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ProfofPump 14:03 PM - Sep 22 2022

To the Moon? Intuitive Machines

Honestly, I groaned when this article popped up in my Google feed. Though Intuitive Machines going public via the Inflection Point Acquisition Corp SPAC could be very interesting. A quick read of Intuitive Machine's website shows the (very) long term promise of this company. They provide key services: (1) Transportation to the Moon [e.g. launch services for payloads]  and on the surface (2) data and communication services (3) habitats where people would live which would be necessary for industrial activitiy & long term occupation of the lunar service. Personally, I think point #3 could be a stretch in terms of execution but services (1) and (2) alone make this one a speculative but good long-term " pick and shovels " play. Currently tracking & will open a small position at a reasonable price. 
Maverick 00:20 AM - Jan 13 2021

I'll be adding $ACTC in a few weeks.  It announced Proterra today - a big, sexy one.
Maverick 22:27 PM - Jan 06 2021

I'll post an update on my watchlist this weekend, probably.  I'm just sitting on and continuing to do DD on $NGA and $GIK -- have big positions in both.  Also patiently waiting on $SOAC to announce in Q1.
Maverick 22:04 PM - Dec 27 2020

Looking forward to Monday.  $RMG will probably steal the show.  

Posted new watchlist & DD here:
Maverick 16:10 PM - Apr 24 2021

SPACs - was end of April 2021 the bottom?

I wrote about SPACagedden 2.0 more than a month ago.  I was wrong on how long it would last.  It was much longer and more painful. 

I am now wondering if that was bottom because the SEC has put the brakes on new submissions, which leaves just what's out there, which could create a flight to quality on the really good stuff (NGA, TPGY, ACTC)?

Anybody thinking the same?  Or are you totally done with SPACs?
Maverick 22:31 PM - Mar 03 2021

SPACageddon 2.0?

If you've been playing SPACs, then you know the pain the last two weeks have been.

I survived SPACageddeon 1.0 back in October 2020.  That said, I didn't remember it well, since it was so damn painful.

So tonight, did some quick research to see if we were in SPACageddon 2.0 right now - which was overdue by amount a month, in my opinion.  The sector is just too crowded and I am seeing absolutely stupid deals (pre revenue, pre product) and ridiculous valuations.

The power has actually shifted over to the companies instead of the SPACs.  There are many, many more SPACs than a year ago and way less good deals by the day.

Going forward, you'll need to be very selective in what you buy.  Not everything will pop.  It needs to be sexy and at a good valuation.

So, let's get into where I think we are on the timeline

Two samples from SPACageddon 1.0 (both of which I was in at various times):
SHLL/HYLN - October 1 to November 2, 2020 - topped out at 55 on September 29, cliff dived to 18.50 on November 2.
DPHC/RIDE - October 1 to November 2, 2020  - topped out at 31, cliff dived to 13 on November 2, then almost fully bounced back to ATH by November 23. forward to February 2021

CCIV hits 58 on Feb 18, then started its nose dive (already down 60% as of today)

I think CCIV (that valuation was bubblelicious) started SPACageddon 2.0.  Bond yields rising aren't helping, either -- risk off can be quick and severe.

If history repeats itself (unlikely, but what else do we have to use?), then I think we're looking at late March before we see the good stuff back to its previous highs.

This could actually play out well - if you can sustain the pain. We still do not have merger vote dates from $
GIK , $NGA , or $TPGY  (all quality and good valuations).  The closer these happen to late March/early April, the better we should be.

Wild card: Bond yields continuing to cause problems -- this is a big, big liquidity drain that was not part of SPACageddon 1.0.
Mentions: GIK NGA TPGY
TheCap 18:16 PM - Dec 22 2020

SPAC Unit Split - My experience with Fidelity

In September of 2020 I purchased some TWNDU Units for $10.01 a few days after IPO and before any warrants or shares had separated for trading. I picked a pre-separation SPAC Unit and set out to go through the SPAC Unit separation process at Fidelity. This process is my first test of the Unit separation process and specifically the Fidelity process. Note: these Units were purchased in my HSA account and not my cash brokerage account since I trade my short-term plays in my HSA account to minimize the tax impacts of short-term moves.

