Rice a Roni

The Pennsylvania Treat

$roni: a $10 Spac to believe in!

For the better part of 2020, you could buy most spacs around $10 and hope for a pop on the deal announcement. Then came the number of over valued 0 revenues deals to ruin the party. Now, we are in the mode where you need to know the sponsor, their strategy and if they have a reasonably valued target in mind. $rice has been a very successful recent SPAC as the company merged two landfill to gas plays (LFG) at a reasonable valuation (at $10 it was $1.1b for $140m ebitda in 2022. The stock has since near doubled and we really like this story for the short medium and lon term (see our write up a few weeks back).

What’s Rice without the Roni? Their second SPAC went public recently and we think the management team will do an equally interesting and compelling renewables type play. We think you can buy the warrants or the $10 common at little to no risk and a lot of upside.

Rob’s Educated Guesses