Top stock pitches (Fri, Sep 20)

ASP Isotopes (ASPI) is a unique isotope enrichment company with proprietary Aerodynamic Separation Process (ASP) and Quantum Enrichment (QE) technologies. The company targets medical, semiconductor, and nuclear markets, with facilities in South Africa and Iceland. ASPI has contracts for Carbon-14, Molybdenum-100, and Silicon-28, with plans to produce High-Assay Low-Enriched Uranium (HALEU) by 2027. The company boasts high gross margins (70%+) and estimates $20-60M in revenue by 2025. ASPI plans to spin off its Quantum Leaps Energy (QLE) division, focusing on uranium enrichment. The company faces competition from Centrus Energy, Silex, Urenco, and Rosatom, but believes its technology offers superior selectivity and efficiency. Risks include potential technology failure, further dilution, South African volatility, and timeline delays. The CEO projects cash flow positivity by year-end 2024, with potential for significant growth in the coming years. The stock currently trades at a low valuation compared to competitors, with insiders actively buying shares. The author believes ASPI could be a 10-bagger in the next few years, with potential for a 100+ bagger in 5-7 years, citing catalysts such as the QLE spin-off, HALEU licensure approval, and potential short squeeze due to high short interest.

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Applied Digital Corporation (APLD), currently trading at $6.50 with a market cap of $1.3 billion, is transitioning from a bitcoin miner to an AI data center provider. The company's 400 MW facility in Ellendale, North Dakota, is well-suited for AI workloads due to secured power contracts and strong fiber connections. APLD has a letter of intent with a hyperscaler, with a contract expected by February 2025. The scarcity of AI data centers in the U.S., attributed to high power requirements, positions APLD favorably in the market. Despite facing short attacks and accusations of inflated claims, research and discussions with management suggest potential for the company. Based on the value of the 400 MW buildout alone, APLD's valuation could potentially double from its current $6.50 per share.

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Dave & Buster's Entertainment (PLAY) presents a compelling investment opportunity with a $60.56 price target, offering 101% upside potential. The bull case rests on three key pillars: 1) Same-store sales recovery through six organic growth initiatives, including marketing optimization, strategic pricing, improved food and beverage offerings, remodels, special events, and technology enablement. 2) Ambitious store expansion plans, targeting 550 units long-term with 16 annual net openings from FY25. 3) Sustainable margins 200-300 bps above pre-Covid levels, supported by revenue mix shifts and cost-saving measures. Despite management's near-term $1 billion adjusted EBITDA target, the market remains skeptical, pricing in only $521 million versus the $785 million FY25 target. PLAY currently trades at 6.6x NTM EV/EBITDA, a significant discount to its peer group average of 8.5x. Key risks include a pressured retail environment and execution challenges across multiple growth initiatives. However, even partial success could lead to outperformance given low market expectations.

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