Top stock pitches (Wed, Mar 20)

Author

Connor Van Ooyen
March 20, 2024

👋 Good Morning!

This is the Yellowbrick Road where I share the best stock pitches from billion-dollar hedge funds, professional analysts, millionaire investors, and more!

Our AI read and summarized 133 stock pitches, 1042 news articles, and 303 insider trades and found:

  • An insurance company with 100% upside (stock pitch)

  • Microsoft hires DeepMind co-founder (news)

  • CEO with 350% 1-year returns buys the stock (insider trade)

  • and more…

Thanks for reading! 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

Access all 2,000+ stock pitches

I find 25+ awesome stock pitches each day, but only a few can be included in this newsletter. However, all of them are on the Yellowbrick website.

The Yellowbrick website is the best way to find your next stock investment or to research a stock you’re interested in.

Every stock pitch that I add to my database is put on the website and you can easily search/filter them to find your next investment.

It’s free for everyone (with a 30-day delay) or you can upgrade to Yellowbrick Premium to access ALL of the stock pitches as soon as they are added. All Yellowbrick Road readers get 20% just by using the link below.

STOCK PITCHES

VALUE INVESTORS CLUB

Kemper Corporation - $KMPR

Kemper Corporation, a diversified insurance holding company, engages in the provision of insurance products to individuals and businesses in the United States. The company operates through three segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance, and Life & Health Insurance

Ticker: KMPR | Price: $58.45 | Price Target: $116.90 (+100%)
Market Cap: $3.76B | Timeframe: 2026

💸 Insurance Holdco | 📈 Bullish Idea

Kemper Corporation, an auto insurer trading at less than 1.4 times book value due to insurance cycle concerns, is expected to see earnings recover as rate hikes take effect and costs stabilize. This should drive policy growth and book value gains. The transition to an exchange structure could also expand the valuation multiple. Kemper shares have upside potential approaching 100% by 2026.

Read the full article here. Read time: 6 min

BLOG POST

Evaluating Xometry's Marketplace Opportunity

Xometry, Inc. operates an online marketplace that enables buyers to source custom-manufactured parts and assemblies in the United States and internationally

Ticker: XMTR | Price: $16.55 | Price Target: N/A
Market Cap: $804M | Timeframe: N/A

🏭 Manufacturing Marketplace | 📈 Bullish Idea

Xometry is an online custom manufacturing marketplace that connects buyers with over 3,400 vetted suppliers. The company's instant quoting AI and workflow tools drive transparency, efficiency, and growth. Xometry has reached $500 million in revenue in less than 10 years and has a market capitalization of approximately $1 billion, with a total addressable market expanding to over $800 billion as capabilities broaden. The company exhibits strong cohort spend trends and is founder-led.

Read the full article here. Read time: 8 min

*SPONSORED STOCK IDEA

Dolly Varden Silver Corporation: A High-Grade Investment Gem

Dolly Varden Silver Corporation engages in the acquisition, exploration, and development of mineral properties in Canada. The company explores for gold, silver, lead, zinc, and copper deposits

Ticker: DOLLF | Price: $0.5625 | Price Target: N/A
Market Cap: $153M | Timeframe: N/A

⛏️ Mineral Exploration | 📈 Bullish Idea

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

Dolly Varden Silver Corporation ($DOLLF), with its strategic Kitsault Valley project in BC's Golden Triangle, presents a unique investment opportunity. This project combines substantial resources with 64 million ounces of silver and 983 thousand ounces of gold. Distinct from typical silver regions, Dolly Varden offers high-grade silver outside of Mexico and South America, enhancing its appeal.

Significant recent discoveries, including a high-grade gold zone with grades up to 79.49 g/t Au and 60 g/t Ag, underline the project's potential. The company's aggressive exploration, including its largest drill program to date, aims to connect multiple high-grade deposits into a much larger resource.

Backed by major investors like Hecla Mining (15% stake), Eric Sprott (9%), and institutions like Fidelity and Sprott, the company demonstrates solid market confidence. Raymond James’s $1 price target and outperform rating further validate its prospects.

