Top stock pitches (Wed, Jun 5)

Connor Van Ooyen
June 05, 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:

PAR Technology Corporation ($PAR)

Synchronoss Technologies ($SNCR)

Chord Energy Corporation ($CHRD)

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.

New Trade Alert!

We just made a new investment in the YBR Portfolio and copied a trade from the #7 investor in our database who averages 42%+ 2-year returns on their stock pitches.

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 (you get a 20% discount using that link or the button below).

WINNING PITCH

+99% Returns in 6 Weeks for $FCH.L

$FCH.L was pitched in our April 22nd email (link) at a price of GBp 46.70. Just over a month later it is up over $92 (+99%)!

The other two pitches that day were $TSSI and $HUMA which are up 170% and 95% respectively. I think that email has to be one of the best-performing investing emails ever sent.

STOCK PITCHES

Author Returns

The below stock pitch is from Voss Capital.

We have 61 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. Upgrade for 20% off.

FUND LETTER - Voss Capital

Voss Capital Value Fund Portfolio Holding: PAR Technology Corporation

PAR Technology Corporation, together with its subsidiaries, provides omnichannel cloud-based hardware and software solutions to the restaurant and retail industries worldwide.

Ticker: PAR | Price: $42.52 | Price Target: $80 (+88%)
Market Cap: $1.64B | Timeframe: 2026

🧑‍🍳 Restaurant Technology | 📈 Bullish Idea

PAR Technology Corporation (PAR) is a leading restaurant technology platform poised to emerge as a winner in the global restaurant POS and software market, particularly in the sticky, counter-cyclical enterprise market. The company's recent acquisitions have expanded its TAM, and the new management team has built a comprehensive platform just in time for an explosion of enterprise-level RFPs. PAR is expected to demonstrate sustainable profitability within the next two quarters, and there are several tangible catalysts on the horizon, including the sale of their unrelated Government business, announcements of new Tier 1 wins that will accelerate organic ARR growth, and an investor day this Fall. With a base case price target of $80 (~90% upside) using 5x 2026 sales estimate, a conservative ~40% discount to the most directly relevant trading comp AGYS (valued at 8.5x 2026 consensus sales despite growing significantly more slowly than PAR), PAR presents a compelling investment opportunity.

Read the full article here. Read time: 1 min

Author Returns

The below stock pitch is from 180 Degree Capital.

Their historic returns are:

Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author. Upgrade for 20% off.

FUND LETTER - 180 Degree Capital

180 Degree Capital Portfolio Holding: Synchronoss Technologies, Inc.

Synchronoss Technologies, Inc. provides cloud, messaging, digital, and network management solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Synchronoss Personal Cloud platform that allows customers' subscribers to backup and protect, engage with, and manage their personal content.

Ticker: SNCR | Price: $9.21 | Price Target: $20 (+117%)
Market Cap: $100M | Timeframe: N/A

💻 Cloud Software | 📈 Bullish Idea

Synchronoss Technologies (SNCR) completed $15 million in cost cuts and exceeded Q4 2024 revenue and adjusted EBITDA guidance, causing the stock to double to $14 before retracing. As new directors, we see value creation potential in SNCR's pure-play cloud business, which trades at a low 5.5x EV/EBITDA despite 75% gross margins, over 90% recurring revenues, and 25% EBITDA margins. Comparable valuations imply a fair value of 10x EBITDA, or $20 per share (200% upside). In Q1, SNCR increased NAV by $0.18/share, or $1.8 million.

Read the full article here. Read time: 1 min

Author Returns

The below stock pitch is from Miller Value Partners.

Their historic returns are:

Upgrade to Yellowbrick Road Premium to unlock the historic returns for this author. Upgrade for 20% off.

FUND LETTER - Miller Value Partners

Chord Energy Corporation - $CHRD

Chord Energy Corporation operates as an independent exploration and production company in the United States. It acquires, explores, develops, and produces crude oil, natural gas, and natural gas liquids in the Williston Basin.

Ticker: $173.03 | Price: N/A | Price Target: N/A
Market Cap: $7.48B | Timeframe: N/A

🛢️ Oil & Gas | 💰 5.6% Dividend | 📈 Bullish Idea

Chord Energy Corporation (CHRD), a leading Williston Basin E&P company with a market capitalization of $7.5B, is set to acquire Enerplus, becoming the largest regional producer with nearly 250 Mboe/d of production. The company's low-cost inventory supports a decade of production and is expected to generate $150M/year in synergies. In 2024, CHRD is projected to deliver superior EBITDA margins of $29/boe (compared to peers at $25/boe) and a leverage ratio of 0.2x (peers at 0.7x). Despite these attractive fundamentals, CHRD trades at a compelling valuation of 3.8x 2025E EV/EBITDA, a 70% discount to the S&P 500. Management is committed to returning 75%+ of free cash flow to shareholders through a $5/share annual base dividend, variable dividends, and $653MM in buyback authorization. With a pristine balance sheet, CHRD has ample financial flexibility to pursue further M&A consolidation in the Williston Basin, as its pro-forma production represents only 12-13% of the Bakken shale's total production.

Read the full article here. Read time: 2 min

Which stock idea was the most compelling to you?

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ CVR Partners, LP ($UAN) [44%]

🟨🟨⬜️⬜️⬜️ Duratec Limited ($DUR.AX) [31%]

🟥⬜️⬜️⬜️⬜️ StealthGas Inc. ($GASS) [25%]

Your comments:

🐮 emoj*** ($UAN): That dividend is hard to resist

MARKET OVERVIEW / NEWS

Market Overview

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

Yesterday’s Poll Results: 40% bullish

A bit of a mixed day yesterday. Once again, we had a ramp during the second half of the day with all of the indexes closing green except for the Russell which was hammered the entire day. However, all of the sentiment checks were much more negative. The Fear v Greed index fell down into the “fear” zone, the Biggest Losers’ List is much more red than the Biggest Winners’ List is green, Yellowbrick Road readers were more bearish than bullish, and the news sentiment fell below the 7-day average.

Stock Market News

Intel battles AMD with new data center chips - Reuters

Paramount leadership team to announce job cuts, streaming JV plans at annual meeting - CNBC

CrowdStrike forecasts upbeat second-quarter revenue on robust demand for cybersecurity solutions - Reuters

Job openings fell again in April, hitting lowest level since February 2021 in a sign of labor market weakening - CNBC

Ford US auto sales rise 11% in May - Reuters

Google's privacy chief making 'shock' exit after 13 years with the company - Business Insider

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

Chief Financial Officer at Perspective Therapeutics, Inc. ($CATX)

The Chief Financial Officer purchased 25,006 shares at $1.40/share ($35,007.15 total) which increased their vested holdings by 7.9%. The current price is $1.37 (-2.1%). Their median purchase size is $32,501.40 and this is their 1st largest purchase out of 5 all time. (trade link)