YB new stock pitches (Wed, Apr 15)

Modiv Industrial (MDV) is an internally managed REIT focused on triple net industrial manufacturing properties, currently trading at $15.13 per share with a market cap of $156 million, representing a 32% discount to management's stated NAV of $22.20 per share. The company has significantly improved its portfolio quality since its February 2022 direct listing at $25, transitioning from mixed assets to pure-play manufacturing properties while extending weighted average lease terms from 6 years to 14 years, improving EBITDAR/rent coverage from 3x to 10x, achieving 2.5% average annual rent escalators, converting 100% of debt to fixed rates at 4.15% with no maturities until 2028, and reducing expenses from $17 million in 2022 to $12 million currently. The company generates $12.8 million in annualized AFFO (adjusted for stock-based compensation), yielding 8% at the current price, which is fully paid out as dividends. CEO Aaron Halfacre, who takes only $250,000 base salary plus $130,000 in cash bonuses while owning $2 million in stock, has described the share price as 'too fucking low' and has initiated personal purchases and a company buyback program. Modiv has received two unsolicited takeover offers which were rejected, but Halfacre has stated unequivocally that if the share price remains depressed over the next 1-2 years after completing strategic initiatives including selling non-core assets and retiring 7.3% yield preferred stock, he will initiate a formal sale process. The main risks include illiquidity with only $750,000 average daily volume making it an unfollowed microcap in an unloved REIT sector, potential lack of rerating or sale resulting in mediocre returns despite the 8% dividend, tenant concentration with 25% of rent from Fujifilm and Northrop Grumman, and potential inflation/rate hikes from geopolitical tensions affecting debt refinancing and valuations. The investor has been steadily building a 5% position.

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D-BOX Technologies is a haptic motion platform company trading at CAD 178 million market cap and 14x EV/FCF that sells theater seat hardware and motion code allowing seats to move in sync with films, generating high-margin royalties when moviegoers pay an upcharge for D-BOX seats. The company was historically mismanaged and never profitable from 2000-2023, but activist investor Daniel Marks of Stonehouse Capital took control in 2021, installing new CEO Naveen Prasad and CFO David Reid who refocused the business on the high-margin theatrical royalty segment (27% of Q4'25 revenue, nearly pure profit margin). The company is debt-free with $16.2 million cash and added 86 screens in Q4'25 (+8% QoQ) for 1,135 total active screens, with management targeting 20% screen growth in 2026. D-BOX benefits from theater premiumization trends as chains compete with streaming, requires only $100k-$200k per installation versus $1M+ for IMAX/4DX, and the Q1'26 North American box office jumped 25% YoY which should drive equivalent royalty growth. The 2026 content slate heavily favors D-BOX with family/action films like Mario, Toy Story 5, Shrek 5, and crucially Avengers: Doomsday which won't have IMAX availability due to Dune: Part Three's exclusivity, making D-BOX the primary premium option. Cinemark represents nearly 50% of D-BOX's screens and has been aggressively installing between 44-70 new screens from January-March 2026, while deals with AMC (7.7k screens) or Regal (5.5k screens) would be transformative given flexible partnership terms management is offering to financially troubled chains. With 20% screen growth and 10% box office growth, the theater segment could grow over 30% in 2026, and as royalties become a larger revenue portion, FCF could double within 3 years; at a 20x multiple this represents a 6x return from current levels compared to the hardware-focused valuation today. The company announced a 10% buyback program and the CEO has been buying shares at $0.65 as recently as November 2025.

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Rogers Communications (RCI-B.TO) owns sports entertainment assets through its 75%-owned subsidiary MLSE, including MLB/NBA/NHL teams, sporting arenas, and a sports publication, which management values at C$20 billion to C$25 billion—representing approximately 58-98% of the company's current market capitalization and roughly 29-35% of its ~$70 billion enterprise value. These sports assets are currently ascribed zero value in the stock price, and management is actively pursuing monetization within the next 12 months through a partial sale, IPO, spin-off, or combination thereof. The stock has recently declined approximately 15% following a TD Cowen downgrade from 'buy' to 'hold' based on concerns about price competition in the Canadian telecommunications market, a factor unrelated to the sports asset monetization catalyst. Investors purchasing shares today effectively receive a free call option on the value realization of these trophy sports assets, with the monetization strategy remaining fully in play despite the recent telecom-related selloff.

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