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SPACs Are Back as BRPM, BKKT, IONQ, LCID, QS and More Surge

SPACs surge back to life on the back of Trump's DWAC, the market's record highs, an EV / Tesla wave and strong deSPAC performances (BKKT, IONQ, LCID, QS, EVGO and others). But will it last and will SPAC chasers get hit by DWAC and others on the way back down.

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Early Monday morning started with a bang as FaZe ClaN (see our write-up here), the immensely popular gaming and media platform and B Riley Principal 150 Merger Corp. (BRPM) announced their $713M SPAC deal. It's far from FaZe's more humble roots as small time video game streamers, and helps cement them as an e-sports behemoth. It is also a big win for the B Riley team as FaZe Clan is a solid business with a massive user base that the combined company can build on.

It also had many wondering if FaZe / BRPM could have MEME potential with such a large and loyal fan base.

Overall, it was a celebratory day for many in SPAC land. Last week DWAC got the ball rolling as many SPAC traders made money and, more importantly, many became reacquainted with the asymmetric upside to SPACs. So, when BRPM showed a nice deal pop early and ended the day up nearly +15% on the day it has given many confidence that with the right deal SPACs can again be a safe yield play, but deliver big upside. 

The question will be whether the change in narrative is just a momentary high that comes from better deal announcement + de-SPAC performance and the market hitting fresh highs or if it is lasting. 

What is clear is that those who are chasing DWAC or BRPM at significant premiums to their $10 NAV face materially more risk than if they were to buy at/under NAV earlier in the SPAC's life. For example, DWAC was down -11% today from $94 which is $10.34 -- that's significantly more risk of capital loss than investors who are in a SPAC around $10. For those looking for a more tangible example, remember Lucid was trading in the $60s before it deSPAC'd and those investors that got in near the peak are still well under water.

CCIV / Lucid remains a warning to those who chase SPACs that are well above $10 before de-SPAC

CCIV / Lucid remains a warning to those who chase SPACs that are well above $10 before de-SPAC

EV SPACs Surge Alongside Tesla

EV SPACs surged along with the market and, more specifically Tesla (TSLA) which saw its market cap hit a 1 trillion dollars. EV is clearly the future (despite some real challenges still to conquer) and the market looks ready to go "all in" with TSLA, competitive EV car/truck makers, and EV infrastructure plays all riding the wave. 

+11.36% ~ $ 26.85 | Lucid Motors (LCID)
+10.52% ~ $ 25.53 | QuantumScape Corporation (QS)
+9.55% ~ $ 8.60 | EVgo (EVGO)
+7.68% ~ $ 22.99 | ChargePoint (CHPT)
+7.15% ~ $ 14.84 | Fisker Inc. (FSR)
+5.24% ~ $ 9.85 | Proterra Inc (PTRA)
+3.58% ~ $ 10.98 | Nikola Corp (NKLA)
+1.29% ~ $ 7.04 | Volta, Inc. (VLTA)
+1.17% ~ $ 10.34 | GGPI - Gores Guggenheim, Inc -> Polestar
+.77% ~ $ 11.83 | Nuvve Holding Corp (NVVE)
+.19% ~ $ 10.48 | TPGY - TPG Pace Beneficial Finance Corp -> EVBox Group

Recent DeSPACs Show Some Strength

The day also included positive moves from a number of recent deSPACs (since Sept 1). In particular BAKKT (BKKT) jumped over 234% as it announced partnerships with Mastercard and Fiserv. BKKT is another good example of a deSPAC delivering on execution and driving real value for shareholders. 

That will ultimately be the difference maker for SPACs and SPAC sponsors -- can they (a) set the right initial targets/expectations and then (b) hit and exceed those financial and operational targets. For those on the list below that are stuck under $10 and showing little upward movement, or worse continuing downward moves, the only thing that will help is demonstrating that they can execute.

