There were too many special purpose acquisition company (SPAC) stocks to count in 2021, but here’s one worth considering. Blank-check business Benessere Capital Acquisition (NASDAQ:BENE) has been featured in the financial headlines lately. Plus, the recent trading volume on BENE stock has been off the charts.
Most likely, this is due to a link to former President Donald Trump. Yet, it’s a loose connection and there’s another, perhaps more important angle to consider here.
Don’t worry,. we’ll address the red-hot controversy surrounding Benessere Capital Acquisition. After all, informed investors need to know what all of the hubbub is all about.
At the end of the day, though, clean-energy enthusiasts should find BENE stock quite appealing. Unfortunately, sometimes the most important headlines get buried, and great investment opportunities can get lost amid the noise.
Welcome to Orlando
It’s tempting to assume that Trump will be the most interesting character in this ongoing story. However, that might actually not be the case.
Reportedly, TMTG will launch Truth Social, a conservative social-media platform that says it will emphasize First Amendment rights.
As you might expect, DWAC stock is polarizing and its price action is volatile. So, what’s the connection to BENE stock?
The connection’s name is Patrick Orlando. He’s the chairman and CEO of Digital World Acquisition, and he also happens to be the chairman and CEO of Benessere Capital Acquisition. Furthermore, Orlando is apparently involved with a Wuhan, China-based SPAC which incurred a substantial financial loss.
Hence, we can see why Orlando is an interesting and somewhat controversial character in his own right.
BENE Stock as a Sympathy Play
Knowing all of this, we can easily put two and two together, and figure out why the trading volume on BENE stock has been so high lately.
Sure, the Trump and Orlando connections are relevant here, but there’s something else going on.
Bear in mind that some DWAC stock holders booked gains in the hundreds of percentage points, in a matter of days. Naturally, there are traders who witnessed this and are seeking to replicate that scenario.
So, they’re looking for searching for sympathy plays, and BENE stock is an obvious one. They want the “next DWAC,” though Benessere Capital Acquisition might not be the right place to look for that.
A Clean-Fuel Company to Consider
It would probably make sense for those speculative traders to seek out a social-media-focused company, similar to Digital World Acquisition and TMTG.
As it turns out, Benessere is immersed in an entirely different market sector than TMTG. Reportedly, Benessere Capital Acquisition is in merger talks with eCombustible, a developer of “next-generation, customizable, hydrogen-based fuel.”
eCombustible’s fuel-production technology is actually quite simple in some ways. For the most part, it uses water and its component elements, hydrogen and oxygen. And importantly, eCombustible Products Holdings secured a U.S. patent for the isolation of atomic hydrogen and the mixture of the eCombustible fuel.
That patent was granted in 2017, and eCombustible has two other patents pending and numerous others to be filed in the near future.
By the company’s estimate, a large conglomerate could see $320 million in fuel-cost savings over 10 years by replacing its existing use of fossil fuels with eCombustible across its operations.
Moreover, a “large mining company” will apparently use eCombustible to replace fossil fuels in its thermal and electrical applications, thereby reducing its carbon footprint by over 880 megawatts.
The Bottom Line
It might not be the best strategy to buy BENE stock solely because of the perceived connection to DWAC stock.
Instead, you can choose to learn more about eCombustible and its potential value proposition in the clean-energy space.
In other words, Benessere Capital Acquisition and eCombustible are worth your attention, so don’t mind the noise, controversy and other distractions.
On the date of publication, David Moadel 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.