Interest in special purpose acquisition companies (SPACs) seemed dead last year. Following a couple of years of mania in these blank check stocks, investors saw fit to flee to quality and rid themselves of highly speculative names in 2022. That said, alongside a resurgence in certain speculative areas of the market, certain SPACs are once again seeing the love in 2023. One such company that’s in focus today is Fifth Wall Acquisition Corp. III (NASDAQ:FWAC), as FWAC stock has surged more than 25% in afternoon trading.
This surge comes ahead of a shareholder meeting on Aug. 10, in which FWAC stock shareholders will vote on its merger with Mobile Infrastructure Corporation (MIC). That’s an important date for investors to keep on the calendar for those considering this intriguing company.
Mobile Infrastructure Corporation is “an industry-leading reputation acquiring under-managed parking facilities in the nation’s top 50 metropolitan statistical areas (MSAs).” The company essentially provides investors access to key mobility-focused parking assets, with 44 facilities located in 22 key markets.
Let’s dive into what investors should make of this deal and today’s move.
Why Is FWAC Stock Surging Today?
Interestingly, the transcript citing an Aug. 10 meeting date which is apparently driving today’s price action (and has gone viral on various social media platforms), was first made public a week ago, on July 24, according to the filing. Thus, it appears FWAC stock may be one that has caught the attention of algorithmic traders and/or speculators looking for momentum stocks to ride in this current environment.
This SPAC stock certainly offers investors an intriguing upside should its merger close. The company’s target, operating mobility-focused parking assets, could provide the kind of steady cash flow and growth profile long-term investors like. If this deal is completed, and the combined entity shows the kind of growth many expect, this could be a speculative stock to consider on a fundamental basis.
That said, today’s move in FWAC stock appears to be more technical than not. It’s worth noting that FWAC stock has traded around its fair value level of $10 for years until these recent announcements have been widely circulated. Thus, unless investors have some sort of special insight into the future fundamentals of the combined entity, this is a stock I think is best to be wary of at these heightened levels right now.
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.
