Uber Technologies
Pitched by Broyhill Asset Management
M/cap: $188b
forward P/E: x24.9
- We initiated a new investment in Uber, the largest ride-share and food delivery provider globally.
- With investors increasingly focused on the threat from driverless technology, which we believe is at least years away from having any material impact on Uber’s business, we think the market is overlooking the incredible benefits of scale currently driving (pun intended) outsized growth in profitability and surging free cash flow.
- We expect CEO Dara Khosrowshahi to follow a similar playbook to the one he developed at Expedia, where he was a consistent buyer of stock, ultimately repurchasing nearly a third of the company’s shares outstanding during his tenure.
Updated on: May. 17, 2025
dentalcorp Holdings
Pitched by Buckley Capital
M/cap: C$1.7b
forward P/E: x15.9
- Dentalcorp is the acquirer of choice for independent dentist practice owners, having acquired the largest number of practices in Canada. Dentalcorp also has a 90% partner dentist retention rate since inception in 2011.
- Dentalcorp has a 4%+ medium-term target for same-practice revenue growth. They also expect to average $30–35 million of annual acquired PF adjusted EBITDA, which they have done since 2018.
- We also like DNTL because it is rare to be able to acquire a business with acyclical revenues and profits, with a large addressable market where they are the market leader, have little competition, and trade at less than 10x FCF.
Updated on: May. 17, 2025
Grown Rogue International
Pitched by Mindset Value Fund
M/cap: C$125m
forward P/E: -
- The stock sold off after their Q4 earnings confused some investors, and, in an environment where most cannabis stocks are down 40-50% for the year, the reaction from some investors was to shoot first and ask questions later.
- We think all of this was a big misunderstanding as to the long-term value of Grown Rogue and are still quite bullish. We continue to believe in Grown Rogue’s unit-level economics and its business model. And I believe this model can be replicated in many new states for phenomenal ROIC for investors to enjoy.
- With the company poised to double its cash flow this year, the stock, after its recent decline, trades at about four times my estimate of EBITDA.
Updated on: May. 17, 2025
Zengame Technology
Pitched by RF Capital Management
M/cap: HK$2.3m
forward P/E: -
- For the base case, we would view Zengame as a no-growth company going forward. This is a pessimistic view, but it’s best to go with this conservative scenario. Even in a no-growth situation, there’s enough delta between the base case and the market’s perception of the company for us to make money on the stock.
- If the company does in fact continue to grow, there likely will be significant upside in the share price.
- At current prices, it pays to be invested to see what Zengame can do over the next two to three years. All high-growth companies go through bad quarters and years at some point. Regardless of whether or not the slowdown is temporary or permanent, our downside is protected going forward.
Updated on: May. 12, 2025
Saia, Inc.
Pitched by Polen Capital - Global SMID Company Growth
M/cap: $7.0b
forward P/E: x26.5
- The company provides less-than-truckload services for shipments between 100 and 10,000 pounds.
- We established a position in Saia, a U.S. trucking company. Saia is a leader in the less-than-truckload segment, an industry undergoing consolidation due to increasing operational complexity.
- Saia aims to be a consolidator, and despite a recent cyclical slowdown, we believe the company will emerge even stronger and deliver mid-teens earnings growth over time.
- The stock was purchased at 12x EBITDA, a discount to its closest U.S. peers.
Updated on: May. 12, 2025
Leon’s Furniture
Pitched by Lowell Capital
M/cap: C$1.7b
forward P/E: x12.3
- LNF has several characteristics we like including:
(1) a highly resilient business model with a strong market share and customer relationships, (2) a highly cash-generative business with modest capital expenditure needs, (3) a strong focus on value-added services with “stickier” customer relationships,
(4) durable demand expected to grow alongside the Canadian economy, (5) a strong competitive advantage primarily due to scale, (6) an attractive valuation trading at less than 5x adjusted EBITDA, a double-digit free cash flow yield, and 10x earnings,
(7) a track record of strong growth in revenues, adjusted EBITDA, and adjusted EPS since FY2013…
Updated on: May. 12, 2025
Arvinas
Pitched by 1 Main Capital
M/cap: $516m
forward P/E: -
- Pipeline struggles aside, ARVN has over $1 billion in cash and two significant license/collaboration agreements. With Pfizer, ARVN is eligible to receive up to $1.4 billion of payments upon the approval of ARV-471 and then share equally (50/50) in all profits and losses of the drug.
- With Novartis, ARVN is eligible to receive up to $1 billion upon the approval of ARV-766, with ongoing tiered royalties thereafter.
- The company’s largest holder, EcoR1, with a 15% stake, is an engaged and concentrated biotech specialist with sufficient incentive to prevent further value destruction.
Updated on: May. 6, 2025
CoStar Group
Pitched by Third Point Partners
M/cap: $32b
forward P/E: x86.6
- Despite the continued strength of its core business, we believe recent capital allocation decisions have derailed CoStar’s compounding algorithm.
- After several years of uncertainty, we believe it is time for CoStar to begin the journey of meaningful self-help. During the first quarter, we engaged with the company and its founder and CEO, Andy Florance, with the goal of helping the company improve its capital allocation framework.
- As CoStar’s core business continues to compound value and improved capital allocation starts to narrow the losses at Homes.com, we believe the company can grow EBITDA by a factor of >7x over the next few years, setting the stage for the stock to regain itsstar status.
Updated on: May. 6, 2025
Arista Networks
Pitched by Deep Sail Capital Partners
M/cap: $113b
forward P/E: x36.3
- Arista Networks’ Ethernet and NVIDIA’s InfiniBand represent two distinct approaches to AI data center networking, each with unique advantages, but the networking landscape is continually evolving.
- Arista Networks employs its proprietary software to deliver high-performance, scalable, and programmable networking solutions tailored for modern data centers and AI-driven infrastructures.
- With an 18% growth rate CAGR and a mid-20s ROIC, I believe over the next three years Arista will generate slightly above the rule of 40. Based on the current valuation, we project that over the next 3 years, Arista can generate an IRR of above 25% per annum.
Updated on: May. 6, 2025
