SPACS research - 09 January: PIPP and SWBK
As always we will look at team, sector, hype potential and chart then decide on a position size.
PIPP
This just opened for separate trading as of 07/01/2021. I was recommended this one by SPAC Mikey on Twitter.
* Strong financial services team - former Merrill Lynch / Goldman Sachs bigwigs John Thain and Phillip Cooper.
* Searching for goverment, defense and aerospace businesses.
* Big hype potential on this one due to strong team, sector and an empowered incoming govt. administration
* Chart shows massive listing pump, then slow bleed. Consider laddering bids
Strong yes, but with the proviso that they're still searching (no Def agreement) so could be a waiting game on this one.
I'd be tempted to set a couple of bids and see if I can buy between 10.30 - 11.00, but equally 11.00 could be the new support and we climb to the 12's from here.
Buy half a position on spot for 11.00 in accordance with my strategy - buy big in the 10-12 area for SPACs. Timeframe needs to be 6-12mths potentially.
Try to buy other half of position via bids into the mid 10's.
SWBK
I can't trade this one yet, but expect to be hyped when more widely available to retail.
* NGP and RPS Permian executives, second SPAC after wildly successful SBE Switchback Energy
* Scott McNiel and Mutrie head up the team
* Same target again - energy transition or sustainability
* Hype potential, but important to remember they're still just searching
* Chart's had initial pump/dump now trying to build a base in 11's
Verdict: Yes, but buy in increments. Think this one will be a crowded trade. Set bids to get good average quarter position when this hits market if in 10-12 range and then see how chart develops.
Additional thoughts
You can see newly listed SPACS by going on SEC.REPORT and searching 'acquisition'
IPO Scoop and their calendar is a pretty good resource as well although has mix of SPACs / IPOs
Biggest problem for SPAC investors is that market is becoming diluted, a good sign we are mid-bubble. So capital allocation is going to become a problem.
I either need to A) have many small positions and a few 100 pound gorilla positions, or B) simply be more picky and set a higher threshold of what I buy. Only have a dozen or so in play. For example INAQ
Tempted to go with A) and see how that goes over next 8 weeks or so. Position sizing and risk management is everything. One advantage of A) is that it would allow me to buy more nominal asset value $10 SPACs in small pieces, and let those sit for 6 - 12 months until they pop. Nice low-risk low-stress trade.
PIPP
This just opened for separate trading as of 07/01/2021. I was recommended this one by SPAC Mikey on Twitter.
* Strong financial services team - former Merrill Lynch / Goldman Sachs bigwigs John Thain and Phillip Cooper.
* Searching for goverment, defense and aerospace businesses.
* Big hype potential on this one due to strong team, sector and an empowered incoming govt. administration
* Chart shows massive listing pump, then slow bleed. Consider laddering bids
Strong yes, but with the proviso that they're still searching (no Def agreement) so could be a waiting game on this one.
I'd be tempted to set a couple of bids and see if I can buy between 10.30 - 11.00, but equally 11.00 could be the new support and we climb to the 12's from here.
Buy half a position on spot for 11.00 in accordance with my strategy - buy big in the 10-12 area for SPACs. Timeframe needs to be 6-12mths potentially.
Try to buy other half of position via bids into the mid 10's.
SWBK
I can't trade this one yet, but expect to be hyped when more widely available to retail.
* NGP and RPS Permian executives, second SPAC after wildly successful SBE Switchback Energy
* Scott McNiel and Mutrie head up the team
* Same target again - energy transition or sustainability
* Hype potential, but important to remember they're still just searching
* Chart's had initial pump/dump now trying to build a base in 11's
Verdict: Yes, but buy in increments. Think this one will be a crowded trade. Set bids to get good average quarter position when this hits market if in 10-12 range and then see how chart develops.
Additional thoughts
You can see newly listed SPACS by going on SEC.REPORT and searching 'acquisition'
IPO Scoop and their calendar is a pretty good resource as well although has mix of SPACs / IPOs
Biggest problem for SPAC investors is that market is becoming diluted, a good sign we are mid-bubble. So capital allocation is going to become a problem.
I either need to A) have many small positions and a few 100 pound gorilla positions, or B) simply be more picky and set a higher threshold of what I buy. Only have a dozen or so in play. For example INAQ
Tempted to go with A) and see how that goes over next 8 weeks or so. Position sizing and risk management is everything. One advantage of A) is that it would allow me to buy more nominal asset value $10 SPACs in small pieces, and let those sit for 6 - 12 months until they pop. Nice low-risk low-stress trade.
פרסומים קשורים
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.