Markets

Why Forum Merger II Stock Just Popped 6%

What happened

Forum Merger II Corporation (NASDAQ: FMCI) isn't exactly a household name. It's not a phrase that just tumbles off the tongue. It's not a name we've written about here at The Motley Fool -- and fortunately, it's not a name we'll have to write about much longer.

As we told you about a month ago, Forum Merger II Corporation is in the process of buying the Tattooed Chef brand of plant-based foods in a SPAC-based IPO. Once that happens, the SPAC will be (mercifully) renamed Tattooed Chef -- and we can forget all about Forum Merger II Corporation.

But should you forget about investing in Tattooed Chef, too?

Tattooed Chef Cauliflower Mac and Cheese Bowl

Image source: Tattooed Chef.

So what

Maybe not. This morning, shares of Forum Merger II Corporation popped more than 11% in early trading (and they're still up about 5.6% as of noon EDT) after Tattooed Chef reported "record preliminary revenue for the six months ended June 30, 2020."

Revenues rose 96% year over year in the first half of 2020, reported the company, and growth was pretty consistent -- 95% in the first quarter and 96% in the second, pandemic notwithstanding.

Now what

Admittedly, Tattooed Chef discussed revenue growth only and did not mention the actual purpose of most publicly traded companies: not just growing revenues but doing so profitably. Tattooed Chef's press release contained not a single word about profits.

The company might not have the privilege of remaining coy on the subject of profits (or losses) much longer, however. Once it's a public company, it will have to release financial information on both its revenues and its profitability.

Forum Merger II Corporation says it plans to consummate the merger and take Tattooed Chef public later this quarter.

10 stocks we like better than Forum Merger II Corporation
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Forum Merger II Corporation wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of June 2, 2020

 

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TTCF

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More