A Slow, Painful Week for Most SPAC Investors
A light week for SPAC M&A and the new issue market has hit saturation. Pre-Deal SPACs will soon feel the pressure to start finding targets.
Author:
Apr 23, 2021
While 3 deals ultimately announced this week (HZAC, FWAA, and DBDR) it was still a slow week compared to peak SPAC merger frenzy. This week s deals provided modest pops - despite what has (mostly) been a rollercoaster overall week for risk assets. On a happy note, SPACs finished Friday largely up, for the first time in what feels like years.
Overall, the week was one where the mood felt increasingly dark with the media only adding to it with little positive to say.
SPAC Boom or Bust?
SPAC true believers say the boom is about to begin, but the media says it s over and the bubble has burst. Which is it?
Author:
Apr 23, 2021
After another day of SPAC red,
there are now over 300 SPACs that have common shares trading under $10. This is the real test now for SPAC investors. Believers will see this as the ultimate opportunity to prepare for a SPAC boom and drive hard on the yield + optionality play that SPACs offer. But, for those less confident in the SPAC narrative, and the growing number of pure doomsayers fueled by the media, this will be the ultimate sign of the SPAC market s capitulation.
SPACs Could Use Some Good News
The SPAC market s correction is starting to feel very painful for those that bought during peak SPAC. The next deals and de-SPACs will be watched closely.
Author:
Apr 21, 2021
Tuesday was a painful day for the whole market, but SPAC investors were hit especially hard as there seemed nowhere to hide. 20 SPACs were down over 3%, RICE, THCB, STPK, RSVA, NGA, FSRV, CCIV, and STIC were all down over over 5.5%, and
there are now 244 pre-deal SPACs trading under $10.
The average pre-deal SPAC is now trading at $9.91 which means that there is a lot of opportunity for the yield + optionality play. However, increasingly investors are hesitant to jump in given the feeling that the upside is more limited as deals aren t popping as they used to and both the post deal announcement and post de-SPAC periods are seeing the air let out of the price balloon quickly.
3 Recent De-SPAC Winners: PLBY, PCT, CHPT
PLBY Group, PureCycle Technologies, and ChargePoint s public stock have (so far) been thriving
Author:
Apr 21, 2021
With all the negative sentiment surrounding SPACs, we highlight 3 companies that have, so far, been successful in their debuts in the public markets. While 2/3 are down since their actual De-SPAC date, it s important to remember that they are still massively up since their SPAC IPOs. Unlike CLOV, who Chamath has gone to bat for, the short sellers haven t yet come for these stocks.
While some of the luster of peak SPAC has worn off, the deals are still huge home runs if you invested at the right price point, and exhibit the strength of potential returns for innovative companies with strong future growth prospects.