[naruvimama]

If you do not want to hold your money in the bank.

Nor do you want to invest your money in artificially inflated stock.

Coming out of the pandemic we are going to see a monumental shift in lifestyle and economics. It is that crisis that replaces old guards with new champions.

SPACs had a bad reputation, but in the current circumstances seem pretty reasonable. I guess in terms of risk-benefits it is an intermediate between VC & established stocks (and we have seen how stable that has been in 2020 :) )

[perardi]

“Nor do you want to invest your money in artificially inflated stock.”

How does a SPAC possibly help with that? One of the more notable SPACs was Nikola, which had effectively no revenue, and was very unstable.

https://www.google.com/finance/quote/NKLA:NASDAQ?sa=X&ved=2a...

[gonehome]

Yeah - Nikola is fraud, I think it’ll go to zero it’s just hard to know when.

This is also the general problem I have with SPACs. The incentives are all wrong.

If you’re a founder and some SPAC approaches you wanting to merge to take you public it means they think they can get a deal from you. They promise price certainty over an “uncertain market”, but if they’re willing to make the deal it’s because they’re betting the market will be good to them.

Why would the founder take that?

They should do their own IPO then if that’s the case or they’re getting ripped off.

Unless their company is fraudulent bullshit in which case they might as well take the SPAC deal and then they can dump their position on the public (after hyping it up of course). Then you can buy your $33M ranch in Utah [0] and retire on the winnings from your successful con.

Founders and SPAC investors cash out rich and the public is left holding the bag.

At best the founder is lazy and doesn’t want to deal with the logistics of a direct listing or IPO and that doesn’t bode well for my impression of the founder either.

I won’t invest in a SPAC and my prediction is that companies that go public via a SPAC will underperform those that go public by other means (especially those that do a direct listing).

[0]: https://www.latimes.com/business/real-estate/story/2019-11-1...

[naruvimama]

Isn't all stock valued on speculation.

I guess you would pick SPACs promoted by people you trust will make a good deal.

[hammock]

.. And is still up 100% last 52wks?