YB new stock pitches (Thu, May 29)

Danaos Corporation (DAC) is a premier containership charter owner with a fleet of 74 vessels (471,500 TEU capacity) plus 15 eco-friendly newbuilds on order scheduled for delivery through 2028. The company has secured a $3.4 billion contract backlog extending through 2033, providing exceptional revenue visibility with 99% of 2025 operating days already contracted despite industry oversupply concerns. DAC trades at deeply discounted multiples of just 3x P/E and 0.5x tangible book value, with a strong balance sheet featuring minimal net debt of only $292 million. The company's low leverage and substantial liquidity position it to weather potential market softness in 2025-2026 as the global container fleet expands. Shareholder returns include a $0.85 quarterly dividend (4% yield) and an active $300 million share repurchase program that has already retired 14% of outstanding shares. With 13 of 15 newbuilds already secured on 5-year charter contracts, DAC is insulated from near-term market volatility while offering significant upside potential if the stock re-rates closer to its NAV of $150-170 per share.

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FTAI Aviation Ltd. (FTAI), trading at $112.81, presents significant upside potential with a $316 price target by 2028 (3.5x current price) based on an 18x EBITDA multiple and projected $2 billion adjusted EBITDA. The company has established itself as the world's lowest-cost provider of CFM56 and V2500 engines, positioning to capitalize on a massive opportunity as over 90% of current engines (22,000+ CFM56-5B/7B and 7,600+ V2500) will exit their initial 10-year Power-by-Hour contracts with OEMs in the next decade, opening maintenance to independent aftermarket companies like FTAI. The company operates through two segments: Aviation Leasing (engines and planes) and Aerospace Products, the latter being a capital-light, high-return business that includes MRE operations with two maintenance facilities (FTAI Canada and FTAI America in Miami) employing 500 staff including 50 engineers. Margins in the MRE business are expected to improve significantly once FAA approval is secured for three remaining PMA generic parts. Additionally, FTAI recently launched a strategic capital initiative with third-party investors to acquire on-lease 737NG and A320neo aircraft, enabling $3 billion in annual capital deployment while making FTAI more capital-light and creating another growth avenue.

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electroCore (ECOR) is a bioelectronic medicine company specializing in non-invasive vagus nerve stimulation with a 60% five-year revenue CAGR, 85% gross margins, and rapidly declining cash burn ($1.26M in Q4 2024 vs. $4.78M in Q1 2022). The company has demonstrated nine consecutive quarters of sequential growth through multiple revenue streams: prescription gammaCore, consumer wellness Truvaga (174% growth in 2024), military TAC-STIM (85% growth in 2024), and international sales. A pending strategic acquisition of Quell technology for chronic pain/fibromyalgia, expected to close in April 2025, will require no cash outlay or dilution. With $12.2M in cash, no debt, and approaching profitability, ECOR trades at just 1.7x estimated 2025 revenue, suggesting 77-136% upside potential to $9.75-$13.00 per share. Key risks include cash runway concerns, increasing competition in neuromodulation, potential government policy impacts on VA business (a key growth driver), and possible recession effects on consumer products. Catalysts include continued progress toward profitability, the Quell acquisition closing, VA/DoD channel growth, and international expansion.

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