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.
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.
SPACs Falter on Monday thestreet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thestreet.com Daily Mail and Mail on Sunday newspapers.
Best SPAC Stocks for Monday
Watch for more short seller activity on SPAC stocks and lots of opportunities to buy below NAV. Will CLOV surge on short squeeze?
Author:
Apr 19, 2021
Last week was another relatively quiet week in the SPAC market with no new IPOs that s the first time in quite a while with no new supply. There were also only 3 new SPAC S-1s filed, for $350m, in another positive sign for the health of the SPAC market. Don t expect a major change in activity this week as the headwinds from the SEC and general oversupply remain in effect. But, remember, this slowdown is good news and shows the market is getting healthier.
SPAC Wrap: New Deal Duds, and QuantumScape Slammed by Short Seller Report
DEH and CHFW drummed up little investor enthusiasm for their SPAC merger announcements. SPAC IPOs remain parked and SPACs generally traded lower on the day. QS sold off on short seller report.
Author:
Apr 15, 2021
Two new deals were announced this morning, which felt like a lot of activity relative to what investors have become used to lately. However, neither of those deals, were met with much investor enthusiasm:
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down 0.3%, and remains below NAV at $9.85
Perhaps it was a little bit of a risk-off sentiment in the market as both of the SPAC targets, Vicarious Surgical + Surrozen, are speculative pre-revenue healthcare plays.