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My cat has started to vomit an unusual amount of hair balls. I’m thinking about taking their sale public at a 40 billion dollar valuation. Invest now before it’s too late.
Great video! I did my Business Law Research paper on this earlier this month. Spot on according to my research. The biggest problems really are the sponsors taking up too many shares and companies with non-transparent finances being taken public
that is the smart thing to do. I believe SPACs are good because a portfolio will and should need growth. Especially when you have little money to start with.
I mean depends on the SPAC and the company I guess , but you could also just invest in a more reasonable company. No one is making you invest in AirBnB :P. If the SPAC is nikola and the company is general motors whose respective synergies are paying art student to design vehicles , shoving truck downhill and filming it, and having a relatively mediocre car brand that has been underperforming compared to many of its competitors then I feel bad for you. Give me an overpriced IPO company which at least has a future in its respective industry over those any day. If the SPAC is something endorsed by Chamath thoug then at least it has more credibility than nikola ever did and may actually succeed ... again the opposite of nikola in every way :P .
@@davebean2886 A Direct Listing is when a company brokers it's own IPO without an investment bank or joining a public company, allowing their shareholders to sell their shares publicly. A company does this when they want to go public and doesn't need a cash offer or guarantee that comes from investment banks buying shares like on normal IPO's, or from SPAC's buying a portion of the company like on spac IPO's. A direct listing is not guaranteed to make any money, and stock pricing is based on demand, so only known companies should do this. A direct listing saves a company's shares and money, but is harder to sell unless the company is popular.
What happens when you remove the big names from the IPO bucket to get their average return? I'm guessing it's not much better than the SPAC bucket. That's what the detectors always leave out.
It's 6.3%. The IPO history is a long and established one. If you take out big names from the IPO history, limit to around, say the 70's to today, it still comes out to around 6.3%.
The incentives of SPAC managers and investors aren’t aligned. As investors, we want to invest our money into quality companies. Meanwhile these managers just need to get something, quality or not, public for a quick buck. There’s a reason why nobody really talked about them in the past (and if they did, it was usually in a negative light). Stay away from SPACs.
Nice umbrella thinking logic about spacs. Have fun on losing out on electric vehicle competitors like Lion Energy or Beyond Meat competitors like tattooed chef. Some companies straight up have shitty targets but there are some gold mines out there. Saying otherwise is just plain ignorant and misleading.
@@MeatPlanet Of course there might be gems but there are also plenty of gems to find out of the companies that went public via a more traditional route. There's data that shows SPACs in general underperform the market, so avoiding SPACs as a general rule of thumb isn't being ignorant.
SPACs are for swing trading.. not long term investing. Sell your SPAC after the initial price spike (which almost all of them have at some point). With a baseline of $10, the risk is very low as long as you're swing trading.
Agree. Either park your money in Spacs you think have good management and potential targets that are trading sideways around 10$ and wait for rumors or LOIs and take the 30-100% profit on the initial run-up or have alerts set and have cash ready to go to get in early on the initial run ups by 13$ at the latest. Unless you truly believe in the company I wouldn't hold past merger, even then I would cut it so I am just riding with house money. The only Companies I truly believe in holding past merger right now are SBE(Chargepoint) and IPOB(Open Door). Draft Kings, UTZ, Repay and don't forget Burger King, are the best legit companies that have already merged. If Proterra goes this route too, they would be an easy hold.
