YB new stock pitches (Tue, Nov 11)

Entravision Communications (EVC) is a media and advertising technology company targeting Hispanic audiences that has transformed from a declining broadcaster into an ad-tech growth story, with its ATS segment posting 104% revenue growth and nearly 400% EBIT growth in Q3, making it the primary value driver over the struggling Media segment that owns 49 TV and 45 radio stations. ATS, comprised of Smadex (a demand-side platform) and Adwake (managed services), operates in a secularly growing ad-tech market projected to expand at 15% annually, with management indicating further operating leverage ahead as infrastructure costs should grow slower than revenue. The company trades at a significant discount despite ATS alone potentially being worth 150%+ of current enterprise value, with fair value estimates of $7.50-$10.00 per share using comps like AdTheorent (15x EBITDA, 1.9x sales) and Moloco's $2 billion valuation on $200 million revenue. Key catalysts include continued ATS momentum, potential spinoff or strategic sale (with AppLovin mentioned as a possible bidder), a spectrum auction under Trump's FCC that could unlock ~$280 million in proceeds at $0.93/MHz-pop, and increased broadcasting M&A activity. Management alignment is strong with insiders holding 8% of shares (17% fully diluted) and performance-based PSUs tied to stock price hurdles, having taken salary cuts for equity compensation. The Media segment provides a valuation floor worth ~$150 million (40% of EV) despite current struggles, with midterm elections in 2025 expected to boost political advertising revenue, while risks include an abrupt ATS reversal, TelevisaUnivision's blocking rights through Class U shares, and default risk from $153 million debt maturing in 2028.

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Sharplink Gaming (SBET) is trading at $11.97, representing a 17% discount to its NAV-based fair value of $14.38 per share, which is calculated from approximately 856,000 ETH holdings worth ~$2.83 billion ($14.38/share) plus $5 million in cash across 196.69 million shares outstanding. The company's staking operations generate $78-83.5 million annually, which when valued at a 20-30x multiple (tech/growth proxy) adds $8-12.7 per share in upside potential. The discount to NAV provides a margin of safety, with potential for 3-5% annual NAV growth through staking yields and optimized strategies, leading to a $20 price target by end of year.

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9145.T is a third-party logistics provider specializing in daily necessities, trading at 13.6x P/E while delivering 20% EPS CAGR over the past 4 years with approximately 20% ROE and reinvesting 85% of net profits. The company operates a unique business model that consolidates manufacturers, wholesalers, and retailers into shared distribution centers while providing a self-developed platform for data sharing, with early signs of software monetization potential through licensing deals that could meaningfully increase gross margins. Management demonstrates operational excellence by achieving cumulative profit at new distribution centers within six months and plans to expand across Japan, supported by sticky customer relationships with 72% of large clients retained for more than 10 years. The primary risk is customer concentration, as the largest customer (3549.T) accounts for 35% of sales.

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