April Issue

JoJo26

“The New York Times (3/19/21) reports that many SPACs collect money first and find something to invest in second, which has led to intense pressure to find investable uses for their stash”

Many SPACs do this? Nice reporting NYT... This is what you get when non-investment people are responsible for investment journalism. Try 100% of them raise money first and then invest it second. It’s a requirement to be a SPAC.

Sven

What is the difference between buying SPACs than lottery tickets?

davidrmoran

NYT may be subpar, but see if the complexity and opacity are clarified here:

https://www.marketwatch.com/story/these-are-the-hidden-dangers-lurking-inside-spacs-that-can-hurt-you-11614267559

Sven

Thank you.

rforno

Sven said:

What is the difference between buying SPACs than lottery tickets?

If you time the buy correctly into a SPAC close to or below NAV, you can maybe get at least your original investment back, or have a possible floor to minimize losses?

JoJo26

The complexity only comes into play if you hold through the de-SPACing. IMHO that is not a strategy retail investors should employ, frankly because they do not have the knowledge to do the proper underwriting.