234.43% | $ 30.60 | Bakkt Holdings Inc (BKKT)
21.41% | $ 20.13 | Arqit Quantum Inc (ARQQ)
12.42% | $ 9.23 | Velo3D Inc (VLD)
9.75% | $ 10.36 | BlackSky Technology Inc (BKSY)
8.68% | $ 14.28 | Ginkgo Bioworks Holdings Inc (DNA)
8.07% | $ 12.85 | Vivid Seats Inc (SEAT)
8.06% | $ 13.14 | Redwire Corp (RDW)
6.42% | $ 11.10 | Wallbox BV (WBX)
6.42% | $ 10.28 | IonQ Inc (IONQ)
5.63% | $ 19.89 | Archaea Energy Inc (LFG)
5.49% | $ 9.03 | LumiraDx Ltd (LMDX)
5.43% | $ 7.96 | Valens Semiconductor Ltd (VLN)
3.53% | $ 7.04 | Roivant Sciences Ltd (ROIV)
2.77% | $ 11.86 | Algoma Steel Group Inc (ASTL)
2.61% | $ 11.79 | Jasper Therapeutics Inc (JSPR)
1.28% | $ 11.10 | Vicarious Surgical Inc (RBOT)
1.23% | $ 13.18 | WeWork Inc (WE)
1.11% | $ 9.10 | Lilium NV (LILM)
1.10% | $ 11.00 | Enjoy Technology Inc (ENJY)
.41% | $ 12.23 | Navitas Semiconductor Corp (NVTS)
-.09% | $ 11.48 | SomaLogic Inc (SLGC)
-.61% | $ 6.48 | Benson Hill Inc (BHIL)
-.69% | $ 10.03 | Science 37 Holdings Inc (SNCE)
-.76% | $ 6.51 | Sarcos Technology & Robotics Corp (STRC)
-.96% | $ 7.19 | Renovacor Inc (RCOR)
-1.11% | $ 8.04 | Arbe Robotics Ltd (ARBE)
-2.69% | $ 10.50 | Mirion Technologies Inc (MIR)
-3.22% | $ 6.31 | KORE Group Holdings Inc (KORE)
-3.87% | $ 7.46 | Offerpad Solutions Inc (OPAD)
-3.93% | $ 9.77 | Procaps Group SA (PROC)
-4.30% | $ 4.01 | Clarus Therapeutics Holdings Inc (CRXT)
-6.31% | $ 3.12 | TMC the metals Co Inc (TMC)
-7.00% | $ 6.24 | Archer Aviation Inc (ACHR)
-7.25% | $ 8.31 | Nerdy Inc (NRDY)
-7.73% | $ 15.40 | ESS Tech Inc (GWH)
-10.46% | $ 9.76 | Babylon Holdings Ltd (BBLN)
-13.24% | $ 7.14 | Shapeways Holdings Inc (SHPW)
-13.60% | $ 5.91 | Moneylion Inc (ML)

October SPAC IPOs Continue Some Strength

Also a positive for SPAC investors is the SPAC IPO market. Somewhat surprisingly, SPAC IPOs continue to show some strength as well, though investors need to remember that this is often due to overfunded trusts. It is our belief, and that of many out there, that SPAC IPOs still need to go on hiatus for a while so the market can clear out.

Oct 21 | $ 10.04 | MBSC - M3-Brigade Acquisition III Corp.
Oct 21 | $ 10.08 | GTAC - Global Technology Acquisition Corp. I
Oct 21 | $ 10.14 | ICNC - Iconic Sports Acquisition Corp.
Oct 21 | $ 10.00 | PGSS - Pegasus Digital Mobility Acquisition Corp.
Oct 20 | $ 10.06 | THAC - Thrive Acquisition Corp
Oct 20 | $ 10.07 | XFIN - ExcelFin Acquisition Corp.
Oct 20 | $ 9.97 | NHLD - NewHold Investment Corp. II
Oct 20 | $ 10.10 | GOGN - GoGreen Investments Corp
Oct 20 | $ 10.16 | ENER - Accretion Acquisition Corp.
Oct 19 | $ 10.15 | ACAQ - Athena Consumer Acquisition Corp.
Oct 19 | $ 10.15 | ESAC - ESGEN Acquisition Corp
Oct 19 | $ 10.19 | AXH - Industrial Human Capital, Inc.
Oct 19 | $ 10.20 | ENTF - Enterprise 4.0 Technology Acquisition Corp
Oct 19 | $ 10.10 | NCAC - Newcourt Acquisition Corp
Oct 19 | $ 9.94 | WWAC - Worldwide Webb Acquisition Corp.
Oct 18 | $ 10.24 | FEXD - Fintech Ecosystem Development Corp.
Oct 18 | $ 10.09 | BMAC - Blockchain Moon Acquisition Corp.
Oct 18 | $ 10.15 | SMAP - Sportsmap Tech Acquisition Corp.
Oct 15 | $ 10.10 | AVHI - Achari Ventures Holdings Corp. I
Oct 14 | $ 10.09 | BMAC - Black Mountain Acquisition Corp.
Oct 14 | $ 9.95 | PEPL - PepperLime Health Acquisition Corp
Oct 14 | $ 10.06 | FDSP - Founder SPAC
Oct 14 | $ 10.09 | SANB - Sanaby Health Acquisition Corp. I
Oct 14 | $ 9.90 | CDAQ - Compass Digital Acquisition Corp.
Oct 13 | $ 9.95 | TRIS - Tristar Acquisition I Corp.
Oct 13 | $ 10.08 | ROSE - Rose Hill Acquisition Corp
Oct 12 | $ 9.91 | GIAC - Gesher I Acquisition Corp.
Oct 12 | $ 10.05 | FATP - FAT PROJECTS ACQUISITION CORP
Oct 08 | $ 9.96 | HWKZ - Hawks Acquisition Corp
Oct 08 | $ 10.10 | LCW - Learn CW Investment Corp
Oct 07 | $ 9.88 | IXAQ - IX Acquisition Corp.
Oct 07 | $ 9.95 | SAMA - Schultze Special Purpose Acquisition Corp. II
Oct 05 | $ 9.95 | BHAC - Crixus BH3 Acquisition Corp.
Oct 05 | $ 10.10 | PBAX - Phoenix Biotech Acquisition Corp.
Oct 05 | $ 9.85 | NFYS - Enphys Acquisition Corp.
Oct 05 | $ 10.09 | AVAC - Avalon Acquisition Inc.
Oct 04 | $ 10.15 | RNER - Mount Rainier Acquisition Corp.

