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YB new stock pitches (Wed, Oct 30)

YB new stock pitches (Wed, Oct 30)

Connor Van Ooyen
October 30, 2024

Hello!

I’ve just added 33 new pitches to the website.

As always, you can visit the website to see all of the stock pitches and search/filter them at https://www.joinyellowbrick.com (if you are a premium member, make sure to login so you get the most recent pitches).

Thanks for reading!

Connor (founder of Yellowbrick and CEO Watcher)

YB PORTFOLIO

The YB Tracking Portfolio copies the trades of the top 10 investors (based on the average returns of their previous stock pitches) in our database of 1,000+ investors.

Current returns (started mid-May)

WINNING PITCH

210% returns on $VST

Sound Shore Fund pitched $VST in their fund letter at the start of the year and has made 200% returns (link).

Reminder: premium subs can filter stock pitches to only show pitches from Professional Investors on the website https://www.joinyellowbrick.com/

HIGHLIGHTED PITCHES (FREE)

Author Returns

The below stock pitch is from Alluvial Capital.

Upgrade to Yellowbrick Road Premium to unlock the historic returns for all authors.

FUND LETTER - Alluvial Capital

Alluvial Capital Management Portfolio Holding: Net Lease Office Properties

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis.

Ticker: NLOP | Price: $30.03 | Price Target: N/A
Market Cap: $444M | Timeframe: N/A

🏢 Office Properties | 🏡 REIT | 📈 Bullish Idea

Net Lease Office Properties (NLOP), Alluvial Fund's largest holding, has significantly reduced its debt by $300 million in less than a year. The company recently sold a property for $71.5 million, enabling it to decrease its term loan to $74 million and mezzanine loan to $81 million. With the sale of a few more properties, NLOP is expected to clear its corporate-level debt entirely and begin distributing cash to shareholders. The majority of the investment return is anticipated in 2025. Currently, NLOP's shares are considered undervalued, with an enterprise value of $615 million against $94 million in net operating income, representing a 15.3% cap rate. The portfolio trades at $96 per square foot, while the remaining properties are estimated to be worth $130 per square foot, potentially yielding a post-debt NAV of $45 per share.

Read the full article here. Read time: 1 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/13648/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from Dr1004.

Upgrade to Yellowbrick Road Premium to unlock the historic returns for all authors.

VALUE INVESTORS CLUB - Dr1004

Joint Stock Company Kaspi.kz - $KSPI

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in the Republic of Kazakhstan

Ticker: KSPI | Price: $109 | Price Target: $210 (+93%)
Market Cap: $21.27B | Timeframe: N/A

📱 Superapp | 🇰🇿 Kazakhstan | 📈 Bullish Idea

Kaspi.kz (KSPI) is a dominant superapp in Kazakhstan's digital economy, offering payments, e-commerce, banking, and government services. With 40%+ net margins and 35-45% revenue growth, it trades at 10x '24 PE and 8x '25 PE. The company benefits from high penetration (70% of population), strong management (44% owned), and expansion plans to reach 100M users. Kaspi's ecosystem creates a robust moat, with growth potential in various verticals like e-grocery and e-car sales. The company enjoys government support and has navigated political challenges successfully. Catalysts include accelerating net income growth, international expansion, increasing US investor familiarity, dividends/buybacks, and improving country risk perception. Risks involve potential government intervention, geopolitical uncertainties, and execution challenges in new markets. The $210 price target is based on 14x '25 EPS, with comparisons to MELI, NU, Allegro, and Tencent trading at higher multiples.

Read the full article here. Read time: 13 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/13652/?ref=PLACEHOLDER

Author Returns

The below stock pitch is from Alluvial Capital.

Upgrade to Yellowbrick Road Premium to unlock the historic returns for all authors.

FUND LETTER - Alluvial Capital

Alluvial Capital Management Portfolio Holding: Talen Energy Corporation

Talen Energy Corporation, an independent power producer and infrastructure company, produces and sells electricity, capacity, and ancillary services into wholesale power markets in the United States.

Ticker: TLN | Price: $181.31 | Price Target: N/A
Market Cap: $9.25B | Timeframe: N/A

☢️ Nuclear Power | 📈 Bullish Idea

Talen Energy Corporation (TLN), a nuclear power producer, has seen its stock rise 150% year-to-date following its exit from bankruptcy. The company's management has been executing well, selling non-core assets, securing a deal with Amazon for data center power supply, and implementing significant share buybacks. Talen has provided 2026 free cash flow guidance of $10.50-$17.50 per share, with the stock currently trading at 13.6x the midpoint. The company has authorized a $1.25 billion share repurchase program (equivalent to 13% of outstanding shares) by 2026. Talen is well-positioned to benefit from the growing demand for carbon-free baseload power, with nuclear energy gaining renewed interest globally. The scarcity of nuclear power plants is expected to benefit incumbents like Talen in the long term, potentially leading to outperformance of their financial projections. - link

Read the full article here. Read time: 1 min

Share this stock pitch:

https://www.joinyellowbrick.com/sp/13642/?ref=PLACEHOLDER

Find all of the stock pitches on https://joinyellowbrick.com (30-day delay for free subscribers).

Unlock all stock pitches (plus historic author returns and Elite Investor Feeds) by upgrading to Yellowbrick Premium.

THE REST OF THE PITCHES

To get access to all of the stock pitches, upgrade to Yellowbrick Road Premium. If part of your job is idea generation (either for your personal account or a fund), it’s a no-brainer.

FEATURED INSIDER TRADE

The insider trade is brought to you by CEO Watcher (another free, weekly email I write). It’s the only newsletter that tracks insider returns to find the best ones. Subscribe here

PRESIDENT & CEO at WINNEBAGO INDUSTRIES INC ($WGO)

The PRESIDENT & CEO purchased 2,500 shares at $55.52/share ($139K total) which increased their vested holdings by 0.9%. The current price is $57.50 (+3.6%). Their median purchase size is $113K and this is their 1st largest purchase out of 3 all time. link

🎁 REFERRAL PROGRAM 🎁

Use your unique URL below or the share URL for any of the stock pitches to unlock insanely valuable awards.

Premium members have access to these awards here.

THAT’S ALL FOLKS

Thank you so much for reading today’s email! Your support is the only way I can write this email for free every day.

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Connor

*Follow Yellowbrick on Twitter at @joinyellowbrick

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