yes PSTH has a great sponsor behind it. Safe to say that gives them an edge but after all it depends on who they try to merge with and if the market likes it, stock can easily double
A SPAC is a specific publicly traded company whose mission is to buy a single privately held company to make it a public company, and then do the thing that most companies want to do after going public -> raise a lot more equity to hypercharge growth (this was WeWork's plan, before its IPO [not SPAC] process fell apart). If done competently, a SPAC is like an IPO but without the 3-7% cut going to banks, and dodging the paperwork hassle could get them access to companies that otherwise wouldn't bother with an IPO A VC firm gives money to companies that are just starting (VC -> Venture Capital, Capital raised for a new Venture), so it's much riskier. Most of their companies will fail since they are so early, but some will succeed and those that succeed will hopefully more than make up for the ones that fail. A PE (private equity) firm often operates as a reverse SPAC firm. A lot of PE firms take public companies private, others just buy and hold private companies. So VC, if run competently, is the highest *average* return because it is so monumentally high risk. SPAC and PE are both companies that try to leverage the fact that there are barriers in the capital markets around public/private status, but do so in very different ways. Which style you'd expect to do better depends on what you think the market conditions are, and both are higher risk than just owning an index fund, but not as high risk as being a VC investor. Or, to summarize: Bonds: low risk low return, high liquidity Index funds: medium risk medium return, high liquidity SPAC / PE high risk high return (but for different reasons), low liquidity VC ludicrously high risk, highest return, close to zero liquidity
@@jamesminor1325 thanks so much for the detailed answered, it made things a lot clearer to me. Adding mutual funds to the mix, would they be similar to Index Funds but with medium liquidity?
Dear Mr. Plain Bagel, I recently read an article in the Financial Post about the home care operator Sienna Assisted Living that still paid out dividends as soldiers came in to help, and they said that: “Dividends are similar to interest costs on loans - dividends are paid to shareholders who have provided the capital necessary to invest in the maintenance, upgrading and building of new long-term care residences,” the company wrote in a statement to the National Post. “At no point has the payment of dividends taken away from front-line care.” How can buying stock be treated as giving capital to a company when your just buying it from someone else, unless it’s some kind of issuance or some kind of shelf prospectus? Can a dividend payment really be seen as interest on a loan?
Sorry I have to argue with your statement on spacs, the ipos are been skyrocket recently personally I prefer buying spacs on low than paying over hundreds for doordash and Airbnb thanks.
so it's easier to take a company without operations public while a company that runs an underlying business has to navigate through paperwork hoops? sounds to me like the regulations have to be changed to reduce this kind of behavior. i am no expert so correct me if i am wrong.
Hi Sbusiso, to put in simply: Reverse Merger: A private company buying a public company, then both combining as a public company SPAC: A public company buying a private company, then both combining as a public company
Hi Plain bagel, I really.like your videos you're very knowledgeable. A quick question what's the background music your using? I plan on making a channel about tech and this would go very well with me explaining stuff.
PE Firm stocks I usually look at:BX,CG,KKR,APO,ARES,BAM BDCs I look at:ARCC,MAIN Everything else is index funds PE and BDCs for single stocks in alternative investments
the best would be to buy around NAV (10$) and exit at target announcement or if you like the company it's merging with for long term then exit just before merger and buy back after pipe release as it acts like a dilution. You have to keep in mind that many people consider spacs as pumps and dumps so be careful
I guess the 500% return I made off SPAC's in 2020 was a fluke huh? The key is getting in early and taking profit on the first big run up. Rinse and repeat...
Before going public, couldn't you sell an extremely small amount of shares in the ipo to get a good Idea of the price and then release the neceassaylry amount
Pro rata share of trust account. One thing to keep in mind is that if you purchased your shares on the open market, you are only entitled to your pro rata share of the trust account and not the price at which you bought the SPAC shares on the market. For example, if a SPAC had an IPO at $10 per share, but you bought 100 SPAC shares on the open market at $12 per share, the shares you purchased are associated with a trust account balance of about $10 per share, so your share of the trust account would be worth about $1,000 (not the $1,200 you paid for your shares). (sec.gov). It all depends on the IPO of the Spac, some have IPO'S of 11.30, 10.20 etc., PSTH Spac was the biggest SPAC ever at 22.00 per stock.
Is it better to invest in stocks every month ($500) no matter how high/low the stock price is or wait till it is relatively low than buy in bulks please? Tank you
IMHO you buy every month because timing the market is nearly impossible. The longer your timeline before cashing out the greater the chance it will be at a profit.
