YB new stock pitches (Thu, Feb 27)

Dow Inc. (DOW) is currently undervalued at $40/share with a 7% yield. The company's capex projects, including Fort Saskatchewan and green hydrogen initiatives, are expected to boost future free cash flow. Recent insider buying signals potential bottoming, and upside could come from European and Chinese economic recovery, as well as cost-cutting measures. Dow's balance sheet is solid with no major debt maturities until 2027, ensuring dividend and buyback safety for at least 24 months. The company's FCF margin appears 20-50% lower than peers due to ongoing capex projects, leading to a 20% discount relative to its peer group. Analysts project a 70% increase in EPS by 2026, with revenue growth of 10%. Potential risks include a global recession and technological disruption. The stock has 50%+ upside potential by 2025-2026, with a possible price target of $55-$60. Investors can consider going long on shares or exploring cheap options, such as Jan 2026 55 calls or Jan 2027 62.5 calls.

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KULR Technology Group, a dubious energy tech company with $9.7M LTM revenue and -$16.7M EBIT, is facing scrutiny for misleading practices and weak financials. The company's purported energy storage business lacks substance, with minimal R&D ($3.8M LTM), few patents (6), and low employee count (57). KULR recently adopted a 'Bitcoin Treasury' strategy, holding $50M in Bitcoin. The company relies on aggressive equity issuance via ATM offerings to fund operations, raising concerns about dilution. Red flags include a misleading HQ image, CFO discrepancies, and potential conflicts of interest with family ties to a marketing firm. Despite weak fundamentals, KULR maintains a $400M market cap. The bearish thesis suggests that the dilutive cycle and narrative will eventually collapse, leading to a significant stock decline.

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Lixte Biotechnology Holdings (LVTX) presents a bullish opportunity with $76.6 million in cash and an incoming $5 million milestone payment. The company's Q4 burn rate was $7.3 million, and it has two active partnered programs with potential for milestones and royalties, including deals with Pfizer and Johnson & Johnson. LVTX has takeout potential above the current market price, likely with a compelling contingent value right (CVR). The company's expiring leases are reducing liabilities. With a 10-K filing expected soon, there may be slight updates to the financials. The stock's recent churn suggests potential interest from investors, and any takeover offer would likely exceed the current market price, accompanied by an attractive CVR.

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