Crossroads Capital on Merlin Labs
Thesis
Merlin Labs, a recent de-SPAC, is an under-followed company that the market has not properly analyzed. Its 'tiny public float, locked-up insiders,' and entry through the SPAC channel suggest significant repricing potential as its story becomes better understood. The firm has a long-term conviction, viewing it as both a special situation and an emerging compounder.
“We detailed our thesis extensively in a published research report, but the early price action is consistent with what we expected: a agg iny public float, locked-up insiders, aggorg agg and a market that hasn’t done the work yet on a name that entered through the SPAC channel—the one channel institutional investors have been trained to ignore. We suspect the repricing has barely started...”