Special purpose acquisition companies have become a group trade, Quantum Trading Strategies CIO Sean Udall said Wednesday on Benzinga s YouTube show PreMarket Prep.
Once a few of the SPACs bounce, you are going to get a bounce in 40-50 of them, Udall said.
Udall said his three favorite SPACs are
Opendoor Technologies Inc (NASDAQ:OPEN),
Desktop Metal Inc (NYSE:DM) and
Metromile Inc (NASDAQ:MILE).
Udall On Opendoor: Udall said he doesn t know if Opendoor has bottomed, but at its current level it s only trading at 2x-3x sales.
People are making offers on houses above the asking price all over the country, Udall said.
Benzinga s PreMarket Prep airs every morning from 8-9 a.m. ET. During that fast-paced, highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.
On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.
Once a former SPAC becomes a real company it can go almost anywhere. One that has been volatile over the last two sessions is
Romeo Power Inc. (NYSE:RMO).
The Company: Romeo Power is an energy technology company focused on designing and manufacturing lithium-ion battery modules and packs for commercial electric vehicles. Through its energy-dense battery modules and packs, Romeo Power enables large-scale sustainable transportation by delivering safer, longer-lasting batteries with longer range and shorter charge times.