YB new stock pitches (Wed, Mar 12)

Liberty Formula One Group (FWONK) is poised for growth under new CEO Derek Chang, who aims to expand in China following successful U.S. growth. The company's vertical integration strategy encompasses streaming, merchandise, events, and fan engagement initiatives. The acquisition of Quint enhances race experiences, while a pending MotoGP acquisition adds another high-performance racing league to its portfolio. ESPN's broadcast deal is expected to renew at over $100M annually. F1TV provides direct streaming revenue. The company benefits from a strong fanbase, significant moats, and multiple growth opportunities. Liberty Media's capital allocation strategy, influenced by chairman John Malone, includes strategic acquisitions and spin-offs. The company's revenue is heavily dependent on race schedules, making year-over-year comparisons challenging. With a focus on international fan engagement, maximizing race weekend value, and clever capital allocation, Liberty Formula One Group is well-positioned for future success in the sports entertainment industry.

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Gaztransport & Technigaz SA (GTT.PA) is a leader in LNG membrane containment technology, offering exposure to the green energy megatrend with no viable alternatives or AI risk. The company boasts impressive financials, including 95%+ gross margins and 40%+ free cash flow margins consistently over the past decade. GTT's deep moats are built on patents and a 60-year safety record, while its business model features advance payments and locked multi-year contracts. With a net cash position, 6% dividend yield, and nascent M&A activity, GTT's 5-year backlog is steadily rising. Despite these strengths, the stock trades at just 17x free cash flow and 13x earnings. GTT scores 14/20 on the Sleep Well scorecard and is currently the cheapest stock in the portfolio, making it an attractive investment opportunity in the European market.

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aconnic AG (CFC.DE), a German technology supplier for Gigabit networks, presents a turnaround opportunity with a €2.2 price target (+123%). The company benefits from insider ownership, a Blackstone stake, and a recent €18 million capital raise at a 44% premium. As a key beneficiary of Germany's €500 billion infrastructure fund, aconnic is well-positioned in the fiber optic expansion and 5G/6G markets. The stock trades at attractive multiples with a projected P/E <13 and EV/EBITDA <6 for 2025. aconnic's European production aligns with funding preferences, and its energy-efficient solutions cater to sustainability requirements. Risks include past losses and financing issues. Potential catalysts include upcoming results and new orders. The CEO, Werner Neubauer, holds a significant stake through FIGLIO BETEILIGUNGSVERWALTUNG GMBH, while Blackstone owns 21.55%. With a fair P/E ratio of 21 and a current price of €1.0, the stock offers substantial upside potential.

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