The 'Boiler Room' Stock Pitch Recap: MindMed, Ford, Generac, Microchip And More


Every Friday, at 3 p.m. ET, Ritholtz Wealth Management CEO Josh Brown and Benzinga CEO Jason Raznick host "The Boiler Room," a Clubhouse audio chat where listeners can pitch their favorite stock.

Here are this week's pitches.

Ford Motor Company F

Ford is a multinational automaker.

Daniel (@doony) had a bullish outlook on the stock because of the following reasons:

  • Stock depressed over the past decade.
  • New CEO, streamlined, trimmed offer.
  • Focused on bread and butter offerings.
  • Value stock, dividend may be reinstated.

"They are cutting half of the rest of this year’s production," Brown asked. "They don’t have a demand problem. They have a supply problem, which is a better kind of problem.”

AT&T Inc T

AT&T is a multinational conglomerate holding company also regarded as one of the world’s largest telecommunications companies.

Zev (@zfima18) had a bullish outlook on the stock because of the following reasons:

  • Because of dividend, risk/reward favorable.
  • If they pull off HBO Max sign-up, big move.
  • Competitors are divesting their media offer.
  • Stock trading at prices from 10 years ago.

"If HBO Max was its own ticker symbol, I think it will get the same valuation that Netflix gets," Brown said. "And now they’re going to do an ad-supported version, at a small dollar amount, and they’re being fairly conservative, saying $150 million subscribers by 2025.”

Generac Holdings Inc GNRC

Generac is a provider of backup power generation products.

Adam (@adame83) had a bullish outlook on the stock because of the following reasons:

  • Sales and revenue are up.
  • Stock is extended right now.
  • Growth amid housing, solar.

"I think now, with the batteries, you’re going to see new and existing homes upgrade to where I think that’s going to be something that’s basically in every home," Adam said.

"So people are going to build a new home and include a solar roof standard, and include a Powerwall from Generac,” Brown asked.

“Correct, because it provides you reserve storage if it is cloudy or raining,” Adam added.

Kulicke and Soffa Industries Inc KLIC

Kulicke and Soffa is a provider of semiconductor, LED, and electronic assembly solutions.

Christopher (@seifelcapital) had a bullish outlook on the stock because of the following reasons:

  • Chip supply shortage and excess visibility into 2022.
  • Acquisition of laser-based technologies for LEDs.
  • Won a design for the iPad with a mini-LCD display.
  • In a position to win over Mac, Android for mini-LED.
  • Estimates to raise on supply crunch, innovation.

"My understanding about this stock was that it was semi-capital equipment, but you’re saying they’re also getting design wins in making some of their own stuff, for OEMs," Brown asked.

"That’s exactly right … they have a deal to distribute placement equipment,” Christopher responded.

Brown added, “This reminds me so much of Advanced Micro Devices where Wall Street was just so anchored to this idea that they were like, ‘Oh, wait a minute, they don’t compete with Intel, they compete with Nvidia.’”

Mudrick Capital Acquisition Corporation II MUDS

Mudrick Capital is a SPAC that’s going to merge with Topps.

Marc (@miweber) had a bullish outlook on the stock because of the following reasons:

  • The company has been innovating.
  • $567 million in revenue in 2020.
  • Access to a lot of intellectual property.
  • A play on gift cards, NFTs, gaming.

"Is it possible that you can be bullish on NFTs, as a business, but not necessarily be bullish on NFTs in terms of their values," Brown asked. "There’s no scarcity when there’s an abundance of scarcity.

“They have been doing this for the last five, six years. It’s the whole digital gaming, digital cards, they have digital fantasy cards … so they’ve been in this play.”

ACE Convergence Acquisition Corp ACEV

ACE is a SPAC that will merge with Achronix, a semiconductor company.

Jackson (@jacksonalacarte) had a bullish outlook on the stock because of the following reasons:

  • FPGA -- electronic components to build reconfigurable digital circuits.
  • Tech useful in 5G network applications; important to machine learning.
  • Semiconductor company that is targeting auto industry heavily.

"This SPAC … is trading at a discount to its cash," Brown said. "If something happens and they don’t consummate the deal, you should get back your cash. If they do consummate the deal, and people are excited about it, you should get a pop.”

Peloton Interactive Inc PTON

Peloton is a provider of exercise equipment and a media company.

Dennis (@denniscao) had a bullish outlook on the stock because of the following reasons:

  • Earnings play; deliveries have been pulled forward into this quarter.
  • I think they massively updated their logistics.

"What if the reason they’re pulling forward and getting these things out the door is that there have been cancelations of orders, or they made too many and the demand was not what they thought it would be when they were giving those delivery estimates," Brown asked. "I think there is going to be a wave of used devices for sale."

“Numbers are one thing, the reaction is another, and it hasn’t been great so far,” Benzinga’s Spencer Israel noted in a statement on reactions to good earnings results.

Mind Medicine MNMD

MindMed is a biotech company in psychedelics.

Evan (@evanlurie) had a bullish outlook on the stock because of the following reasons:

  • Recently uplisted to the Nasdaq, Kevin O’Leary is an investor.
  • Providing psychedelic-inspired solutions for mental health.
  • The company has no revenue but forward-looking leadership.

"I think we’re a few years away from this being mainstream," Evan noted.

“I’m too scared to be involved with stuff like this,” Brown added. “I’m going to do some due diligence and try some of the products.”

Microchip Technology Inc MCHP

Microchip is a provider of microcontroller, mixed-signal, analog and Flash-IP integrated circuits.

Alex (@alexweiner) had a bullish outlook on the stock because of the following reasons:

  • Nuts and bolts circuit company that’s been around for a long time.
  • Positioned to take advantage of 5G and IoT innovation.
  • Pretty much in every smart device, all the peripherals.

"Now they’re getting more cutting edge," Brown said in reference to the company’s shift in focus to emerging technologies. "When would you say that transformation started out?”

“November of 2020,” Alex responded. “This is something to buy … and when 5G becomes all over the U.S., it will be even higher.”

Ubiquiti Inc UI

Ubiquiti is a provider of wireless and wired communications products.

Ross (@rosschaifetz) had a bullish outlook on the stock because of the following reasons:

  • Our generation’s Cisco. Provider of at-home technology hardware.
  • The company continues to beat earnings; 20% year-over-year growth.
  • Diversification, and products are intuitive, easy-to-use.

"I know this one," Raznick said. "They essentially sell computer infrastructure technology both to the business and to the consumer,” Ross added. “The stock is down 32%, from the highs, on some bogus shareholder lawsuit. I saw the same thing play out three or four times. I’ve owned the stock since 2011. It bounces back every single time.”

“This is a great pitch,” Brown said.

Photo by Anna Nekrashevich from Pexels.

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Posted In: Long IdeasPenny StocksTrading IdeasBoiler RoomClubhouseJason RaznickJosh Brown
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