Special Speculative Play
In my post yesterday, I mentioned that I had taken a position in a special situation speculative play. This is a SPAC that announced last week it is merging effective today with a company named Lanza Tech. Lanza has a technology(with two or three operating contracts so far and orders for 3-4 more) that captures carbon emissions from steel and chemical plants, treats it with bacteria that breaks it down reducing the level of carbon emissions, while leaving byproducts that are then sold and used by other companies to produce things such as fabric, and consumer products. The stock symbol for the SPAC is (AMCI) and in the 6 months that it has been trading it has remained in a range between 9.58 and 9.90. I bought a small number of warrants at .46 cents. Even though SPACS and other speculative stocks are not going to have the same speculative craziness as they did in 2020 and 2021, this one has potential, hasn’t yet traded out of a tight range and can become both commercially profitable while appealing to investors concerned with ESG. Risk reward potential very favorable. I chose the leverage with the warrants but the stock offers an attractive profile for investors as well.