Louis Navellier is rating this stock an “A” – Get In Now!

On May 24, the man who found “the stock of the century” will reveal one of his top stocks for 2022 – for FREE – in a special presentation.

Tue, May 24 at 4:00PM ET

BENE Stock Soars as Donald Trump Sends SPAC Names on a Wild Ride

The 2021 SPAC (special purpose acquisition company) bubble was controversial enough before last week. Since then, news of an impending deal regarding former U.S. President Donald Trump’s newest media venture has sent several previously little-known acquisition companies through the roof. The Trump Media and Technology Group (TMTG)’s SPAC partner Digital World Acquisition (NASDAQ:DWAC) became the hottest name on Wall Street over night. In the past five days, it has risen more than 928%. As it turns out, though, several other companies operating in the same space are shooting up as well. Not many investors knew the name Benessere Capital Acquisition (NASDAQ:BENE) before this morning, but BENE stock’s early morning gains should have everyone paying attention.

A 3D illustration of the word SPACs on a stock board full of numbers and up and down arrows.
Source: iQoncept/ShutterStock.com

What’s Happening With BENE Stock

This week is off to a good start for BENE stock, which rose more than 24% in the first two hours of trading. Despite some slight downticks, the stock has been quick to rebound and resume climbing. Like DWAC, it began to rise as soon as last week’s impending merger was announced. As of this writing, it is up more than 43% for the past five days.

BENE stock has also mimicked DWAC in the sense that it spent the month of October flatlining, hovering at just over $10 per share. This morning’s peak saw individual share prices rise as high as $17.95 apiece.

In news unrelated to the DWAC merger, talk of another deal is on the table that affects Benessere Capital more closely. Bloomberg has reported that the company is taking steps to merge with ECombustible, an innovative hydrogen-based fuel producer. This type of deal would certainly also serve to benefit BENE stock, even while coverage is monopolized by DWAC developments.

The Market Mystery Man

BENE stock isn’t just rising in sympathy with DWAC. The two companies have one thing in common, and it comes back to one name. Since DWAC’s unprecedented winning streak, considerable spotlight has shined on the name Patrick Orlando, the company’s chairman and CEO who also happens to serve as CEO of Benessere Capital, according to the company’s leadership page. It doesn’t stop there. The page also states that Orlando is CEO of Yunhong International (NASDAQ:ZGYH), a similar acquisition company whose shares have also risen since the deal was announced.

Trump has long been hailed as a dealmaker, but in conducting this merger, he has extended that status to Orlando, the man who is singlehandedly proving that one name can be powerful enough to raise multiple stocks at once, even if that name was previously unknown to most investors.

One stock that isn’t rising, though, is that of Deutsche Bank (NYSE:DS), the company where Orlando got his start. The Wall Street institution is also noted for being Trump’s biggest lender for years before cutting him off.

What It All Means

After such an eye-opening week, its possible that Trump and Orlando may have changed the ways in which investors evaluate SPAC mergers.

Additionally, part of DWAC’s monumental rise has been its meme-stock status. We all know the power of digital investment communities such as r/WallStreetBets. Since last week’s first spike, it’s been a heavy topic of discussion. Any other members of Orlando’s SPAC club have the potential to garner meme-stock status as well, and since companies like BENE don’t have direct ties to Trump, contrarian investors are less likely to want to root against them.

Investors should be prepared to keep watching these SPAC names, particularly BENE stock.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2021/10/bene-stock-soars-as-donald-trump-sends-spac-names-on-a-wild-ride/.

©2022 InvestorPlace Media, LLC