I do not recall any mention of special purpose acquisition companies in Green Eggs and Ham, but that is not stopping Elon Musk. In yet another cryptic tweet yesterday evening, he created a spark for Pershing Square Tontine Holdings (NYSE:PSTH). How? And what else should you know about PSTH stock here?
To start, what is going on? Pershing Square Tontine Holdings is a blank-check company from the legendary investor Bill Ackman. PSTH came public in July 2020, but it has not named a merger target yet. The size of the SPAC, the leadership of Ackman and great speculation by retail investors have created hype around a potential deal. This means that any sign of a merger announcement is a big deal.
It looks like investors are getting a few more signs this week. Everything started on Thursday, Feb. 25, when Ackman took to Twitter (NYSE:TWTR). In a series of tweets, he confirmed that he would announce the PSTH target before that of his second SPAC. This comes amid news that Ackman is filing a second blank-check company, Pershing Square Tontine Holdings II. Ackman also said he would give long holders of PSTH stock access to the second SPAC at the IPO price.
So what does this mean for investors?
It is also important to note that Pershing Square included these tweets in its latest disclosure. As Chris Katje wrote for Benzinga, this has many investors thinking an announcement is coming. If nothing else, the tweets serve as confirmation of Pershing Square Tontine Holdings II.
Elon Musk, Meet PSTH Stock
However, the PSTH stock story does not stop there this morning. Guest star Elon Musk also entered the stage to shake things up.
Green eggs & SPAC
— Elon Musk (@elonmusk) March 1, 2021
In one of his latest tweets, Musk simply says “Green Eggs & SPAC.” This appears to many to be an endorsement of special purpose acquisition companies, and a sign that Musk is involved in a blank-check deal. But how does this tie into Pershing Square Tontine Holdings?
There has been no shortage of merger speculation for PSTH. Top bets include Bloomberg, SpaceX, Stripe, Plaid and even Chick-fil-A. Because of this speculation, many are hoping that Ackman and Musk are working to together to bring SpaceX public.
So what should you do now? First, know that this is all highly speculative. Musk could be launching his own blank-check company, to bring Starlink or SpaceX public. He could, as other retail investors bet, be working with Chamath Palihapitiya instead. And knowing Musk, his tweet could be a reference to Read Across America Day and controversy surrounding Green Eggs and Ham author Dr. Seuss.
However, if it is a tribute to Ackman and PSTH stock, that would be big for shareholders. For right now, keep Pershing Square on your radar in case an announcement is coming.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