Located in a mining-friendly jurisdiction, Dolly Varden is well-positioned to capitalize on the Golden Triangle’s rich history and potential. With a market cap of approximately $223 million, the company represents a promising investment in a high-grade silver and gold project supported by top industry names.

Read the full article here. Read time: 4 min

BLOG POST

With a checkmate move, this Under-loved Turnaround story might get Momentum - $DB

Deutsche Bank Aktiengesellschaft, a stock corporation, provides corporate and investment banking, and asset management products and services to private individuals, corporate entities, and institutional clients in Germany, the United Kingdom, rest of Europe, the Middle East, Africa, the Americas, and the Asia-Pacific

Ticker: DB | Price: $14.63 | Price Target: $34 (+132%)
Market Cap: $29.5B | Timeframe: N/A

🏦 Bank | 💰 3.3% Dividend | 📈 Bullish Idea

Deutsche Bank: A turnaround success with steady revenue growth and cost control, yet the market doesn't appreciate it, trading at 0.45x tangible book value and 5x next twelve months price-to-earnings ratio. The bank plans to distribute 50% of net income to shareholders via 3-5% dividends and 5-7% buybacks at a 55% discount to tangible book value to amplify the mispricing. Key risks include US commercial real estate exposure, which is manageable at approximately €1 billion in potential reserves, and reputation risk in a crisis.

Read the full article here. Read time: 7 min

Which stock idea was the most compelling to you?

Login or Subscribe to participate in polls.

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ SmartRent ($SMRT) [39%]

🟨🟨⬜️⬜️⬜️ Starbucks ($SBUX) [36%]

🟥⬜️⬜️⬜️⬜️ Saker Aviation Services ($SKAS) [25%]

Your comments:

  • 🛩️ pattyg*** ($SKAS): VTOL is finally coming of its own!

MARKET OVERVIEW / NEWS

Market Overview

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

Login or Subscribe to participate in polls.

Yesterday’s Poll Results: 46% bullish

An interesting day in that all of the indexes were green, but all of our sentiment signals went down ahead of the Fed meeting this morning. Yellowbrick Road readers fell back below 50% bullish, the news sentiment fell into bearish territory for the first time in a long time, and the Fear v Greed index fell a few points. It’s also interesting to finally see a Chinese name popping up on our biggest winners list as Chinese stocks have been really struggling for a long time due to concerns about the government. We also see $SMCI popping up on the biggest losers list for the first time. When sentiment turns against that stock, it likely has a loooong way to fall.

Stock Market News

Microsoft hires DeepMind co-founder Suleyman to head new consumer AI organization - Reuters 

Here's everything to expect from the Federal Reserve's policy meeting Wednesday - CNBC 

Kering warns of 10% 1st-quarter revenue drop, led by Gucci - Reuters 

Tencent Music beats quarterly revenue estimates - Reuters 

Grayscale bitcoin ETF saw record daily outflows as bitcoin tumbled - Reuters 

Nvidia stock dips after company unveils latest AI chips - CNBC

Super Micro shares dip as AI server maker looks to raise $2 bln through equity sale - Reuters 

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

President and CEO at APPLIED OPTOELECTRONICS, INC. ($AAOI)

The President and CEO purchased 11,780 shares at $12.66/share ($149K total) which increased their vested holdings by 1.0%. The current price is $12.98 (+2.5%). Their median purchase size is $148K and this is their 3rd largest purchase out of 6 all time. (trade link)

Historic Returns

1m returns: -21% weighted | -23% median | 0% win rate (0/5)
3m returns: 23% weighted | 20% median | 80% win rate (4/5)
6m returns: 45% weighted | 46% median | 80% win rate (4/5)
1y returns: 348% weighted | 348% median | 100% win rate (1/1)

Note: 1 other insiders also purchased the stock

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.

Give me feedback in the poll below and share the newsletter with other investors if you find it useful!

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!

Login or Subscribe to participate in polls.

Reply

or to participate.