Special purpose acquisition company DiamondPeak Holdings (NASDAQ:DPHC) was not a source of excitement until a few months ago. Lately, however, DiamondPeak stock has been making some big moves. And of course, large price moves tend to attract investor attention.
As it turns out, DiamondPeak is not just a run-of-the-mill shell company. In fact, it is entering a market with outstanding growth potential. Make sure to mark Oct. 22 on your calendar because an industry-changing business combination will move forward on that day.
Beyond marking the date on your calendar, you might want to consider taking a closer look at DPHC stock. It is not too late to start accumulating the shares as an upcoming special meeting could usher in one of 2020’s most notable automotive manufacturers.
DiamondPeak Stock at a Glance
For holders of DiamondPeak stock, 2019 was not exactly the most exciting year. Big changes took place this year, however. Patient investors saw handsome rewards if they stayed the course throughout the most volatile months.
Prior to August of this year, DiamondPeak was stuck in the $10 area. But in the blink of an eye, the share price took a moon shot, attaining its 52-week high of $31.80 on Sept. 21.
This was followed by a few choppy weeks. Clearly, DiamondPeak stock is only for investors who can tolerate large price moves in both directions.
The DiamondPeak share price has settled near $20, so prospective investors have a chance to own the stock at a reduced price. Given the upcoming finalization of a significant merger, traders might not want to miss out on the upside that is likely in store.
A Meaningful Merger
On August 3, electric truck manufacturer Lordstown Motors agreed to merge with DiamondPeak so that it could go public. The combined company would include Lordstown Motors CEO Steve Burns and DiamondPeak CEO David Hamamoto on its board of directors.
Importantly, the combined company will trade on the Nasdaq Exchange under the stock ticker symbol RIDE. So, don’t be surprised or alarmed if the DPHC ticker ceases to exist at some point. You should still be able to invest in DiamondPeak stock in anticipation of the changeover.
Lordstown Motors is expected to receive around $675 million in gross proceeds from this transaction. According to the press release, these funds “will be used to fund production of the Endurance and its innovative in-wheel electric hub motor design.”
Burns called Lordstown “top-tier” and the Endurance “revolutionary.” Stock traders seemed to be on board with this as they sent the DiamondPeak share price significantly higher upon the merger announcement. Yet, these traders would have to be patient as mergers aren’t an overnight process.
The Big Day Is Coming
There have been a number of gyrations in DiamondPeak stock since the August merger announcement. Those are likely due to the overall volatility of the electric vehicle market, along with the lengthy wait for the Lordstown merger.
That wait might soon be over. Not long ago, DiamondPeak revealed that shareholders will hopefully approve the business combination with Lordstown Motors on Oct. 22.
The likelihood that the stockholders will approve of the merger is close to 100%. In any case, it is a big step to have a firm date for the merger in mind.
And it is not only the trading community that has been waiting for this event. It is a watershed moment for electric vehicle enthusiasts as well because the Endurance pickup represents the next generation of electric truck technology.
If you need more convincing, check out the Endurance’s recently released specifications and pictures. With 40,000 reservations already on record, the Endurance is poised to be a blockbuster.
The Bottom Line on DiamondPeak Stock
DiamondPeak stock is prone to outsized moves, but that is normal in the electric vehicle space.
If you’re willing to ride out the ups and downs, you could see substantial returns as the Lordstown merger is nearing the finish line.
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.