One of the more intriguing stocks to gain traction in today’s session is Executive Network Partnering Corporation (NYSE:ENPC). This special purpose acquisition company (SPAC), backed by Paul Ryan, has seen some compelling price action today. Currently, ENPC stock is trading 2% higher on relatively muted volume.
This move follows the release of a Form 8-K yesterday tied to a special shareholder meeting. At this meeting, the SPAC agreed to merge with Grey Rock Investment Partners to form a new oil and gas company.
Given the current state of the energy complex globally, another energy company may be just what the doctor ordered. For former U.S. House Speaker Paul Ryan, that appears to be the thesis behind this merger deal. Notably, other key backers, which include Mitt Romney’s son and Solamere Capital, are in agreement with respect to this merger.
Let’s dive into whether this SPAC deal is one investors may want to take a look at.
Is Now the Time to Consider ENPC Stock?
The SPAC market is all but dried up of late. Few deals are going through, with many blank check companies returning their initial capital investments back to shareholders.
That said, the fact that a merger partner has been found for this notable SPAC may not be surprising to many. Given increased demand for options in the oil and gas sector, this is a SPAC merger that could see outsized attention in the coming quarters. Indeed, until these macro energy issues are sorted out, it appears energy SPACs may be among the few that actually get consummated.
Additionally, it’s also worth noting that despite today’s increase, ENPC stock is trading below its $10 baseline value. Thus, it may continue to get attention from value investors looking to pick up a quick 5% return between now and when the deal goes through.
While speculation may be dying off, ENPC stock provides what looks to be a relatively low-risk near-term arbitrage opportunity for investors. Accordingly, this is a stock I’m intrigued by following yesterday’s news.
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On the date of publication, Chris MacDonald 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.
