High signal stocks #12

Hello and happy Sunday!

I added 10 new stocks to the High Signal List (the stocks are shared with Premium subs further down in this email).

The High Signal List had another week of slight outperformance v the S&P.

This brings the outperformance for the first 10 weeks of the High Signal Stock List to 3.78%.

Obviously, it’s still too early to draw any conclusions, but we have to start somewhere!

Below is a free overview for everyone. YB Premium subs get more overviews and access to the full High Signal List further down in this email.

As a reminder, these are AI summaries. They are just meant to be quick overviews to help you determine if you want to dig in deeper.

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Itafos Inc. (IFOS.V) - Price: CAD 3.08 | Market Cap: CAD 595 | EV/EBITDA (NTM): 2.9x | Net Leverage: 0.1x | 7% Dividend

This is a summary of the write-up from Alluvial Capital’s Q4 2025 fund letter (link)

Itafos Inc. (IFOS.V), a small phosphate fertilizer producer two-thirds owned by a private equity firm, was rescued from near bankruptcy by its current majority owner and has since focused on reducing debt and upgrading operations, now trading at around 4x operating cash flow based on 10-year average phosphate prices with nearly zero net debt and extreme profitability. The company should remain profitable even in a severe phosphate price correction and has multiple options to increase production and extend mine life by decades, while structural supply constraints support elevated pricing as US phosphate production has fallen by more than half since 1980, Florida reserves are dwindling, major producers like Mosaic have underinvested leading to reduced production, and China has been reducing exports to ensure domestic availability for agriculture and lithium battery production. Despite acknowledging the 'iron law of commodities' where high prices cure high prices through increased supply, the investor believes Itafos is cheap enough to earn its enterprise value in free cash flow before new supply arrives and views it as a potential acquisition target for larger operators in a structurally under-supplied phosphate market.

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Thanks for reading!

Connor

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What are high signal stocks?

Yellowbrick tracks thousands of investors and collects 10,000+ stock pitches each year. The stock pitches from the best investors are put in the Elite Investor Feeds on Yellowbrick (link).

However, many stocks owned by great investors are never publicly pitched by those investors. This email (and the corresponding spreadsheet) tracks all stocks that I know are owned by good investors (whether that good investor has pitched them publicly or not).

YB ELITE INVESTOR PITCHES

YB PREMIUM SUBSCRIBERS ONLY

New stock pitches from Yellowbrick Elite Investors that were added to the website this week. Fewer than 5% of the 3,000+ investors we track qualify as an Elite Investor.

This section is locked for Yellowbrick Premium subscribers only. You can upgrade to Yellowbrick Premium here.

HIGH SIGNAL STOCKS

YB PREMIUM SUBSCRIBERS ONLY

AI overviews (with data citations) of new stocks added to the High Signal Stocks list.

This section is locked for Yellowbrick Premium subscribers only. You can upgrade to Yellowbrick Premium here.

THAT’S ALL FOLKS

Thank you so much for reading today’s email!

If you ever have any feedback, suggestions, or questions, you can just reply to this email or email me at [email protected].

Connor

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