Judging by the 70% beating that former SPACs have taken since they peaked early last year, a lot of investors are leery of blank-check companies — which is why Enrique Abeyta likes some of them, Bloomberg reports.
“Everything was going to the moon, and now SPAC is a curse word,” said Abeyta, who follows special-purpose acquisition companies as editor of Empire Financial Research. “That’s turning itself into a spectacular stock-picking opportunity.”
It’s not like you could throw darts at a list to find prospects, but a sampling compiled from Bloomberg data shows more than 30 companies that went public via SPAC mergers trading at modest multiples of something that their more speculative peers lack — real cash flow and net income. Some come with unanimous buy recommendations from analysts who follow the stocks. Read more.
