Investment Review №337. A shift toward hedging

 

NioCorp (NB) is a development-stage critical minerals company advancing the Elk Creek project in Nebraska. The deposit is one of the few primary sources of niobium in North America and also offers potential by-product credits from scandium and titanium, enhancing project economics. Against the backdrop of de-globalization and friend-shoring, the asset’s strategic importance to U.S. supply-chain security is increasing. Potential financing from the EXIM, together with the project’s long-life, large-scale resource base, supports an asymmetric risk-reward profile: Elk Creek could become a key North American asset in the critical metals niche, underpinned by durable demand from the defense, energy, and high-tech sectors. Construction of the mine portal is expected to start in Q1 2026, marking a transition from planning to execution. The next earnings release is tentatively scheduled for February 6, 2026, which should provide insight into cash reserves and capital allocation priorities. Analysts at Freedom Broker assign a target price of $8.70 per share.

 

PHINIA (PHIN) — is a global supplier of advanced automotive components and systems, specializing in fuel delivery and ignition solutions for OEMs and the aftermarket, supporting internal combustion and hybrid powertrains across passenger vehicles, commercial fleets, and off highway equipment. The company’s investment appeal is anchored in the sizeable global vehicle parc, which underpins steady demand for replacement parts, while exposure to regional production cycles provides revenue visibility. An active capital return program and resilient free cash flow position PHINIA as an effective vehicle for long-term ICE market exposure. Growth is further supported by strategic expansion into adjacent aerospace and defense markets, with multiple contract wins, initial deliveries under an aerospace program in Q4 2025, and a second program scheduled for early 2026. Analysts at Freedom Broker assign a 12-month target price of $82 per share.

 

The Real Brokerage (REAX) — is a digital real estate brokerage operating a fully virtual model built on a proprietary technology platform and a rapidly expanding agent network. The company has delivered strong growth in closed deals and solid operating efficiency, while building a high-margin services ecosystem that strengthens its long-term growth outlook. Its proprietary, scalable reZEN platform provides meaningful operating leverage, supporting an 89:1 agent-to-employee ratio and lowering per-transaction costs. Organic growth remains robust: the agent count is expanding at double-digit rates, and closed transactions are rising in step with network expansion. The business mix is also shifting toward higher-margin services—particularly mortgage, insurance, and fintech—which should create additional, higher-margin profit pools over time. We believe the current market valuation underappreciates the scalability of the business model and the prospective cash flow growth as the platform matures and ancillary services scale. Analysts at Freedom Broker assign a 12-month target price of $4.70 per share.

 

Mama’s Creations (MAMA) is a U.S. producer of fresh and refrigerated ready-to-eat foods, specializing in Italian and Mediterranean cuisine, including sauces, pasta, meatballs, and prepared meals, distributed across major retail chains and foodservice channels, with a footprint exceeding 12,000 grocery, general merchandise, and club stores nationwide. The company is well positioned to capture share in the growing convenience-focused meal solutions segment, leveraging a broad and established distribution network, a disciplined product innovation pipeline, and a consistent quality track record. Mama’s Creations’ fundamentals support scalable brand expansion and the rollout of new offerings aligned with evolving consumer preferences. Analysts at Freedom Broker assign a 12-month target price of $16 per share, versus a FactSet consensus of $17.3.