Why you may want to avoid them? What and not make ridiculous gains? I'm up 130% total portfolio in spacs in the past month.... And there's still tons of gains to be had. for those curious: IPOE, IPOD, IPOF, ROCH, LOAK (now DNMR), NGAC, PSTH the list goes on and on....
Can you do a video on positive spacs with potential and the benefits of the spac vehicle. It seems that the responsibility is in the investor to find the appropriate ones worth investing in. It’s saturated sure but there are some amazing ones.
Hindsight being what it is, it looks like this caution was right. When DraftKings is the spotlight for your investment vehicle because every other investment has been a solid loss, it's not a reassuring proposition.
solution to all your cons: invest in the early stage and set a take profit. also, quit before the merge :-) This is why you might want to invest in them Cheers
What happens if you buy a spac and once they announce the merger target, it drops under 10. Is there a way to redeem the 10 value before merger or is the 10 value only available if they don’t find a suitable merger within 2 years?
Only invest in SPACs you know very well - from your studies - & trust. Preferably invest in less risky assets, and diversify into silver-mining stocks!
no. because an ipo shows the company already where a spac doesn’t say the company they will merge with. meaning they could merge with a terrible or great company. so one you know what you’re getting into and the other is a coin flip without any idea on what company will be bought.
If you don’t want to hold for long term spac “hypothetically speaking” Can you buy these SPACs for 10-11$ and sell them for 12-13$... or are these spacs buys locked and can’t be sold the next day for an average investor ?
Call me crazy, if a company is too lazy to go through the IPO and takes the SPAC "shortcut" it's probably a good idea to avoid them until after they've merged. I've seen several lose a sizeable SPACs lose half their value after the merger. Kinda goes both ways I suppose.
![How to Lie Your Way to $34 Billion [Nikola Motors Fraud]](/img/n.gif)
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My cat has started to vomit an unusual amount of hair balls. I’m thinking about taking their sale public at a 40 billion dollar valuation. Invest now before it’s too late.
say less, I'm in!
I'll go with an IPO. Your thing sounds like a SPAC.
tell your cat to stop spac ing
I am his cat n let me tell u there r no hair balls like mine anywhere else on the market
Do you accept kidneys as payment?
Great video! I did my Business Law Research paper on this earlier this month. Spot on according to my research. The biggest problems really are the sponsors taking up too many shares and companies with non-transparent finances being taken public
aren't those two things, uh, the only reasons for the sponsors or companies to use a spac instead of IPO or direct listing?
"The PB"
Keep it. No kidding. It surprisingly has a ring to it. Bass-y.
Is his son named Jay? Then we can have PB&J.
Every other UA-camr: Why SPACs will make you rich!
Richard: Why You Might Want to Avoid SPACs.
I wonder who I should listen to😅
@Luís Andrade Haha
I think to logical thinking
Don't just do what either of them say, make ur own conclusions research and gain experience
Don't fomo a spac and you'll be fine.
@Luís Andrade if u like simple then maybe blue chips and index funds are more suited for you
A "SPAC man" is an investor or manager not to be confused with the circular character that eats white dots, cherries, and occasionally ghosts
can you make a five minute history lesson on the 1987 financial crisis?
"Without paying a fortune to those investment bankers"
Bruh!
Got em
@@ThePlainBagel lmao
Banks make more on fees from SPACs.
Hey Richard, can you make a video about how to detect fraudulent annual report (balance sheet, income statement etc) thanks
+1
Hey! You should check out Security Analysis by Benjamin Graham (book, or the Swedish Investor YT channel too).
@@jamesgreen4212 yep i have just read about fraudulent income account haha i believe it was around chap 5
Google REFCO. That’s all you need to know.
Loved the story-telling - simple and well-explained!
Now I know what spac is. You get my subscription. Thank you.
Buy into SPACs early and as close to the IPO price as you can. Pick them based on the leadership team and target industry. You'll be fine.
