YB new stock pitches (Tue, Sep 30)

Mobilicom Limited (MOB), an Israeli drone cybersecurity company trading at an ~$85 million EV with $25 million net cash, is positioned to benefit from the Executive Order 14307 'Unleashing American Drone Dominance' signed June 6th, 2025, as it's one of only five companies on the DoD's Blue UAS approved vendor list. The company provides end-to-end software, encryption, communication, and security solutions for unmanned systems (not hardware manufacturing), with its SkyHopper PRO solution recently securing a $1.55 million order in September from a tier 1 U.S. drone OEM at 55% gross margins. MOB's new OS3 platform launched in 2025 provides real-time cybersecurity protection for autonomous systems and AI-based robotics, creating a potential SaaS revenue stream, while the company expects to be a critical supplier on multiple DoD 'programs of record' where it could win regardless of which OEM secures contracts. The bull case centers on MOB's competitive positioning validated by Blue UAS certification, expected parabolic revenue growth from new contract wins, technology advantages over competitors like Silvus (acquired by Motorola Solutions for $4.4 billion), and the company's sticky revenue model once hardware is designed into platforms. Bears face risks from the company's small size, limited sell-side coverage, and current minimal revenue run rate, though MOB maintains a 4.35-year cash runway with zero debt and low monthly burn of $262k. Trading at ~12x NTM expected revenues versus peers Ondas Holdings at 62x, Palladyne at 47x, and UMAC at 19x, the stock has a $51 price target (600% upside) based on a 25x revenue multiple if MOB achieves a $25+ million revenue run rate by 2026.

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Nutex Health (NUTX), a micro-hospital operator led by CEO Dr. Tom Vo, achieved exceptional Q2 2024 growth with revenue surging 220.7% to $244 million, gross margin expanding to 51.1%, and adjusted EBITDA reaching $71.6 million, while opening 21 new facilities in 2024 and maintaining significantly shorter wait times of 15-30 minutes compared to traditional emergency rooms' 100+ minutes. The company operates through two divisions: the Hospital Division (90% of revenue) with 21 micro-hospitals serving over 45,000 patient visits, and Population Health Management featuring three IPAs managing approximately 30,000 patients across 900+ physicians with a 95% retention rate. Trading at attractive valuations of 8x P/E and 3.8x EV/EBITDA with a market cap of $534 million, NUTX targets a $110 billion addressable market within the broader $280 billion U.S. healthcare market, benefiting from demographic trends, value-based care adoption, and healthcare decentralization. The company's growth strategy includes expanding physician networks, acquiring additional IPAs, entering new geographical markets, and developing telemedicine and AI capabilities, with analysts forecasting 34.1% annual revenue growth over the next two years. Key risks include regulatory changes affecting Medicare and Medicaid reimbursements, physician participation model causing share dilution (though management is implementing buybacks), intense competition from large hospital chains and insurance companies establishing integrated networks, operational complexity of network expansion, and potential transparency concerns regarding financial reporting.

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FFB Bancorp (FFBB), a high-ROE bank with a sole branch in Fresno, CA, serves small to medium-sized businesses through traditional banking and differentiated payments technology services, achieving 20.1% ROE in 1H25 and peaking at 30.1% in 2023. The company's $1.07 billion loan book is 63% CRE (half multi-family), 24% C&I, and 10% agriculture, with 2.5% non-performing loans and strong capital ratios well above regulatory minimums. FFB's competitive advantage lies in its merchant services business, which accounted for 24.2% of operating revenue in 2Q25 and serves 35,000 merchants across all 50 states through ISO partnerships and proprietary FFB Payments services. However, an FDIC consent order regarding ISO partnerships caused a selloff, resulting in the loss of $150 million in non-interest bearing deposits and $1.1 million in revenue from exiting six merchant relationships, while requiring additional BSA/AML compliance investments that increased the efficiency ratio from historically low 38% to 57%. Despite these regulatory challenges, management has proactively addressed compliance issues by hiring an 8-year FDIC attorney as head of compliance in summer 2024 and strengthening the fraud team. The stock trades at 1.43x price-to-tangible book value versus a 5-year average of 1.85x, with management signaling undervaluation through 5.33% share buybacks year-to-date at $74.58-$76.79 per share, positioning the company for potential recovery as it resolves regulatory issues while maintaining its technology-driven competitive moat in the payments space.

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