SPAC Opportunities for Monday

The SPAC market may be primed for some big moves when the right deals get announced.
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Last week we saw further evidence that the SPAC market has come back onto firm footing after the quick, and painful fall from "peak SPAC" in February. The play for many continues to be a patient yield + optionality one. They will be looking for pre-deal SPACs at a discount (or close) or SPACs with an announced deal that remain within range of NAV that they think could see a pop on great execution news. 

Our sense is that IPOs will mostly continue to trade close to NAV early meaning fewer fast money hedge fund flipping. But, in instances where there is a strong track record (e.g. Keith Meister / Casdin's CM Life SPACs) you'll see good interest.

Two of the big macro narratives that could drive SPAC success continue to be Biden's infrastructure bill and climate change which drives environmental / sustainability / EV / decarbonization plays. Though one wonders if the latter will still suffer from the glut of pre-revenue, highly speculative plays that have already been made and a growing track record of red flags (e.g. NKLA, ACIC, RMO) that may have investors spooked.

On RMO, as we noted last week the SEC is taking a closer look at SPACs and everyone in that ecosystem should be aware that making big financial projections at deal announcement and then missing them significantly will draw real scrutiny. In particular investors should be looking at the additional deals the sponsor (the RMG team as a total of 8 with many pre-IPO) has in the pipeline with particularly clear eyes.

Rumored SPAC deals include:

  • Grab, the Singaporean app for everything, and Altimeter Growth (AGC). Which is being billed as potentially the largest ever SPAC M&A transaction
  • Soaring Eagle (SRNG) is exploring a $20bn+ deal with Ginkgo Bioworks
  • Bridgetown (BTWN) and Traveloka, the Indonesian travel co.
  • Yucaipa Acquisition Corp (YAC) and Signa Sports
  • Israel-based automotive chip company Valens Semiconductor Ltd. is rumored but no details on which SPAC is involved.

Buy the Dip? SPACs Trading the Most off Their 52-Week Highs (units)
** SPACs with Announced Deals **

-63.0% ~ $ 25.17 | CCIV - Churchill Capital Corp IV
-56.8% ~ $ 13.80 | SRAC - Stable Road Acquisition Corp.
-55.3% ~ $ 16.33 | THCB - Tuscan Holdings Corp.
-50.6% ~ $ 13.35 | NPA - New Providence Acquisition Corp
-50.2% ~ $ 11.40 | HOL - Holicity Inc
-50.1% ~ $ 12.90 | CAPA - HighCape Capital Acquisition Corp
-50.0% ~ $ 20.50 | NGA - NORTHERN GN ACQ
-48.7% ~ $ 45.64 | BRPA - Big Rock Partners Acquisition Corp
-47.1% ~ $ 11.06 | EXPC - Experience Investment Corp
-44.8% ~ $ 14.41 | GHVI - Gores Holdings VI Inc

** Pre-Deal SPACs **
-36.6% ~ $ 12.20 | IPOD - Social Capital Hedosophia Holdings Corp IV
-35.0% ~ $ 10.40 | THCA - Tuscan Holdings Corp. II
-34.0% ~ $ 10.73 | ZNTE - Zanite Acquisition Corp.
-33.0% ~ $ 12.96 | BTWN - Bridgetown Holdings Ltd
-32.2% ~ $ 11.71 | IPOF - Social Capital Hedosophia Holdings Corp VI
-30.7% ~ $ 10.87 | ALTU - Altitude Acquisition Corp.
-29.6% ~ $ 10.55 | PIPP - Pine Island Acquisition Corp
-29.2% ~ $ 11.36 | HAAC - Health Assurance Acquisition Corp
-25.7% ~ $ 11.39 | GSAH - GS Acquisition Holdings Corp II

