Stock

Buy/
Short

Thesis

Current
Price

Target
Price

AeroVironm
ent, Inc
$AVAV

Buy

AeroVironment is a multi-disciplinary technology innovator;

currently the company provides 86% of all unmanned aircraft
system (UAS) in U.S Department of Defense (DoD) also known in
the general public as drone. AVAV is also a leader in the
deployment of Electrical Vehicle charging systems in North
America. The company vision is clear and is on the alignment of
positive outlook trends in both of its segments. AeroVironment
understood the customers need for the long run by providing
Networked Information and Communication with high quality
innovative products and service to customers around the world.
The company is also in a long run trend of providing alternative
transportation fuel solutions, a segment that is in term of
economic cycle in a trough time. The electrical vehicle are
experimenting the starting point of the growth in term of
industry life cycle. AVAV will increase its R&D by more than 50%
in the coming year for their own internal research and continue
to receive an increasing number of clients shared R&D financing
by customers. The company works closely with the U.S DoD for a
technology transfer with India; the Cheel is a joint project
between AVAV and Dynamatics an Indian engineering company
to provide small UAS military equipment for the Indian army
growing needs. The company will increase its internal funded
R&D by over 50%. The company is in a moving phase when they
have to allocate scarce resources to multiply high productivity
activity. The cash position of the company is more than a third of
its market capitalization and an increase number of international
clients in AVAV portfolio makes the stock undervalued with the
potential of increasing margin that are already at 43% and a
guidance for the final year range between 250-270 million by the
management. The next two-quarter would be surpassingly
attractive in term of contracts and in technology advancement
that would ultimately attract attention of individual investors
and not only institutional investors. The investment represents a
long-term investment because of the lack of exposure due to
classified program that are not providing enough advancement
in term of innovation and the current analyst that do not deliver
guidance publicly

$25.98

$34.04

Chesapeake
Energy
Corporation

Buy

Chesapeake Energy Corporation is a company that has

been greatly oversold over the past year, bringing it to a very
attractive price. Chesapeake intends to continue cutting cost in
an effort to become more efficient,
improving their margins. Recently, there has been a lot of insider
activity with insiders increasing their positions within the
company, implying Chesapeake may have reached its bottom.
Data is showing an increase in
demand for natural gas in the future which will fuel revenue
growth and demand for Chesapeakes natural gas resources. The
company also has improving
financials with an increased cash balance and liquidity.
The CSX Corp is a dominant force in the eastern United States
railroad industry. With the transportation sector showing strong
results in the near term these types of companies should be
considered for all well diversified portfolios. The Bjorkland
Investment Fund currently does not own a stock in the
transportation sector, but should consider CSX as it has
outperformed its peers and is poised to do the same in the near
term. The firm has a number of initiatives in the works to drive

$15.11

$20.20

$32.86

$46.2

$CHK

CSXCorp
$CSX

Buy

down costs and boost top line growth, all while keeping its three
tier shareholder value creating framework in mind. For these
reasons I am initiating a BUY at $32.86 with a one year price
target of $46.2.

Kinder
MorganInc
$KMI

Buy

Kinder Morgan, North Americas largest energy infrastructure

company, largest midstream, and third largest energy company
is a BUY with a one year price target of $56.72. The bullishness
towards Kinder Morgan can be attributed to its consistent
dividend growth, its ability to identify lucrative acquisitions, and
its ability to separate from peers that have felt a negative impact
from recent changes in commodity prices.

43.68

$56.72

Krispy
Kreme
Doughnuts,
inc
$KKD

Buy

Krispy Kreme Doughnuts, Inc. operates as a branded retailer

and wholesaler of doughnuts, beverages, and treats and
packaged sweets. The company has an
aggressive growth strategy both in the U.S. and internationally.
It has a strong brand recognition and seems to draw a better
image than its competitors,
Starbucks (SBUX) and Dunkin Donuts (DNKN). The company
relies on word to mouth advertising and same store sales growth
will be driven by menu expansion,
strategic promotions, and customer engagement through mobile
apps. The recent implementation of a new ERP system recently
impacted the companys operating
margins, to which the market overreacted. Finally, operating
margins for their biggest but less profitable segment will
increase during Fiscal Year 2016, which will
drive an increase in Krispy Kremes stock price. Although the
company has many strengths and is largely able to gain market
share, its stocks valuation is not
particularly attractive for value investors. However, investors
looking for a growth play may want take a look at Krispy Kreme.

