YB new stock pitches (Tue, Jul 29)

AMREP Corporation ($AXR) owns 17,000 acres of land in Rio Rancho, Sandoval County, New Mexico, strategically positioned next to Albuquerque, which has exhausted its expansion space. The company develops housing on its properties and sells parcels to homebuilders, giving it significant control over the local housing market. Albuquerque has emerged as a technology hub over the past three decades, hosting companies like Intel, Tesla, Torc Robotics, RS21, BayoTech, Spaceport America, and Los Alamos National Laboratory. As America pursues greater independence in semiconductor production and addresses rising global military threats, AXR's property is well-positioned to benefit from housing demand near this growing city that specializes in semiconductors, defense contracting, and aerospace products. With these catalysts in place, the stock could potentially reach $40 per share.

Read the full article here. Read time: 1 min

Dadelo S.A. (DAD.WA) is Poland's #1 bicycle e-tailer that has grown revenues at a 39% CAGR since 2017 and is currently growing at 50% YoY. Trading at 18x 2024 estimated net profit, the company offers a strong value proposition through free 24-hour delivery for 95% of orders, wide SKU selection, and competitive pricing. Dadelo leverages parent company Oponeo's warehouse space, technology stack, and marketing expertise to maintain a competitive advantage. The company has opened 4 brick-and-mortar stores with plans to add at least 16 more, targeting cities with populations over 300,000 to aggressively gain market share from mom-and-pop shops. Management aims to reach 1 billion zł in revenue by 2029 (35-40% market share), with expansion plans for Czech, Slovak, and Hungarian markets thereafter. Long-term operating margins are estimated between 7-10% once rapid growth moderates, potentially yielding 4.00-6.00 zł EPS. CEO Ryszard Zawieruszyński recently demonstrated confidence by purchasing 141,792 shares worth approximately $1.3 million on the open market.

Read the full article here. Read time: 10 min

Banco BBVA Argentina S.A. (BBAR) offers compelling value with a sustainable 17% ROE versus a 24% cost of equity, supporting a 2.0x P/B target valuation of $18-22 per ADR, representing 40-60% upside in 12 months. The bank's structural advantages include a low-cost funding base with 63% non-interest-bearing deposits, superior cost efficiency with 63% of transactions occurring digitally (targeting a cost-to-income ratio below 50% by 2027), and strong asset quality with a 1.8% NPL ratio and 140% coverage. BBAR demonstrates NIM resilience to rate cuts, with only a 40bp contraction for every 100bp policy rate reduction. The bank benefits from strong brand momentum as the banking sector is poised to lead Argentina's recovery through NIM expansion as policy rates fall and operating leverage as fixed costs are peso-denominated while revenues inflate. Current pessimistic P/B levels underestimate BBAR's ability to maintain returns above its cost of equity, presenting an opportunity to collect rich peso dividends (hedged via ADR) while awaiting normalization of sovereign risk premiums.

Read the full article here. Read time: 4 min