YB new stock pitches (Tue, Jan 14)

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

CVS Group plc (CVSG.L), a UK veterinary group, has faced recent challenges due to a CMA review and a cyber incident, but its fundamentals remain strong. FY2024 saw revenue growth of 9.9% to £647.3 million and adjusted EBITDA increase of 4.7% to £127.3 million, maintaining a 19.7% margin. The company has a comfortable leverage of 1.54x with £168 million in net debt. CVSG is expanding into Australia with 22 new practices, offsetting UK uncertainty. The CMA investigation, expected to conclude by late 2025, is likely to result in moderate changes rather than drastic measures. The company's cloud system rollout post-cyber attack is expected to bring long-term benefits. The pet sector's resilience to economic downturns and CVSG's strong financials position it well for growth. Investors willing to weather short-term volatility may benefit from a potential re-rating once the CMA process concludes, with the stock poised for recovery by year-end.

Read the full article here. Read time: 3 min

Citizens Bancshares Corporation (CZBS) is a $93m market cap bank trading at an estimated 2025 7x P/E and 0.62x Adjusted TBV, with potential for a 17% adjusted ROE in 2025. The bank received $95.7m in ECIP funding, significantly overcapitalizing it. CZBS has a strong deposit franchise with a low 0.36% cost of deposits in 2023. The bank's loan portfolio is 71% commercial loans, with a yield of 6% in 2023. CZBS has robust capital ratios, including a 40% Tier 1 ratio and 15% CET1. Management owns 31% of the company and has been buying back shares aggressively. Potential catalysts include M&A, buybacks, uplisting, and retiring ECIP preferred below par. Risks involve recession impacts on loans, interest rate shocks, and potential bank runs, though CZBS is highly liquid. The stock offers 53-140% upside potential based on 11-13x 2025 P/E or 1-1.48x 2025 TBV multiples, not accounting for potential M&A or buybacks.

Read the full article here. Read time: 14 min

JELD-WEN Holding, Inc. (JELD) could potentially benefit from the Los Angeles fires rebuild, estimated to cost between $135 billion and $202.5 billion. Assuming windows and doors make up 5-10% of rebuild costs, JELD could capture 6-8% of an $8.44 billion to $20.25 billion market. This translates to potential revenue of $506 million to $1.62 billion over a 5-year period, with estimated cumulative EBITDA ranging from $472.5 million to $1.7 billion. The company could recognize 15-30% of total estimated revenue in the first year, with the remainder spread over subsequent years. Potential EBITDA per share could range from $6.49 to $23.37, based on varying market capture and EBITDA margins. JELD's distribution network, economies of scale, and brand recognition could provide advantages in capturing this market. Value-oriented investor Turtle Creek has recognized potential value in JELD.

Read the full article here. Read time: 2 min