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KOKOMO—

"WE HAVE ARRIVED BOYS"—Lamar SPAC

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OOH …Here’s One Thing

 

 

by Jim Johnsen,
Managing Director, Johnsen, Fretty & Company

 

 

KOKOMO

 

https://youtu.be/fJWmbLS2_ec

Given that it’s Sunday and the GOASE is on (greatest of all sporting events) …aka The Masters…, I’ll keep it short.  

Remember the old days when part of the preparation for going to Cancun was to run down to the bank and convert some USD to dinero just in case you came across something special in the local market while down there?  The more I think about it the more the analogy applies to the recent Lamar SPAC.  Okay Johnsen, your thought process is a little wacky but fill me in.  

Lamar mothership has more USD than it knows what to do with.  But it is largely restricted from acquiring anything that is not REIT qualified.  The SPAC gives it access to dinero to purchase non REIT assets.  Assuming the SPAC exercise was not academic and I would be shocked if it was, Lamar is basically saying let’s take a trip boys and get serious about buying something exotic.  Should we care?  

You are darn tootin.  For three reasons.  1.  John Malone and the big boys in media have been able to do all kinds of financing engineering over the years including spin outs, spin offs, tracking stock and other ways of setting up sister companies.  To me, the fact that Lamar was able to do it is a shout from the roof tops.  “WE HAVE ARRIVED BOYS”.    2.  Lamar is not taking the future lying down.  They understand that the industry will change dramatically in the next decade.  IMHO they will use the SPAC to get way out in front of it, and will probably do it in a way that preserves value in the mothership as much as possible.  And 3. remember all those alternative screen networks out there…all of a sudden they may be front and center.  

Order a drink with an umbrella in it and give this a close read:

https://www.sec.gov/Archives/edgar/data/0001854074/000119312521106918/d129488ds1.htm

 

Cheers

 

jfco.com

Securities transacted through StillPoint Capital Member firm FINRA/SiPC

 

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1 Comment
  1. […] Jim Johnsen’s post he shared in his weekly, OOH…Here’s One Thing– ‘KOKOMO‘, an examination of the Lamar Special Purpose Acquisition Company, (SPAC) named Lamar […]

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