Sanrith Descartes
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Investing General Discussion
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Fogel
Mr. Poopybutthole
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But you won't buy BTNB at 12! I think we'll have to bite the bullet with BTNB, if people bought it at 12 on open they're probably going to diamond hands that shit
Sanrith Descartes
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Sanrith Descartes
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TJT
Mr. Poopybutthole
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Can you ELI-Retard the logic of buying SPAC? All the ones I've seen you mention, along with everyone else, seem to stay at incredibly flat values for extended periods of time.
Fogel
Mr. Poopybutthole
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I did extensive math a few pages back on owning spacs for 1 month, and it came to about 20% return. Considering this was my first foray into spacs and made some mistakes, this can be increased.
You buy the SPAC at 10$. It can never drop below 10-11$ until after the merger, but you'll usually sell long before the actual merger. You wait for the 1st merger rumor which can take anywhere from 3-6 months. If its a good team and good merger company, it can shoot anywhere from 15 to 30 dollars instantly. Just look at the recent ones like CCIV and ACTC.
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Sanrith Descartes
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That is how SPACs work. There are a dozen posts in this thread with lots of explanations.
tldr: SPACs have a floor of $10 (one exception) because all the investment cash is in escrow. Its "almost" like a bank at $10. They tend to stay flat until a merger partner is found. A good merger announcement usually means to the moon. Especially in EV related space. Sell before the merger vote. make tendies. Rinse and repeat. Go read back in the thread for more detailed infos.
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Sanrith Descartes
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The floor is closer to about $9.50 because they can pull out cash for expenses.
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Sanrith Descartes
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And sometimes the company tanks after the merger because then its an actually trading company so the smart money tends to not hold them after the vote (again with some exceptions).
Fogel
Mr. Poopybutthole
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True but of all the spacs I've ever looked at I only ever saw one actually drop below 10
Sanrith Descartes
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It was more common in the early days before NKLA went lunar and got everyone's attention.
CCIV up 6%. Those $20 strike puts looking good. That was a good call on your part.
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TheBeagle
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TJT
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And sometimes the target sucks. I managed to get out of FST at 13.80 today, I don't want any part of that. 10.49 on Jan 15th, to 13.8 today no complaints!
Sanrith Descartes
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Ok so I took your advice and bought BTNB at $12.30. If it tanks under $11 I am coming for you.
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Sanrith Descartes
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Though I will say TRIT had some extraneous circumstances surrounding its precipitous fall. It had just started moving upwards too.
Fogel
Mr. Poopybutthole
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Home
The SPAC tracking resource for the everyday investor. Find the list of all SPACs (Active and Pre-IPO) along with key details.
t.co
You can also follow SpacGuru or SpacTrack on twitter for quick announcements on upcoming spac announcements like rumors, mergers, etc
Take it out of the CCIV options premium
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Sanrith Descartes
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Its a stock, you track it like any other. SPACs are reverse mergers. The blank check company goes public and then finds a private company to "purchase" which becomes a wholly owned subsidiary of the blank check company anfd is now a puclically traded company. SAII is a publicly traded company. and it may not moon. Its a connected car data company, not an EV company. But Israeli tech companies tend to do well (see FVRR).
Sanrith Descartes
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TJT
in my opinion, the secret to SPACs is doing the due dilligence on the Founders. SPACs with good founders have always made me money. Get a SPAC with shitty founders and you get what you pay for. Oh yeah, don't hand around to long once the price moves up. Anything above 30-50% and you need to be planning the exit strategy. Its really a game of volume. Get in early take your quick profits and move on. Hit it, quit it, and dip.- 1
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