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Top stock pitches (Wed, Sep 25)

Top stock pitches (Wed, Sep 25)

Connor Van Ooyen
September 25, 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:

The Children's Place (PLCE)

FTC Solar (FTCI)

Quest Resource Holding Corporation ($QRHC)

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.

YB Premium Portfolio returns - started mid-May

WINNING PITCH

120% returns in 3 months

STOCK PITCHES

Author Returns

The below stock pitch is from FT42.

Their historic returns are:

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

VALUE INVESTORS CLUB - FT42

The Children's Place, Inc. - $PLCE

The Children's Place, Inc. operates an omni-channel children’s specialty portfolio of brands in North America.

Ticker: PLCE | Price: $17.42 | Price Target: $30 (+72%)
Market Cap: $220M | Timeframe: 2025

🚂 Children's Products | 🔄 Turnaround | 📈 Bullish Idea

The Children's Place (PLCE) presents a turnaround opportunity after Mithaq Capital acquired 54% of shares and provided a $78.6M interest-free loan. Historically profitable with strong e-commerce growth, PLCE faced challenges from high inventory costs, aggressive promotions, and split shipments, leading to a significant decline in gross margins. New management is addressing these issues, including implementing a $40 minimum for free shipping. The company's debt burden, exacerbated by unfavorable credit terms, is being mitigated by Mithaq Capital's financial support. With normalized freight and cotton costs, PLCE aims to restore profitability. Risks include strong competition and weak consumer spending. The stock, trading at $10, has a price target of $30 based on a projected $3 FY2025 EPS and 10x P/E multiple. Catalysts include operational improvements, debt reduction, and a potential consumer spending rebound, with signs of interest rate cuts potentially boosting the retail environment in FY2025.

Read the full article here. Read time: 7 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/12130/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from Unemployed Value Degen.

We have 19 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 - Unemployed Value Degen

Investing in Clean Energy Makes Me Feel Dirty: FTC Solar $FTCI

FTC Solar, Inc. engages in the provision of solar tracker systems, software, and engineering services in the United States, Asia, Europe, the Middle East, North Africa, South Africa, and Australia.

Ticker: FTCI | Price: $0.56 | Price Target: $2 (+257%)
Market Cap: $69M | Timeframe: 2-3 years

📡 Solar Tracker Systems | 📈 Bullish Idea

FTC Solar (FTCI), a solar tracker systems company, presents a potential turnaround opportunity in the beaten-down solar sector. With a $505 million contracted backlog and $1.3 billion non-contracted backlog, FTCI aims for breakeven in 2025 at $60 million quarterly revenue. New CEO Yann Brandt, an industry expert with a history of successful turnarounds and sales, is expected to leverage his connections and marketing expertise to grow the company. The stock, currently trading at a $70 million market cap, could potentially reach 20x in 2-3 years if sold at 2x $500 million revenue. Insider buying, particularly from co-founder Ahmad Chatila, supports the investment thesis. However, risks include potential dilution, project delays, and the company's small size. The stock has already run up from $0.22 to $0.55, with a projected terminal value of $2.00 per share at 1x 2025 breakeven revenue or $10.00 per share at 2x $500 million annual revenue.

Read the full article here. Read time: 1 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/12305/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from @1rabbitresearch.

We have 8 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.

ANALYST REPORT - @1rabbitresearch

Northland Sees Upside for Quest Resource Holdings, Sets Price Target at $12.50

Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States.

Ticker: QRHC | Price: $8.96 | Price Target: $12.50 (+40%)
Market Cap: $182M | Timeframe: N/A

🗑️ Waste Removal | 📈 Bullish Idea

Northland has initiated coverage on Quest Resource Holding Corporation ($QRHC) with an Outperform rating and set a price target of $12.50. The analyst highlights Quest's role as a national provider of waste and recycling solutions for large companies and praises its asset-light model for enabling scale and network benefits. With a B2B focus, Quest offers a comprehensive disposal solution for over 100 waste streams across the country.

Read the full article here. Read time: 1 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/12245/?ref=PLACEHOLDER

Which stock idea was the most compelling to you?

Yesterday’s Poll Results:

🟩🟩🟩⬜️⬜️ Energy Transfer LP (ET) [47%]

🟨🟨⬜️⬜️⬜️ Talkspace (TALK) [31%]

🟥⬜️⬜️⬜️⬜️ Glaukos Corporation (GKOS) [22%]

MARKET OVERVIEW / NEWS

Market Overview

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

Yesterday’s Poll Results: 70% bullish

Stock Market News

Justice Department accuses Visa of debit network monopoly that impacts price of 'nearly everything' - CNBC

China Equities Outlook Brightens as Central Bank Activates “Monetary Policy Bazooka” - ETF Trends

September consumer confidence falls the most in three years - CNBC

Eli Lilly's Alzheimer's drug approved in Japan - Reuters

Paramount Global bloodbath continues with ‘phase two' of planned 2K job cuts - 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

Director at FS Credit Opportunities Corp. ($FSCO)

The Director purchased 2,840 shares at $6.34/share ($18,005.60 total) which increased their vested holdings by 51.4%. The current price is $6.36 (+0.3%). Their median purchase size is $10,141.90 and this is their 1st largest purchase out of 4 all time. link

LINKS YOU’LL LOVE

The Collector Investor who Piled Up $100M in the ‘60s

Ho Nam on Capital Efficiency

THINK AND INVEST LIKE MICHAEL BURRY

🎁 REFERRAL PROGRAM 🎁

Use your unique URL below or the share URL for any of the stock pitches to unlock insanely valuable awards.

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

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