6 University Of Michigan Students Make Their Stock Pitches: Bear Case For Household Name Finishes 1st

Six students completed due diligence on a stock of their choice for the Maize and Blue Stock Pitch Competition at the University of Michigan on Friday. 

The students were given feedback during the process by three judges: Corey Tobin, investment management analyst at William Blair; Jordan Hymowitz, managing principal at Philadelphia Financial Management; and Matthew Finn, CFA, senior portfolio manager at Thrivent Financial. 

Interestingly, five of the issues were pitched from a bullish perspective and only one was pitched as a potential short. 

The three presentations that did not finish in the money were excellent. All presenters were more than well-prepared and were poised during their presentations. In addition, all of the presenters handled the grilling during the Q&A portion with ease.

Stay tuned, as some of the participants will be making their stock pitches to the PreMarket Prep audience in the coming weeks.

Here's what Benzinga witnessed during the competition among undergraduate and MBA students, held at the Tozzi Electronic Business and Finance Center at the Ross School of Business at the University of Michigan. 

The competition awarded $5,000 for first place; $2,000 for second and $1,000 for third.

Related Link: EXCLUSIVE: Ryan Detrick Remains Cautiously Optimistic, But Says Watch The XLF

Sajiv Shah, Bullish Gray Television: Sajiv Shah made a compelling bullish presentation for Gray Television, Inc. GTN, a television broadcast company. 

Shah contends the issue, which has been punished for recent earnings misses, will stage a rebound. He forecast the company will benefit from the rapid rise in political advertising spend in the current and emerging swing states, in which the company is well-potioned.

Brooke Wrobe, Bullish Toll Brothers: If there was an award for the most bullish call, it would have to go to Brooke Wrobel. She has no fear of rising interest rates or a potential recession with a bullish pitch on the luxury home builder Toll Brothers Inc TOL.

Brooke’s thesis is based on a few factors: most importantly, that interest rates will begin to stabilize, which is a must for issues in the sector. Other factors include the fact that higher-end buyers weather market conditions better, a demographic shift to millennials, expanding margins through spec homes and reducing costs through vertical integration.  

Francesco De Col, Bullish Masterbrand: Francesco De Col pitched a new issue,

MasterBrand Inc MBC.He argued Investors are misunderstanding the housing situation, which is having a negative impact on the cabinet maker.

He highlighted its diverse product base and history of pricing power along with margin expansion as potential catalysts.

The new stock has been hampered by post-spinoff selling pressure. Finally, De Col predicts Wall Street analysts may begin to increase what is now limited coverage of the issue.

Tejas Gumudavelly, Third Place, Bullish Proto Labs:

Tejas Gumudavelly pitched Proto Labs Inc PRLB. Gumudavelly predicts the on-demand manufacturer of custom parts for prototyping and short-run production will regain some of its former glory.

He forecast strong cash flow production from its 55,000 unique product developers, with the reason being that Proto Labs' digital platform reduces lag time.

Most importantly, its 130 locations in the U.S., with a strong presence in the Northwest and Northeast near its clients, which in turn will have a positive impact on shipping costs, Gumudavelly said. 

Shrey Dalal, Second Place, Bullish ON Semiconductor: Shrey Dalal pitched ON Semiconductor Corp ON and focused on the company's product mix and the focus on developing the next generation of chips.

Increasing market share in an expanding electric vehicle chip market and decreasing long-term cap-ex needs are two other WD-40 catalysts, Dalal said.

Finally, he said the company trades below peer valuations. He has a price target of $105.

Taylor Bielefeld, First Place, Bearish WD-40: Taylor Bielefeld surprised with a bearish call on WD-40 Company WDFC. He forecast a decline in the share price of the issue for a few different reasons, with the primary one being the gradual conversion to electric vehicles, which require much less maintenance and use of WD-40's main products, which Bielefeld said will crush demand.

Most importantly, he contends that after 70 years the company lacks innovation. The most recent change to the product is a new straw for dispensing, Bielefeld said. He has a price target of $75.

Photo by Kai Petainen.