Posted by
Message
LSUregit
LSU Fan
Member since Dec 2013
1402 posts

Special Purpose Acquisition Company (SPAC) Discussion
For Degenerates of MT who occasionally likes to dabble in speculation:

SPACs are basically shell/blank check companies formed for the purpose of raising capital through an IPO and using those funds to acquire an operating business.

Recent rise of popularity due to SCH/SPCE, DEAC/DKNG, VTIQ/NKLA. Other IPOs are trading higher than their merger price, but these are the most popular meme ones.

The next one appears to be FMCI/FMCIW (First mentioned VTIQ thread pg 6). Pumpers will tout Impossible Food but highly unlikely. There's a June 8 meeting to extend consummation deadline to 9/30. Anything less than IF will be an initial let down but long term, BYND needs some healthy competition imo. If no definitive agreement is reached, everything will plummet back to baseline.

The play has been getting into the warrants (similar to call options/leaps) right when some merger news is announced...initially warrants seems to move higher before the common shares. Some are even going further and speculating on SPAC warrants even before any target is announced (me). Some park money in shares for lower risk with a floor of $10. If a SPAC does not acquire a target within the stated timeline outlined in the prospectus, shareholders are given the option to redeem their shares, generally $10/share + interest (warrants go to worthless).

I consider this still a very niche high risk/rewards play. Hopefully we can identify a few more high-flyers down the road. Keeping my eye on FEAC SCH2/SCH3 CCXX and many others. GLTA
This post was edited on 5/31 at 10:01 pm


Boh
LSU Fan
Baton Rouge
Member since Oct 2009
12268 posts

re: Special Purpose Acquisition Company (SPAC) Discussion
Good info here, thanks for posting


LSUregit
LSU Fan
Member since Dec 2013
1402 posts

re: Special Purpose Acquisition Company (SPAC) Discussion
SAMA/SAMAW


Clever Leaves
This post was edited on 6/1 at 10:36 am


LSUregit
LSU Fan
Member since Dec 2013
1402 posts

re: Special Purpose Acquisition Company (SPAC) Discussion
Hope someone has been keeping tabs on FMCI/ FMCIW. Still no announcement today tho.

Been in FMCIW since .50 and FMCI since $10.5


LSUregit
LSU Fan
Member since Dec 2013
1402 posts

re: Special Purpose Acquisition Company (SPAC) Discussion
HCCHW

OPESW

Warrants went crazy. Easy money.


Boh
LSU Fan
Baton Rouge
Member since Oct 2009
12268 posts

re: Special Purpose Acquisition Company (SPAC) Discussion
FMCI has been running strong over the past week, closing higher over recent trading days. Guessing it will depend on who the target is to see how high it can go. I'm novice on these things but most people seem to think Impossible would be amazing but unlikely

OPES has jumped a lot this week (BurgerFi?)


hiltacular
Georgia Tech Fan
Philadelphia
Member since Jan 2011
16574 posts
 Online 

re: Special Purpose Acquisition Company (SPAC) Discussion
Sold my FMCI today just think it has gone too high with no real news coming for a few weeks.

Bought GPAQ


Replies (0)
Replies (0)
00
SECFan1995
Col. of Charleston Fan
Member since Sep 2015
7805 posts

re: Special Purpose Acquisition Company (SPAC) Discussion
I clicked on this post to mention OPES.

They entered a LOI with BurgerFi, yeah. FMCI seems to be more popular so far, but OPES and CCH have actual announced companies (Utz with CCH I believe).

OPES/BurgerFi is going to be my first real speculation stock (I do have other stocks though). I believe it has potential, not expecting it to do what VTIQ/NKLA has done but I can see conservatively, $25-30 in a few months.


LSUregit
LSU Fan
Member since Dec 2013
1402 posts

re: Special Purpose Acquisition Company (SPAC) Discussion
SHLL/SHLL+

Hopefully others jumped aboard when first posted last week.


INSU/INSUW


Just in talk/rumors. Maybe confirmation within next few wks.


CRSA/CRSAW








LSUregit
LSU Fan
Member since Dec 2013
1402 posts

re: Special Purpose Acquisition Company (SPAC) Discussion
Bill SPACman's mother of all


PSTH should be available any day now; however, most SPACs can take up to two yrs to find a target. I plan to park 100k in the units/commons with a floor of $20 the first day it's available. I'm thinking he already has some targets in mind and will announce within 6m- 1yr. Will also buy the warrants once they separate (around 52 days later).


