YB new stock pitches (Mon, Apr 6)

ME Group (MEGP.L), a new position at 3% of portfolio, is the world's leading operator of automated self-service devices with over 49,000 units across 16 countries, including approximately 30,000 photo booths, over 7,600 laundromats, children's entertainment units like carousels, dog wash stations, key duplicating machines, and food dispensers. The company has significantly expanded its laundromat business in recent years, which now accounts for 35% of revenue, with locations typically in supermarket parking lots allowing customers to do laundry while shopping. The business operates with a highly profitable model featuring a 38% EBITDA margin, 25% EBIT margin, and operating cash flow roughly equal to EBITDA. Revenue growth is limited at +2.5% due to stagnation and decline in the photography business, though EBIT increased +6.5%, with analysts expecting similar growth for the current year. The founder-led company maintains 30%+ ownership, pays a nearly 7% dividend yield, has a net cash balance sheet, and just launched a share buyback program targeting 3-4% of shares. Trading at 6x EV/EBIT and 8x P/E for the current year, the valuation is considered too low for this stable, high-margin business.

Read the full article here. Read time: 1 min

Unusual Machines (UMAC) CEO Dr. Allan Evans stated the company faces 'infinite demand' for the next 18 months and is supply-limited rather than demand-limited, with all parts sold out as they scale production capacity as fast as possible. The company raised $150 million at $17 per share for working capital to scale faster, including a $70 million parts order due in two weeks, and the CEO emphasized they are not burning cash despite GAAP losses which consist entirely of equity compensation. The Drone Dominance program alone represents $250 million in revenue potential for 2027, requiring 250,000 drones equating to 1 million motors, 250,000 cameras, and 500,000 battery packs, with 80-90% of the company's revenue going to military customers through drone manufacturers. The company is expanding from 70,000 square feet across 5 Orlando facilities to 100,000 square feet by Q2, with further expansion planned by Q4. The CEO owns 1.5 million shares and notably cancelled his 10b5-1 plan when the stock was at $23, choosing not to sell any shares despite being in an open trading window, forgoing the opportunity to realize $20 million in proceeds, demonstrating confidence in the company's trajectory. A discounted cash flow analysis indicates a $30 price target, and the company expects to be added to the Russell 2000 index, which should drive institutional accumulation through rebalancing.

Read the full article here. Read time: 6 min

Zoomd Technologies (ZOMD.V), a digital marketing and AdTech company that helps brands scale advertising campaigns beyond closed platforms like Google, Meta, and TikTok, is trading at 4x P/E and 3x EV/EBITDA with an $85M CAD market cap and -$15M CAD net debt on the Toronto Venture Exchange. The company targets the 48% of the global digital marketing budget spent outside closed platforms by unifying multiple traffic sources into a single platform to optimize campaigns based on performance. Q3 2024 revenue surged 134% driven by the European Championship, but Q3 2025 revenue declined 3.4% on a tough comparable as most Euro Cup revenue was recorded in Q3 2024, creating a depressed base. The bull case centers on an event-driven catalyst: the 2026 FIFA World Cup in Q2 should drive a Q3 2026 revenue surge beyond the weak Q3 2025 comparable, potentially exceeding the Euro Championship impact, but the market has not priced in this catalyst. Bear cases include the highly competitive and undifferentiated nature of the business, cyclicality tied to advertising spending slowdowns, and uncertainty about maintaining interest after the World Cup event passes.

Read the full article here. Read time: 2 min