YB new stock pitches (Fri, Feb 7)

Paysafe Limited (PSFE) is a global payments provider specializing in high-risk verticals such as iGaming, digital wallets, and alternative payment solutions. The company offers 50% upside potential, driven by new management's efforts to unify the business and cross-sell products successfully. Paysafe is positioned to benefit from U.S. iGaming expansion and e-commerce growth. The company's competitive advantages include industry-leading risk and compliance infrastructure, digital wallets (Skrill and Neteller), and global reach. Opportunities include expanding direct sales, cross-selling, and capitalizing on gaming and e-commerce growth. However, risks involve high leverage (4.7x EBITDA) and regulatory challenges. Paysafe is trading at 5.5x 2028E EBITDA and expects mid-to-high single-digit revenue growth. The company aims to reduce its leverage ratio to 3.5x by 2026 and faces competition from Nuvei in high-risk payment markets.

Read the full article here. Read time: 9 min

LifeMD (LFMD) is a virtual primary care company competing with Hims and Teladoc, experiencing 60%+ YoY telehealth growth. The company offers video consultations, at-home lab testing, and medication delivery, targeting medium-to-higher complexity cases. LifeMD recently launched its own pharmacy and is expanding insurance coverage, aiming to be contracted with major insurers in 25 states by 2025. The company is capitalizing on the GLP-1 weight loss trend, offering comprehensive virtual weight management programs. With an estimated revenue of $230M by 2025, LifeMD has the potential to triple in value within two years at 15x EV/EBITDA. Key catalysts include the GLP-1 craze and the potential sale of WorkSimpli, which would highlight the telehealth platform's growth. However, intense competition from Hims, Amazon's One Medical, and other telehealth providers poses significant risks, necessitating close monitoring of competitors' developments.

Read the full article here. Read time: 8 min

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

Consorcio ARA (ARA.MX), a leading Mexican homebuilder, is trading at just 25% of book value and 15-20% of estimated Net Asset Value with minimal debt. The company's undervaluation is attributed to conservative management by its founding brothers, but a potential leadership change with the 81-year-old Chairman stepping down may lead to a focus on ROIC, buybacks, and capital return. ARA possesses valuable assets, including shopping malls worth 45-76% of market cap, 1 kilometer of beachfront in Cabo San Lucas, and industrial land. The company's book value is 12.57 pesos per share, with potential true market value of 15-20 pesos per share. Potential catalysts include asset sales, divestitures, and capital return to shareholders. A 30% stock buyback at 6 pesos per share could boost book value to over 15 pesos and NAV to 26 pesos per share. Despite concerns about Trump's policies towards Mexico, Jared Kushner's investment in a Mexican infrastructure company is noted. ARA is now the second largest position in the investor's portfolio.

Read the full article here. Read time: 2 min