Top stock pitches (Wed, Jun 26)

*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:

Barfresh ($BRFH)

Author: D&A Metropolitan | Price: $3.26 | Price Target: $30 (+820%) | Market Cap: $44.6M | Timeframe: 2026 | Industry: Ready-to-drink Beverages

Gravity Co Ltd ($GRVY)

Author: Arar Fund | Price: $82.86 | Price Target: N/A | Market Cap: $579M | Timeframe: N/A | Industry: Video Games

Equity Commonwealth ($EQC)

Author: chewy | Price: $19.39 | Price Target: $22.01 (+14%) | Market Cap: $2B | Timeframe: Early Fall | Industry: REIT / Special Situation

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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).

**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.

WINNING PITCH

+133% Returns in 5 Months for $NVDA

$NVDA has been pitched multiple times this year (see all the pitches in our database here), but this pitch from Tigress Financial when they raised the $NVDA price target (not high enough) back in January was shared in the January 22nd email and is up over 130%!

STOCK PITCHES

Author Returns

The below stock pitch is from D&A Metropolitan.

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.

BLOG POST - D&A Metropolitan

Barfresh's Juice is Worth the Squeeze

Barfresh Food Group, Inc., together with its subsidiaries, manufactures and distributes ready-to-drink and ready-to-blend frozen beverages in the United States. It offers smoothies, shakes and frappes in various formats comprising ready-to-drink smoothie, easy pour, juice concentrates, and single serve.

Ticker: BRFH | Price: $3.26 | Price Target: $30 (+820%)
Market Cap: $44.6M | Timeframe: 2026

🧃 Ready-to-drink Beverages | 📈 Bullish Idea

Barfresh ($BRFH), a company selling USDA-approved ready-to-drink smoothies and juice concentrates to schools, has captured 10% market share and is disrupting the school meals industry through its collaboration with the USDA. Despite guiding for record revenues and profitability in 2024, and a roadmap to $20M+ EBITDA in 3-5 years, the stock trades at historical lows, presenting a potential $30 price by 2026. Barfresh faces no direct competition in the education channel, with high barriers to entry, and has opportunities for expansion through new markets, products, and channels like QSR and retail. While operational execution and dilution remain risks, the company's strong management and shareholder alignment, coupled with multiple catalysts for re-rating, make it an attractive long-term investment opportunity.

Read the full article here. Read time: 10 min

Author Returns

The below stock pitch is from Arar Fund.

We have 3 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 - Arar Fund

Arar Fund: Gravity ($GRVY)

Gravity Co., Ltd. develops and publishes online and mobile games worldwide. It offers a massively multiplayer online role-playing game, including Ragnarok Online, Dragonica, Ragnarok Online II, and Ragnarok Landverse.

Ticker: GRVY | Price: $82.86 | Price Target: N/A
Market Cap: $579M | Timeframe: N/A

🕹️ Video Games | 📈 Bullish Idea

Gravity Co Ltd (GRVY), a Korean online game developer, has grown earnings threefold in five years while trading at a P/E under 5. The company owns the popular Ragnarok IP, which drives revenue through in-game purchases and has expanded to new markets and games. Despite the risks of dependence on a single franchise and potential fraud, Gravity's cash pile exceeds its market cap, and its parent company, GungHo, may acquire it or force a dividend. With a 20% earnings yield and a net cash position, Gravity presents an extremely cheap investment opportunity with high upside potential, as long as it can convince investors it is not a 'wolf in sheep's clothing.'

Read the full article here. Read time: 4 min

*SPONSORED BY American Salars Lithium

American Salars Lithium - $USLI.CN

American Salars Lithium Inc. engages in the acquisition and exploration of mineral properties.