TheChosenOne
VCU Fan
Member since Dec 2005
16730 posts

re: Special Purpose Acquisition Company (SPAC) Discussion
Thanks for bumping.

I read about PSTH earlier. I’m jumping in too. The guy knows what he’s doing and he has to have some targets in mind to be raising that much capital.



Replies (0)
Replies (0)
00
TheChosenOne
VCU Fan
Member since Dec 2005
16730 posts

re: Special Purpose Acquisition Company (SPAC) Discussion
I’ve payed with a few SPACs, never bought warrants, though.

Do you mostly buy warrants on the one’s you like/see value or do wait for rumors and just try to jump in early?


LSUregit
LSU Fan
Member since Dec 2013
1402 posts

re: Special Purpose Acquisition Company (SPAC) Discussion
I currently own warrants in over 20 different SPACs. I bought them very very early before it caught on tho. Many folks are buying and trading warrants just like individual stocks, with zero intention to redeem, and has made them very volatile. If you look at the trend of EVERY SPAC warrant over the past month, they all have trended way up.

I was lucky to be ahead of the game and own most of them near their lows. I knew I couldn't predict which SPAC will announce a target so I bought a basket of them. Including the three just mentioned.


- Once a target is announced, warrants will rocket up then commons follow if it's a decent company.
This post was edited on 6/22 at 10:58 pm


weisertiger
LSU Fan
Lake Charles, LA
Member since Sep 2007
2396 posts

re: Special Purpose Acquisition Company (SPAC) Discussion
ACTT is one that I have been watching. They have a meeting in a couple days

LINK

quote:

Act II is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses that completed its initial public offering in April 2019. Act II focuses on companies in the “better for you” sectors, such as consumer packaged goods and other consumables as well as hospitality, including restaurants. The company is led by 25-year organic and natural products industry visionary Irwin D. Simon, Executive Chairman.


quote:

Following the closing, the combined company will be rebranded as Whole Earth Brands, Inc. (“Whole Earth Brands”). Whole Earth Brands will look to expand its branded products platform through investment opportunities in the natural alternatives and clean label categories across the global consumer product industry. Over time, Whole Earth Brands will look to become a portfolio of brands that Open a World of Goodness™ to consumers and their families.


They will be providing Starbucks with Stevia


jmcwhrter
Member since Nov 2012
2634 posts
 Online 

re: Special Purpose Acquisition Company (SPAC) Discussion
How do you determine the value on something like this?

What news would come out of the meeting in a couple of days that would make the stock go up, and what kind of rise are we talking about?

I'll hang up and listen


hiltacular
Georgia Tech Fan
Philadelphia
Member since Jan 2011
16574 posts
 Online 

re: Special Purpose Acquisition Company (SPAC) Discussion
ACTT

Tomorrow they are voting to approve the merger of the two companies creating a new company (whole earth brands).

Valuation is tough but you can look at the financials of the merger companies to get an idea of what you are buying.

I like ACTT for a couple reasons. There is significant momentum in the total SPAC space right now. Everyone saw how great NKLA did, people are eager to find the next one.

Beyond that, I like ACTT specifically bc of trend towards healthy options. As someone said they are in starbucks and should become a name brand.

ETA

I think anything under $11 is extremely good value, I really think this is $12+ going into the vote and hopefully running to $15 after that. I am in at $10.00 exactly which is actually under the insured amount in the event the vote doesn't pass so my risk is little.
This post was edited on 6/23 at 3:13 pm


LChama
Member since May 2020
279 posts

re: Special Purpose Acquisition Company (SPAC) Discussion
This one (ACTT)stunk it up today


Turftoe
New Orleans Saints Fan
Denver
Member since Mar 2016
1771 posts
 Online 

re: Special Purpose Acquisition Company (SPAC) Discussion
quote:

This one (ACTT)stunk it up today


Hardly, green in a sea of red. This will now trade under the ticker FREE. I’ll hold for a few weeks and see how it shakes out


LSUregit
LSU Fan
Member since Dec 2013
1402 posts

re: Special Purpose Acquisition Company (SPAC) Discussion


Replies (0)
Replies (0)
10
hiltacular
Georgia Tech Fan
Philadelphia
Member since Jan 2011
16574 posts
 Online 

re: Special Purpose Acquisition Company (SPAC) Discussion
It was basically flat during a huge red day. Let’s see what it does now that the merger has been approved. Still think the risk is minimal and reward is worth being in it.


Jump to page
Page 1 2 3 4 5 ... 10
Jump to page
first pageprev pagePage 1 of 10next pagelast page

Back to top

logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram