Suggestions for a speculative punt?

AnotherJoe

adindas said:

Username999 said:

Tesla up 12%.
$2485 in old money!!

Hyliion another EV stock that is going IPO thorough a reverse merger with Tortoise Acquisition (SHLL). It is probably too late now as they have rallied massively prior to the merging date whihc is very soon. Sofar I have made 98% gain and this is before the merge were completed. Epecting 200% gain before I sell it. Previously I have taken advantage of SPAC with Nikola/Vecto IQ.

What I have noticed and have researched here is that investing in a company about the go for an IPO thorough SPAC is a risk worthy undertaking if combined with a good exit strategy

The problem with the traditional IPO here is that it is very difficult for a retail investor to buy the stock before they are going public. Even they have gone public it might take a few days for your brokers to add it in their platform. So, what you get here is that you come late to the party and you get the leftover of what the institutional investors, hedge funds do not want.

But you could take advantage of IPO via the emerging of reverse merger thorough Special Purchase acquisition Company (SPAC), where you could buy the stock before they are going public (but after the merging date is announced) by investing in this SPAC company.

There is an article here about SPAC

https://accelerateshares.com/blog/heads-i-win-tails-i-still-win-low-risk-investing-with-spac-arbitrage/

Example of companies went public through SPAC in the past.

DraftKings is merging with Diamond Eagle Acquisition Corp.

Nikola with VectoIQ.

All of these stocks have produced a massive return (!00%+) after the merge were completed.

Sofar I have been succesful with NIkola (under VectoIQ) and now with Hiilion (SHLL).

I am still learning about investing in SPAC companies about to go for a reverse merger. Would like to hear other peple experience and blatant criticism about investing in SPAC companies.

I hope you sold your Nikola. It's Theranos 2.0. Only reason to buy is greater fool theory. Though  there certainly are enough of those around. 

adindas

AnotherJoe said:

adindas said:

Username999 said:

Tesla up 12%.
$2485 in old money!!

Hyliion another EV stock that is going IPO thorough a reverse merger with Tortoise Acquisition (SHLL). It is probably too late now as they have rallied massively prior to the merging date whihc is very soon. Sofar I have made 98% gain and this is before the merge were completed. Epecting 200% gain before I sell it. Previously I have taken advantage of SPAC with Nikola/Vecto IQ.

What I have noticed and have researched here is that investing in a company about the go for an IPO thorough SPAC is a risk worthy undertaking if combined with a good exit strategy

The problem with the traditional IPO here is that it is very difficult for a retail investor to buy the stock before they are going public. Even they have gone public it might take a few days for your brokers to add it in their platform. So, what you get here is that you come late to the party and you get the leftover of what the institutional investors, hedge funds do not want.

But you could take advantage of IPO via the emerging of reverse merger thorough Special Purchase acquisition Company (SPAC), where you could buy the stock before they are going public (but after the merging date is announced) by investing in this SPAC company.

There is an article here about SPAC

https://accelerateshares.com/blog/heads-i-win-tails-i-still-win-low-risk-investing-with-spac-arbitrage/

Example of companies went public through SPAC in the past.

DraftKings is merging with Diamond Eagle Acquisition Corp.

Nikola with VectoIQ.

All of these stocks have produced a massive return (!00%+) after the merge were completed.

Sofar I have been succesful with NIkola (under VectoIQ) and now with Hiilion (SHLL).

I am still learning about investing in SPAC companies about to go for a reverse merger. Would like to hear other peple experience and blatant criticism about investing in SPAC companies.

I hope you sold your Nikola. It's Theranos 2.0. Only reason to buy is greater fool theory. And there certainly are enough of those around. 

Thanks. I did my DD and I am fully aware about Nikola.,that the company was built upon future promise and they have not made any single vehicle.

But I was buying Nikola stock  not because of the company but taking advantage the hype surrounding the SPAC reverse merger.

I close all of my position and making gain around 90% (?). But I was actually quite late. I should have closed it a little bit earlier to get 100%+ gain.

YellowStarling

I have been investing in/speculating on a few SPACs this year too.  Pre-LOI (letter of intent) is often good as well (I look at the management team, target areas and capital raised to judge the potential for an acquisition that is tempting to both retail and institutional, i.e. "hype").  That said, it's very much a case of "buying the rumour, selling the news" (or, even, "buying the potential and having the option to sell the rumour or wait for the news") and, for this reason, it is more akin to trading than investing (even within the definition of "speculative punt").

I, too, was in VTIQ.  Missed DraftKings (DEAC) as I thought the pandemic's impact on sports and gambling would dampen it too much (was wrong!), but was also in FMCI (Tattooed Chef, but traded on the rumour it was Impossible Foods).  Have also 'flipped' SPAQ and GRAF to, whilst positive, smaller effects.

Now in SHLL, IPOB, IPOC, JWS, WPF, GSAH, PSTH.

Waiting for the common classes for ETAC, AACQ, DGNR, FTOC, BFT, CCIV.

