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Top stock pitches (Wed, Mar 27)
Connor Van Ooyen
March 27, 2024
About // Sponsor YBR // Yellowbrick Website // Twitter
👋 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 165 stock pitches, 1132 news articles, and 170 insider trades and found:
A restaurant technology stock with 97% upside (stock pitch)
McDonald's to sell Krispy Kreme doughnuts nationwide (news)
The CEO at $DERM with killer 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
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STOCK PITCHES
BLOG
PAR’s Path to $80 Redux
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: $42.60 | Price Target: $84 (+97%)
Timeframe: 2026 | Market Cap: $1.2B
🧑🍳 Restaurant Software | 📈 Bullish Idea
PAR Technology (PAR) is poised for a growth inflection in 2024 and beyond, driven by the Burger King win and large quick service restaurant (QSR) request for proposals (RFPs). The company's $84 price target is based on 27x 2026 EBITDA and 5.5x sales as margins expand and the total addressable market (TAM) widens via mergers and acquisitions. Competitive risks are at an all-time low while demand grows. The rollout with Restaurant Brands International (RBI) starts in Q2 2024, setting the stage for potential wins with Popeyes and more.
Read the full article here. Read time: 9 min
FUND LETTER
Pershing Square's Portfolio Holding: Chipotle Mexican Grill, Inc.
Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. It sells food and beverages through offering burritos, burrito bowls, quesadillas, tacos, and salads. The company also provides delivery and related services its app and website
Ticker: CMG | Price: $2903 | Price Target: N/A
Timeframe: N/A | Market Cap: $79.6B |
🌯 Fast Casual Restaurant | 📈 Bullish Idea
Chipotle Mexican Grill, Inc. (CMG) delivered outstanding 2023 results with 8% same-store sales growth (42% vs 2019). Traffic accelerated to 7%+ in Q4 on value, throughput, and menu innovation. The company achieved 230bps restaurant margin expansion with further upside. Chipotle is in the early innings of its growth story, with plans to double its North American footprint to 7,000+ stores and expand internationally. Menu innovations, loyalty program enhancements, and technology provide additional growth vectors.
Read the full article here. Read time: 1 min
*SPONSORED PITCH
Alaska Energy Metals pitch ($AKEMF)
Alaska Energy Metals Corporation engages in the acquisition and exploration of mineral properties in the United States. It explores for gold, silver, nickel, copper, cobalt, and platinum.
Ticker: AKEMF | Price: CAD 0.20 | Price Target: N/A
Timeframe: N/A Market Cap: CAD 23.36M
⛏️ Nickel Mining | 📈 Bullish Idea
Alaska Energy Metals ($AKEMF) is a standout investment in the US nickel sector, crucial for the burgeoning clean energy and EV markets. With its Nikolai project poised to be America's largest nickel deposit, $AKEMF offers a key domestic solution to the current overreliance on imports.
Key Points:
1) Strategic Relevance: The US Inflation Reduction Act incentivizes domestic sourcing of critical minerals, directly benefiting AKEMF/AEMC.
2) Vast Resource Base: The company boasts 3.9 billion pounds of Nickel Indicated Resource and 4.2 billion pounds of Nickel Inferred Resource.
3) Market Demand: US demand for nickel is projected to increase 23-fold by 2035, highlighting AKEMF/AEMC's potential to fill a critical supply gap.
4) Infrastructure and ESG Advantage: Proximity to essential infrastructure and adherence to ESG standards further enhance the project's viability.
5) Valuation Upside: They appear undervalued compared to peers like $CNIKF and $FPOCF who have market caps 4-8x higher.
6) Leadership and Regional Interest: Strong leadership and interest from major players in adjacent projects underscore the region's nickel potential.
In summary, Alaska Energy Metals presents a compelling investment opportunity with its significant resource base, strategic positioning in the US nickel market, and considerable upside potential driven by national policy shifts and global demand trends.
