Unusual Speculation: SPAC Watchlist
According to Investopedia, “A special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company.
Also known as “blank check companies,” SPACs have been around for decades. In recent years, they’ve become more popular, attracting big-name underwriters and investors and raising a record amount of IPO money in 2019. In 2020, as of the beginning of August, more than 50 SPACs have been formed in the U.S. which have raised some $21.5 billion”.
Here at Unusual Speculation, we have three SPACs on our watchlist. All these SPACs have rumored acquisitions that could potentially cause the stock to 5x! So without any more discussion here is our list.
First, we have FirstMark Horizon Acquisition Corp, ticker $FMAC. This SPAC is rumored to take Discord public. Discord is an online chat service which makes communicating easy among video game enthusiast. From personal use, this is a very good platform with an easy interface and reliable connection. However, the business model still shocks me. Unlike Slack, it is a free platform for anyone to use. To make up the costs to host these servers, Discord relies on “Discord Nitro” which is a premium version of the platform. I do like Discord and if they could reassure their investors with a proper business plan, I could see this SPAC 5X.
Next, we have Zanite Acquisition Corp, ticker $ZNTE. This SPAC play is rumored on taking Archer public. Archer is a commercially viable eVTOL aircraft designer and manufacturer. Especially with the Biden Administration, electrical vehicles are making a humongous progression. Archer which is supposed to revolutionize the airline industry could be a disruptor for sure. With backlash on Boeing after many of their planes have crashed, as long as an overall transition on gas planes, this SPAC could potentially 5x as well.
Lastly, we have Greenrose Acquisition Corp, or ticker $GNRS. This SPAC play is rumored to take Leafly public. Leafly is a company that designates finding weed strains and marijuana dispensaries nearby. So why do we like this play so much? Unless you have been living under a rock, the whole marijuana industry is skyrocketing. Companies from, $SNDL, $CGC, $TLRY, and more have all gone berserk over the past months. This partly is due to the fact the Democrats have taken control of all branches and are pushing for legalization. Another catalyst is the amazing numbers and guidance $CGC or Canopy Growth Corporation announced. This shows the profitability and the insights into the marijuana industry. Therefore, we see this SPAC, potentially 10x in the future.
As always, we take our research off of financials, fundamentals, and recent catalysts. All this information is meant to be entertainment and not financial advice. Therefore, we are not responsible for any liability. Remember, stay hedged and secure your bread.