YB new stock pitches (Thu, Dec 19)

Author

Connor Van Ooyen
December 19, 2024

Hello!

I’ve just added 35 new pitches to the website.

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

Thanks for reading!

Connor (founder of Yellowbrick and CEO Watcher)

P.S. - if you want a condensed, links-only view of the stock pitches for faster browsing, you can find it at https://www.joinyellowbrick.com/links

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.

Current returns (started mid-May)

YELLOWBRICK WEBSITE UPDATE

Exact search, links-only view, and more…

I made a handful of small updates to the Yellowbrick website and have a very big update in progress.

Exact match on tickers

In the Ticker Search box, if you don't include quotes, it'll search for any ticker/company name that contains that text (pic 1 would return AAPL, AA, LAAC, and many more)

(pic 1) Gets pitches for all stocks that have a “AA” in their ticker/name

Add quotes around the ticker to only get pitches for that exact ticker (pic 2)

(pic 2) Only gets pitches for Alcoa which has ticker of “AA”

Links-only view

You can either switch on Browse Mode from the home page (pic 1) …

(pic 1) Browse Mode

… or go to https://joinyellowbrick.com/links to get the pitches as a list of links to the pitches for faster browsing (pic 2).

(pic 2) links-only list

I’m also including a P.S. in the intro of all of these emails with a link to the links view so you can read that instead of this email if you prefer.

13F filings with returns (coming soon)

I’m collecting all of the 13Fs since 2018 and tracking the returns to identify the top performing funds and the stocks they are holding.

13F Leaderboard

13F Holdings

After the 13Fs are completed, I’ll likely focus on adding the holdings/returns for funds that don’t have to file a 13F but report this info in their quarterly letters.

Make sure to visit https://www.joinyellowbrick.com to find your next winning stock pitch.

HIGHLIGHTED PITCHES (FREE)

Author Returns

The below stock pitch is from Voss Capital.

Upgrade to Yellowbrick Road Premium to unlock the historic returns for all authors.

FUND LETTER - Voss Capital

Voss Capital New Portfolio Holding: PHINIA Inc.

PHINIA Inc. engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications.

Ticker: PHIN | Price: $47.14 | Price Target: $79 (+67%)
Market Cap: $1.98B | Timeframe: end of 2025

🚗 Auto Parts Supplier | 📈 Bullish Idea

PHINIA Inc. (PHIN), an auto parts supplier recently spun off from Borg Warner, operates in Fuel Systems (OEM) and Aftermarket segments. The company is well-positioned to benefit from the slower-than-expected transition to EVs, with its Gasoline Direct Injection (GDI) technology holding a 12% market share and potential for growth. Key catalysts include competitors withdrawing from the market, supply chain consolidation favoring full fuel system suppliers, growing demand from Chinese OEMs, and expansion into off-highway products. The Aftermarket business, comprising 50% of operating profit, offers higher margins and steady growth but is undervalued. Management has reduced share count by 11% since the spin-off. Risks include the pace of EV adoption and potential changes in EV tax credits. With a target price of $79 by 2025 (double the current value), based on 6x EBITDA for Fuel Systems and 9x for Aftermarket, PHIN presents an attractive investment opportunity in the evolving automotive industry.

Read the full article here. Read time: 6 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/14939/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from Unemon.

Upgrade to Yellowbrick Road Premium to unlock the historic returns for all authors.

BLOG POST - Unemon

FORMFACTOR INC: The overlooked second derivative of the quantum mania

FormFactor, Inc. designs, manufactures, and sells probe cards, analytical probes, probe stations, metrology systems, thermal systems, and cryogenic systems to semiconductor companies and scientific institutions. It operates in two segments, Probe Cards and Systems.

Ticker: FORM | Price: $42.84 | Price Target: N/A
Market Cap: $3.33B | Timeframe: N/A

📀 Quantum Computing | 💧 Cooling | 📈 Bullish Idea

FormFactor, Inc. (FORM), a $3 billion EV company trading at 24x PE and 30% below its 52-week high, is positioned as an overlooked quantum computing cooling play. The company acquired the JanisULT DR line, becoming the largest US supplier of dilution refrigerators, essential for quantum computing at ~$500k per unit. Despite quantum stocks surging 500% since Labor Day, FORM is up only 5%. The global quantum computing market is projected to grow from $1.16 billion in 2024 to $12.62 billion by 2032, with a CAGR of 34.8%. FormFactor offers a safer bet with its established semiconductor business while benefiting from quantum computing growth. Recent purchases of Jan 50/55 calls suggest potential upside. The company's cooling systems are crucial for maintaining ultra-low temperatures required for quantum computers, and its acquisition of JanisULT's DR product line in 2022 enhances its market position. FormFactor's stock remains undervalued compared to other quantum-related companies, presenting an opportunity for investors seeking exposure to the quantum computing industry.

Read the full article here. Read time: 5 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/14950/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from Meditation Capital.

Upgrade to Yellowbrick Road Premium to unlock the historic returns for all authors.

FUND LETTER - Meditation Capital

Meditation Capital Portfolio Holding: Halyk Bank of Kazakhstan

Halyk Bank of Kazakhstan Joint Stock Company, together with its subsidiaries, provides corporate and retail banking services primarily in the Republic of Kazakhstan, Kyrgyzstan, Georgia, and Uzbekistan. It operates through four segments: Corporate Banking, SME Banking, Retail Banking, and Investment Banking.

Ticker: HSBK.IL | Price: $18.08 | Price Target: N/A
Market Cap: $4.91B | Timeframe: N/A

🏦 Bank | 🇰🇿 Kazakhstan | 📈 Bullish Idea

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

Halyk Bank (HSBK.IL), Kazakhstan's leading bank, presents an attractive investment opportunity with a valuation of 2.8x P/E and 0.9x P/B. The bank demonstrated a robust 38% ROE in Q3 and maintains a conservative 19% CET1 ratio, showcasing its resilience through economic cycles. In 2023, Halyk Bank paid a total dividend of $3 per share ($2.25 in June and $0.75 recently), representing a 20% yield based on the January stock price of $15. For 2024, the company anticipates a dividend of at least $3.20 per share, coupled with mid-teens local currency earnings growth. Notably, Kazakhstan imposes no dividend withholding tax, enhancing the appeal for investors. The bank's strong performance and attractive valuation, combined with its history of navigating various economic conditions, make it a compelling investment option in the Kazakhstan banking sector.

Read the full article here. Read time: 1 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/14935/?ref=PLACEHOLDER

Find all of the stock pitches on https://joinyellowbrick.com (30-day delay for free subscribers).

Unlock all stock pitches (plus historic author returns and Elite Investor Feeds) by upgrading to Yellowbrick Premium.

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.

🎁 REFERRAL PROGRAM 🎁

Use your unique URL below or the share URL for any of the stock pitches to unlock insanely valuable awards.

Premium members have access to these awards here.

THAT’S ALL FOLKS

Thank you so much for reading today’s email! Your support is the only way I can write this email for free every day.

Give me feedback in the poll below and share the newsletter with other investors if you find it useful!

Connor

*Follow Yellowbrick on Twitter at @joinyellowbrick

How would you rate today's newsletter?

If you vote 1 or 3 stars, please leave a comment with what you didn't like so I can improve it!

Login or Subscribe to participate in polls.

Reply

or to participate.