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Top stock pitches (Wed, Jul 10)

Top stock pitches (Wed, Jul 10)

Connor Van Ooyen
July 10, 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:

Qualcomm ($QCOM)

Aclaris Therapeutics ($ACRS)

VirTra ($VTSI)

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.

STOCK PITCHES

Author Returns

The below stock pitch is from Rijnberk InvestInsights.

We have 13 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 - Rijnberk InvestInsights

This is why I am actively buying Qualcomm shares right now!

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI).

Ticker: QCOM | Price: $207.31 | Price Target: $258 (+24%)
Market Cap: $222B | Timeframe: N/A

⚡️ Semiconductor | 📈 Bullish Idea

Qualcomm (QCOM), a leader in 5G and mobile technology, is expanding into automotive, IoT, and PC markets. Its new ARM-based CPU outperforms Apple's M3 in multi-core tests but faces compatibility issues with some software. As the exclusive supplier for Copilot+ PCs, Qualcomm is well-positioned in the AI PC market, projected to reach $76 billion by 2028. The company's focus on on-device AI processing offers advantages in cost, latency, and privacy. Despite risks such as Apple dependence and Huawei competition, Qualcomm's innovation and market expansion potential are promising. With a price target of $258 (20x FY26 EPS), the stock offers a 10.5% annual return potential. The recent sell-off presents a buying opportunity for this high-quality business, which maintains a 'Buy' rating.

Read the full article here. Read time: 8 min

Author Returns

The below stock pitch is from Special Situation Investments.

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.

TWITTER - Special Situation Investments

Aclaris Therapeutics, Inc. - $ACRS

Aclaris Therapeutics, Inc. a clinical-stage biopharmaceutical company, engages in the development of novel drug candidates for immune-inflammatory diseases in the United States. The company operates through two segments, Therapeutics and Contract Research.

Ticker: ACRS | Price: $1.32 | Price Target: N/A
Market Cap: $90M | Timeframe: N/A

🧪 Biopharma | 🚨 Special Situation | 📈 Bullish Idea

Aclaris Therapeutics (ACRS), a busted biopharma company, is currently trading at a 30% discount to its net cash value. The largest shareholder, BML Investment Partners, has recently increased its stake from 13% to 18.3%, investing $4 million in shares priced between $1.12-$1.17. This significant move by BML, a small boutique firm with expertise in biopharmas, has made ACRS its 4th largest position. The catalyst for this investment remains unclear, as ACRS is undergoing a strategic review. Potential scenarios include a pivot towards shareholder value realization, hidden value in patents, or renewed confidence in the drug pipeline. However, the latter seems unlikely given the early stage of development and insufficient cash for a phase 3 trial. The company faces cash burn risk if it continues drug development. Despite these uncertainties, the insider confidence demonstrated by BML's aggressive buying makes ACRS an intriguing investment opportunity.

Read the full article here. Read time: 2 min

Author Returns

The below stock pitch is from zamperini.

Their historic returns are:

Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author.

VALUE INVESTORS CLUB - zamperini

VirTra, Inc. - $VTSI

VirTra, Inc. provides use of force training and firearms training simulators for the law enforcement, military, and commercial markets worldwide.

Ticker: VTSI | Price: $7.70 | Price Target: $40 (+419%)
Market Cap: $85.4M | Timeframe: 2028

🚔 Law Enforcement Training Simulators | 📈 Bullish Idea

VirTra (VTSI) is a leading provider of law enforcement and military training simulators, trading at 22x P/E and 4.6x EV/sales. New CEO John Givens has driven efficiency, increasing gross margins to 70% and recurring revenue to 25%. The company is expanding into military markets, securing a $5.9M IVAS contract, and launching the V-XR headset for untapped markets. With 70% gross margins, a $19M backlog, and potential for significant military growth, VTSI targets a $40 price by 2028. The military segment could match law enforcement revenues in four years, potentially driving sales to $76M by 2028. Key catalysts include military segment expansion, V-XR launch, and international growth. Risks include competition from Axon and historically lumpy earnings. The stock's recent run-up may present an attractive entry point for long-term investors following Q1 2024 results.

Read the full article here. Read time: 15 min