Which industries to avoid
@@dasher964 nikola industries
I'd take a SPAC merging with a great company @10$ over any overpriced IPO like AirBnB
FACTS
Depends. Seeking alpha makes a reasonable case for $700 price
that is the smart thing to do. I believe SPACs are good because a portfolio will and should need growth. Especially when you have little money to start with.
Those who are bashing SPACs are free to be wrong. CCIV to the moon.
I mean depends on the SPAC and the company I guess , but you could also just invest in a more reasonable company. No one is making you invest in AirBnB :P.
If the SPAC is nikola and the company is general motors whose respective synergies are paying art student to design vehicles , shoving truck downhill and filming it, and having a relatively mediocre car brand that has been underperforming compared to many of its competitors then I feel bad for you. Give me an overpriced IPO company which at least has a future in its respective industry over those any day.
If the SPAC is something endorsed by Chamath thoug then at least it has more credibility than nikola ever did and may actually succeed ... again the opposite of nikola in every way :P .
not long for you don't have to exclude Nikola anymore as an outlier.
"In God We Trust. Everyone else must pay cash."
"How soon can you get me the money?"
Now do “direct listings”!
Can you say more about what this is?
@@davebean2886 A Direct Listing is when a company brokers it's own IPO without an investment bank or joining a public company, allowing their shareholders to sell their shares publicly.
A company does this when they want to go public and doesn't need a cash offer or guarantee that comes from investment banks buying shares like on normal IPO's, or from SPAC's buying a portion of the company like on spac IPO's.
A direct listing is not guaranteed to make any money, and stock pricing is based on demand, so only known companies should do this. A direct listing saves a company's shares and money, but is harder to sell unless the company is popular.
@@princeoij Thanks for the explanation - seems like a more straight forward way to go public.
good to hear the other side of the story - one which not usually covered by stock youtubers
Watching this after all of the SPACs have basically crashed (Virgin Galactic, Draft Kings, Nikola, etc) is pretty funny.
What happens when you remove the big names from the IPO bucket to get their average return? I'm guessing it's not much better than the SPAC bucket. That's what the detectors always leave out.
It's 6.3%. The IPO history is a long and established one. If you take out big names from the IPO history, limit to around, say the 70's to today, it still comes out to around 6.3%.
Your guess is wrong
Your videos are so helpful! Thank you so much for making such awesome content.
The incentives of SPAC managers and investors aren’t aligned. As investors, we want to invest our money into quality companies. Meanwhile these managers just need to get something, quality or not, public for a quick buck. There’s a reason why nobody really talked about them in the past (and if they did, it was usually in a negative light). Stay away from SPACs.
Nice umbrella thinking logic about spacs. Have fun on losing out on electric vehicle competitors like Lion Energy or Beyond Meat competitors like tattooed chef. Some companies straight up have shitty targets but there are some gold mines out there. Saying otherwise is just plain ignorant and misleading.
@@MeatPlanet Of course there might be gems but there are also plenty of gems to find out of the companies that went public via a more traditional route. There's data that shows SPACs in general underperform the market, so avoiding SPACs as a general rule of thumb isn't being ignorant.
@@Messuduppotatoasia This year is different for spacs than Previous years so data doesn't really matter
Nice easy explanation of SPACs as well as a promising curated news service. Looking forward to using NOA.
The PB is my new favorite youtube channel!
Helpful video! Thanks for the breakdown of SPACs.
When Nikola is part of the highlights, you know there is something seriously doggy going on
Thank you for your analysis bro! I watched handful of videos prior, but this one made most sense.
2021 has been harsh to most of the de-SPACs
you just consistently make videos and say to stay away from certain topics and then those same topics just keep going up!
Dude kept shifting his head from the left to the right every single word
can't not see this now
Like a bad version of Jim Carrey.
Scrolled down to the bottom for this
Addyz
Thanks for explaining spacs. They are much riskier than I initially thought.
