Currently allocating the majority of my portfolio to SPACs as they’ve been paying up well lately! Here’s a list with concise commentary (concise because I don’t enter into details of DD, but comment/ask away):
DMYD – world’s 2nd largest supplier of data for online gambling/betting companies. This industry is growing fast and steady…it is very hot atm, but imo is being shadowed by speculative industries like EV/Autonomous driving/AI. When more people realize this industry is a sure thing, I expect healthy returns!
THCB – maker of EV batteries, there’s rumors they’ll be supplying Tesla, read somewhere they’re preparing to build facilities right next to Tesla’s future production site in Germany. To me this is a pure speculative play, if the rumors get confirmed I’d expect the stock to double from current levels of 15-17$. NOTE: they have an unbinding letter of intent to merge, not yet a done deal, or else I suspect the stock would already be past 20$ based on those rumors.
ROCH – this company has exclusive rights to use a patented methodology to recycle plastics. The patent owner is P&G (Procter & Gamble). What really turned my head was that the company is backed by P&G, L’Oreal, Total, and some other mammoths…while being priced fairly cheap with lots of upside potential, this is an investment worth looking at!
GHIV – large mortgage seller with huge recent growth, plus expected further growth in the near future. What triggered my attention is that the company is already committed to paying dividends even before going public (to me this is unheard of…we’ve all gotten used to companies that lose money…and here’s one that’s not only profitable it’s also ready to pay dividends right away!)
BFT – fintech business, like a smaller version of Stripe. Think this was a record breaking SPAC that priced the company at 9b pro forma. The whole online payments/banking is hot atm, I don’t expect this business to ever compete with PayPal but if it keeps growing as it is, it’ll definitely be acquired (and we all know how acquisitions pay off! Salesforce just bought Slack for 28b, it was half that a week before the offer!)
STPK – battery optimization AI. It’s complex stuff I couldn’t bother to fully understand, but ticks all the boxes for the current speculative market…so I got a small position because we all know the current market isn’t too worried with fundamentals, it’s more concerned with keywords.
PSTH and IPOF – both don’t have a target to merge yet, but both have lots of potential! PSTH is a 4b SPAC lead by Bill Ackman, and the latter is the largest SPAC (1.6b) from a series of successful deals by Social Capital Hedosophia. I expect at least one of these to eventually catch a huge fish, like Sportradar, Stripe or even Bloomberg!
Also LAZR I bought as a SPAC (GMHI) for 15$. I think the CEO is going far… people like him have the potential to become the next Elon Musks, Mark Zuckerbergs or Bill Gates. It may still be early to call, but from his track record I’m very optimistic. I mean he started the company at 17, dropped out of Stanford, is backed by Peter Thiel, is a billionaire at age 25, seems obsessed in his mission to develop, improve and deliver…in time we will see.