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Top stock pitches (Wed, Jul 31)
Connor Van Ooyen
July 31, 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:
Robinhood Markets (HOOD)
Author: Idea Brunch | Price: $20.35 | Price Target: N/A | Market Cap: $17.93B | Timeframe: 2026 | Industry: Stock Trading Platform
The Bank of N.T. Butterfield & Son Limited (NTB)
Author: Moon Capital | Price: $38.63 | Price Target: N/A | Market Cap: $1.77B | Timeframe: N/A | Industry: Bank
Limoneira Company (LMNR)
Author: Riverwater Partners | Price: $22.11 | Price Target: $41 (+85%) | Market Cap: $398M | Timeframe: N/A | Industry: Agribusiness
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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 recent trade from one of the best professional funds we track.
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.
WINNING PITCH
+53% in just 3 weeks
$RGS was added to our database just 3 weeks ago and has already popped over 50%.
Great job by Trident Opportunities (aka @finance_schmidt_ on X).
Click here to read my Twitter thread with the 10 most profitable stock pitches from July.
STOCK PITCHES
Author Returns
The below stock pitch is from Idea Brunch.
We have 30 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 - Idea Brunch
Idea Brunch #2 with Derek Pilecki of Gator Capital - Robinhood Markets, Inc.
Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies.
Ticker: HOOD | Price: $20.35 | Price Target: N/A
Market Cap: $17.93B | Timeframe: 2026
📉 Stock Trading Platform | 📈 Bullish Idea
Robinhood Markets (NASDAQ: HOOD), trading at $22 with a $20.6B market cap, is an online discount broker expanding beyond its free trading app. The company is introducing new products such as Gold membership, IRAs, UK expansion, credit cards, and futures trading to drive growth. With $8/share in cash and breakeven profitability, Robinhood has limited downside risk. Customer deposits are surging at $4B/month, boosted by a matching funds promotion. Bitcoin ETF excitement has contributed to recent stock price gains. Trading at 17x 2026 EPS, Robinhood has potential upside if growth continues. The company may enter the RIA custody market, competing with Schwab and Fidelity, presenting a significant growth opportunity. Robinhood's assets under management of $130B have room for expansion compared to Schwab's trillions. Risks include regulatory challenges and crypto volatility. The stock has risen from $8 in November, driven by new product launches and market factors, but still offers potential for further growth.
Read the full article here. Read time: 3 min
Share this stock pitch:
https://www.joinyellowbrick.com/stock-pitches/7151/?ref=PLACEHOLDER
Author Returns
The below stock pitch is from Moon Capital.
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.
FUND LETTER - Moon Capital
Moon Capital Management New Position: The Bank of N.T. Butterfield & Son Limited
The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses.
Ticker: NTB | Price: $38.63 | Price Target: N/A
Market Cap: $1.77B | Timeframe: N/A
🏦 Bank | 📈 Bullish Idea
The Bank of N.T. Butterfield & Son Limited (NTB) is an offshore bank with a dominant 30%+ deposit share in Bermuda and the Cayman Islands, trading at 6x earnings and 1.7x tangible book value. NTB boasts a diversified revenue stream with 40% from fees, $132B in trust assets under administration, and $30B in custody assets. The company maintains a conservative balance sheet with 21% cash-to-assets ratio (vs. 3% U.S. average) and a 38% loan-to-deposit ratio, which helped it weather recent banking turmoil. NTB has demonstrated strong performance with a 23% 5-year average ROE (27% in 2023) and has reduced shares by 6% in the past 12 months. Catalysts include potential dividend hikes from $1.76 to $2.80+ per share as its bond portfolio seasons, which could lead to a significant repricing of shares. The company's unique position in tax-free jurisdictions, sticky deposit base, and history of acquiring smaller trust units from larger banks contribute to its competitive advantage. Risks include exposure to regulatory changes in offshore banking and potential volatility in high-net-worth client activity.
Read the full article here. Read time: 3 min
Share this stock pitch:
https://www.joinyellowbrick.com/stock-pitches/7178/?ref=PLACEHOLDER
Author Returns
The below stock pitch is from Riverwater Partners.
We have 114 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 - Riverwater Partners
Riverwater Sustainable Value Strategy Portfolio Holding: Limoneira Company
Limoneira Company operates as an agribusiness and real estate development company in the United States and internationally. The company operates through three divisions: Agribusiness, Rental Operations, and Real Estate Development.
Ticker: LMNR | Price: $22.11 | Price Target: $41 (+85%)
Market Cap: $398M | Timeframe: N/A
🚜 Agribusiness | 🏡 Real Estate Development | 📈 Bullish Idea
Limoneira Company (LMNR), currently trading at $20 per share, is significantly undervalued with a fair value estimate of $41 per share. The company holds a 15% market share in the US lemon industry and possesses valuable assets, including $450-550 million in agricultural land and water rights, $100-150 million in potential land sales, and a $100 million real estate joint venture. Limoneira is exploring strategic alternatives, with an announcement expected by year-end. The company is modernizing operations, pivoting towards avocado production (4.4% CAGR in US consumption), and implementing initiatives to potentially improve cash flows by $30 million over seven years. Limoneira demonstrates a commitment to sustainability, with 44% of operations powered by renewable energy and 85% of water usage utilizing efficient irrigation systems. The board's engagement of an investment banker to explore strategic alternatives, coupled with management's focus on improving operations and monetizing non-core assets, presents significant upside potential for investors.
Read the full article here. Read time: 2 min
Share this stock pitch:
https://www.joinyellowbrick.com/stock-pitches/7178/?ref=PLACEHOLDER
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ Mercury Systems (MRCY) [60%]
🟨🟨⬜️⬜️⬜️ Agilent Technologies, Inc. (A) [23%]
🟥⬜️⬜️⬜️⬜️ RADCOM Ltd. (RDCM) [17%]
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 50% bullish
Stock Market News
Microsoft shares drop as cloud miss overshadows better-than-expected revenue and earnings - CNBC
PayPal lifts 2024 profit forecast for second time as spending holds up, margins improve - Reuters
JetBlue jumps 17% after surprise profit, $3 billion aircraft spending deferral - CNBC
Buffett's sales of Bank of America stock top $3 bln - Reuters
AMD says data center sales more than doubled in a year - CNBC
US consumer confidence rises in July; inflation expectations steady - Reuters
Intel plans to cut thousands of jobs to finance recovery, Bloomberg News reports - Reuters
LINKS YOU’LL LOVE
🎁 REFERRAL PROGRAM 🎁
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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
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! |
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