SPACs are for swing trading.. not long term investing. Sell your SPAC after the initial price spike (which almost all of them have at some point). With a baseline of $10, the risk is very low as long as you're swing trading.
Agree. Either park your money in Spacs you think have good management and potential targets that are trading sideways around 10$ and wait for rumors or LOIs and take the 30-100% profit on the initial run-up or have alerts set and have cash ready to go to get in early on the initial run ups by 13$ at the latest. Unless you truly believe in the company I wouldn't hold past merger, even then I would cut it so I am just riding with house money. The only Companies I truly believe in holding past merger right now are SBE(Chargepoint) and IPOB(Open Door). Draft Kings, UTZ, Repay and don't forget Burger King, are the best legit companies that have already merged. If Proterra goes this route too, they would be an easy hold.
What do you Think of investing in pre-acquisitions spac’s
Pershing Square tontine Looks really good right now
yes PSTH has a great sponsor behind it. Safe to say that gives them an edge but after all it depends on who they try to merge with and if the market likes it, stock can easily double
Do it
Bought VG post merger, doing great.
Bought Hyliion pre merger, getting killed.
Can you do a video about OTC, Richard?
Can someone help me understand what is the difference for a wealthy investor to invest in a SPAC versus a VC/PE firm?
A SPAC is a specific publicly traded company whose mission is to buy a single privately held company to make it a public company, and then do the thing that most companies want to do after going public -> raise a lot more equity to hypercharge growth (this was WeWork's plan, before its IPO [not SPAC] process fell apart). If done competently, a SPAC is like an IPO but without the 3-7% cut going to banks, and dodging the paperwork hassle could get them access to companies that otherwise wouldn't bother with an IPO
A VC firm gives money to companies that are just starting (VC -> Venture Capital, Capital raised for a new Venture), so it's much riskier. Most of their companies will fail since they are so early, but some will succeed and those that succeed will hopefully more than make up for the ones that fail.
A PE (private equity) firm often operates as a reverse SPAC firm. A lot of PE firms take public companies private, others just buy and hold private companies.
So VC, if run competently, is the highest *average* return because it is so monumentally high risk.
SPAC and PE are both companies that try to leverage the fact that there are barriers in the capital markets around public/private status, but do so in very different ways. Which style you'd expect to do better depends on what you think the market conditions are, and both are higher risk than just owning an index fund, but not as high risk as being a VC investor.
Or, to summarize:
Bonds: low risk low return, high liquidity
Index funds: medium risk medium return, high liquidity
SPAC / PE high risk high return (but for different reasons), low liquidity
VC ludicrously high risk, highest return, close to zero liquidity
@@jamesminor1325 thanks so much for the detailed answered, it made things a lot clearer to me. Adding mutual funds to the mix, would they be similar to Index Funds but with medium liquidity?
I saw 3 videos and yours was the only one I understood. Thanks!
Dear Mr. Plain Bagel,
I recently read an article in the Financial Post about the home care operator Sienna Assisted Living that still paid out dividends as soldiers came in to help, and they said that:
“Dividends are similar to interest costs on loans - dividends are paid to shareholders who have provided the capital necessary to invest in the maintenance, upgrading and building of new long-term care residences,” the company wrote in a statement to the National Post. “At no point has the payment of dividends taken away from front-line care.”
How can buying stock be treated as giving capital to a company when your just buying it from someone else, unless it’s some kind of issuance or some kind of shelf prospectus? Can a dividend payment really be seen as interest on a loan?
Sorry I have to argue with your statement on spacs, the ipos are been skyrocket recently personally I prefer buying spacs on low than paying over hundreds for doordash and Airbnb thanks.
Thank you sir. Pure facts. No bull****. The plain bagel legend!!!!!!!!
Thanks for the vid, this was a perfect breakdown
Awsome! Learned a lot watching your video today. I never even payed attention to SPACs to be honnest.
so it's easier to take a company without operations public while a company that runs an underlying business has to navigate through paperwork hoops? sounds to me like the regulations have to be changed to reduce this kind of behavior.
i am no expert so correct me if i am wrong.
