YB new stock pitches (Tue, Dec 3)

Ramaco Resources (METC) presents a speculative options play based on the Trump victory in the upcoming election. The company mines metallurgical coal, used in blast furnaces that produce 70% of global steel. With the U.S. currently importing 30% of its steel, Trump's promised tariffs could boost domestic production, benefiting METC. The company has significantly improved operations since 2017, posting an $82 million profit in 2023. The author bought June 2025 $17 call options at $0.80 per share, betting on METC's stock price surpassing $17 by the expiration date. This strategy offers leveraged returns if successful but risks total loss if the stock doesn't reach the strike price. The investment thesis hinges on Trump's victory leading to expected steel tariffs, and the subsequent increase in domestic blast furnace steel production, which would drive demand for METC's metallurgical coal.

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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)

Paxman AB (PAX.ST) is a medical technology company specializing in scalp cooling systems to prevent hair loss during chemotherapy. With over 5,500 systems installed in 60+ markets, Paxman is the market leader, outgrowing its main competitor Dignitana (36% vs 9% growth). The company's new Buy/Bill model in the US has increased system utilization by 100-300%. Paxman's unit economics are strong, with conservative estimates suggesting a 76% margin per system over its lifetime. The company has reached an inflection point in scalability, with OPEX decreasing from 97% of sales in 2017 to 49% in Q1 2024. Despite recent stock price growth, Paxman still appears undervalued at 2x sales and 10x 2026e EBIT. Risks include the product's relatively low-tech nature and potential advances in chemotherapy alternatives. The company also has potential upside from ongoing CIPN (chemotherapy-induced peripheral neuropathy) research, which could open up a similarly sized market with faster commercialization due to existing customer relationships.

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Grab Holdings Limited (GRAB), a Singapore-based superapp offering ride-hailing, food delivery, and digital payments across Southeast Asia, has seen its stock rise 52% YTD, breaking out of a 2+ year base. The company recently achieved GAAP profitability with $15M net income in Q3, raised EBITDA guidance by 15%, and announced a $500M stock buyback. With 42M monthly transacting users, an enterprise value of $14B, and 17% growth, Grab's valuation includes a P/S of 7 and P/FCF of 31.54. Founder-led by Anthony Tan, Grab has a strong market position, having outcompeted Uber in the region. The company's moat includes customized services for each market, super-app integration, strategic deals, and support for financial inclusion. Despite a recent BofA downgrade citing rapid share price increase, the stock's potential remains strong with a price target of $10 by 2027, based on expected EBITDA margin expansion, continued profitability, revenue growth approaching 20%, ongoing buybacks, and brand presence development. Analysts anticipate more upgrades in 2025 if execution continues to improve.

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