Will SPACs Rebound with the Market?

On another tough week for once hot stocks, the rhetoric surrounding SPACs remains dour. Will easing concerns of inflation lift the market and stocks today?
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Pre-deal SPACs are trading at their lowest value in months, around $9.84 on average, and the rhetoric surrounding SPACs continues to be dour (see our piece last night: Pitchforks out for Chamath and SPACs). 

The good news for SPAC investors? The market is post-peak exuberance and a more rational market will ultimately allow investors to more consistently make desirable returns. So, patience and yield are now taking a front seat and while not as splashy as 50%+ returns on a deal, value is out there to be had. 

The week started off hot with 8 new SPAC mergers, though it appears that more participants have gotten cold feet given the negative sentiment surrounding all equities. Those SPAC stocks and all but one other deal announced in May are now all trading sub-NAV: 

May 12 | $ 9.88 | SWBK - Switchback II Corporation --> Bird Rides, Inc.
May 12 | $ 9.86 | CENH - Centricus Acquisition Corp. --> Arqit Limited
May 11 | $ 9.85 | AURC - Aurora Acquisition Corp. --> Better
May 11 | $ 9.88 | SRNG - Soaring Eagle Acquisition Corp. --> Ginkgo
May 10 | $ 9.88 | AUS - Austerlitz Acquisition Corporation I --> Wynn Interactive
May 10 | $ 9.98 | LIVK - LIV Capital Acquisition Corp. --> AgileThought
May 10 | $ 9.87 | STPC - Star Peak Corp II --> Benson Hill, Inc.
May 10 | $ 9.87 | HCIC - Hennessy Capital Investment Corp. V --> Plus
May 07 | $ 10.17 | LSAQ - LIFE SCI ACQ II --> Science 37
May 07 | $ 9.85 | STWO - ACON S2 Acquisition Corp --> ESS TECHNOLOGY
May 07 | $ 9.88 | LOKB - Live Oak Acquisition Corp. II --> Navitas Semiconductor
May 06 | $ 9.92 | AMHC - Amplitude Healthcare Acquisition Corporation --> Jasper Therapeutics
May 03 | $ 9.88 | MAAC - Montes Archimedes Acquisition Corp --> Roivant Sciences

With a potential move up again after a tough week for all stocks, SPAC investors shouldn't expect too much of a lift today. The overall dynamics remain in a place where pre-deal SPACs are firmly rooted below NAV and SPACs with announced deals are fighting to stay above.

** ICYMI **

Pitchforks out for "SPAC King" Chamath Palihapitiya and SPACs
We take a look at the negativity around SPACs and Chamath and discuss what may be next for SPACs.

Exclusive SPAC Q&A: Better World Acquisition Corp (BWAC)
A great Q&A with Rosemary Ripley who is CEO of BWAC and their sponsor N*GEN. Learn more about the team there and why BWAC she believes they have an ESG edge.

SPAC Data Insights

Recent SPAC Mergers
Investors will look to SPACs with announced deals for potential yield + upside. They should be expected to close in 4-6 months generally which will drive quick returns for these sub-NAV SPACs.

May 12 | $ 9.88 | SWBK - Switchback II Corporation --> Bird Rides, Inc.
May 12 | $ 9.86 | CENH - Centricus Acquisition Corp. --> Arqit Limited
May 11 | $ 9.85 | AURC - Aurora Acquisition Corp. --> Better
May 11 | $ 9.88 | SRNG - Soaring Eagle Acquisition Corp. --> Ginkgo
May 10 | $ 9.88 | AUS - Austerlitz Acquisition Corporation I --> Wynn Interactive
May 10 | $ 9.98 | LIVK - LIV Capital Acquisition Corp. --> AgileThought
May 10 | $ 9.87 | STPC - Star Peak Corp II --> Benson Hill, Inc.
May 10 | $ 9.87 | HCIC - Hennessy Capital Investment Corp. V --> Plus

Biggest SPAC Gainers
Some positive moves on Thursday, but limited and with very little meaningful punch behind it.
4.53% ~ $ 11.30 | BCTG - BCTG Acquisition Corp. (Announced)
3.69% ~ $ 12.94 | DFHT - Deerfield Healthcare Technology Acquisitions Corp. (Announced)
2.84% ~ $ 13.02 | JWS - Jaws Acquisition Corp (Announced)
2.27% ~ $ 10.57 | CMII - CM Life Sciences II Inc. (Announced)
1.89% ~ $ 10.24 | HSAQ - Health Sciences Acquisitions Corporation 2 (Pre-Deal)
1.65% ~ $ 10.47 | BLSA - BCLS Acquisition Corp. (Pre-Deal)
1.56% ~ $ 13.03 | JIH - Juniper Industrial Holdings, Inc. (Announced)
1.47% ~ $ 11.05 | GHVI - Gores Holdings VI Inc (Announced)
1.42% ~ $ 9.84 | ANAC - Arctos NorthStar Acquisition Corp. (Pre-Deal)
1.38% ~ $ 9.96 | LIII - Leo Holdings III Corp (Pre-Deal)

Biggest SPAC Decliners
Over 75% of pre-deal SPACs were down on Thursday and nearly just as high a percent of SPACs with announced deals. It's hard to escape the broader, negative sentiment around the market at the moment. 

-5.61% ~ $ 13.30 | ACTC - ArcLight Clean Transition Corp (Announced)
-5.47% ~ $ 9.86 | WALD - Waldencast Acquisition Corp. (Pre-Deal)
-5.31% ~ $ 9.80 | OHPA - Orion Acquisition Corp. (Pre-Deal)
-3.83% ~ $ 11.06 | AGC - ALTIMETER GROWTH CORP (Announced)
-3.68% ~ $ 25.66 | BRPA - Big Rock Partners Acquisition Corp (Announced)
-3.59% ~ $ 12.10 | FST - FAST ACQ CP (Announced)
-3.25% ~ $ 13.98 | SSPK - Silver Spike Acquisition Corp. (Announced)
-3.09% ~ $ 10.02 | PDAC - Peridot Acquisition Corp (Announced)
-3.09% ~ $ 17.25 | CCIV - Churchill Capital Corp IV (Announced)
-2.92% ~ $ 14.61 | IPOE - Social Capital Hedosophia Holdings Corp V (Announced)
-2.72% ~ $ 12.87 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
-2.72% ~ $ 10.39 | FTCV - FinTech Acquisition Corp. V (Announced)
-2.53% ~ $ 10.77 | CLII - Climate Change Crisis Real Impact I Acquisition Corp (Announced)
-2.27% ~ $ 10.35 | FWAA - Fifth Wall Acquisition Corp. I (Announced)
-1.96% ~ $ 9.99 | REVH - Revolution Healthcare Acquisition Corp. (Pre-Deal)
-1.93% ~ $ 9.65 | TWNT - Tailwind Two Acquisition Corp. (Pre-Deal)
-1.80% ~ $ 9.82 | PRPC - CC Neuberger Principal Holdings III (Pre-Deal)
-1.48% ~ $ 10.68 | FSRV - FinServ Acquisition Corp (Announced)
-1.32% ~ $ 10.43 | ARYD - ARYA Sciences Acquisition Corp IV (Pre-Deal)
-1.28% ~ $ 10.02 | TCVA - TCV Acquisition Corp. (Pre-Deal)

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(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)