That lighting is really nice.
Glad I didn't watch this before I bought kcac for $14.00 🤣
your damn right
Whats kcac
@@forgotten1s it was QS pre merger, traded in a range between 14-25$ then went to 120$. The warrants went from 3$ to 46
@@goldentickers637 qs?
Good content as always. Would be interesting to know the difference between listing through a SPAC vs Listing through a reverse merger.
Hi Sbusiso, to put in simply:
Reverse Merger: A private company buying a public company, then both combining as a public company
SPAC: A public company buying a private company, then both combining as a public company
Noa is great as a dyslexic person this is EXACTLY what I've been looking for
Hi Plain bagel, I really.like your videos you're very knowledgeable. A quick question what's the background music your using? I plan on making a channel about tech and this would go very well with me explaining stuff.
The song is called Scratch the Itch, it's free to use on UA-cam!
@@ThePlainBagel Thank you so mich!
Best analysis yet. Much better than CNBC
PE Firm stocks I usually look at:BX,CG,KKR,APO,ARES,BAM
BDCs I look at:ARCC,MAIN
Everything else is index funds
PE and BDCs for single stocks in alternative investments
How do you feel about insider buying the spac and their compensation being correlated with the stock price ?
my whole portfolio is spacs pretty much ahha. im glad i watched this great video!
Is there a timeline on when to exit a SPAC and re-enter a SPAC to maximise return potential ?
the best would be to buy around NAV (10$) and exit at target announcement or if you like the company it's merging with for long term then exit just before merger and buy back after pipe release as it acts like a dilution. You have to keep in mind that many people consider spacs as pumps and dumps so be careful
Sounds like listings you find on Kickstarter.
I guess the 500% return I made off SPAC's in 2020 was a fluke huh? The key is getting in early and taking profit on the first big run up. Rinse and repeat...
Where do you find all the spac just before they announce a target?
I had a great experience with SPAC - IPOB, IOPC, IPOE - still waiting on IPOD - Chamat is really churning these well.
I'm in on IPOF and can't wait to jump in on IPOO.
Before going public, couldn't you sell an extremely small amount of shares in the ipo to get a good Idea of the price and then release the neceassaylry amount
You can sell even sell zero (as a company), it's called direct listing. Good thought though
Pro rata share of trust account. One thing to keep in mind is that if you purchased your shares on the open market, you are only entitled to your pro rata share of the trust account and not the price at which you bought the SPAC shares on the market. For example, if a SPAC had an IPO at $10 per share, but you bought 100 SPAC shares on the open market at $12 per share, the shares you purchased are associated with a trust account balance of about $10 per share, so your share of the trust account would be worth about $1,000 (not the $1,200 you paid for your shares). (sec.gov). It all depends on the IPO of the Spac, some have IPO'S of 11.30, 10.20 etc., PSTH Spac was the biggest SPAC ever at 22.00 per stock.
Sounds like a scam. What more do you expect from a vehicle whose sole purpose is to skirt regulatory bodies that protect investors.
Is it better to invest in stocks every month ($500) no matter how high/low the stock price is or wait till it is relatively low than buy in bulks please? Tank you
IMHO you buy every month because timing the market is nearly impossible. The longer your timeline before cashing out the greater the chance it will be at a profit.
Time in is better than Timing if you’re doing long term investing
@@andre-nunes Thank you
depends what stocks you're investing.
You're describing dollar cost averaging, there's a lot of content and academic research on the topic
Do you only get a money back guarantee if you buy the SPAC at its IPO?
Why you may want to avoid them? What and not make ridiculous gains? I'm up 130% total portfolio in spacs in the past month.... And there's still tons of gains to be had. for those curious: IPOE, IPOD, IPOF, ROCH, LOAK (now DNMR), NGAC, PSTH the list goes on and on....
