YB new stock pitches (Mon, Dec 2)

New Fortress Energy (NFE), an $11B EV gas-to-power company, is poised for significant growth with its Fast LNG (FLNG) technology. FLNG1 is operational, with FLNG2 and FLNG3 expected in 2025. The company plans a strategic split of upstream and downstream operations, aiming to unlock shareholder value. Recent asset sales have generated over $500M, improving liquidity. However, NFE faces challenges with $8B in debt (9x EBITDA) and is seeking $2.5B in asset-level financing. A pending $659M FEMA settlement could provide additional liquidity. Key risks include high leverage and permitting delays. Catalysts include FLNG ramp-up, execution of the strategic split, and resolution of the FEMA settlement. NFE has revised its 2025 EBITDA guidance to $1.325B. Management, led by CEO Wes Edens with a significant equity stake, is aligned with shareholder interests.

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Qube Holdings Limited (QUB.AX) is Australia's largest integrated import and logistics services provider, comprising three main divisions: Qube Operating Division - Logistics and Infrastructure, Qube Operating Division - Ports and Bulk, and a 50% stake in Patrick Terminals. The company has invested $718 million in projects yet to fully ramp up, including the Moorebank IMEX Terminal, which is now cash flow breakeven and expected to achieve $80 million EBITDA at scale. Management has upgraded its ROCE target to 12%+ over the medium term, up from the previous 10% target. Qube's diverse end markets, critical infrastructure position, and ongoing capacity utilization improvements are expected to drive future growth. The stock is currently trading near its 10-year P/E low, which management views as attractive, especially if the company achieves its return on capital targets.

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WillScot Corporation (WSC), a specialty rentals company, faces headwinds in 2024 with EBITDA guidance lowered by 9% to $1.06 billion and a failed merger with McGrath RentCorp resulting in a $180 million termination fee. Despite these challenges, the investment thesis remains bullish with a $55 target price (45%+ upside). The company benefits from strong tailwinds including construction spend outpacing GDP growth, increasing rental penetration, and specialty rental outperformance. Management has demonstrated commitment to shareholder value through a $1 billion share repurchase authorization and insider buying. The company's asset-light, high-margin, cash-generative business model positions it well for future growth. Potential catalysts include a more favorable regulatory environment under a new administration, which could facilitate M&A activities or even position WillScot as an acquisition target. Following a re-underwrite, the fund maintains strong conviction in the investment, with the intrinsic value estimate not overly dependent on 2024 earnings.

Read the full article here. Read time: 3 min