YB new stock pitches (Mon, Mar 30)

Comstock Inc. (LODE), trading at $3.20 per share with a $235M market cap and $55M net cash ($180M EV), has pivoted from mining (2003-2021) to solar panel recycling and biofuels, planning to monetize all legacy mining and real estate assets for approximately $300M by year-end. The company's proprietary solar recycling process, which is R2V3/RIOS zero landfill certified and the only such operation in the US, converts panels into glass, aluminum, and fines containing silver and rare earths with exceptional unit economics: profitability at 20% utilization and $75M FCF at 80% utilization, with each site requiring less than $15M capex. Site 1 should produce next quarter, reach profitability in Q4 2026, and generate $75M run-rate FCF by late 2027, while Site 2 launches H1 2027, with 7 total US locations planned by 2030 and potential international expansion, plus an in-house refining solution in development to enhance margins and create a moat. Mining assets should sell in Q2 2025 for $50-60M, real estate in Q4 2025 for approximately $275M (with upside based on datacenter-friendly credentials and nearby transaction comps), and the company holds a 13% stake in a lithium-ion battery recycling company valued at $18M (2023) expected to IPO H2 2025. The company has $344M in NOLs and CLCs, and while historical dilution was severe, management states no further equity raises should be needed given the clean balance sheet, inflecting profitability, asset sale pipeline, and low capex requirements, with potential capital returns possible. The Marathon Petroleum-backed biofuels spin could value LODE's majority stake at $400M, and the stock could trade at less than 1x FCF in a few years as each scaled solar site generates 25-30% of current market cap in FCF annually.

Read the full article here. Read time: 2 min

GDS: Leading China data center dev w/ 24% stake in DayOne (intl dev). China EBITDA +15% in 2025, accelerating on AI inference demand in Tier-1 cities; domestic chips (Huawei Ascend) reducing H20 ban risk. DayOne raised Series C at $10B valuation (1GW contracted, +500MW/yr growth), IPO planned Q4 2026 w/ spinoff to GDS holders. SOTP: China at 18x EBITDA = $58/share, DayOne at 20x = $22/share. PT $80 (+80%). Catalysts: bookings reaccel, HK Stock Connect, DayOne IPO.

Read the full article here. Read time: 4 min

Niitaka Co., Ltd. (4465.T) is a mini Japanese Ecolab that supplies detergents, sanitizers, bleaches, and chafing fuels to restaurants like Ohsho Food (9936) and Yoshinoya (9861), as well as distributors including Oie Sangyo (7481) and Satoh (9996), offering over 700 SKUs. The company demonstrates an anti-fragile business model with no single customer contributing more than 10% of revenue while serving 600,000 restaurants and hotels, generating highly recurring revenue. Through its subsidiary JWM, Niitaka leases washing machines and provides maintenance services to detergent-purchasing customers via 180 service points, creating a hard-to-replace HMLV supplier position for long-tail essentials in the supply chain. The company helps customers build HACCP standards and possesses a massive hidden asset in its 600,000 end-user reach, which presents cross-selling opportunities similar to Ecolab's diverse services including pest control, water treatment chemicals, and commercial laundry, though Niitaka has more opportunities to exploit. The company is viewed as a prime acquisition target for Ecolab or Duskin (4665).

Read the full article here. Read time: 1 min