YB new stock pitches (Mon, Oct 28)

More stock pitches from Artisan in “The Rest of the Pitches” section.

The Hain Celestial Group, Inc. (HAIN) is undergoing a significant transformation under new CEO Wendy Davidson, who took charge in January 2023. Davidson has implemented a strategic overhaul, including divesting non-core brands, focusing on high-margin core products, and introducing cost-saving measures. These initiatives have already yielded improvements in operational efficiency, reduced working capital requirements, and expanded margins. The company now boasts a more streamlined and appealing brand portfolio, positioning it for sustainable growth. Hain Celestial is expected to generate several dollars of free cash flow per share in the coming years, and it currently maintains lower leverage compared to its peers. Despite stronger top and bottom-line growth prospects, HAIN trades at a significantly discounted multiple on a forward-looking basis, presenting a potential investment opportunity.

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

MATR.TO, currently trading at $12.05, presents a compelling long investment opportunity. The company has divested its cyclical oil and gas businesses to focus on high-growth segments, projecting 10% annual organic growth and margin expansion from 15% to 20% through 2030. Following a significant capital expenditure build in 2024, the company is poised for growth. Without considering potential M&A activities, which are likely given the company's clean balance sheet, the stock offers a potential 30%+ IRR over five years, with a 4.5x upside. This scenario assumes lower topline growth than guided and a conservative 15x trailing FCF multiple in 2029. The investment thesis suggests a possible 350% upside, making it an attractive opportunity for investors.

Read the full article here. Read time: 1 min

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

ParkerVision, Inc. (OTC:PRKR) received a favorable ruling from the Federal Circuit Court of Appeals in its litigation against Qualcomm Inc (QCOM), increasing the likelihood of a trial in early 2025 with potential for a multi-billion-dollar award. The company's $50 million market cap contrasts sharply with this potential outcome. PRKR's case is strengthened by internal QCOM emails describing their technology as a 'holy grail' invention. The award could be tripled if willful infringement is proven, given QCOM's documented awareness of PRKR's patents. Additional upside exists from cases against Apple, LG, MediaTek, NXP, Realtek, TCL, Texas Instruments, and others, with at least five trials expected in 2025. The investment represents a 1.5% allocation with a potential 20-50x return, but carries a significant risk of total loss. The opportunity was identified by Dan Lewis of GEM Partners, who has been involved for over a decade.

Read the full article here. Read time: 2 min