Monday's SPAC Stock Movers

Biggest SPAC Stock Gainers
16.36% ~ $ 12.80 | AGC - Altimeter Growth Corp. (Announced)
14.89% ~ $ 11.19 | BRPM - B. Riley Principal 150 Merger Corp. (Announced)
4.96% ~ $ 12.27 | BENE - Benessere Capital Acquisition Corp. (Pre-Deal)
4.67% ~ $ 10.54 | CND - Concord Acquisition Corp (Announced)
3.09% ~ $ 12.00 | XPDI - Power & Digital Infrastructure Acquisition Corp. (Announced)
2.46% ~ $ 10.41 | FPAC - Far Peak Acquisition Corp (Announced)
2.33% ~ $ 10.54 | FTCV - FinTech Acquisition Corp. V (Announced)
1.76% ~ $ 10.43 | DCRC - Decarbonization Plus Acquisition Corporation III (Announced)
1.17% ~ $ 10.34 | GGPI - Gores Guggenheim, Inc (Announced)
1.03% ~ $ 9.78 | DALS - DA32 Life Science Tech Acquisition Corp. (Pre-Deal)
.97% ~ $ 9.90 | ARYE - ARYA Sciences Acquisition Corp V (Pre-Deal)
.93% ~ $ 9.76 | AMCI - AMCI Acquisition Corp. II (Pre-Deal)
.92% ~ $ 9.88 | ROSS - Ross Acquisition Corp II (Pre-Deal)
.91% ~ $ 10.03 | AGCB - Altimeter Growth Corp. 2 (Pre-Deal)
.89% ~ $ 10.22 | BREZ - Breeze Holdings Acquisition Corp (Pre-Deal)
.82% ~ $ 9.80 | DILA - Dila Capital Acquisition Corp (Pre-Deal)
.78% ~ $ 13.20 | MEKA - MELI Kaszek Pioneer Corp (Pre-Deal)
.70% ~ $ 11.55 | ALAC - Alberton Acquisition Corporation (Announced)
.70% ~ $ 10.14 | GLAQ - Globis Acquisition Corp. (Pre-Deal)
.66% ~ $ 9.98 | ATSPT - Archimedes Tech SPAC Partners Co (Pre-Deal)

Biggest SPAC Stock Losers
-10.98% ~ $ 83.86 | DWAC - Digital World Acquisition Corp. (Announced)
-4.11% ~ $ 9.57 | MCAD - Mountain Crest Acquisition Corp. II (Announced)
-2.26% ~ $ 9.96 | REVE - Alpine Acquisition Corp. (Pre-Deal)
-1.90% ~ $ 9.80 | CPAA - Conyers Park III Acquisition Corp. (Pre-Deal)
-1.68% ~ $ 9.94 | GNRS - GREENROSE ACQUISITION CORP (Announced)
-1.62% ~ $ 9.76 | CCAI - Cascadia Acquisition Corp. (Pre-Deal)
-1.42% ~ $ 10.42 | ZGYH - Yunhong International (Pre-Deal)
-1.34% ~ $ 12.51 | FST - FAST ACQ CP (Announced)
-1.32% ~ $ 9.71 | FICV - Frontier Investment Corp (Pre-Deal)
-.96% ~ $ 10.28 | ACKIT - ACKRELL SPAC Partners I Co. (Pre-Deal)
-.74% ~ $ 9.71 | SHQA - Shelter Acquisition Corporation I (Pre-Deal)
-.61% ~ $ 9.85 | GIW - GigInternational1, Inc. (Pre-Deal)
-.60% ~ $ 9.94 | PPHPA - PHP Ventures Acquisition Corp. (Pre-Deal)
-.58% ~ $ 10.25 | LEAP - Ribbit LEAP Ltd (Pre-Deal)
-.51% ~ $ 9.71 | RCLF - Rosecliff Acquisition Corp I (Pre-Deal)
-.50% ~ $ 13.87 | TDAC - Trident Acquisitions Corp (Announced)
-.45% ~ $ 9.87 | GLTA - Galata Acquisition Corp (Pre-Deal)
-.41% ~ $ 9.72 | NRAC - Noble Rock Acquisition Corporation (Pre-Deal)
-.41% ~ $ 9.74 | ATAQ - Altimar Acquisition Corp. III (Pre-Deal)
-.41% ~ $ 9.74 | HCNE - Jaws Hurricane Acquisition Corporation (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.)