SPAC Stock Ideas for Friday (and Beware the SPAC Short Sellers)
It may not feel like it, but the SPAC market may be on track to become healthier than ever. It s yield + optionality for the win. But, be careful as the field hasn t cleared yet and short sellers will make life hard for the SPACs and investors who buy into overly hyped financials and technology.
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Yesterday s SPAC deal announcements were met with a tepid response by the market.
D8 (DEH) was only up 0.9% to $10.07 on news of its deal to merge with Vicarious Surgical and
Consonance-HFW Acquisition Corp (CHFW)
Thursday s SPAC Opportunities: Is SPAC + Crypto Next? Another Good Deal Pop Shows a Healthier SPAC Market
It may start to feel boring for investors, but the SPAC market is getting healthy and that continues to provide opportunities for patient yield + optionality plays. BCTG had a good deal pop of almost 8%. VIH / Bakkt took a big hit (-12%) following the Coinbase IPO.
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BCTG Acquisition Corp (BCTG) taking
Tango Therapeutics public in a $350M deal and then a rare late afternoon announcement from
Roth CH Acquisition II (ROCC) who is taking music company
Reservoir public in a $788M deal.
BCTG was well received popping 7.94% through the close and up another 1.65% in after hours trading.
SPAC Weekly Wrap: Signs of Life in SPAC Land
The SPAC market has stabilized a bit as things almost got back to normal this week. Several M&A deals were announced with some (RICE, MUDS) performing quite well. Pre-IPO activity remained light though and two were downsized.
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Apr 9, 2021
A bit of return to normalcy this week as it feels like the low point of the SPAC market is behind us. New issues actually traded up (unlike the tail end of March) and several deals were met with investor enthusiasm. Highlights include:
Rice Acquisition RICE soaring day-1 +52% on its announcement of Aria/Archaea
Aerion Supersonic May Soon Emerge as a Viable Competitor To Virgin Galactic (SPCE) as the Transcontinental Travel Company Seeks To Leverage Its Boeing Connection in Order To Go Public Feb 23, 2021 09:45 EST
Aerion Supersonic, the company attempting to pioneer affordable supersonic flights, may soon become a viable competitor to Richard Branson’s Virgin Galactic (NYSE:SPCE) as both of these enterprises seek to offer fast and cheap transcontinental travel.
According to the reporting by Bloomberg, Aerion is currently in merger talks with the Special Purpose Acquisition Company (SPAC), Altitude Acquisition Corp. (NASDAQ:ALTU). Should the talks succeed, a Definitive Agreement (DA) to merge may materialize within February 2021, paving the way for the shares of the combined company to start trading on the stock exchange.
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The four-day trading week saw no weakness in SPAC deal announcements or headlines, all of which we followed on Benzinga s SPACS Attack show.
Here is a look back at the deals announced, some new SPACs to watch and top headlines.
SPAC Deals: There were eight announced SPAC deals during the week. The results were mixed as we saw some strong pops on deals and several of the names end their announcement day trading down.
Satellite company BlackSky announced a merger with
Osprey Technology Acquisition Corp (NYSE: SFTW). The deal included financial backing from Peter Thiel. BlackSky uses artificial intelligence and machine learning with its observation satellites. The company has five satellites in commercial operation, with plans to add nine more in 2021.