What’s lacking from Spire is a major PR push. We don’t see cute names for each mission, we don’t see round after round of a-may-zing videos on YouTube, and the CEO doesn’t tweet about changing the world one weather forecast at a time. This might limit stock price growth in the short term, but we remain of the view that quality will out. The merger between Spire and the NavSight holding company is due to complete some time in Q2 and as the company starts to deliver earnings reports and conducts normal corporate PR activities, we anticipate its profile rising.
The thing about Spire is, it’s not a spray and pray kind of deal the way that many SPAC stocks are right now. Those fundamental building blocks above - you know, product, customers, management - they are in our view the foundation of a business with the potential to keep growing revenue, earnings and cashflow for the long term. And while we are no blind followers of fundamentals (we posted on this topic yesterday, you can read it here
), we think the reality of this company will over time stand out from the hopes, dreams and, yes, promotional activities, of many of the other SPAC deals out there.
So speaking for staff personal accounts, we remain happily long NSH (the uncool pre-merger ticker) and NSH.W (the warrants pertaining to the same uncool ticker) and intend to do so once the stock gets a makeover and becomes SPIR. As for your accounts, well, we can’t speak for them. After all, we barely know you and we aren’t party to your hopes, dreams, fears or greed. But we think it’s well worth you reading up on Spire to decide whether, in the end, there could be a little free money on offer there too.
We will continue to cover Spire in detail in our subscription services. You can go parsimonious ($29/month) in our ‘Elements’ service - of which more here
- or profligate ($199/month) in our ‘Fundamentals’ service - of which more here
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Cestrian Capital Research, Inc - 7 April 2021.
Disclosure - Cestrian Capital Research, Inc staff personal account(s) hold long position(s) in, inter alia, NSH, NSH.W, VACQ.W, VACQU, HOL, HOL.W, SFTW, SFTW.W, and the daddy-SPAC of them all, SPCE.