Is This Small-Cap SPAC at an 'Infleqtion' Point?

One of my newest "Stocks Under $10" holdings has never traded below $10. That said, the name definitely still is a small cap. I speak of Churchill Capital Corp X (CCCX), which is a SPAC. The shares traded 8.7% higher on Friday and then traded up an additional 10.7% on Monday. I see these shares trading higher still as I write this around the time of the market's open.

I did not expect the stock to take off as quickly over the past few days as it has and perhaps this is just a spike. Perhaps a "next opportunity" to enter will arise as profit taking sets in. Citron Research of Andrew Left fame, has been tweeting positively on the stock, or rather Infleqtion, which is the private company this blank check company is married to, for two days. Left sees this investment as a better investment idea in the quantum computing space than, say, a Rigetti  (RGTI) . Just as a heads up, left has mentioned Rigetti as a short idea on more than one occasion.

Who Is Infleqtion?

Infleqtion is a self-described global quantum technology company involved in the design and manufacture of neutral-atom-based quantum computers and quantum software for governments, businesses and research institutions. Formerly known as ColdQuanta, the firm uses a scalable and versatile form of quantum computing that is already being used and experimented with by the likes of Nvidia  (NVDA) , NASA and the U.S. Department of War.

In early September, Infleqtion announced that it had agreed to go public via the special purpose acquisition company, or SPAC, known as Churchill Capital Corp X. The union is expected to inject Infleqtion with $540 million in cash, which includes $125 million in incremental financing via an investment by private equity. This deal would value the firm at about $1.8 billion in pre-money equity.

The firm will operate under the name Infleqtion once the merger is completed and is expected to list under the symbol INFQ at one of the two major New York-based stock exchanges. Yes, this is speculative. I am already invested in D-Wave Quantum  (QBTS) , which is up 41.7% just October to date, and Quantum Computing  (QUBT) , which is up 20.4% month to date. I am not in Rigetti which is up just as impressively so far this month.

Answering the Mail on Planet Labs, Rocket Lab

We have e-mailed or DM'd questions regarding two Stocks Under $10 names this morning...

Planet Labs  (PL)  will not report again until mid-December, so nothing has changed fundamentally. The options trades that I suggested in September have been profitable and left the trader with potential equity risk down at the $10 level through January.

I currently see the upper trendline of this Raff Regression model as my pivot. That would put my target price at $20. That said, we are less than a month removed from my $9.75 target, so taking off some ​principal and leaving a higher percentage of house money is fine at this point. 

If take off, I would look to add in between the 21-day exponential moving average and the 50-day simple moving average. If one is already short the $10 puts expiring in January, that idea is close to having already been taken care of.

Rock Lab: First off, my $63 target price is still good for Rocket Lab  (RKLB) . No need to update that just yet. But our technical picture has improved for the better. ​Let me show you what had me concerned about three weeks ago:

I thought I saw a Double Top pattern of bearish reversal potential developing. ​Not so, Batman. This is what I now see...

​The stock is now breaking out from a Bullish Flag pattern of trend continuance with a ​$53 pivot. I plan to shave my long position once the stock takes out my $63 target. At that point, depending on how the stock behaves, we could be looking at a new target, but I need to see more pattern development to properly set that target at this time.

At the time of publication, Guilfoyle was long CCCX, QBTS, QUBT, PL, RKLB equity.