades at only 0.65x book value. As the valuation gap closes, there is potential for 70% upside with minimal risk.

Read the full article here. Read time: 1 min

BLOG POST

Is $QSR a quality bubble candidate?

Restaurant Brands International Inc. operates as a quick-service restaurant company in Canada, the United States, and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS)

Ticker: QSR | Price: $77.93 | Price Target: N/A
Market Cap: $35B | Timeframe: N/A

🧑‍🍳 Quick-service Company | 💰 2.9% Dividend | 📈 Bullish Idea

QSR is Ackman's latest restaurant bet. Incentivized management, including Domino's ex-CEO, targets 8%+ growth and 12%+ total shareholder return. The 25x P/E ratio is reasonable for a capital-light franchising business compared to peers. Upside potential includes catching up to a quality multiple and accretive M&A. There is a low risk of permanent capital loss.

Read the full article here. Read time: 8 min

BLOG POST

~9 EV/OCF AI Company Growing Revenue 75%+ YoY ($ALAR)

Alarum Technologies Ltd. provides cybersecurity and privacy solutions to consumers and enterprises in Israel, the United States, the Middle East, the United Kingdom, the British Virgin Islands, the Asia Pacific, and internationally

Ticker: ALAR | Price: $24.85 | Price Target: $44 (+77%)
Market Cap: $138M | Timeframe: N/A

🙈 Web Privacy | 📈 Bullish Idea

Alarum Technologies Ltd. (ALAR) is a web scraping and proxy network company with over 52 million proxies. The company has experienced 75% revenue growth, strong margins, and $3 million in profit in 2023 (excluding a writedown). Alarum boasts 150% customer retention and spending diversification. The company's moat is strong, with few major players in the industry and reputation being key. BrightData's lawsuit against Alarum was rebuked. There is potential for over 100% upside based on expansion and a re-rating to a 20x EV/OCF multiple. The increasing demand for AI data is a tailwind for the company.

Read the full article here. Read time: 8 min

Which stock idea was the most compelling to you?

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Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ Sunshine Biopharma ($SBFM) [52%]

🟨🟨⬜️⬜️⬜️ Nelnet ($NNI) [29%]

🟥⬜️⬜️⬜️⬜️ Gaming Innovation Group ($GIG.OL) [19%]

MARKET OVERVIEW / NEWS

Market Overview

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

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Yesterday’s Poll Results: 53% bullish

After spending a few days in the biggest losers column, Reddit and Trump Media were in the biggest winners column today.

Another red day in the market and this time, the sentiment fell along with it. All of the indexes were red, the news sentiment fell by 0.2 (but is still above the 7-day average), Yellowbrick Road reader sentiment fell to the low 50s, and the Fear v Greed index took a big hit by falling 10 points.

Stock Market News

Tesla's first-quarter deliveries miss expectations - Reuters

Fed's Mester still expects rate cuts this year, but rules out May - CNBC

Tommy Hilfiger-owner PVH shares plummet after downbeat annual forecast - Reuters 

SLB to buy ChampionX in $7.7 bln all-stock deal - Reuters

Cybersecurity platform Rubrik files for US IPO - Reuters

Swiss banking giant UBS to launch share buyback of up to $2 billion - CNBC 

Rivian misses production estimates as EV maker shifts to new supply chain - Reuters 

Oil prices climb to five-month high on escalating Middle East tensions and fresh supply threats - CNBC 

GM U.S. vehicle sales fall 1.5% during the first quarter - CNBC

FanDuel says Iowa-LSU game was its biggest betting event of all time for women's sports - 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

Director at FIVE STAR BANCORP ($FSBC)

The Director purchased 4,598 shares at $21.75/share ($100K total) which increased their vested holdings by 4.8%. The current price is $22.38 (+2.9%). Their median purchase size is $272K and this is their 2nd largest purchase out of 2 all time. (trade link)

Historic Returns
1m returns: 26% weighted | 26% median | 100% win rate (1/1)
3m returns: 20% weighted | 20% median | 100% win rate (1/1)
6m returns: 37% weighted | 37% median | 100% win rate (1/1)
1y returns: 29% weighted | 29% median | 100% win rate (1/1)

Note: 5 other insiders also purchased the stock

LINKS YOU’LL LOVE

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THAT’S ALL FOLKS

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Connor

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