Couple of things I wanted to learn and confirm:

1.      Confirm if Fidelity charges any fees for the separation,
2.      See how their process is setup and how much effort it takes to process this Corporate Action,
3.      See what the resulting basis allocation would be for the separated Units and Warrants,
a.      Tax basis considerations for yearend g/l reporting.
b.      Is there a holding period difference between separated Shares and Units?

The process: So a few months after the Warrants and Shares separated for trading I called the number on my Corporate Actions page (800-544-8666) to complete the process of separating my Units since I had already received the alert in my account from Fidelity. My rep tried to complete the process but when he went to submit he had a restriction on his side since the Units are in my HSA account that is apparently handled by a different group inside Fidelity. I was transferred to the HSA group rep who transferred me to another person. I told him what I was doing, and he confirmed my number for callback. First call total time 44 minutes including the initial wait which felt like the longest part. I Should mention that once I spoke to my first rep, there was very little to no hold time between associates. While waiting for a callback, I noticed the TWND Units in my account changed to their "numbers" and became unavailable for trading. The rep said that the Shares and Warrants were re-elected and should be available by Friday or Monday at the latest (3-5 days).

After 1 week, 1 hour of call time and 1 hour of waiting between calls, the separated Shares and Warrants are in my account and available for trading the following Tuesday.

The results: 

1.      There were no fees to separate the Units.
2.      Process was somewhat painful from a timing and call perspective, but this may be primarily due to the use of my HSA account.
3.      My cost basis shows:
a.      Shares: $9.37
b.      Warrants: $1.28
c.      These amounts seem to be the relative market values on the day of split. 
4.      Both Shares & Warrants kept the original purchase date.

Important Note: be aware of the Share to Warrant ratio unique to each SPAC Unit and only buy in multiples that offer full Warrants upon separation unless you want to hold some Units after completion of the separation. The TWNDU contain 1 share and ½ warrant so I bought them in a round lot.

I will likely employ this approach for some Units in the future and will provide some updates as I go along. My next attempt will be to see if the process is identical for Units bought after they have already started separate trading of the Shares and Units.

TL;DR – Fidelity lets you split Units between Shares and Warrants for no cost if you call to complete your Corporate Action. This was done with a non-separated Unit bought pre-separation of Shares and Warrants. The holding period was the original Unit purchase date and the resulting cost basis is the relative market prices at separation.

Maverick 01:57 AM - Dec 21 2020

Trading week of December 21, 2020

I've got no major updates from my previously posted watchlist -

$PIC has its merger vote on Monday.

$NGA continues to be my largest position, I'll be sitting on it for a while though (Feb/March)

$RMG final week of trading before merger vote on December 28.

AJAX came up in research this weekend.

$TPGY - hoping this one comes off a bit.  It went crazy on merger announcement of EVBOX.  Months before merger though, so there's time for it to cool off.

$SOAC - are you ever going to announce something?

Reminder:  US markets are closed half day on Thursday (at 1p EST) and fully closed on Friday.

Maverick 00:17 AM - Jul 13 2020

HCAC - Hennessy Capital Acquisition IV


Some DD from Reddit:

HCAC 1 = became BLBD (topped out at $27)
HCAC 2= became DSKE (went to $15), but totally boring
HCAC 3= became NRC (but this one confuses me, it's a Nordic company and I think it's now traded on Oslo?  In any case, chart went way up..)

Only reservation I have about HCAC is Hennessy does boring SPACs, historically.  They are industrial infrastructure stuff and lack sizzle that many of latest SPACs have.  That said, the returns have been quite consistent and no doubt the reason he's doing it again.  Plus, the SPAC space very different today compared to years ago.

Maybe they'll go with a 'green' infrastructure play here. ♻️
Maverick 00:49 AM - Jun 29 2020

SPAQ - Spartan Energy Acquisition Corp

SPAQ - currently 10.40 / SPAQ.WS currently 0.93

SPAC Central

Created By: Maverick
Created: Jun 21, 2020
Total Followers: 7
SPACs ("Special Purpose Acquisition Companies") are blank check companies that have cash in them and are seeing a target to acquire.  These can be fun because it's a 🕵️‍♀️ game of who they're going to acquire.  It can be profitable if the target company ends up being something in a hot space.  

Make sure to do your DD on management behind the SPAC, cash position, and target sector.
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