FMCI - Why 1 SPAC Looks Like a Stock Buy -- And It's Not Virgin Galactic
2020 has been a year to remember for some special purpose acquisition companies (SPACs). Popular SPACs like Virgin Galactic Holdings have enjoyed remarkable returns in the face of COVID-19. Dozens more have gone to market in the past several months offering little more to investors than cash to buy a private business.
Many SPACs come with limited transparency and frothy multiples. Conversely, Forum Merger II (NASDAQ: FMCI) is one SPAC that actually looks to be a strong buy. Its announced acquisition target -- the Tattooed Chef -- offers a rare combination of transparent and sparkling fundamentals with compelling value. Interestingly, the Tattooed Chef sells all organic plant-based foods, a space expected to grow at a brisk 14.1% clip through 2024.
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