Savvy Pick 10 Contest 2

[nsomniyak]

Here is the thinking behind my picks. Just quick thoughts, not a detailed analysis. A number of these have been long term holds for me where I have some optimism that this year could see the breakout. Hope everyone else will share the thinking behind their picks.

APLD - I think their Ellendale facility is going to bring huge returns. CRWV has taken a 15 year lease, NVDA is invested. Ellendale will be the showpiece for "NVDA AI datacenters", and I think we'll see some of those returns in the coming year. As an aside, I think APLD is miscast as a tech stock - it really is a property management company specializing in datacenters. In effect, it will become a "datacenter REIT" and in addition to the price rise I expect I believe it will spin off dividends well in excess of what I paid for my shares. Furthermore, I believe we will see many of the "traditional" REITs which were invested in commercial real estate (yuck) and shopping malls (yuck-er) die out and be replaced by "datacenter REITs". APLD is (by far) my largest real-life holding.

AQMS - I believe their battery recycling technology/facility will come online in the next year. Also offers a low entry price right now.

AUPH - I think they will got bought out. Of course, I have said that for 5 years, so what do I know? Anyway - this year is going to be THE year. Or it might be. AUPH features the worst CEO in biotech, but they have a good drug that will fetch a premium. Not anywhere close to what long-term shareholders were hoping for, but above today's $8 price.

JOBY - OK, I needed a tenth stock. I did a search and JOBY popped up. I included JOBY because my first name is Joe and my last name starts with a B. Get it? Then I actually did a little DD and, to my surprise, liked what I saw. JOBY is in the "air mobility" sector (like ACHR) and is developing electric vertical takeoff and landing eVTOL aircraft. They have made deliveries to the UAE/Dubai for test flights. Toyota has made a significant investment in JOBY.

LWLG - another long term hold of mine - probably too long. Another one where this year might just be THE year. While not mentioning LWLG by name, NVDA's CEO has spoken of the need for using polymers (right up LWLG's alley) to provide better performance and lower power consumption as AI datacenters are built out.

OPTT (top pick) - OPTT has transitioned from generating electricity from ocean waves to making drone/unmanned watercraft that have a wide array of military and commercial applications. OPTT trades around 50 cents, and therefore often makes big % daily moves - either way. In last year's contest OPTT was often cited as having made the biggest move up that day. SSK did not post the biggest losers but OPTT would have been on that list frequently as well. This is another big position for me. As an aside - while not relevant to this contest, OPTT does have monthly options which often offer pretty decent annualized returns. For example, OPTT closed today at .472, with the July .50 call options at .05 bid .10 ask, and the August .50 calls at .10-.15. Today I bought OPTT at .48 and wrote the August .50 calls for .11. That's a 23% return in 45 days assuming OPTT stays flat, and more if actually called.

PDYN - relatively small but growing AI company just added to the Russell 2000 and Russell 3000. Any stock that qualifies initially for BOTH Russel indexes is clearly growing its market cap very quickly relative to the rest of the market, as they have jumped (at least) 1000 companies in market cap rank over the last year! They have a relationship with RCAT for AI-enabled drones.

SLS - biotech company that seems a likely candidate for a buyout

SOUN - AI company focused on voice recognition applications. Think about a surgeon being able to get an expert synopsis of a rare situation on the fly, or, more prosaically, simply ordering fast food at a drive through without a human order taker. Also things like "real-time audio recognition into fire trucks, ambulances, and police vehicles". VW is a major investor in SOUN, and it is likely that VW will lead the charge related to In-Car Voice. Here's an article indicating the opportunity for In-Car Voice https://www.businesswire.com/news/home/20250604581003/en/In-Car-Voice-Commerce-Could-Unlock-%2435B-Annually-for-Automakers-Research-Highlights-Strong-Consumer-Appetite

VTYX - another biotech buyout candidate. There are rumors that Lilly and/or Sanofi may be interested.

finally - here's an 11th stock that I wish I had included - CORZ. I think a buyout from CRWV makes too much sense for it not to happen. Prospective buyout prices range from $17 (today's price) to $40. There is a really good analysis of this on YouTube giving 15 reasons why this makes sense for CRWV. Don't have a link but I have a screenshot of the reasons and can post if anyone is interested. CRWV made a run at CORZ last year - this year they'll git 'er done.

I'd be happy to follow up on any of these. I look forward to seeing thumbnail sketches of other participants' picks!