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Sanrith Descartes

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Also the reason you sell before the merger, when all bets are off
We need to keep TRIT around as a gentle reminder to the new guys that not every SPAC is a winner.

And honestly it was really a dog pre-merger too. I let my like of the business model blind me and i didnt play it as best as I should have. Luckily I got out just in the green. I should have been red on that one.
 

Sanrith Descartes

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What could possibly go wrong?

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Sanrith Descartes

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They happen right after I hold a SPAC for 3 months at $10 and get bored of it and sell it.
SPACs really are a game of wait and see. So many times I see new SPACs come out hot and then the kids get bored after a week or two and move on. a month later I buy it right around $10. Then I forget about it for a few months.
 
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Arden

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So ideally, hope to buy a SPAC for 11 or under and sell for 14-16 within 6 months?
 

Sanrith Descartes

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Arden Arden remember that Founder's dont get paid if they dont make a deal. They give the escrow money back. So they ARE going to make a deal. Even if its a shitty deal for the investors. It cant really be shitty for them becuase they get Founder's shares. So the closer to $10 you are, if its a dog of a deal you hopefully can get out with 10 or 15% profit. Yeah that sounds shitty for 3-6 months, but remember that the average annual S&P 500 return is about 9.75%. So 10% for 3 months is about 40% annualized. The lower you are in the safer you are.
 

Arden

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Arden Arden remember that Founder's dont get paid if they dont make a deal. They give the escrow money back. So they ARE going to make a deal. Even if its a shitty deal for the investors. It cant really be shitty for them becuase they get Founder's shares. So the closer to $10 you are, if its a dog of a deal you hopefully can get out with 10 or 15% profit. Yeah that sounds shitty for 3-6 months, but remember that the average annual S&P 500 return is about 9.75%. So 10% for 3 months is about 40% annualized. The lower you are in the safer you are.

Yep, pretty much exactly what I read. That was one of the "disadvantages" I read about SPACs... The managers are going to make the merger happen even if it's a bad one. But that doesn't affect you if you jettison the SPAC prior to merge.

Still trying to figure out the downside to SPACs. They seem too good to be true tbh.
 

Jackie Treehorn

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Still trying to figure out the downside to SPACs. They seem too good to be true tbh.

Literally everyone I've explained SPACs to in real life have said this. Seriously, every single one of them. About five people now. There really isn't a downside.
 

Tmac

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Literally everyone I've explained SPACs to in real life have said this. Seriously, every single one of them. About five people now. There really isn't a downside.

If the rumor doesn’t bump and you hold and the merger tanks you could lose.

I think the thing w SPACs is that the life cycle is very defined so you know exactly what you’re waiting for.

Even better that people here post when those triggers occur.
 

Arden

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Really no reason not to just go balls deep if you get in near 10. Got nothing to lose and everything to gain.
 

Jackie Treehorn

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If the rumor doesn’t bump and you hold and the merger tanks you could lose.

I think the thing w SPACs is that the life cycle is very defined so you know exactly what you’re waiting for.

Even better that people here post when those triggers occur.

Well of course, my statement was predicated on knowing risk tolerance and dumping. I've never lost any appreciable money on a SPAC, because in general I'm a low risk investor and I'm happy to take small profits or ditch with a minor loss, and I'm very averse to spending more than $12-12.50 in general at a buy in.
 

Jackie Treehorn

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Really no reason not to just go balls deep if you get in near 10. Got nothing to lose and everything to gain.

Exactly. I was explaining to a friend of mine they could park cash in SPACs and I told them simply to buy into near NAV offerings and take a peek at them on a weekly basis, sell and move around as needed. Low effort, beats interest by a mile.
 

Arden

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Exactly. I was explaining to a friend of mine they could park cash in SPACs and I told them simply to buy into near NAV offerings and take a peek at them on a weekly basis, sell and move around as needed. Low effort, beats interest by a mile.
NAV = Net asset value (NAV) ? What's that mean for a SPAC?
 

Furry

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Literally everyone I've explained SPACs to in real life have said this. Seriously, every single one of them. About five people now. There really isn't a downside.
The downside to spacs is getting caught in one that actually succeeds in its goal of merging with a company. With this many spacs, the mergers will likely always be shit, and historically they are typically shit. Thankfully, the abundance of spacs and hype for them means theres a bigger window of not-merger status to try and play.
 

Jackie Treehorn

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The downside to spacs is getting caught in one that actually succeeds in its goal of merging with a company. With this many spacs, the mergers will likely always be shit, and historically they are typically shit. Thankfully, the abundance of spacs and hype for them means theres a bigger window of not-merger status to try and play.

Goes without saying. Never keep through merger. Definitely not the type of securities you keep for months without looking.