CLST Holdings Inc (CLHI)

[Renegades17]

SPACs as an analogy



As we await completion of merger formalities, I think it's interesting to look at the stock movement of companies effectively reverse merging with SPAC "shells". In most cases, the stocks, despite the deals being known and fully expected to be successfully completed, respond very positively to merger completion. The fundamentals of the story haven't changed, either positively or negatively, but this is undoubtedly important for some buyers. This is partly due to some investment managers not being able to own "blind pool" vehicles.

I believe we're in a similar situation with CLHI/TDS. There is no event risk, only the time lag to get the merger paperwork completed. Once that's done, the dominoes start falling and impediments to owning for many shareholders will go away. Moreover, we will hopefully learn more about the B2B database acquisition (they haven't given a sneak peek into that one yet) and CreditSafe (I imagine they're waiting on completing the merger to finalize that if not already done).