All Eyes on SPACs and Congress, RIDE Plummets After Hours

No new SPAC mergers, IPOs or S-1s on Monday as equity markets rose, though SPACs generally stayed flat-ish to down. Lordstown Motors is falling big after hours.
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On a day that there were no new SPAC merger announcements, IPOs or new S-1s there was, however, a hearing in the House targeting the future of SPACs. In short, it could result in new legislation that takes away one of SPAC's perceived advantages over the traditional IPO: safe harbor protections for forward looking statements which could limit SPAC targets' freedom to paint rosy financial projections to prospective investors. 

Many will fear that this change would spell the end for SPACs, but instead it would likely help the market operate more rationally and, frankly, healthier. 

On the note of overly rosy financial projections for SPACs, Lordstown Motors is Plummeting after hours. As of this writing it was down nearly ~10% following its quarterly earnings report

Lordstown went public via DiamondPeak Holdings Corp. in a merger that closed in October 2020. The company is noting that 2021 production will be "half or less" of its prior plan, and that a capital raise will be needed to continue operations. 

August 2020 investor presentation saying no additional capital requirements would be needed following the PIPE. 

August 2020 investor presentation saying no additional capital requirements would be needed following the PIPE. 

This is not good news for SPAC investors that have been backing pre-revenue SPACs (like Lordstown) that are putting out less than stellar numbers. Look for this to be another arrow in the SEC's quiver of SPAC targets putting out overly ambitious projections. 

RIDE falling hard after its earnings report

RIDE falling hard after its earnings report

RIDE was trading at near $30 during peak SPAC and is now sub $9 post market today. In short, pre-revenue, speculative companies are facing a tougher road. 

However, this morning SPAC investors saw Virgin Galactic Holdings (SPCE) soar on news regarding its test flight. So, what is clear about the early stage companies that go public via SPACs is that, in most instances, investors will be for a roller coaster ride until they mature.

Today's SPAC Gainers

9.35% ~ $ 13.56 | RSVA - Rodgers Silicon Valley Acquisition Corp (Announced)
5.32% ~ $ 19.78 | IPOE - Social Capital Hedosophia Holdings Corp V (Announced)
4.16% ~ $ 10.02 | FLME - Flame Acquisition Corp. (Pre-Deal)
3.14% ~ $ 11.17 | PSAC - Property Solutions Acquisition Corp (Announced)
3.13% ~ $ 13.50 | JWS - Jaws Acquisition Corp (Announced)
2.08% ~ $ 10.30 | TSIA - TS Innovation Acquisitions Corp (Announced)
2.06% ~ $ 9.90 | RXRA - RXR Acquisition Corp (Pre-Deal)
1.93% ~ $ 10.04 | WALD - Waldencast Acquisition Corp. (Pre-Deal)
1.87% ~ $ 9.83 | ANZU - Anzu Special Acquisition Corp I (Pre-Deal)
1.70% ~ $ 15.52 | SSPK - Silver Spike Acquisition Corp. (Announced)
1.61% ~ $ 15.13 | RICE - Rice Acquisition Corp. (Announced)
1.52% ~ $ 11.99 | CMLF - CM Life Sciences Inc (Announced)
1.33% ~ $ 9.89 | JYAC - Jiya Acquisition Corp. (Pre-Deal)
1.23% ~ $ 9.87 | OCAX - OCA Acquisition Corp (Pre-Deal)
1.20% ~ $ 10.12 | HSAQ - Health Sciences Acquisitions Corporation 2 (Pre-Deal)
1.12% ~ $ 9.90 | CBAH - CBRE Acquisition Holdings, Inc. (Pre-Deal)

Today's SPAC Losers

BRPA continued its volatile trading, falling another 12% today, as Stable Road dropped 13% as its target, space flight company Momentus, announced it wouldn't be flying in 2021. This comes on the heels of other space related news, Virgin Galactic rising on a successful test mission over the weekend. 

-13.38% ~ $ 10.42 | SRAC - Stable Road Acquisition Corp. (Announced)
-11.88% ~ $ 24.25 | BRPA - Big Rock Partners Acquisition Corp (Announced)
-3.50% ~ $ 16.00 | ACTC - ArcLight Clean Transition Corp (Announced)
-2.74% ~ $ 12.42 | BOWX - BowX Acquisition Corp (Announced)
-2.41% ~ $ 9.71 | HIII - Hudson Executive Investment Corp. III (Pre-Deal)
-2.28% ~ $ 12.02 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
-2.18% ~ $ 9.88 | CFFE - CF Acquisition Corp. VIII (Pre-Deal)
-2.07% ~ $ 19.40 | CCIV - Churchill Capital Corp IV (Announced)
-1.89% ~ $ 12.46 | TDAC - Trident Acquisitions Corp (Announced)
-1.74% ~ $ 9.63 | VELO - Velocity Acquisition Corp (Pre-Deal)
-1.52% ~ $ 10.34 | LEAP - Ribbit LEAP Ltd (Pre-Deal)
-1.37% ~ $ 13.67 | GHVI - Gores Holdings VI Inc (Announced)
-1.36% ~ $ 10.18 | TBA - Thoma Bravo Advantage (Announced)
-1.33% ~ $ 9.65 | PV - Primavera Capital Acquisition Corporation (Pre-Deal)
-1.32% ~ $ 9.71 | HCAQ - HealthCor Catalio Acquisition Corp. (Pre-Deal)
-1.31% ~ $ 9.77 | WPCB - Warburg Pincus Capital Corporation I—B (Pre-Deal)
-1.22% ~ $ 9.71 | FLAC - Frazier Lifesciences Acquisition Corporation (Pre-Deal)
-1.12% ~ $ 9.74 | TSIB - Tishman Speyer Innovation Corp. II (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.)