YB new stock pitches (Fri, Dec 6)

Oracle Corporation (ORCL) is experiencing revenue acceleration due to its investments in cloud-based solutions. The company is seeing broad demand for its Fusion ERP Suite, NetSuite offering, and Oracle Database. Oracle's OCI Gen 2 platform-as-a-service is gaining traction with leading cloud customers, including OpenAI, due to its performance and cost advantages. Partnerships with Microsoft Azure, Google Compute Platform, and Amazon AWS, which will host Oracle's database in their cloud environments, position OCI Gen 2 as a viable hyperscaler offering. As Oracle's large installed base of database customers shifts from on-premises to cloud deployments, the company could potentially increase its database software support revenues by 3 to 5 times. These factors contribute to Oracle's strong positioning for double-digit intrinsic value growth over the investment horizon.

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NTG Clarity Networks (NCI.V) is an IT services provider focused on the Middle East, particularly Saudi Arabia, with $47M in revenue and $9M in EBITDA. The company is benefiting from Saudi Vision 2030, which aims to modernize and digitize the country's economy. NCI's competitive advantage lies in its Egyptian offshore capabilities, providing Arabic-speaking, cost-effective labor. With a backlog surging to over $100M, management forecasts revenue of $70-80M and EPS of $0.25 in 2025, potentially reaching $100M+ revenue in 2026. The company is 46% insider-owned and trades at an EV of $68M. Risks include Saudi concentration, Q4 margin pressure due to growth investments, weak free cash flow conversion, and geopolitical factors. Price targets based on 10x EPS are $2.6-2.7 for 2025 and $3.8-4.0 for 2026, offering significant upside from the current $1.47 share price.

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M-Tron Industries (MPTI), a U.S.-based vertically integrated engineering and manufacturing firm, specializes in critical electronic components for defense, satellite, telecom, and radar systems. With a market cap of $200 million and trading at 4x P/S and 26x EV/EBITDA, MPTI is positioned as a 'drone stock' due to its components being used in drone and drone-related systems. Despite trading at the higher end of fair value, the company offers potential upside as the defense-related electronic components market is poised for significant growth. Management's expectations may be exceeded by improving fundamentals and sentiment. A speculative position has been initiated, though current pricing limits position sizing. The stock is currently priced at $69.8 per share.

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