YB new stock pitches (Fri, Sep 20)

Hello!

I’ve just added 29 new pitches to the website.

As always, you can visit the website at https://www.joinyellowbrick.com (if you are a premium member, make sure to login so you get the most recent pitches).

If you have upgraded to premium and currently receive the morning email that is sent to free subscribers and don’t want to receive it any more since you are getting this email, just reply to this and let me know and I’ll take you off it.

Thanks for reading!

Connor (founder of Yellowbrick and CEO Watcher)

YB PORTFOLIO

The YB Tracking 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.

*All investments in the YBR Portfolio will be for ~3% of the portfolio value

**I use Interactive Brokers (link) for the portfolio because it makes it easy to have multiple accounts for different strategies and allows you 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 YB Portfolio is only available to Premium Subscribers. If you want to know which stocks the top investors are investing in, upgrade to Yellowbrick Premium.

A COUPLE OF THE MOST INTERESTING NEW PITCHES

Company: Talkspace, Inc. ($TALK)
Author: Antarctic Circle Capital (Blog)
Author Avg Returns: <premium subs only>
Sentiment: bullish
Category: Growth
Market Cap: USD 365.02M
Given Upside: 200%
TALK: Telehealth co. pivoting to payor/enterprise from DTC. 37% 6-yr rev CAGR, now profitable. $108M NCAV, 10% annual buyback. New CFO from investment background. Medicare expansion to drive growth. Trading at 1x P/S. Risks: regulation, execution, competition. Projecting 20% rev growth, 10x 2026 P/E. - link

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Company: Powersoft S.p.A. ($PWS.MI)
Author: Under-Followed-Stocks (Blog)
Author Avg Returns: <premium subs only>
Sentiment: bullish
Category: Growth
Market Cap: EUR 177.93M
Given Upside: N/A
PWS.MI: Global leader in pro audio amplification. 44% rev growth, 68% EBIT growth in 2023. EV/EBIT 9.3x, P/E 13.8x. Innovative tech in immersive audio (Las Vegas Sphere). Expanding globally & into new verticals. Risks: founder control, economic cycle dependence. Strong customer base incl. top artists/venues. - link

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Company: Northeast Community Bancorp, Inc. ($NECB)
Author: Militia Capital (Twitter)
Author Avg Returns: <premium subs only>
Sentiment: bullish
Category: Value
Market Cap: USD 261.36M
Given Upside: N/A
NECB: Long .5% position in boring bank trading at 6x earnings. Fast growth raises 100% downside risk, limiting bet size. Missed opportunity at 4x earnings in April. Growth likely to slow, but still appears undervalued. Focus on addressing errors of omission in future. - link

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Company: The Gap, Inc. ($GAP)
Author: David Swartz (Analyst)
Author Avg Returns: <premium subs only>
Sentiment: bullish
Category: Turnaround
Market Cap: USD 7.53B
Given Upside: 27%
GAP: CEO Dickson driving turnaround. Q2 sales +5%, Old Navy +5% comps. Gross margin +500bps to 42.6%. Operating margin 7.9%, beating est. by 240bps. FY24 outlook improved: sales +1%, op margin 6%, EPS $1.72. FVE $26, implies 15x P/E. Long-term 2-3% sales growth, 7.5% op margin by 2026. - link

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PITCHES FROM TOP INVESTORS

All of the top pitches from the best-performing investors are in our curated Elite Investor Feeds at joinyellowbrick.com/feeds

THE REST OF THE PITCHES

To get access to all of the stock pitches, upgrade to Yellowbrick Road Premium. If part of your job is idea generation (either for your personal account or a fund), it’s a no-brainer.