YB new stock pitches (Fri, Feb 14)

CuriosityStream Inc. (CURI) presents an investment opportunity with overlooked potential in SG&A cuts, licensing growth, and AI training opportunities. The company aims to reach EBITDA profitability by 2026 through cost-cutting measures, including a 20% reduction in general and administrative costs and a 25% decrease in advertising and marketing expenses year-over-year. CURI's AI content licensing could generate significant revenue, potentially beating consensus estimates by 6.1% to 14.9%. The direct business segment, accounting for 79% of revenue, shows signs of subscriber count inflection through upselling and advertising opportunities, including AVOD, TVOD, and FAST channels. Key catalysts include AI licensing, cost control, and AVOD/FAST expansion. Risks involve high dependency on partner subscriptions and rising content costs amid competition. The company has a strong financial position with 30% of its market cap in cash and almost no debt. Management's focus on productive investments and cost containment through AI in customer service, editing, and language translation further supports the turnaround strategy.

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International Petroleum Corporation (IPCO.TO) is an undervalued O&G producer trading at 5.5x 2024 EBITDA and 7.7x FCF, with significant growth potential from its Blackrod project. The company's key assets are in Canada, Malaysia, and France, with 85% of production from Canada. IPCO's Blackrod Phase 1 is expected to yield 30k boepd by 2028, potentially doubling FCF. The stock trades at a 46% discount to NAV, with limited value assigned to Blackrod's growth potential. Management, led by the Lundin family (34% stake), has a strong track record of value creation through acquisitions and buybacks. RV Capital's involvement adds credibility to the investment thesis. A conservative valuation suggests a C$27 price target, offering 40%+ upside. Risks include potential Blackrod development issues, oil price volatility, and possibly optimistic NAV estimates. The company's low decline rates, long reserve life, and management's focus on shareholder value make it an attractive investment opportunity in the energy sector.

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TTEC Holdings, Inc. (TTEC) is trading at $3.50 per share, significantly below the $6.85 cash buyout offer made by its Founder/Chairman/CEO Ken Tuchman in September. The large discount is attributed to retail investors' doubts about the offer's legitimacy and concerns over the perceived delay in the process. However, the bid is likely genuine given the costs incurred by Tuchman and the company. The timeline for the takeover process is normal, with the audit completion being crucial for financing and fairness opinions. While there are risks, including a large short position and debt refinancing needs, these were known to Tuchman when he made the offer. The company's quiet period ends on February 28 with Q4 results, which may provide updates on the buyout. Sell-side research is optimistic about the bid succeeding, estimating $1 of adjusted EPS for TTEC in 2025.

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