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A lot of times success isn’t determined by how you trade, but rather what you trade. As markets become increasingly thematic, baskets and stories (Uranium, Rare Earths) seem to be more powerful than ever. I think desperation is a driver behind a good chunk of the move – many Americans, and in fact global investors, feel left behind and thus a need to break out of the rat race by generating massive gains. Companies with strong stories and narratives, combined with quick moves, help scratch this itch.
Are these investors putting the cart before the horse? Given a good chunk of the meme squad hasn’t generated a single dollar of actual revenue, it’s reasonable to say yes. Nonetheless, the price of a stock is simply what people are willing to trade it at 4 PM, and there are a few lesser-known names across AI Infrastructure, Critical Metals, and Defense, and Capital Markets that I think are worth a look. The purpose of this article is to briefly discuss them and bring them to your attention.
Bleichroeder Acquisition Corp (BACQ)
Bleichroeder Acqusition Corp is a SPAC intending to merge with Merlin Labs, an autonomous aviation contractor. Merlin Lab’s primary product, Merlin Pilot, combines proprietary hardware and software solutions with GE’s Flight Management System to fly a variety of aircraft, and can substantially reduce the need for large crews as Merlin Pilot can interface with Air Traffic Control and handle re-routing and collision avoidance.
Merlin has already won substantial long term business contracts. In 2024, Merlin secured a $105 Million contract from the US Air Force to retrofit C-130 Transport Aircraft with its Merlin Pilot system, and is in further discussion to expand this to the KC-135 Tanker Fleet. I think Merlin’s autopilot offering, which runs in partnership with GE’s Flight Management system (currently used on more than 14,000 military aircraft), has a strong opportunity to play a role in military readiness as drones and autonomous aviation play a larger role.
The SPAC transaction isn’t expected to close until early 2026, but what I like about BACQ is the favorable risk to reward of the trade. Spac Holders have the right to “redeem” their shares from the SPAC and receive cash. BACQ is currently trading at 10.88, and the redemption value is somewhere in the 10.40 – 10.50 range. As a result, your downside (up until the deal closes) is 30 to 40 cents, as you can simply “redeem” your shares upon the close of the transaction if the SPAC is trading below cash value. As a result, at 10.88, I think a favorable setup is in place as a move to $12-$14 would provide a significant gain relative to the 30 to 40 cents of risk you are taking.
Willow Lane Acquisition Corp (WLAC)
Willow Lane Acqusition Corp intends to merge with “neocloud” provider Boost Run. Boost Run specializes in “Bare Metal” GPU hosting solutions where a tenant rents the entire server. Boost Run does not own data centers, rather, it partners with Tierpoint Data Centers to offer capacity across Charlotte, St. Louis, and Pennsylvania. Boost Run’s founder, Andrew Karos, is well connected and previously ran high frequency trading firm Blue Fire Capital before it was purchased by Digital Asset Giant Galaxy Digital (who ironically, is also building data centers).
Boost Run has been profitable since inception in 2023, and has not needed outside Series A, B, or C funding.
Boost Run has never raised Series A, B or C funding. They’ve grown organically while maintaining profitability. This transaction values Boost Runat roughly $614 million on a post-money basis, with over $112 million of cash added to Boost Runs balance sheet, assuming no redemptions by Willow Lane shareholders. Boost Run’s 2026 revenue midpoint of $180 million implies an attractive 3.4 times forward EV to revenue multiple, significantly below the comparables. We are very excited about this transaction.
The company is cash flow positive, and is forecasting significant growth in 2026.
Our financial course demonstrates what we believe is a powerful model. Pre-cash flow positive since year one, and we are committed to this principle. 2026 estimated revenue is $180 million at the midpoint. This represents approximately a 470% growth year-over-year. We generate strong profitability within the neo-cloud industry with adjusted EBITDA margins of approximately 80%.
I hesitate to do “relative valuation” within the Neocloud industry, since practically anyone trades at sky high multiple (I sold Nebius at $30), but with Boost Run trading at an implied 5x EV / Revenue, it seems to be much cheaper than peers.
There is almost no coverage of Boost Run as of now, but I think that is likely to change quickly. Boost Run has an institutional call with DA Davidson later today, and I think heightened awareness will significantly benefit the stock.
While Boost Run is trading around 4 dollars higher than the SPAC redemption value (so significant downside is present), I think it provides an interesting opportunity to gain exposure to a neocloud provider at a sub-industry multiple.