Out Fox The $Treet - July 16, 2022
Long/Short Equity, Growth At A Reasonable Price, Deep Value
Seeking Alpha Analyst Since 2008
Stone Fox Capital launched the Out Fox The Street MarketPlace service in August 2020.
Invest with Stone Fox Capital's model Net Payout Yields portfolio on Interactive Advisors as he makes real time trades. The site allows followers to duplicate the model portfolio in their own brokerage accounts. You can find the portfolio and more details here:
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- Yext is a buy at $16.
- Aurora Cannabis is a buy on weakness to play a potential deal with 50% upside.
- Out Fox The $treet to launch soon!
Stocks to watch on Thursday:
The digital knowledge management company should see a surge in demand as retail stores constantly shift open hours and services offered in store due to COVID-19. The stock has struggled to break strong resistance in the $17-18 range. A break would easily signal a run to previous highs.
Investors need to keep in mind that Yext should return to 30% revenue growth rates once the economy normalizes. Even the worse case scenario in FY21 (January) includes 18.5% growth. The stock has constantly bounced off $16 offering another gift entry point.
The Out Fox model remains highly bullish on the stock.
Aurora Cannabis (ACB)
As mentioned in the my research today, the Canadian cannabis stock is a buy on any deal with Aphria (APHA). The key is the C$200 million synergies from the deal and the potential for Aphria CEO Irwin Simon to lead the new entity.
Unfortunately, the deal talks have been called off for now. Aurora Cannabis is down nearly 5% today. As the stock falls under $12, investors might want to play ACB for a potential deal to eventually close in the next few weeks.
Consolidation appears inevitable in the Canadian cannabis sector and Aurora Cannabis can use any deal to solidify a strong shift to EBITDA profits.
Coming soon... Out Fox The $treet MarketPlace
Analyst's Disclosure: I am/we are long YEXT.
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