YB new stock pitches (Wed, Aug 13)

Utah Medical Products (UTMD) is a niche medical device manufacturer specializing in women's and infant care products, trading at an attractive 8.0x EV/EBIT multiple with a current 11.8% ROIC that understates its normalized 15-20% range due to a temporary weak sales cycle. The company holds market leadership positions in its specialized product categories, including fetal monitoring accessories and vacuum-assisted delivery systems, which it sells directly to clinicians and through distributors while also engaging in contract manufacturing to optimize production capacity. UTMD currently faces questionable litigation that appears more akin to a 'witch hunt' than legitimate legal concerns. Additional value drivers include over $35 million in real estate assets, a CEO bonus structure tied to a potential company sale, and an aggressive share repurchase program that has reduced outstanding shares by approximately 20% in just 18 months, creating a compelling investment opportunity despite current headwinds.

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Leef Brands Inc. (LEEEF), a leading California cannabis operator, is poised for significant margin expansion as its Salisbury Canyon Ranch harvest reduces biomass input costs from $25/lb to $6-12/lb, potentially doubling gross margins. The company is currently utilizing just 65 acres of its 1,900-acre ranch for 700,000 plants, with a second harvest planned later this year, providing substantial expansion optionality without additional land acquisition. Q3 2025 will be the first quarter showing the margin impact of this reduced cost structure, following Q1's $9.4 million revenue (up 19% YoY) but negative $0.8 million adjusted EBITDA due to cultivation ramp-up costs. LEEEF has expanded into New York's fast-growing cannabis market, projected to reach $1.5 billion in 2025 with higher margins than California, particularly in concentrates (55% of product sales) where LEEEF holds a leading position. The company's recent acquisition of a Type 1 Cannabis Processor License enables production, infusion, packaging, and branding of concentrates for the New York market. Currently trading at half the sales multiple of California's largest cannabis producer and valued below its ranch assets alone, LEEEF offers an unpriced call option on potential federal cannabis rescheduling, which would provide 280E tax relief, banking access, uplisting possibilities, and interstate commerce opportunities.

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Logic Instrument S.A. (ALLOG.PA), a French manufacturer of rugged devices for defense and industrial applications since 1987, reported impressive H1 2025 financial results with a 41% increase in net profit to €1.1 million and 32% sales growth to €19.3 million. The company recently secured an €11 million contract with German Defense and targets €50 million in sales for 2025 (an 83% year-over-year increase). Trading at a P/E of 8.1 and EV/EBITDA of 3.2, Logic Instrument appears significantly undervalued compared to the broader technology sector. The company benefits from rising European defense spending, specialized hardware capabilities, and increasing preference for European suppliers in defense procurement. With a market capitalization of €22 million and 71% free float, it remains unknown and unpopular despite strong growth potential. Risks include dependence on large orders, small market cap volatility, strong competition, and limited analyst coverage. Potential catalysts include new partnerships, major orders, technical innovations, and quarterly results, supporting a price target of €4.1 (+76%) based on a fair P/E ratio of 13.7.

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