Special purpose acquisition companies have become a major trend in 2020. Not only have they introduced a novel way to bring private companies onto public markets, but they’ve become 2020’s hottest investments. So what should you consider when adding SPAC IPOs to your portfolio? How much allocation do they deserve? How do you pick the next big SPAC? This section will bring you advice that you can put into action.
How to Invest in SPAC IPOs
Before you get into the crazy world of SPAC investing, it’s smart to have a plan. Here are seven tips to balance long- and short-term goals.
Tuscan Holdings will likely be worth 50% more when it closes its EV SPAC merger. THCB stock is worth between $24.62 and $28.46, or 44% to 66% more than $17.10, its price on Dec. 31.
Hennessy Capital SPAC will fly when its merger with EV maker Canoo closes soon. HCAC stock is worth 60% more when it merges with Canoo, based on its own revenue and value projections.
Importantly, SPACs do not involve banks, and therefore, tend to be cheaper, faster and simpler than IPOs. Which SPAC IPOs should you buy to profit?
SPAC IPOs are a great way to gain exposure to market debuts that ordinary investors wouldn't normally have access to, but keep in mind that they carry a high degree of risk.
CIIC stock is worth only $20.66 using present value, or 26% above its own implied value for the merger with Arrival Group.
As SPAC IPOs become more common, you'll want to learn how best to evaluate them, to make the best investing decisions. We're here to help.
This year, SPACs and SPAC IPOs have taken Wall Street by storm. And with that in mind, here are some ways to play this trend.
Opendoor Labs looks like a winner with the IPOB stock merger. IPOB stock looks like a good bargain here post-merger, especially when compared with its peers.
Most of us never get a shot at buying into a true IPO. But thanks to the improved way companies are going public you can. We take a look at SPACs -- the hottest type of investment in the market right now.
Ideally, you want a SPAC pursuing companies with hypergrowth potential, like automated vehicles, for example. Here is one such pick to consider.