YB new stock pitches (Fri, Oct 2)

RF Industries has fallen from ~$22 to near $8 and trades at 10x earnings, yet the business appears stronger than before its run-up. Q3 revenue rose 21% to $24M, operating income increased more than 150%, adjusted EPS reached $0.19 versus $0.10, gross margin expanded to 35.6%, and the 11% EBITDA margin exceeded management’s 10% goal. The company is shifting from commodity-like telecom components toward larger, engineered integrated solutions while diversifying into aerospace, defense, transportation, energy and edge infrastructure. Direct Air Cooling is on track to exceed $10M of sales, with new edge deployments barely contributing; it is believed to carry gross margins of at least 40% and may add recurring monitoring revenue. Strong bookings and backlog provide better visibility, while cross-selling into existing customers could accelerate adoption. One possible explanation for the selloff is Q4 guidance for revenue “equal to or above” record Q3, which leaves open the risk of little sequential and potentially no year-over-year growth.

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GameStop is transforming under Ryan Cohen from a brick-and-mortar video-game retailer into a seller of collectible cards, including Pokémon and Magic: The Gathering, and other collectibles. The company is streamlining operations to improve margins and profits and has begun opening stores again, with new locations packed amid the current collecting craze. EBITDA and free cash flow have grown steeply in recent quarters; official 2026 EBITDA guidance is $650M, while surpassing $800M is considered plausible and earnings growth could continue into 2027. Cohen also recently bought back $26M of shares. Against a roughly $12B market capitalization and about $8B of cash, eBay shares and Bitcoin, subtracting those assets implies a $4B enterprise value, or 6.15x the $650M guidance and 5x an $800M outcome. The main long-term risk is a downturn in collectibles, though Cohen would likely respond by reinventing the business model.

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Miami International Holdings operates exchanges focused primarily on derivatives. The appeal starts with exchange economics: regulatory barriers and potentially high switching costs for market makers make these businesses high moat. MIAX also targets derivatives markets that are generally growing faster than the broader capital markets, while the company is steadily gaining market share and working to establish itself in futures. Despite year-over-year growth in the high teens, MIAX trades at roughly 12x EV/free cash flow. That combination of business quality, structural market growth, share gains and a reasonable multiple underpins the bullish case; the main unresolved execution point is whether its push into futures succeeds.

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