YB new stock pitches (Wed, Apr 1)

E.W. Scripps Company (SSP) announced a transformation plan in February 2026 targeting $125-150 million in EBITDA growth by 2028 through growth initiatives, technology including AI and automation, and operating efficiencies. Following this announcement, insiders including CEO Adam P. Symson purchased $8 million of stock on the open market above the current share price. Symson signed a new employment agreement extending through December 31, 2029 with an annual base salary of $1.4 million, target annual incentive of 175% of base salary, target long-term incentive of $4.7 million for fiscal year 2026, and a one-time $10 million performance-based cash award. The cash award vests based on EBITDA growth targets with a threshold of $125 million corresponding to 60% payout, target of $150 million corresponding to 100% payout, and maximum of $181.25 million or more corresponding to 150% payout, though payout is capped at 100% unless the stock reaches a rolling 30-consecutive-trading-day average of at least $10 per share (nearly triple the current level) during the performance period. The management's confidence in this compensation structure and insider buying suggests a reasonable path to pushing the equity significantly above $10 over the next few years, with Symson's leadership considered critical to executing the transformation plan announced on February 11, 2026.

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Faber Company Inc ($220A.T) operates two business segments: a profitable SEO SaaS product called 'ミエルカ' with a 14.3% four-year sales CAGR and 14% operating margin, which is expanding AI-related functions to track product referrals from AI platforms, and a newly launched back-office SaaS distribution business that achieved 88% QoQ ARR growth in FY2026 Q1 with 17 new customers added. Trading at 1.18x P/B, 13.1x P/E, and offering a 2.99% dividend yield, the company has a market cap of 2,700 million yen with NCAV per share of 704 yen and net cash on the balance sheet. The base case valuation assumes the SEO segment grows at 7% CAGR over five years with 15% operating margins (reaching 377 million yen net profit by FY2031), while the back-office SaaS distribution segment reaches 1,200 million yen in holding ARR in five years with 1,000 customers (versus management's 3,600 million yen target), applying a 15% take rate and 30% operating margin. With the company's existing 1,000 SEO customer base enabling efficient cross-selling, increasing sales headcount, and net cash available for potential M&A, the stock offers approximately 200% upside over five years representing a 24% IRR in the base case. Key risks include competition from AI-powered SEO products and reduced demand for back-office SaaS due to AI automation.

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Zoomd Technologies (ZOMD.V) is a user acquisition platform trading at a market cap of $60.9 million and EV of $42.61 million, with TTM net income of $17.7 million resulting in a P/E of 3.44 and EV/E of 2.41. The investor re-entered at $0.92-0.94 after previously selling in November at $1.57 for a 104% gain when momentum was damaged by a Q3 revenue decline. The Q3 decline was caused by two large clients halting marketing campaigns while changing their mobile management platforms (MMP), an infrastructure change unrelated to Zoomd's performance, which has now been resolved with both clients remaining loyal and campaigns ramping back up in Q4. Over 70% of revenue comes from the top 5 clients, presenting concentration risk, though revenue from clients outside the top 10 doubled year-over-year in Q3 and over 10 new clients were added in 2025 with impact expected in 2026. Key catalysts include the E2 partnership providing exposure to dozens of sportsbook operators with meaningful contribution expected in 2026, and the FIFA World Cup in Q2-Q3 2026 (predicted to drive $10.5 billion in ad spending) which should boost the sports betting segment. The bull case projects annualized net income of $25-30 million leading to a market cap of $250-300 million and 4-5x upside from current levels. The bear case involves client churn, slow ramp-up, or an Iran war causing a global recession and reduced marketing spending, which could result in revenue dropping to $12 million per quarter and annualized net income of $8.54 million, still yielding a P/E of 7.1 but potentially causing a 40-60% stock decline, though the company is cloud-based with 6 global offices mitigating geopolitical risk. The 2025 peak market cap was $190 million, and the company remains stable while generating cash with limited downside risk given the valuation floor.

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