Ticker: USLI.CN | Price: CAD 0.31 | Price Target: N/A
Market Cap: CAD 6.73M | Timeframe: N/A

🔋 Lithium | 📈 Bullish Idea

* This is a low market-cap, low liquidity stock. Only trade it if you know what you are doing. I recommend using Interactive Brokers (link) to trade international and OTC stocks if you can’t trade them in your current brokerage

American Salars Lithium (USLI.CN), up 60% year-to-date, holds a strategic position in the lucrative lithium market, with only 16 million shares outstanding. Located in the Incahuasi Salar region, USLI boasts a 93.2% lithium extraction efficiency and adheres to NI 43-101 standards, with a resource estimate of 457,000 tonnes of lithium carbonate valued at around $20,000 per ton. A recent acquisition doubled its portfolio to over 900,000 tonnes LCE, increasing its in-situ value to $12.5 billion USD. Surrounded by industry giants like Ganfeng and Rio Tinto, and with new board member Christopher Cooper from Alpha Lithium, USLI is well-positioned to capitalize on the growing demand for lithium driven by the EV and renewable energy markets

Author Returns

The below stock pitch is from chewy.

Their historic returns are:

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

VALUE INVESTORS CLUB - chewy

Equity Commonwealth - $EQC

Equity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties in the United States. EQC's portfolio is comprised of four properties totaling 1.5 million square feet.

Ticker: EQC | Price: $19.39 | Price Target: $22.01 (+14%)
Market Cap: $2B | Timeframe: Early Fall

🏠 REIT | 🚨 Special Situation | 📈 Bullish Idea

Equity Commonwealth (EQC), a US-listed REIT trading slightly below its net cash balance of $19.17 per share, is being pressured by activist investor Land & Buildings to liquidate its assets, which management expects to address with a wind-down plan by year-end. The company's $22.01 per share target price is based on a $357 million valuation for its four Class A office properties at a 9.6% cap rate (~$230/sqft). With downside protected by cash and the potential for an uncorrelated return, shareholders are encouraged to support the liquidation by emailing director Peter Linneman. A cash return is expected upon a successful dissolution vote in early fall.

Read the full article here. Read time: 4 min

Which stock idea was the most compelling to you?

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Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ Cheniere Energy ($LNG) [40%]

🟨🟨⬜️⬜️⬜️ Rave Restaurant Group ($RACE) [30%]

🟥⬜️⬜️⬜️⬜️ Optex Systems ($OPXS) [30%]

MARKET OVERVIEW / NEWS

Market Overview

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

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Yesterday’s Poll Results: 40% bullish

Yesterday was basically the exact opposite of Friday and Monday. The S&P and Nasdaq were green while the Dow and Russell were red, the news sentiment flipped from slightly bullish to slightly bearish, and Yellowbrick Road readers flipped from 60% bullish to 60% bearish.

Stock Market News

EU charges Microsoft with abusive bundling of Teams with Office - Reuters

Rivian shares soar 30% after Volkswagen takes $1 billion stake - CNBC

Novo Nordisk to build $4.1 billion North Carolina facility to boost output of Wegovy, Ozempic - CNBC 

FedEx shares jump after hours as massive cost-cutting measures kick in - CNBC

Fed Governor Bowman says she's still open to raising rates if inflation doesn't improve - CNBC 

Consumer confidence takes hit on worries about US economic outlook - New York Post

Waymo's autonomous ride-hailing service now available to all in San Francisco - Reuters 

Fed's Bowman sees no interest rate cuts this year - Fox Business 

FEATURED INSIDER TRADE

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10% Owner at NEXTNAV INC. ($NN)

The 10% Owner purchased 315,200 shares at $7.46/share ($2.35M total) which increased their vested holdings by 2.6%. The current price is $8.01 (+7.3%). Their median purchase size is $1.70M and this is their 1st largest purchase out of 6 all time. link

Historic Returns
1m returns: 54% weighted | 39% median | 75% win rate (3/4)
3m returns: 79% weighted | 100% median | 100% win rate (4/4)
6m returns: 367% weighted | 480% median | 100% win rate (2/2)
1y returns: 240% weighted | 457% median | 100% win rate (2/2)

LINKS YOU’LL LOVE

THAT’S ALL FOLKS

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Connor

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