They’ve been making headlines in recent months, and for plenty of reason. The SPAC, or special acquisition company, is exactly what its name suggests: a company formed specifically to make an acquisition. In essence, a SPAC is a shell company, flush with funds, that is formed to seek a merger target. The target company is typically a small- to mid-cap player that wants to go public, but lacks cash. The SPAC provides the cash. It sounds like a great deal, doesn’t it? And for the SPAC’s investors, it can be.
In 2020, special purpose acquisition companies (SPACs) went from obscurity to notoriety for more than a handful of good reasons. But what does 2021 promise for today’s investors? Three diversified and well-discounted SPAC stocks point at well-positioned buying opportunities. Let’s take a closer look at what’s happening to each these promising companies, then consider risk-adjusted solutions to improve investors’ chances for success.
A year ago this alternative “direct listing” route for stocks to go public was virtually unknown. But now names like Nikola (NASDAQ:NKLA), Fisker (NYSE:FSR) and Workhorse (NASDAQ:WKHS) have become household names in the investing sphere.
You might notice a trend with the names listed above. They’re electric vehicle (EV) stocks. This theme took the pole posit...
After finally opening for business as a publicly traded company, many investors now question if it’s a smart idea to consider Opendoor (NASDAQ:OPEN) stock.
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With that question in mind, let’s take a look at what’s happening off and on the price chart of this recent special purpose acquisition company (SPAC) offering. I’ll then offer a risk-adjusted determination aligned with those findings.
For more than a few investors SPACs are inexorably linked with EV stocks. And for good reason. Fisker (NYSE:FSR), Blink Charging (NASDAQ:BLNK) and QuantumScape (NYSE:QS) are among some of today’s heavily traded vehicles. And there’s a ton more of other electric vehicle companies which have entered the market vis-à-vis a booming SPAC reverse merger process.Invest...