High signal stocks #7 (Jan 25)

Hello and happy Sunday!

I added 26 new stocks to the High Signal List this week.

I set up returns tracking for the stocks on the list. So far, so good.

Of the 301 stocks that were added before this week, the average returns are 5.81% (v 0.35% for the S&P), and 64% of them are up.

Obviously, it’s only been about 6 weeks, so these results don’t mean much, but it’s still a nice start.

The biggest winners list is full of Defense and Tech companies, with Red Cat (RCAT) leading the way at +92%.

The biggest losers list is much more diverse.

Our first step in making this data more digestible for you is adding financial/company info to the High Signal Stocks spreadsheet.

In the High Signal Stocks section of this email, Premium subscribers can find a link to the High Signal Stocks spreadsheet. I’ve added a new page called extended_data, which now includes a ton of company/financial data on each stock.

If there is any data you want included, let me know. I might end up switching from using NTM multiple to LTM (or maybe having both) because a lot of companies don’t have the NTM data.

More curation features will be coming to Yellowbrick over the coming months to continue to make our data more tailored and useful for you!

As a reminder, if you decide to give Yellowbrick Premium a try and find it isn’t for you, I always give refunds.

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Below is a free overview for everyone. YB Premium subs get four more overviews, plus the link to the spreadsheet with all of the High Signal Stocks in the YB PREMIUM PITCHES section.

As a reminder, these are AI summaries. They include citations for the data, but should be double-checked. They are just meant to be quick overviews to help you determine if you want to dig in deeper.

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IEH Corporation (OTC:IEHC) - Price: $14.00 | Mkt Cap: $35M | EV/Revenue: 1.0x | Net Leverage: approx. $9M net cash

Recently written up on Yellowbrick by everyonehatespoetry and Byron Street Research (link)

IEH Corporation is a duopoly manufacturer (alongside Smiths Interconnect) of patented Hyperboloid socket connectors for defense, aerospace, and commercial space applications, with defense comprising approximately 60% of revenue (missiles are the largest segment).[1] The market treats IEHC as an illiquid pink sheets stock with a broken regulatory history, pricing it at just 1x EV/Revenue despite the company having the highest backlog in nearly five years and benefiting from a multi-year missile production upcycle across PATRIOT, AMRAAM, and THAAD programs.[2][3] Revenue has declined sequentially, from $28M last quarter to $27.7M this quarter, and margins have been under pressure due to rising gold and tariffs. Downside is anchored by roughly $9 million in cash with minimal debt, representing approximately 26% of market cap, while the Allentown manufacturing facility has capacity to double sales without significant incremental capex.[4] Just a few days ago (January 15, 2026), the SEC dismissed its revocation proceeding against IEHC, removing the key overhang and enabling management to immediately pursue an uplisting to improve liquidity and institutional accessibility.[5] With 45%+ insider ownership, Q2 FY2026 missile defense bookings exceeding $7 million, and connector peers trading at 2 to 4x revenue, a re-rating to even 1.5x revenue on forward estimates implies 50% to 100% upside as defense tailwinds and margin normalization play out over 12 to 24 months.[6]

Sources:
[1] IEH Corporation 10-K FY2025 (filed June 12, 2025); company profile and business description; defense approximately 60% of revenue per investor presentations.
[2] Stock Analysis (stockanalysis.com), January 23, 2026: Price $14.00, Market Cap $34.65M, Revenue TTM $27.72M; EV calculated as market cap less approx. $9M net cash.
[3] IEH Corporation 10-Q Q2 FY2026 Press Release, November 10, 2025: "more than $7 million in new orders supporting missile defense programs, producing the highest backlog since December 2020."
[4] IEH Corporation 10-K FY2025, June 12, 2025: "cash position has improved dramatically"; Buy-Side Brief analysis (July 2025): cash exceeds $9M, zero long-term debt, 29,000 sq ft Allentown facility with capacity to double sales.
[5] IEH Corporation Press Release, January 15, 2026: "the Securities and Exchange Commission (SEC) has dismissed the Division of Enforcement's proceeding seeking revocation of the registration of IEHC's securities...will immediately commence efforts to uplist our stock."
[6] Insider ownership per proxy filings and investor analysis (45%); peer multiples per industry comps (military/aerospace interconnects typically trade 2-4x sales); upside calculated on 1.5x FY26E revenue ($28M) = $42M EV + $9M cash = $51M equity value vs. current $35M.

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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.

YB PORTFOLIO UPDATES

YB PREMIUM SUBSCRIBERS ONLY

Updates to the Yellowbrick Tracking Portfolio, which holds 30-40 positions that are owned by Yellowbrick Elite Investors. 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.

The Interactive Brokers Portfolio returns chart is not loading today, but the YB Portfolio finished the week slightly positive, while the S&P was down 0.64%.

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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