SPAC Bubble Bursting?

SPAC stocks got hit again today alongside the broader equity markets, bringing premium levels to their lowest in months. Some will see this as a rare buying opportunity while others will see the bubble bursting?
Author:
Publish date:

Tuesday was another difficult day for SPACs that will have investors asking whether the market is getting healthy or if we're experiencing a prolonged burst. There was little positive activity for SPACs as the selling was deep (especially for SPACs still coming down from peak exuberance), the streak of no new IPOs continued and there were no deal announcements to drum up excitement.

Almost 20 SPACs were down over 3% today, with most of that occurring with SPACs that have announced deals. The air continues to get let out of the balloon, but, while getting nervier, it still feels like it isn't a pop, but rather a return to a healthier balance. And if that is the case, today's further selling creates even more opportunity going forward.

Closing down another -5.6% today, Churchill Capital IV (CCIV) will likely be the SPAC that many investors point to when they talk about the exuberance of the market. Investors, both long and short, should remember that just because SPAC mania pushed CCIV's price to such highs earlier this year, it doesn't necessarily mean that Lucid Motors won't be a long-term successful automaker. And, it still comes down to entry point as at its closing price of $18.45 it remains well above the initial $10 offering price.

Happy 4/20 and Doge Day, ICYMI we wrote last month about what effect the cannabis legalization movement could have for SPACs

** For on-going tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service. **

Elsewhere... dMY Technology Group II (DMYD) announced it has closed its merger with Genius Sports. The combined company will trade as GENI starting April 21st and this puts another cap in the feather of Niccolo de Masi and the DMY sponsor team. It did take a hit today though dropping -11% to $16.21, possibly on investor fears that the selling pressure post de-SPAC and increased short seller interest for de-SPACs of late made today the right time to take some gains.

In a glimpse of how President Biden's infrastructure goals could affect SPACs, he visited the Proterra facility today. ArcLight Clean Transition Corp (ACTC) has a pending deal with commercial EV producer Proterra, shares closed at $14.45 today.

Gig Capital 3 (GIK), which went ex-redemption yesterday and swiftly declined, has its vote tomorrow April 21st on its merger with Lightning eMotors. It was down another 7.74% today finishing at $7.75.

New S-1 from Ascendant Digital Acquisition Corp. III, $250M 1/3 Warrant. Ascendant I (ACND) has a pending deal with Beacon Street, while Ascendant II has yet to price its IPO.

B Riley Principal 250 Merger Corp (BRIV) lowers offering size from $250M to $150M

Biggest SPAC Gainers

2.64% ~ $ 10.10 | ANAC - Arctos NorthStar Acquisition Corp. (Pre-Deal)
2.51% ~ $ 11.01 | SRAC - Stable Road Acquisition Corp. (Announced)
1.74% ~ $ 11.11 | LEAP - Ribbit LEAP Ltd (Pre-Deal)
1.43% ~ $ 9.95 | MTAC - MedTech Acquisition Corporation (Pre-Deal)
1.33% ~ $ 9.93 | FLAC - Frazier Lifesciences Acquisition Corporation (Pre-Deal)
1.19% ~ $ 16.96 | SSPK - Silver Spike Acquisition Corp. (Announced)
.82% ~ $ 11.01 | BCTG - BCTG Acquisition Corp. (Announced)
.81% ~ $ 9.93 | GSEV - Gores Holdings VII (Pre-Deal)
.73% ~ $ 11.10 | ALAC - Alberton Acquisition Corporation (Announced)
.71% ~ $ 9.92 | TZPS - TZP Strategies Acquisition Corp. (Pre-Deal)

Biggest SPAC Losers

-7.74% ~ $ 7.75 | GIK - GigCapital3 Inc (Announced)
-6.17% ~ $ 13.85 | RICE - Rice Acquisition Corp. (Announced)
-6.12% ~ $ 10.73 | THCB - Tuscan Holdings Corp. (Announced)
-5.89% ~ $ 22.99 | STPK - Star Peak Energy Transition Corp (Announced)
-5.86% ~ $ 13.18 | NGA - NORTHERN GN ACQ (Announced)
-5.86% ~ $ 13.18 | RSVA - Rodgers Silicon Valley Acquisition Corp (Announced)
-5.79% ~ $ 12.37 | FSRV - FinServ Acquisition Corp (Announced)
-5.58% ~ $ 18.45 | CCIV - Churchill Capital Corp IV (Announced)
-5.52% ~ $ 10.62 | STIC - Northern Star Acquisition Corp (Announced)
-4.87% ~ $ 10.32 | KCAC - Kensington Capital Acquisition Corp. II (Pre-Deal)

More from Boardroom Alpha

For on-going tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service.