Eye on common class releases for AONE, NGA, STPK, GRSV, RBAC, HZAC.

Finally, eye on IPOs for CFII, CRHC.

Last notes of caution:  As already mentioned, I find the strategies with SPACs can be more alike to trading as there is often a sell-off for profits upon final completion of the reverse merger, or if the hype ahead of the completion has driven the price higher than a retrospectively-considered sensible valuation - see NKLA -, though in theory you could invest in a SPAC pre or post-LOI and then stay invested if you liked/believed in the company being brought public.  Secondly, investing pre-LOI could see little to no volume or price action in the absence of news (most SPACs have 12, 18 or 24 months to do a deal from IPO, but can also have extensions agreed by their shareholders), which means you be losing out on making your money work harder elsewhere (albeit, doing so could risk possibly missing the surge upon rumours/news/LOI/combination announcements).

The above is not advice; I only speculate at all with a small proportion of my portfolio (<5%) and SPACs are probably less than 10% of that.

Malthusian

adindas said:

Thanks. I did my DD and I am fully aware about Nikola.,that the company was built upon future promise and they have not made any single vehicle.

The company is built on having the same namesake as Tesla. That's it. It's equivalent to investing in that company that renamed itself "Blockchain Corp" at the height of the second Bitcoin bubble, even though they sold lemonade, in a pump and dump.

But I was buying Nikola stock  not because of the company but taking advantage the hype surrounding the SPAC reverse merger.

Fair enough, I've no problem with people being open about the fact they are gambling on Greater Fool Theory.

The problem with Greater Fool Theory is that it's a zero-sum game from a global perspective, however for some players it's a virtually guaranteed winner - i.e. those that set it up - and it is therefore a net-loser game for everyone else. This is the game theory translation of the saying "if you don't know who the sucker is then it's you".

adindas

YellowStarling said:

Now in SHLL, IPOB, IPOC, JWS, WPF, GSAH, PSTH.
Waiting for the common classes for ETAC, AACQ, DGNR, FTOC, BFT, CCIV.
Eye on common class releases for AONE, NGA, STPK, GRSV, RBAC, HZAC.
Finally, eye on IPOs for CFII, CRHC.

Have a look on DPHC , GMHI, HCAC, GRAF, LCA. OPES, PTAC, SPAQ, TRNE They already have started conversation with the target company.

adindas

Malthusian said:

Fair enough, I've no problem with people being open about the fact they are gambling on Greater Fool Theory.

The problem with Greater Fool Theory is that it's a zero-sum game from a global perspective, however for some players it's a virtually guaranteed winner - i.e. those that set it up - and it is therefore a net-loser game for everyone else. This is the game theory translation of the saying "if you don't know who the sucker is then it's you".

I agree it involves some degrees of calculated gambling. But what I disagree here is the statement that “guaranteed winner - i.e. those that set it up - and it is therefore a net-loser game for everyone else” Even in the casino, the casino always wins, but not everyone is loser some players still win in the casino.

If you see the case with Nikola (NKLA) itself if you bought it up to before the merger date on June 4, you could still make a little profit to this date. On the date of reverse merging June 4, 2020, the stock price was US$33.75 jumping to the highest point of US$80 in june before slowly decline and today the stock price is still US$36.17. From June 4 to this date the price is overwhelmingly in the upside. It is only a few days where the price was below US$36.17 with the lowest point @ US$29.

NKLA YAhoo

So even for the company based upon promises very few people are losers (e,g those who sold when it was below US$33.75). Let alone a good SPAC companes like Hyliion (SHLL) or Fiskers (SPAQ).

What you need to make sure here is that a good exit strategy (not too greedy) and you do not become a bag holder for the stock which was built upon hype and have little chance to grow in the future.

csgohan4

Gonna fill my boots with SMT lol

Username999

Another SPAQ.
Ticker = KCAC. Kingston Capital. Backed by Bill Gates and Volkswagen.
Researching into solid state batteries.
Up 20% on Friday to $22.50

DireEmblem

I’m going to suggest Nintendo.  Just seen the new mariokart and looks amazing!  So much, it’s tempting me to go out and get a switch.

Obviously do your own research, but approx 52m have been sold to date and UK retail value is £279 and £99 for Mariokart.

Say only 10m buy Mariokart, at a 30% profit, that’s an extra 0.3bn to Nintendo, and the company has an Mcap of 55bn I think, so still plenty room for growth!

csgohan4

DireEmblem said:

I’m going to suggest Nintendo.  Just seen the new mariokart and looks amazing!  So much, it’s tempting me to go out and get a switch.

Obviously do your own research, but approx 52m have been sold to date and UK retail value is £279 and £99 for Mariokart.

Say only 10m buy Mariokart, at a 30% profit, that’s an extra 0.3bn to Nintendo, and the company has an Mcap of 55bn I think, so still plenty room for growth!

I wonder what the consensus on buying game developers or game related stock?, You could argue the same for the producers of GTA or Call of duty which are big name titles and buy their stock before each game release.