The 'Boiler Room' Stock Pitch Recap: Nautilus, Uber, Lamar Advertising 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.

NLS: Sam pitched Nautilus Inc NLS, which closed at $19.66, up 0.051%.

Nautilus is a marketer, developer, and manufacturer of fitness equipment brands Bowflex, Modern Movement, Nautilus, Octane Fitness, Schwinn Fitness, and Universal.

Sam had a bullish outlook on the stock because of the following reasons:

• Besides Peloton PTON, Nautilus is the only other public company that sells workout equipment.
• The company may start a subscription service that will generate recurring revenue.
• Stock not reliant on people working from home; gyms are likely to retool amid reopening.

"The market cap is $585 million and they did $500 million in sales last year," said Brown. "Why does Wall Street hate this stock so much?”

“I don’t think they were doing a good job before the pandemic," he continued, "so they may have been in some debt and the growth rate was declining. But, obviously, since the pandemic, the stay-at-home might help the company turn around.”

Raznick added that the earnings were bad in February and the CEO said they missed the Peloton wave.

CLNE: Carlos pitched Clean Energy Fuels Corporation CLNE which closed at $14.87, up 7.13%.

Clean Energy Fuels provides natural gas as an alternative fuel for vehicle fleets, among other fueling solutions.

Carlos had a bullish outlook on the stock because of the following reasons:

• Partnership initiatives with transit authorities like LA Metro and other energy companies.
• The climate change narrative to fuel investment in clean energy alternatives like CLNE.

“This is a $3 billion market cap on trailing 12-months revenue of $300 million which is fairly cheap for this sector," said Brown. "There are companies in the space that have no revenue, that are trading as they do.”

Carlos thinks the company will earn money in 2021, especially due to new partnerships.

See Also: 8 Reopening Stocks Under $5

LMT: Ralph pitched Lockheed Martin Corporation LMT which closed at $340.19, up 0.14%.

Lockheed Martin is a global aerospace, defense, security and technology company.

Ralph had a bullish outlook on the stock because of the following reasons:

• The stock has a dividend payout of about 3% and trading near support.
• Strong fundamentals, huge order backlog, and stable margins.

“Why did the stock lose a quarter of its market cap from the onset of the pandemic, to now?” Brown asked.

Ralph thinks investors are incorrectly pricing in President Joe Biden’s influence on the military-industrial complex and that the stock is poised to take off. He is looking to pick up shares of LMT at $320.

LAMR: Matthew pitched Lamar Advertising Co LAMR which closed at $95.66, up 1.44%.

Lamar is one of the largest outdoor advertising companies in North America, with nearly 400,000 displays (e.g., billboards, interstate logos, transit, and airport advertising formats).

Matthew had a bullish outlook on the stock because of the following reasons:

• Reopening play as more people on the road to advertising.
• Trade against pre-pandemic high with the potential to breakout.

In response, Brown asked, “If I’m an advertising customer, why am I buying billboards? Can’t I get much more effective advertising on Instagram or Google?”

Matthew said he thinks people will spend more time traveling and less time on their phones.

“Lamar has been switching a lot of its billboards to digital where they can have a lot more ad revenue per billboard," said Raznick. "I like this one.”

Brown said he would get involved on a break of $96.

SE: Caleb pitched Sea Ltd SE which closed at $234.99, down 0.70%.

Sea is an internet and mobile platform company.

Caleb had a bullish outlook on the stock because of the following reasons:

• The company operates in digital entertainment and gaming, e-commerce, as well as mobile payments.
• Tencent owns about 20% of the company and it is expanding into South America.

“Cathie Wood is in this," Brown said, "and it’s in a bunch of video game ETFs. Do you need the Chinese stock market to stay strong in order for the stock to stay up?”

Caleb said yes, noting the stock tends to move in tandem with Tencent.

Raznick added, “The growth is crazy and it’s dropped so much from its 52-week highs. Cathie likes it, also.”

UBER: Evan pitched Uber Technologies Inc UBER which closed at $60.35, up 2.36%.

Uber is a company whose services include ride-hailing, food, and package delivery, freight transportation, as well as motorized scooter rentals.

Evan had a bullish outlook on the stock because of the following reasons:

• Increased demand for travel and convenience of Uber’s platform.
• Diversification, as well as investments in robotics and automation.

“Does the Eats business see year-over-year declines if everybody is out and about?" Brown asked. "If that happens, is the ride-sharing enough where it won’t even matter?”