We finally get a definition of what SPAC is at 2:25
Can you do a video on positive spacs with potential and the benefits of the spac vehicle. It seems that the responsibility is in the investor to find the appropriate ones worth investing in. It’s saturated sure but there are some amazing ones.
Thanks for taking the other side point of view.
One SPAC that everyone seems to be talking about at the moment is CCIV. What do you think about it?
You should talk about leasing, its pros and cons
Love your videos. Do you recommend any stocks?
Amazing explanation....very clear.thank you
SPACs are nothing. I'm not investing in something on the off-chance that it ends up doing something, someday.
Thank you. You helped me understand SPACs. 👍
All in in $BFT and $GHIV ,im super bullish😤😤
Love this response to the words of caution. " I'm all in ". Priceless.
@@sambeckingsale2542 again IM ALL IN
Yep. Me too.
Hindsight being what it is, it looks like this caution was right. When DraftKings is the spotlight for your investment vehicle because every other investment has been a solid loss, it's not a reassuring proposition.
solution to all your cons: invest in the early stage and set a take profit. also, quit before the merge :-)
This is why you might want to invest in them
Cheers
I've made an insane amount of money off of swing trading SPAC's... Just gotta play it right.
Do they call you SPAC daddy now?
@@alexanderanghel7946 LOL!! Not yet, I'm not that good.
@@lucasruckle 🤣
Don't tell me what to do, Bagel boy.
It doesnt matter, its a great way to make money now if you know to sell in time.
so spac stock and the company stock ist buying. Will the spac stock become the company stock ? How the 2 companies will merge ?
This aged very well
So, how does a SPAC company becomes publicly traded? Virgin Galactic and Nikola stocks are actual shares or spac shares?
So similar to Private Equity Firms or Leverage-Buy-Out Firms or exactly the same thing?
Brilliant breakdown. Thank you.
LOVE the new background
Look at SPACs now 😂
1:01 Hey Richard, how about instead of PB you use Plaigel. That has a nice ring to it.
Glad I didn’t watch this before i bought BFT at 10.56 🙈
What happens if you buy a spac and once they announce the merger target, it drops under 10. Is there a way to redeem the 10 value before merger or is the 10 value only available if they don’t find a suitable merger within 2 years?
You can redeem the value anytime before a merger
Do the SPAC shares convert 1:1 into the new company? Or how can I find out what that ratio will be? Thanks in advance.
Only invest in SPACs you know very well - from your studies - & trust. Preferably invest in less risky assets, and diversify into silver-mining stocks!
Didn't Nikola turn out to be a scam too?
yeah, Draft Kings is the only one that is still doing perfectly fine.
So Spacs are no different than any other IPO :) Great video 👍
no. because an ipo shows the company already where a spac doesn’t say the company they will merge with. meaning they could merge with a terrible or great company. so one you know what you’re getting into and the other is a coin flip without any idea on what company will be bought.
If you don’t want to hold for long term spac “hypothetically speaking” Can you buy these SPACs for 10-11$ and sell them for 12-13$... or are these spacs buys locked and can’t be sold the next day for an average investor ?
Any thoughts on William Ackman's PSTH spac?
It’s like those mystery toy boxes I buy for my toddler.
I cant get around the fact ipo sponsor gets 1/5th of the company for free. This is so detrimental to regular investor. Why would you ever buy a spac
Can You do a video on reverse mergers?
Call me crazy, if a company is too lazy to go through the IPO and takes the SPAC "shortcut" it's probably a good idea to avoid them until after they've merged. I've seen several lose a sizeable SPACs lose half their value after the merger. Kinda goes both ways I suppose.
It don’t think it can all be chalked up to “laziness”. More so lack of resources, transportation, time, or all of the above.
Time to learn!
@The Plain Bagel SCAM. Avoid this boi, people
Wow, this hasn’t aged well. SPACs are killing it!
always do the opposite of guys like this
Wait until you get SPAC on your faces....
Yeah, not really killing it right now.
Isen’t it the same thing of reverse fusion?
This is great stuff. Keep it up!