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Takeaway: This webcast originally aired on February 22, 2021. Replay and transcript excerpts are available below.

In this clip from THE PITCH, we give you an inside look at how a research analyst's high-conviction stock idea becomes a manager's winning position.

Watch below as Industrials analyst Jay Van Sciver pitches Hedgeye CEO Keith McCullough on Porsche SE (POAHY), Van Sciver's new 'Best Idea' Long position. 

Click here to learn more about Jay Van Sciver's "Industrials Pro" Product.

Click here to watch the entire hour long The Pitch, including 5 other analysts' Best Ideas.

. . .

"Today we're going to pitch Porsche SE (POAH.Y), which is the holding company that has shares of Volkswagen (VW).

So we're going to be talking about $VW, and the reason why this stock trades at such a discount is because it's confusing... but it's actually not that confusing; Porsche SE is a holding company that just happens to hold shares of $VW. The weird thing about Porsche SE is that it trades at about a -30% discount to the value of $VW shares because of legal liabilities. That discount is actually greater than the actual estimated exposure for those liabilities; so it's a weird anomaly in the market. Porsche SE is an unusually attractive way to invest in $VW because of that discount.

In terms of narratives in this market - don't get me wrong I can talk about how cheap the stock is forever. But when we think about emerging narratives, these are the big areas. Self-driving cars and EV's are some of the most momentum-driven areas of the market right now.

When you add all these parts up for $VW, you find that it's trading at half of what it should be. And Volkswagen itself has made some spectacular investments. They have a third of QuantumScape, a promising battery maker, and a ton of other great assets.

And I can buy these shares for a -30% discount through Porsche SE? That holding company discount could go away throughout the year as these lawsuits get settled, which would be a great catalyst. The cool thing about VW (because of diesel-gate) is they invested in so many hot areas - they'll likely be the largest EV maker by the end of the year.

And $VW makes a lot of money; they make almost half of Tesla's revenue just in net income."

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