Stock Market Investors

IPO’s (initial public offerings) tend to create a lot of hype

2019 saw a ton of great traditional IPO’s such as Beyond Meat ($BYND), Chewy ($CHWY), Livongo ($LVGO), and Zoom ($ZM)

A special type of IPO has been all the rage in 2020...

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Yes! I’m talking about SPAC’s

Special Purpose Acquisition Companies:

are shell companies that enable well-connected sponsors to raise capital

are commonly referred to as “blank-check companies”

intend to turn a private co. into a public co. through a reverse merger

have 24 months to acquire an operating business

can vote to extend negotiating window after the 2 years

normally open around $10/share

SPAC’s are a fairly complex concept, but the key points above is a quick summary

Some of the recent successful SPACs include:

Virgin Galactic ($SPCE)
Opened @ $10.41
Currently @ $22.79

DraftKings ($DKNG)
Opened @ $9.80
Currently @ $36.70

Nikola Motor ($NKLA)
Opened @ $9.57
Currently @ $52.49

Note: most SPAC’s open around $10, but once news on potential agreements emerges - price may spike

Hot SPACs to keep an eye on:

Tortoise Acqusition ($SHLL)
-Merging w/ EV truck company Hyliion

Graf Industrial ($GRAF)
-Announced plans to merge w/ LiDAR tech company Velodyne

Collier Creek Holdings ($CCH)
-Signed definitive agreement w/ snack company Utz Brands

cont.

Lancadia Holdings II ($LCA)
-Entered into agreement w/ Golden Nugget Online Gaming

Opes Acquisition Corp ($OPES)
-Announced combination w/ restaurant chain BurgerFi

Insurance Acquisition ($INSU)
-Signed agreement w/ used car eCom company Shift Technologies

Conclusion

This is a very popular trend in 2020 for private companies to hit the public market

It offers investors good swing trade and/or long term opportunities

Be sure to target hot industries such as EV, fintech, etc.

Always do your DD before buying stocks!

If you’d like any more information - feel free to ask in the comments or shoot me a DM