It was a quiet news day for SPACs on Monday with the CompoSecure / DBDR deal a disappointing +0.2% up on the announcement. The mania of "Merger Mondays" is gone and only good deals will get rewarded. Investors may not have liked CompoSecure's aggressive growth forecasts or they may be a little scared off from crypto with Bitcoin's (modest) crash back down to the mid $50k range. Regardless, they didn't bite.
Overall, the SPAC market took another hit as almost 75% of both the pre- and announced deal SPACs were down on the day. There are currently about 230 pre-deal SPACs that are trading under $10 so lots of opportunity for the "yield + optionality" investors out there. On that, we're hearing more from Credit investors regarding the yield opportunity which may be another source of support for SPACs going forward.
** For on-going tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service. **
CLOV Short Squeeze Props Up Chamath's SPACs
Following the CLOV short squeeze, Chamath has come out to again publicly defend his SPAC track record.
FinTwit mostly wasn't having it and a few of the most common responses amounted to:
- NASDAQ is the better comparison vs SP500 because he is benchmarking technology companies
- It's deceiving because IPOE is driving a lot of the gains, but if investors missed out on the day 1 bump on IPOE, then the return is most likely negative not +129%
- He left his investors high and dry as returns went bad and he wasn't as loud / promotional while the shorts came out
- Waiting for the CLOV squeeze to bolster the numbers and then promoting his SPACs is deceptive at best
- Doge coin seems to be a better investment (yes, Doge coin)
For those currently involved in one of Chamath's current SPACs (ie not de-SPAC'd) it was another tough day (1-day change ~ closing price):
** Chamath SPACs (not de-SPAC'd) **
-5.70% ~ $ 15.39 | IPOE - Social Capital Hedosophia Holdings Corp V | Announced -> Social Finance, Inc.
-0.83% ~ $ 10.73 | IPOD - Social Capital Hedosophia Holdings Corp IV | Pre-Deal
0.87% ~ $ 10.48 | IPOF - Social Capital Hedosophia Holdings Corp VI | Pre-Deal
** Chamath Pipes **
-5.26% ~ $ 14.76 | ACTC - ArcLight Clean Transition Corp | Announced -> Proterra Inc
-1.29% ~ $ 9.96 | RAAC - Revolution Acceleration Acquisition Corp | Announced -> Berkshire Grey
-0.40% ~ $ 9.94 | RMGB - RMG Acquisition Corporation II | Announced -> ReNew Power Private Limited
.00% ~ $ 10.00 | SPRQ - Spartan Acquisition Corp II | Announced -> Sunlight Financial LLC
0.40% ~ $ 10.14 | TSIA - TS Innovation Acquisitions Corp | Announced -> Latch, Inc.
Our view on Chamath's SPAC stocks remains the same, if you are in at the right entry point you are happy, if not then you'll be disappointed. What is clear is that to whatever degree Chamath and Social Capital were getting a halo effect for their SPAC stock prices earlier, it's gone now and the deals will either be solely judged on their merits or, potentially, more harshly given Chamath's involvement.
GigCapital3 Hits Ex-Redemption Wall
GIK, GigCapital3, which is taking Lightning eMotors public hit the ex-redemption wall yesterday and suffered for it. The stock dropped significantly again, this time closing down -16% to $8.40. Ex-redemption means that new investors no longer have the $10 backstop as new investors can no longer redeem for $10 going forward.
The GIK shareholder vote is tomorrow, Wednesday April 21st, and will be watched closely as a bellwether on SPAC and EV related stocks.
Warrants Now Available
Yesterday saw some SPAC units split and for those looking to add some warrants they can now consider:
Tuesday's Most Discounted SPAC Stocks
-3.10% ~ $ 9.69 | AGAC - African Gold Acquisition Corporation (Pre-Deal)
-2.80% ~ $ 9.72 | OSTR - Oyster Enterprises Acquisition Corp. (Pre-Deal)
-2.80% ~ $ 9.72 | KIII - Kismet Acquisition Three Corp. (Pre-Deal)
-2.70% ~ $ 9.73 | BITE - Bite Acquisition Corp. (Pre-Deal)
-2.60% ~ $ 9.74 | KAII - Kismet Acquisition Two Corp. (Pre-Deal)
-2.50% ~ $ 9.75 | GHAC - Gaming & Hospitality Acquisition Corp. (Pre-Deal)
-2.50% ~ $ 9.75 | RCLF - Rosecliff Acquisition Corp I (Pre-Deal)
-2.50% ~ $ 9.75 | PUCK - Goal Acquisitions Corp. (Pre-Deal)
-2.40% ~ $ 9.76 | PSAG - Property Solutions Acquisition Corp. II (Pre-Deal)
-2.40% ~ $ 9.76 | ASAX - Astrea Acquisition Corp. (Pre-Deal)
-2.40% ~ $ 9.76 | ADRA - Adara Acquisition Corp. (Pre-Deal)
-2.30% ~ $ 9.77 | TMAC - The Music Acquisition Corporation (Pre-Deal)
-2.30% ~ $ 9.77 | IGNY - Ignyte Acquisition Corp. (Pre-Deal)
-2.20% ~ $ 9.78 | OEPW - One Equity Partners Open Water I Corp. (Pre-Deal)
Recent SPAC IPOs at a Discount
-1.0% ~ $ 9.91 | NGCA - NextGen Acquisition Corp. II
-.9% ~ $ 9.91 | ACAH - Atlantic Coastal Acquisition Corp.
-.8% ~ $ 9.92 | TBSA - TB SA Acquisition Corp
-.6% ~ $ 9.94 | DISA - Disruptive Acquisition Corp I
-.4% ~ $ 9.96 | OPA - Magnum Opus Acquisition Limited
-.4% ~ $ 9.96 | ATSP - Archimedes Tech SPAC Partners Co
-.3% ~ $ 9.97 | PDOT - Peridot Acquisition Corp. II
-.3% ~ $ 9.97 | OHPA - Orion Acquisition Corp.
-.3% ~ $ 9.97 | DTOC - Digital Transformation Opportunities Corp.
-.3% ~ $ 9.97 | GGMC - Glenfarne Merger Corp.
-.3% ~ $ 9.97 | MACC - Mission Advancement Corp.
-.2% ~ $ 9.98 | GLSPT - Global SPAC Partners Co.
-.2% ~ $ 9.98 | AFAQ - AF Acquisition Corp.
-.2% ~ $ 9.98 | RXRA - RXR Acquisition Corp
-.2% ~ $ 9.98 | ESM - ESM Acquisition Corporation
-.2% ~ $ 9.98 | LCA - Landcadia Holdings IV, Inc.
-.2% ~ $ 9.98 | GAPA - G&P Acquisition Corp.
-.2% ~ $ 9.98 | FRWA - PWP Forward Acquisition Corp. I
-.2% ~ $ 9.98 | KSIC - Kadem Sustainable Impact Corporation
-.1% ~ $ 9.99 | BGSX - Build Acquisition Corp.
-.1% ~ $ 9.99 | NSTC - Northern Star Investment Corp. III
More from Boardroom Alpha
For on-going tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service.
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- Best SPAC Opportunities for Monday
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- SPAC Wrap: Focus Today was on the Coinbase Direct Listing, Will it Drive SPACs into Crypto?
- SPAC Ideas for Wednesday
- SPAC Wrap: Altimeter Growth and Grab Mega-Merger Sets the Record
- SPAC Deal: Altimeter Growth (AGC) Taking Grab Public in $40b SPAC Merger
- Do Chamath's SPACs Make Money? All About the Entry Point