YB new stock pitches (Fri, Jun 26)

Inter&Co (NASDAQ:INTR), a Brazilian fintech super-app and online bank founded in 1994 (banking license 2008, Nasdaq listing 2022), trades at $5.30 (market cap $2.4B), 1.2x P/B and 6.5x forward P/E against a 15.5% ROE that management targets to reach 28-29% by 2029 via better underwriting, leverage, cost efficiency, and growth. With 44 million clients—but only 9 million holding credit products—the company has significant room to deepen penetration, expand internationally (5 million already use its USD global account, with active Miami/Orlando MLS sponsorship), and take share from legacy banks. Net interest income is 77% of revenue and fees 23%; the loan book ($46B loans, $27B securities) is 67% secured (mortgages 24.5%, home equity 10.3%, payroll+personal 25.6%, credit card 31.3%, SME 8.3%). EPS grew 45% in 2025 and is projected to grow ~40% in 2026 and 30% in 2027, though the author expects fast growth to persist only 1-2 years before market/credit saturation. Risks include rising NPLs and cost of risk (raised to ~6% from prior 5-5.5% guidance, partly from voluntary product pushes and seasonality), Brazilian macro/SELIC dynamics (high rates, leftist president Lula, deficit, Iran war complicating rate cuts begun in 2026), and intense competition from larger players Nubank and MercadoPago. The Menin family (via Costellis International) controls 26% economics but 78% voting power; Softbank holds 13.7% economics/4% votes, with no recent insider buying. Using a conservative long-term ROE of ~20% implying a 20x P/E and 2x book, fair value is ~$9 (on book) to $15 (on earnings), suggesting a potential double. The author is long Inter and Pics.

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UIE Plc ($UIE.CO) is a Malta-headquartered, Copenhagen-traded holding company whose primary asset is a 48.4% stake in United Plantations Berhad, one of the world's largest, most profitable, and most environmentally friendly Malaysian/Indonesian palm oil producers, operating ~154,000 acres (roughly the size of Chicago) of mature, highly productive plantations. United Plantations boasts industry-leading 40% operating margins (up from low 30%s a decade ago), a net cash balance sheet, and a vertically integrated value chain spanning breeding, cultivation, light-rail transportation, extraction (five mills), and refining (two refineries); it has increased Malaysian crude palm oil yields by 30% over the last decade and trades at 24x trailing earnings, with shares up more than twentyfold since 2005. Palm oil, prized for its high yield (12 tons/acre annually, 4% of global agricultural production), enjoys projected demand growth of 3-5% annually, and post-pandemic elevated prices have driven bumper profits, most returned to shareholders. UIE's net asset value is ~DKK 567 per share (DKK 497 from United Plantations, ~DKK 57 from small stakes in Schörling AB at 1.8% and Greenbridge at 9.3%, and DKK 13 in cash/other assets), yet shares trade at DKK 347, a 39% discount to NAV—wider than the historical mid-20% range, a mysterious gap given United Plantations is up mid-single digits year-to-date while UIE has fallen 11%. Assuming an 85% holding company discount on non-UP assets, investors effectively buy United Plantations at MYR 18.40/share, equating to a 13.9x trailing P/E and 6.8% dividend yield. UIE pays dividends and regularly repurchases shares, catalysts that could narrow the discount over time, making it an attractive way for Tactile Fund to own a unique, durable, top-quality agricultural asset at a substantial discount.

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Reddit (RDDT), trading around $170 against a consensus price target of $230, is misfiled by the market as a sub-scale social media name (next to Snap and Pinterest) when it is actually a toll booth on twenty years of authentic, unfilterable human conversation—the scarce input AI models cannot synthesize, with Reddit now the single most-cited source across major AI models (roughly 3x Wikipedia). In Q1 2026 it generated $663M revenue, $266M adjusted EBITDA (40% margin), $204M net income, $311M free cash flow (47% cash margin), 90%+ gross margins, and just ~$1M of capex (0.2% of revenue), versus Meta's estimated $5-10B annual content-policing costs, since Reddit's content is created free by users and moderated free by ~50,000 volunteers. The thesis rests on five vectors: (1) AI licensing—Google (~$60M/yr) and OpenAI (~$70M/yr) deals total ~$130M annually at near-100% margin, shifting from one-off training dumps to continually refreshed 'rented' feeds, with Reddit pushing for dynamic, higher pricing as crawlers get walled off (Reddit blocked crawlers in 2024, leaned on the Internet Archive, helped launch Really Simple Licensing, and Cloudflare began blocking AI crawlers by default in July 2025); (2) international ARPU of just $2.02 versus $9.63 in the US, with international revenue up ~75% YoY to $138M and international ARPU up 51%, plus a path to US ARPU tripling toward half of Meta's; (3) Reddit Answers (AI search) growing from 1M to 15M weekly users in three quarters, traditional search hitting 80M weekly users (up 30%), with logged-in/logged-out merging from Q3 2026—though entirely unmonetized, treated as a free option; (4) ~40% of conversations being commercial, with active advertisers up 75%+ YoY, performance spend now 60%+ of ad revenue, and new formats (Dynamic Product Ads, Reddit Max) lifting conversions; and (5) a cash machine funding a $1B buyback while guiding to 40%+ revenue growth. Risks include licensing concentration in just Google and OpenAI, ongoing Anthropic scraping litigation (sent back to California state court March 2026, unresolved), a potential fair-use ruling that could eliminate licensing payments, unmonetized search, and community revolt against monetization. The stock fell over 30% YTD in early 2026 on de-rating, not deteriorating fundamentals—the author views this drawdown as the opportunity, arguing only two or three of the five vectors need to work.

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