Most Discounted SPAC Stocks
-3.50% ~ $ 9.65 | TMAC - The Music Acquisition Corporation (Pre-Deal)
-3.40% ~ $ 9.66 | AGAC - African Gold Acquisition Corporation (Pre-Deal)
-3.30% ~ $ 9.67 | ITQ - Itiquira Acquisition Corp. (Pre-Deal)
-3.10% ~ $ 9.69 | TCAC - Tuatara Capital Acquisition Corporation (Pre-Deal)
-3.10% ~ $ 9.69 | OSTR - Oyster Enterprises Acquisition Corp. (Pre-Deal)
-2.85% ~ $ 9.72 | RCLF - Rosecliff Acquisition Corp I (Pre-Deal)
-2.80% ~ $ 9.72 | COVA - Crescent Cove Acquisition Corp. (Pre-Deal)
-2.80% ~ $ 9.72 | PUCK - Goal Acquisitions Corp. (Pre-Deal)
-2.80% ~ $ 9.72 | ADEX - ADIT EDTECH ACQUISITION CORP. (Pre-Deal)
-2.80% ~ $ 9.72 | CPTK - Crown PropTech Acquisitions (Pre-Deal)
-2.70% ~ $ 9.73 | FINM - Marlin Technology Corp (Pre-Deal)
-2.70% ~ $ 9.73 | ADRA - Adara Acquisition Corp. (Pre-Deal)
-2.70% ~ $ 9.73 | PNTM - Pontem Corp (Pre-Deal)
-2.60% ~ $ 9.74 | TLGA - TLG Acquisition One Corp. (Pre-Deal)

Buy the Dip? Friday's Biggest Decliners
-3.78% ~ $ 14.25 | VIH - VPC Impact Acquisition Holdings (Announced)
-3.02% ~ $ 9.94 | MSAC - Medicus Sciences Acquisition Corp. (Pre-Deal)
-2.91% ~ $ 12.69 | ARYA - Arya Sciences Acquisition Corp III (Announced)
-2.84% ~ $ 10.62 | TSIA - TS Innovation Acquisitions Corp (Announced)
-2.79% ~ $ 15.00 | CMLF - CM Life Sciences Inc (Announced)
-2.62% ~ $ 11.54 | LEAP - Ribbit LEAP Ltd (Pre-Deal)
-2.48% ~ $ 13.75 | AGC - ALTIMETER GROWTH CORP (Pre-Deal)
-2.43% ~ $ 18.10 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
-2.37% ~ $ 10.30 | BLSA - BCLS Acquisition Corp. (Pre-Deal)
-2.31% ~ $ 11.83 | BTWN - Bridgetown Holdings Ltd (Pre-Deal)
-2.23% ~ $ 13.14 | JWS - Jaws Acquisition Corp (Announced)
-2.18% ~ $ 17.03 | ACTC - ArcLight Clean Transition Corp (Announced)
-2.13% ~ $ 9.65 | TMAC - The Music Acquisition Corporation (Pre-Deal)
-2.06% ~ $ 9.97 | MACA - Moringa Acquisition Corp (Pre-Deal)
-2.05% ~ $ 11.95 | SRAC - Stable Road Acquisition Corp. (Announced)
-2.04% ~ $ 17.77 | IPOE - Social Capital Hedosophia Holdings Corp V (Announced)
-2.01% ~ $ 10.23 | NOAC - Natural Order Acquisition Corp (Pre-Deal)

Aging Pre-Deal SPACs that Need to Announce Soon
Some SPACs that are aging and need to announce deals soon, but beware as some have had rumors of potential deals falling through previously.

$ 10.05 | 18 months | GLEO - Galileo Acquisition Corp.
$ 10.04 | 17 months | MCMJ - Merida Merger Corp. I
$ 10.00 | 17 months | AMHC - Amplitude Healthcare Acquisition Corporation
$ 10.00 | 17 months | CHPM - CHP Merger Corp.
$ 10.06 | 16 months | LIVK - LIV Capital Acquisition Corp.
$ 9.83 | 15 months | AKIC - Sports Ventures Acquisition Corp.
$ 9.99 | 15 months | SCVX - SCVX Corporation
$ 10.15 | 14 months | CCAC - CITIC Capital Acquisition Corp
$ 10.05 | 14 months | ZGYH - Yunhong International
$ 10.08 | 13 months | DFPH - DFP HEALTHC ACQ

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