Shell company Spartan Energy (NYSE:SPAQ) is part of a growing trend in 2020. If you can believe it, there have been more than 50 special purpose acquisition companies (SPAC’s) this year. With that in mind, why you should own SPAQ stock in particular is a legitimate question.
The wrong reason to buy SPAQ stock is just because the ticker sounds like “SPAC” and you heard that SPAC’s are popular nowadays. A SPAC is just an alternative to a traditional initial public offering or IPO. There’s nothing special about SPACs in and of themselves.
Therefore, informed investors need to examine SPACs individually and determine whether each one offers a strong value proposition. Fortunately, SPAQ stock represents more than a mere shell of a company. Rather, it’s a stake in a larger movement which, if it gains traction, could yield unusual returns. It’s the sort of exciting opportunity I like to suggest with my research through Growth Investor.
SPAQ Stock at a Glance
Honestly, there wasn’t much action in SPAQ stock until this past summer. The shares couldn’t seem to break above the $10.50 level. Besides, the trading volume on the stock was relatively low.
Then, starting in early July, both the daily trading volume and the stock price surged. Yet, it could be said that the price of SPAQ stock flew too high at that time. After reaching a 52-week high of $21.60, SPAQ couldn’t maintain that trajectory and promptly retreated to the $12 level.
The price action in SPAQ stock has calmed down since it bottomed out in early August. In fact, the bulls managed to bid the share price up to the $14 area during the first few days of September.
It’s not a bad sign that the stock is achieving some price stability. Experienced investors know that a “slow and steady wins the race” approach is often more reliable and sustainable than a parabolic rally.
The Big Surprise
SPAQ stock quickly appeared on people’s radars with the announcement that Spartan Energy would serve as the shell company to help Fisker go public. Thus, Spartan Energy would raise capital through an IPO and acquire the privately held Fisker in a reverse merger.
This development clearly took the market by surprise, as evidenced by the jump in the SPAQ stock price. But was this nothing more than a case of SPAC mania inducing a bump in the stock?
Participating in the SPAC frenzy of 2020 was undoubtedly a contributing factor, but there’s more to the story here. In particular, the market’s fascination with electric vehicles appears to have given SPAQ stock some added rocket fuel. Much like 5G and AI stocks, EV stocks are a hot topic on Wall Street right now. Finding companies in movements like these ahead of everyone else is one of the keys to determining the best growth stocks on the market.
Granted, there have been a slew of electric vehicle companies vying for the market’s attention lately. In a crowded field, successful competitors must have a unique angle, something to make them stand out from the rest. Fortunately, through Growth Investor, I’ve identified numerous opportunities like this in several key industries as well as the “AI Master Key,” which will be the key benefactor in the machine learning revolution.
Sustainable Gains Through Sustainable Vehicles
So, looking at it from a long-term growth perspective, what does Fisker have that the others don’t? The company’s flagship vehicle, the Fisker Ocean, looks fairly normal from the outside. Inside you’ll find a 16-inch center-touch screen plus a 9.8-inch cluster screen, which are nice amenities, but not necessarily mind-blowing.
Looks can be deceiving, though, and there’s more to the Ocean than meets the eye. If there’s any feature of the Ocean that sets it apart, it’s Fisker’s claim that this is the world’s most sustainable vehicle.
Beyond being fully electric, drivers can get an Earth-friendly vibe from the Ocean’s vegan interior and recycled materials.
To be more specific, the Ocean’s interior trim is derived from polyester fibers as well as recycled bottles and plastic. Additionally, when building the Ocean, Fisker uses discarded rubber waste from the tire manufacturing process.
If all goes according to plan, production on the Ocean could commence in late 2022. An ultra-Earth-friendly all-electric vehicle could be a game changer, especially if it catches on with open-minded millennials and “zoomers” (Generation Z).
The Takeaway
If being unique is the key to thriving in a crowded electric vehicle market, Fisker could have what it takes to succeed. Indeed, the rewards could be substantial for SPAQ stock holders as there may be room for a strongly Earth-conscious vehicle among mindful automotive consumers.
It’s no secret that innovators like Fisker are among the hottest plays on Wall Street now … but I want to bring your attention to another play that’s perhaps even more promising. It’s making significant innovations through artificial intelligence, all while flying under investor’s radars. Their oversight is your path to significant wealth.
The “AI Master Key” is a lesser known machine learning leader that will revolutionize countless industries. From healthcare to agriculture, finance to cybersecurity, this company will be at the head of it all. It’s the key to unlocking the most significant technological revolution in human history and all the great profits that come with it.
But that’s just the tip of the iceberg for Growth Investor subscribers. Backed by the strongest research team on the market and my innovative approach to investing, Growth Investor has outperformed the S&P by a factor of 3-to-1. It’s where you can find numerous groundbreaking growth plays like my AI Master Key long before they become household names.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
