SPACs research - 8 January

8 янв. 2021 г.

IPOE ripping up is a reminder of how profitable it can be to get into SPACs near enough their nominal asset value (NAV).

Let's get after it, find some hidden gems, smash it and secure some profits. I'm absolutely thrilled to be part of this glorious moment in the market.

Today I am looking for promising assets that are at, or near, their NAV.

I'm looking for:

* A solid team
* Hype potential - interesting proposition or sector
* Near NAV
* Ideally - definitive agreement in place

Potentials

LFTR

* Targeting a big fintech product. CEO is former ETrade with a solid team, ex-Coinbase.
* Could explode up if they snag a significant online trading site. In Post COVID world this sector can only expand.
* Currently at 10.50 - NAV zone. Trading in tight range, building a base, looking primed.
* Searching, no def. agreement in place as of yet.

Verdict: Yes - full position. I'm bullish on the team and the sector, and it's at NAV. Let's get after it

ESSC

Weird one that I don't have a lot of information about, other than people saying 'stay away' on the interwebs. Chinese SPAC with limited information. Could be worth a quarter position at NAV, but only if you don't see better options.

Verdict: No, unless we lack any better options. Bit odd.

ATAC

* Team made up of various MDs and entrepreneurs, mostly in finance sector - Board of Directors
* A little dull, but could end up doing modestly well. Owl Rock / Dyal Capital merger, date not yet set
* Now in NAV zone. Got pumped and dumped (sell the news on definitive agreement?) now between 10.00 - 11.00
* Def. agreement in place and nothing changed here fundamentally

Verdict: Maybe. Could do well upon merger date set. Right now, a little obscure and needs a catalyst. Quarter position.

VSPR

* Team headed up by former Allergan CEO Brent Saunders - the producers of Botox.
* Feel like this could get some attention for the FA once it wakes up and a merger date is set
* Currently in 10.33 - 11.33 range. Failed resistance to support flip. I can see it slipping back into lower part of range
* Def. agreement in place. Rumoured to complete in Feb/March 2021

Verdict: Yes, I like fundamentals. Ladder in to this one in this range - start with quarter position on spot, then set lower bids.