$18.99

$22.00

Kennedy
Wilson
Holdings,
Inc.
$KWI

Buy

KW oversees $18 B in assets under management, diversified

into: commercial, residential, and hotel properties. The company
specializes in distressed assets, searching for properties to
renovate in order to create value. Over the course of the past
year, KW took full advantage of low interest rates in order to
acquire as many properties as possible. Following the
restructuring and spinoff of the companys European subsidiary
(KWE), Kennedy Wilson is very different than it has ever been in
the past. Although the companys high increase in liabilities is
concerning, the management teams approach towards
restructuring this debt will become increasingly more effective
as the companys new scale of operations bring the company to
profitability.

$23.83

$38.75

Proto Labs
Inc
$PRLB

Buy

In todays business environment, fast is everything. The cold

hard truth is that companies are most likely to be defined by
their ability to get new, innovative products to market than by
any other part of their business. This reality is most pressing for
many technology and medical device providers, whose product
lifecycles are often, at best, 6 to 12 months. You would have to
be deaf, dumb, and blind to not recognize this as an opportunity.
Fortunately for a small quick-turn manufacturer like Proto Labs,
theyve heard the call of an underserved market, envisioned a
future full of opportunity, and have done an amazing job of
communicating that vision through real, tangible results today.
What we are looking at is a company that has achieved

$78.16

$85.00

incredible growth year-over-year, while achieving cash efficiency

unrivaled by peers and the industry, doing so with minimal debt,
and throughout, maintaining highly stable margins. Since
coverage of this stock was initiated 2 weeks ago, the stock has
surged past its 1-year target of $76.00, for an 11% gain, and as
some would say, has tapped out all the value there was, but
this stock is certainly still undervalued and has in the short term
potential to climb to $85 and beyond.

Sears
Holding
Corp
$SHLD

Shor
t

Sears Holdings Corporation has been struggling financially and

it is a surprise to still see them sticking around. For the past five
years, the corporation has been on a decline in sales and has
been forced to close down stores and sell other assets over the
past several years. Management has taken a compensation cut
to keep the company alive. Overall, the story looks like a fiasco.

$43.50

$20.00

Tech Target
Inc
$TTGT

Buy

TechTarget, Inc. is a growing company that looks to create value

with continued improvement in margins and free cash flows. The
firm is in an industry where barriers to entry are high due to a
unique content model. The company provides many services to
companies that are in the information technology buying process
and need help choosing the right products. TechTarget, Inc.s
vast assortment of content is unrivaled by any other company in
its industry. Combine that with a large audience and the result is
a company with a bright future of value creation. The market
does not yet realize the potential of this company because there
is no company like it and the firm has not yet hit its prime. There
is a serious opportunity to capitalize on the low price of the
stock at $11.46.

$11.25

$13.91

YelpInc
$YELP

Buy

Yelp has been oversold in the recent quarter based on investor

concerns about future growth, risk coming from the Google
algorithm dependency, and operating leverage. Growth is
underestimated and should be faster than estimates. Recent
acquisitions allowed the company to reduce its costs and
allowed Yelp to introduce new services to enhance consumer
experience, drive daily engagement in key restaurants vertical
which means an increase of loyalty from customers and a more
consistent revenue stream. Sales and Marketing expenses
represent the major costs for the company. However, these
expenses already are decreasing significantly as a percentage of
revenue and will decrease in the future, increasing considerably
EBITDA margins and creating value for shareholders. The
recommendation is a buy with a target price of $62 based on the
proforma presented on the last page of this report, a potential
increase of 25.13%.

$49.57

$62.00