The 'Boiler Room' Stock Pitch Recap: PureCycle, Uber, Yeti, Paysafe, IBM And More
Here are this week's pitches.
PureCycle Technologies (NASDAQ:PCT)
Pure Cycle removes color, odor, and other contaminants from recycled feedstock resulting in virgin-like polypropylene.
David (@davidalston2) had a bullish outlook on the stock because of the following reasons:
- The potential for ESG-fund inclusion.
- Building plants, spending on growth.
- Patented product, monopoly situation.
"What kind of business are they doing currently," Brown asked
"They have revenue, currently at 50% EBITDA,” David responded. “This is something that is just getting started and they will probably not have GAAP profits for a while because they will have to build plants.”
Forest Road Acquisition Corporation (NYSE:FRX)
Forest Road is a special purpose acquisition company that will take The Beachbody Company, a fitness, and media company.
Sameer (@commitwithmeer) had a bullish outlook on the stock because of the following reasons:
- Launched subscription streaming.
- SPAC-mania no more, price is low.
- On-demand access to top trainers.
"Why is Beachbody going to win if there are so many different streaming platforms for fitness," asked Brown.
"When you go to Peleton or Apple, you’re not going for an all-in-one-stop shop,” Sameer answered. “With Beachbody, it is a one-stop-shop. I’m paying a monthly fee, I can get a coach if I want to. On top of that, there are new workouts from celebrity coaches, and I can get shakes and supplements, too.”
Uber Technologies Inc (NYSE:UBER)
Uber is a provider of transportation service, ride-hailing provider.
Marc (@miweber) had a bullish outlook on the stock because of the following reasons:
- Move to ditch poor investments.
- To benefit from housing boom.
- Postmates acquisition paying.
- Uber has biggest market share.
"Nice consolidation, clear uptrend, big base after the IPO," guest J.C. Parets noted.
Star Peak Energy Transition Corporation (NYSE:STPK)
Star Peak is a SPAC that plans to take Stem Inc, an energy solution provider, public.
Farukh (@kingrukh) had a bullish outlook on the stock because of the following reasons:
- The grid for partner companies.
- Uses technology to store energy.
- A clean and solar energy play.
"How big are they," Brown asked.
"Right now, their market cap is $2 billion and they have $250 million in cash,” Farukh responded.
“It looks like the market is very excited about the story,” Brown added.
Fubotv Inc (NYSE:FUBO)
fuboTV is a digital entertainment company.
Nick (@magicshak) had a bullish outlook on the stock because of the following reasons:
- Play on sports betting, streaming.
- Only a few players in the space.
- Great for restaurant and bar TV.
- The short interest is nearly 50%.
- The big catalyst is the World Cup.
- Speculative play, execution story.
"Why is this stock a falling knife," Brown asked.
"There’s a competitive deal. DraftKings is doing something with Dish Network and that hurt,” Raznick responded.
Yeti Holdings Inc (NYSE:YETI)
YETI is a provider of goods for outdoor activities.
Kimberly (@kimberlyenders) had a bullish outlook on the stock because of the following reasons:
- Reopening, outdoor living play.
- Stock is pegged at recent highs.
- Been in an uptrend since listing.
"I love it," said Raznick. "I went to my son’s baseball game and everyone had Yeti coolers. Everything is Yeti. Dicks Sporting Goods has a Yeti wall, too."
Paysafe is a payments platform.
Jackson (@jacksonalacarte) had a bullish outlook on the stock because of the following reasons:
- Second largest payments processor.
- Over $100 million in transactions.
- 75% of gambling websites use it.
- Regulatory evolution is beneficial.
"How come this stock isn’t acting well," Brown asked.
"What’s great about this company is it did over $1.5 billion in revenue last year and its profit margin was 63%, which is astounding,” Jackson responded. “If you compare it to other fintech companies and payment processors … the valuation is so much lower.”
CBS Corporation (NASDAQ:VIAC)
CBS is a multinational mass media conglomerate.
Daniel (@doony) had a bullish outlook on the stock because of the following reasons:
- Stock is beaten down.
- New competitive offer.
"They have a streaming app, they’re adding people, but can they produce enough new stuff to keep people paying for it," Brown asked. "You need new stuff to keep people.”
International Business Machines Corporation (NYSE:IBM)
IBM is an information technology company.
Alex (@alexweiner) had a bullish outlook on the stock because of the following reasons:
- Entered into quantum computing.
- Break cryptography, destroy crypto.
"Is IBM’s announcement of having commercially available quantum computing and Bitcoin crashing a coincidence," Brown asked.
"No,” Alex responded. “IBM is first to market and they may be onto something, innovating."
“It’s breaking out of a big consolidation, but it is still in a downtrend,” Brown added.
Magnite Inc (NASDAQ:MGNI)
Magnite is an online advertising technology company.
Alaine (@ms.alaine) had a bullish outlook on the stock because of the following reasons:
- A large provider of programmatic advertising.
- Algorithmically code, decide through information.
- Working with companies like Fox and Dish.
- Advertising catered to specific demographics.
"More people are getting into ad-supported video," Alaine noted. "Magnite has exclusive relationships with Hulu and Disney.”
“I love the story,” Brown noted.
Activision Blizzard Inc (NASDAQ:ATVI)
Activision is a video game holding company.
Mike (@themikehoward) had a bullish outlook on the stock because of the following reasons:
- New release for World of Warcraft.
- Three new releases for Diablo.
- Market not pricing in the good news.
“I think it is going higher,” Brown noted. “This is a great story.”
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