Evan said no, noting the convenience factor of the service as well as changing consumer preferences when it comes to eating out in public, fresh out of a pandemic. He thinks the stock will hit as high as $80 this summer.

IZEA: Chris pitched IZEA Worldwide IZEA which closed at $4.44, up 7.15%.

Izea is an online marketplace that connects marketers with content creators.

Chris had a bullish outlook on the stock because of the following reasons:

• One of the fastest ways for brands to grow is influencer marketing.
• IZEA pulls together influencers and connects them with brands.
• The number of clients signing up at a rate of nearly 50% per month.

In response, Raznick asked, “Is there a catalyst coming up?”

“I see very steady growth because the market is reopening,” Chris said. “If you look at it from dollars, I can put it on Facebook and Google and get 10-to-1 or put it on IZEA and get 300-to-1.”

ZEPP: Andreas pitched Huami Corp ZEPP which closed at $14.38, down 3.88%.

Huami connects health with technology, providing consumers access to smartwatches and fitness equipment.

Andreas had a bullish outlook on the stock because of the following reasons:

• ZEPP is profitable and it just changed its name.
• Interesting acquisitions in the health-tech sector.

“I feel like this is a total casino play," said Raznick. "It could go to $25 or $8.”

Andreas added that there’s good risk-to-reward, the name change will give the company more visibility, and recent leadership changes will help set the company on a path to growth.

AMRS: Alexi pitched Amyris Inc AMRS which closed at $20.65, up 14.59%.

Amyris is a biotechnology and renewable chemical company.

Alexi had a bullish outlook on the stock because of the following reasons:

• Momentum play, fundamentals are okay.
• Willingness to diversify product offers.

Brown asked what makes the company so innovative, and Alexi said, “I like the fact that it’s going into consumer brands and think that, from a valuation perspective, with the way markets are moving today, and how cheap capital has become, they could potentially just have a pure effect.”

ABNB: Evan pitched Airbnb Inc ABNB which closed at $206.74, up 4.48%.

Airbnb is an online marketplace for tourism rentals.

Evan had a bullish outlook on the stock because of the following reasons:

• Google searches for Airbnb surpass total searches for all other hotel chains combined.
• Founder Brian Chesky is innovative and able to scrap through the hard times.

In response, Raznick asked about competitors, like Booking Holdings Inc BKNG, adding residential booking functionalities.

Evan said he thinks Airbnb stays top of mind: “Their competitors are primarily brick and mortar … and they value their hosts.”

Brown thinks the stock could be picked up in another technology stock dip.

FUBO: Rome pitched fuboTV Inc FUBO which closed at $32.31, down 4.12%.

fuboTV operates a live TV streaming platform for live sports events, news, and entertainment.

Rome had a bullish outlook on the stock because of the following reasons:

• The company is the Netflix of sports.
• Viewers can gamble with their remote.
• Multi-year licensing agreements with MLB, NFL.

Brown asked if this is a stock that will do a secondary every time it rallies.

"I think they have enough cash on the balance sheet for what they’re doing,” Rome said. “If you look at their last quarterly report, the revenue was up 83% year-over-year and ad-revenue is up 33% year-over-year.”

Raznick noted the stock has the potential to sell-off with the market but that the leadership team is decent.

BA: Matt pitched Boeing Co FUBO which closed at $269.19, up 6.80%.

Boeing produces airplanes, rockets, satellites, telecommunications equipment, and missiles.

Matt had a bullish outlook on the stock because of the following reasons:

• Stock is beaten and will shine as travel returns.
• Biden administration and China orders a plus.

"This thing was already recovering from the max thing, prior to the pandemic," said Brown. "I think this thing gets back above $300 this spring.”

ABBV: Chris pitched AbbVie Inc ABBV which closed at $108.22, up 0.26%.

AbbVie is a biopharmaceutical company.

Chris had a bullish outlook on the stock because of the following reasons:

• The company crushed its last three quarters.
• A huge dividend, almost 5%.
• Return of procedures post-COVID-19.

“Great story and great company," Brown said.

PLNHF: Aaron pitched Planet 13 Holdings Inc PLNHF which closed at $6.62, up 2.23%.

Planet 13 Holdings is a cannabis company based in Nevada.

Aaron had a bullish outlook on the stock because of the following reasons:

• Pivoted to delivery during the pandemic.
• The company may expand to new states.

Brown said, “This is an interesting one.”

Photo by Anna Nekrashevich from Pexels.