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Top stock pitches (Wed, Aug 21)

Top stock pitches (Wed, Aug 21)

Connor Van Ooyen
August 21, 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:

Sky Harbour Group Corporation (SKYH)

FTAI Aviation Ltd. (FTAI)

Enterprise Group, Inc. (E.TO)

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).

**I use Interactive Brokers (link) for the portfolio because it makes it easy to trade international and OTC stocks. If you decide to open an account with them, use this link so they know I sent you.

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.

YB Premium Portfolio returns - started mid-May

WINNING PITCH

Elite Big Money investor makes 120% returns

Baron’s New Asia Fund is one of our Big Money Elite Investors* who pitched $TRENT.NS in their Q4 fund letter and is now up 120% on that trade.

*Yellowbrick Premium subscribers have access to our Elite Investor Feeds, which are curated feeds of stock pitches from only the best-performing investors in our database. The Big Money Feed only includes stock pitches from the best professional investors in our database, and Baron New Asia Fund is included in that feed.

Upgrade to Yellowbrick Premium for access and check out the Elite Investor Feeds feeds at joinyellowbrick.com/feeds.

STOCK PITCHES

Author Returns

The below stock pitch is from Kairos Research.

We have 5 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.

BLOG POST - Kairos Research

Sky Harbour Group Corporation - $SKYH

Sky Harbour Group Corporation operates as an aviation infrastructure development company in the United States. It develops, leases, and manages general aviation hangars for business aircraft.

Ticker: SKYH | Price: $11.13 | Price Target: $40 (+259%)
Market Cap: $742M | Timeframe: N/A

🛩️ Airplane Hangers | 📈 Bullish Idea

Sky Harbour Group Corporation (SKYH) is an aviation infrastructure developer leasing luxury hangars for private aircraft, targeting a $40 price target. The company benefits from a strong demand-supply mismatch in the industry, with unlevered ROIs of 13-20%. Sky Harbour aims to expand to 50 airports, focusing on tier-1 markets where rents can reach $73-80 PSF compared to $30-40 in non-tier-1 markets. The company's differentiated model, prototype hangar design, and recent acquisition of RapidBuilt contribute to its competitive advantages. Risks include site acquisition challenges, high capital requirements, and potential future competition. Management, led by ex-Israeli Air Force pilot Tal Keinan, has significant ownership. The company's growth strategy involves targeting tier-1 airports, offering additional services, and leveraging pricing power. A conservative base case valuation suggests $40/share at full stabilization, with potential for higher returns based on execution in tier-1 markets and continued industry tailwinds.

Read the full article here. Read time: 13 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/10902/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from Tourlite Capital.

We have 10 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.

FUND LETTER - Tourlite Capital

Tourlite Capital Portfolio Holding: FTAI Aviation Ltd.

FTAI Aviation Ltd. owns and acquires aviation and offshore energy equipment for the transportation of goods and people worldwide.

Ticker: FTAI | Price: $114.30 | Price Target: N/A
Market Cap: $11.68B | Timeframe: N/A

🛩️ Aviation Equipment | 💰 1% Dividend | 📈 Bullish Idea

FTAI Aviation Ltd. (FTAI) is benefiting from aerospace market tailwinds, with OEM shortfalls driving higher lease rates and extensions. The company has announced the V2500 as its second focus engine after the CFM56, expecting V2500-related EBITDA to grow from $40 million in 2023 to $100 million by 2026. FTAI's Q2 earnings beat consensus estimates, leading management to raise its 2026 EBITDA target by 25% to $1.25 billion. The Aerospace segment, already at 46% of its $325-350 million target, has shown consistent 30% quarter-over-quarter growth for the past year. Additional PMA parts approvals are likely by year-end, potentially boosting the aerospace segment further. The company sees upside potential from closing the valuation gap with aftermarket aerospace peers, and maintains a strong outlook with multiple catalysts ahead.

Read the full article here. Read time: 1 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/10876/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from Trickle Research.

We have 2 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.

ANALYST REPORT - Trickle Research

Trickle Research Initiating Research Coverage On: Enterprise Group, Inc.

Enterprise Group, Inc., through its subsidiaries, operates as an equipment rental and construction services company in Canada. The company engages in the specialty equipment rental business.

Ticker: E.TO | Price: CAD 1.39 | Price Target: CAD 3.50 (+152%)
Market Cap: CAD 82M | Timeframe: 12-24 months

🚧 Equipment Rental | 📈 Bullish Idea

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

Enterprise Group, Inc. (E.TO) is a specialized equipment provider for the Canadian energy and infrastructure sectors, trading at 3.7x EV/EBITDA with a price target of $3.50 in 12-24 months. The company is well-positioned to benefit from the growth of LNG in Canada, with its first LNG facility set to commission in 2024-2025. EGI's competitive advantage lies in its natural gas turbine fleet, which offers cost and environmental benefits over diesel alternatives. The company recently raised CAN$7 million for capacity expansion and projects 20% year-over-year growth for fiscal 2024. EGI's services span four divisions: Westar Oilfield Rentals, Arctic Therm International, Hart Oilfield Rentals, and Evolution Power Projects. The company faces risks including energy market volatility, potential new competitors, seasonality, and regulatory changes. Management has a proven track record of successful acquisitions and integrations, which could provide further growth opportunities.

Read the full article here. Read time: 17 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/10953/?ref=PLACEHOLDER

Which stock idea was the most compelling to you?

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ Cronos Group Inc. (CRON) [48%]

🟨🟨⬜️⬜️⬜️ Quest Resource Holding Corporation (QRHC) [45%]

🟥⬜️⬜️⬜️⬜️ Franklin Covey Co. (FC) [7%]

MARKET OVERVIEW / NEWS

Market Overview

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

Yesterday’s Poll Results: 70% bullish

Stock Market News

Lowe's cuts full-year outlook as it expects home improvement sales to weaken - CNBC

Bidding war erupts over Paramount as Edgar Bronfman submits $4.3B competing offer - New York Post

Alaska Airlines and Hawaiian Airlines merger clears Justice Department hurdle, now faces DOT - CNBC

EU slashes planned tariff on Tesla's China-made EVs to 9% - Reuters

Netflix upfront ad commitments surge as NFL games, Squid Game boost appeal - Reuters

OpenAI announces content deal with Condé Nast, including content from Wired, The New Yorker and Vogue - CNBC

Uber hires ex-Tesla exec Rebecca Tinucci to oversee EV transition, memo says - Reuters

Waymo has doubled its weekly paid robotaxi trips to 100,000 since May - 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

CFO and Treasurer at NETSTREIT Corp. ($NTST)

The CFO and Treasurer purchased 1,200 shares at $16.20/share ($19,440.00 total) which increased their vested holdings by 12.4%. The current price is $16.32 (+0.7%). Their median purchase size is $21,996.00 and this is their 5th largest purchase out of 5 all time. link

LINKS YOU’LL LOVE

Secrets Of Success: Charlie Munger's money machine

Lessons on starting and scaling a B2B product from Shopify's ($SHOP) $44b business-building platform.

Flash Crashes Are Getting Faster

🎁 REFERRAL PROGRAM 🎁

Use your unique URL below or the share URL for any of the stock pitches to unlock insanely valuable awards.

Premium members have access to these awards here.

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

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