YB new stock pitches (Wed, Feb 26)

Tiptree (TIPT) is a potential special situation investment with its insurance division Fortegra, representing 95% of revenues, reportedly pursuing a sale process. The Insurer leaked this information, which has been missed by the market due to lack of analyst coverage and metadata typically accompanying M&A exclusives. Management is expected to announce strategic alternatives on the upcoming Q4 earnings call, estimated for 2/26/2025. Valuation estimates range from $30-40 per share based on comps, with Fortegra potentially worth $1.2-$1.6B (15-20x ANI). Warburg Pincus owns 24%, while insiders hold 34%. Two failed IPO attempts increase the likelihood of a sale. The stock presents a low-risk, moderate-reward opportunity for commons (25-30% potential return) and a medium-risk, high-reward play for March 21 22.5 Calls (originally priced at 35c, now 60c). Risks include no announcement, a failed sale attempt, or management's use of proceeds. The company's strong execution compared to peers and potential synergies make it attractive to strategic acquirers and sponsors.

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MicroVision (MVIS), currently trading at $1.50, has caught the attention of AR pioneer Palmer Luckey, founder of Oculus VR and CEO of Anduril. Luckey publicly expressed belief in MicroVision's technology and has been actively engaging in online discussions about the company. This interest is significant as Anduril is positioned to take over the $22 billion HoloLens/IVAS program from Microsoft. MicroVision's technology appears to be a crucial component for Anduril's AR ambitions, suggesting a potential acquisition or partnership by March. The market has overlooked this development, presenting an asymmetric investment opportunity with substantial upside potential and limited downside at current price levels. An entry point below $2 is considered attractive, with the stock likely to rerate as awareness of this situation spreads in the coming weeks.

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Boston Omaha Corporation (BOC) trades at 87% of book value, potentially undervalued at $458.37 million market cap. The company's billboard business is worth approximately $140 million (20x earnings), while the fiber/broadband unit is valued at $136.8 million ($3,000 per subscriber). BOC's investment in SkyHarbour (SKYH) is undervalued according to GAAP. Combining these assets with cash yields an estimated value of $492.7 million, excluding the insurance business and other assets. The company has shifted focus to improving efficiency in existing ventures, with the billboard segment acting as a cash cow and the broadband unit nearing breakeven. The insurance division (GIG) shows strong growth potential, with a 52.8% year-over-year increase in gross written premiums. Despite management changes and past overvaluation, BOC appears positioned for long-term growth, though uncertainties remain in the broadband business.

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