Shares of the ad hoc acquisition company (SPAC) Pivotal investment II (NYSE: PIC) jumped more than 25% in open Monday morning. Today is the day shareholders are expected to approve the company’s merger with the vehicle electrification company XL fleet.
The newly merged company will be listed on the New York Stock Exchange under the symbol XL. It’s not news, but a famous stock picker has said stocks “could be a good deal.”
CNBC’s Jim Cramer highlighted the merger on his Crazy money show Friday night, and told viewers he believed the stock was a buy at its Friday closing price of $ 15.32.
XL Fleet is a vehicle electrification company currently focused on converting fleets of commercial and municipal vehicles from internal combustion engines to plug-in hybrid drive systems. XL Fleet also intends to expand to fully electric systems and has just announced a new XL Grid division for electric vehicle (EV) charging infrastructure.
Cramer said his optimism for XL Fleet stems from what sets it apart from many other EV companies that have gone public through PSPCs. “Unlike most electric SPAC parts, its products are already on the road,” Cramer noted on his show.
XL Fleet estimates 2020 revenue at $ 21 million. He believes he will more than triple that to reach $ 75 million in 2021 depending on demand and his sales pipeline. Cramer added that “the company’s short-term forecast is much more substantial than what you see from most of these PSPC names.”
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