BLOG
1 euro is currently available for 37.8 cents: NAV MPH Health Care + M1 Kliniken Status share buyback program
MPH Health Care AG, an investment company, engages in the healthcare business in Germany. It produces and sells medicinal products for the therapies of cancer, HIV, and other chronic diseases
Ticker: 93M1.F | Price: 21.78 | Price Target: 57 (+162%)
Timeframe: N/A | Market Cap: 93M
🏥 Healthcare Investment Company | 🏷️ Undervalued | 📈 Bullish Idea
* I recommend using Interactive Brokers (link) to trade international and OTC stocks if you can’t trade them in your current brokerage
MPH Health Care AG has a €254 million net asset value (NAV), which is a 37.8% discount to its €96 million market capitalization. The NAV consists of a €157 million stake in M1 Kliniken (€13.1 per share) and a €65 million stake in CR Energy (€24.6 per share). M1 Kliniken's share buyback, management purchases, and private equity interest signal potential upside. In 2018, MPH Health Care AG had earnings per share of €8.6 and paid a €2 dividend when the stock reached its high of €54.5.
Read the full article here. Read time: 2 min
Which stock idea was the most compelling to you? |
Yesterday’s Poll Results:
🟩🟩🟩⬜️⬜️ IAC Inc ($IAC) [38%]
🟨🟨⬜️⬜️⬜️ ADF Group ($DRX.TO) [33%]
🟥⬜️⬜️⬜️⬜️ James River Group Holdings ($JRVR) [29%
MARKET OVERVIEW / NEWS
Market Overview
Are you short-term bullish or bearish on the market? |
Yesterday’s Poll Results: 62% bullish
An almost identical day to yesterday, except the Russell was also slightly down today. The Fear v Greed index remained at Greed levels and Yellowbrick Road readers remained at exactly 62% bullish. The Stock News Sentiment also fell a little bit but remains at slightly bullish levels.
Stock Market News
Trump Media stock ticker DJT debuts decades after ex-president's failed casino company used it - CNBC
McDonald's to sell Krispy Kreme doughnuts nationwide by the end of 2026 - CNBC
Adam Neumann submits bid of more than $500 million to buy WeWork - CNBC
Tesla shares gain as Musk offers US customers self-driving software trial - Reuters
Reddit shares surge a day after options launch, set to nearly double IPO price - Reuters
Viking Therapeutics stock jumps 15% on promising weight loss pill data - CNBC
Amazon launches same-day prescription delivery in New York and Los Angeles - CNBC
Apple could double down on China market, Wedbush says, as iPhone sales drop - CNBC
Dollar Tree lifts price cap to $7, cites influx of shoppers making $125K and up - New York Post
FEATURED INSIDER TRADE
The insider trade is brought to you by CEO Watcher (another free, weekly email I write). It’s the only newsletter that tracks insider returns to find the best ones. Subscribe here
*This stock is up 19% since it was shared yesterday in the CEO Watcher Premium email
President & CEO at Journey Medical Corp ($DERM)
The President & CEO purchased 10,000 shares at $3.48/share ($34,790.00 total) which increased their vested holdings by 0.5%. The current price is $3.69 (-16.1%). Their median purchase size is $50,210.40 and this is their 2nd largest purchase out of 2 all time. (trade link)
Historic Returns
1m returns: 15% weighted | 15% median | 100% win rate (1/1)
3m returns: 165% weighted | 165% median | 100% win rate (1/1)
6m returns: 38% weighted | 38% median | 100% win rate (1/1)
1y returns: N/A
Note: 2 other insiders also purchased the stock
LINKS YOU’LL LOVE
+15 POINTS - WEEKLY TOURNAMENT
Jurny is an AI-powered platform automating hotel and short-term rental operations. With $2.2M in ARR, industry partnerships with major companies including Airbnb, Vrbo, and Expedia, and more than $35 million in bookings processed through their platform last year alone, it's no surprise that Jurny has the backing of leading venture capitalists and over 1,000 individual investors. Read their full pitch*
* Sponsored link
THAT’S ALL FOLKS
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Connor
*Follow Yellowbrick on Twitter at @joinyellowbrick
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