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This Seldom Talked About Type of Special Situation is Ripe for Huge Gains



May 15, 2015 – Comments (2) | RELATED TICKERS: AGFS , DOW

There is another SPAC, however, that I did feel comfortable investing in that I want to talk about, Boulevard Acquisition Corp. $BLVD.  Boulevard is a special purpose acquisition company that is sponsored by Avenue Capital Group.  Its stock recently spiked nearly 20% when word broke that the company had found an investment. It purchased the AgroFresh chemical business from Dow Chemical $DOW.

To me, what makes this deal particularly interesting is that it's not as if Dow was looking to unload an underperforming business.  Dow has been under tremendous pressure from activist investors, such as Dan Loeb's Third Point, to break up its chemical empire and focus on only its core products.  So in essence, AgroFresh sale was a forced divestiture, the best kind from a buyer's perspective...CONTINUED


2 Comments – Post Your Own

#1) On May 16, 2015 at 9:34 AM, MKArch (99.76) wrote:

This one reminded me initially of your HRG rec a few years ago. I know Falcone turned out to be a bad egg and I took your advice and bailed at the time with a decent gain, however that one has done fairly well. I'm a little afraid to invest in a one trick pony but would be interested in another HRG type situtation where the risk is spread around and you get in on the ground floor.

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#2) On May 18, 2015 at 11:16 AM, TMFDeej (97.46) wrote:

Hey MKArch.  Falcone has definitely had some issues, but he has also had come big hits as well.  This does sound a lot loke HRG.  I've been looking at a lot of SPACs lately.

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