FMCI - in or out?

I have seen a lot of positive things for the FMCI merger and I am currently invested in this… is anyone else on board?

If so, why?

Should we be putting more money into it?

Highly speculative in my opinion, but probably less risky than NKLA. Not sure on the fundamentals of the Tatooed chef but thanks to Beyond Meat there is a lot of expectation/speculation in plant based products.

It will probably benefit from hype and therefore as the merger/acquisition date comes closer 30-Sep last I checked) it may continue to increase. A lot of people have got in early on the hope that it follows VTIQ/NKLA and DKNG.

My rule of thumb is that 10% of my portfolio is for riskier bets but I wouldn’t necessarily put that entire 10% into this 1 stock, current position for me is 1% of portfolio. The part I’m unsure about is that in the acquisition prospectus the enterprise value of the deal is $482m but with FMCI trading at $18 that is a $1.1b market cap which if I understand it correct implies FMCI shareholders are paying 2x value of the company. This premium may be worth it though given the growth prospects.

This company does at least have Revenue (unlike NKLA) and also has fewer barriers to launch and distribute new products. Building an entire truck and hydrogen fuel cell network is a lot more difficult than launching some plant based food products to supermarkets.

1 Like

I went in at 15 dollars. Not sure if I would go in at current price.

I’m not sure what’s happening to it right now it’s going down…

Its just the weak hands leaving the train. Im in for the full ride

3 Likes