SPACdaddy guide to 103 SPACs below $10.80/share
Updated: Feb 5
If you're reading this, you probably have 100+ trades a year & have a major TAX headache coming your way. Click the article below to save yourself from the migraines:
Regarding more SPAC lists, CLICK THE UPDATED ARTICLE BELOW:
Alright SPACheads, here's the article everyones been waiting for. A common theme of my previous articles is that SPACS ARE TOO DAMN HIGH! Well, that's still the case for the most popular SPACs like IPOD, IPOF, VGAC, QELL, DGNR, ZNTE, BTNB, GSAH, and many others. Those SPACs are all trading at a 20-70% premium because their management is the créme de la créme.
My strategy is very simple: get in close to NAV aka ~$10/share. That's the entire model from which I've built my SPAC investing success. If you're like me and want to invest a ton of $ and still be able to sleep like a baby, then this is the strategy you NEED to use. If you still didn't know that SPACs have a $10/floor, then click here to read SPAC101 for SPAC's sake.
2021 is going to be the year of the SPAC. With 320+ SPACs on market & 80+ SPACs in the IPO pipeline, the amount of merger & acquisitions going down in the next 6-12 months is going to to be cosmic. Literally, there wont be any private companies left... even Zillow's cofounder Spencer Rascoff agreed with me:
So as humans did for thousands of years, we have to adapt... We need to find ways to get access to quality SPACs near NAV before the hype-train leaves the station. Here is the solution: Buy Units.
If you're getting ADHD and already know how to buy Units, scroll down for the list. If you've heard the word "Units" and don't know how to buy them, stick with me because it's super easy & is a requirement to get in before the Robinhooders jack up the price. Units trade for the first 45-52 days before they split into commons/warrants aka the Greenshoe period (for a quick Unit/Warrant explanation, read this).
5 Steps to Buying Units:
1. Download a quality brokerage that doesn't rhyme with Shrobinhood. The reason for this is because you need to have a brokerage with customer service that will answer your calls. Common brokerages include: Schwab, TD Ameritrade: Think or Swim, Interactive Brokers, E-Trade, Fidelity.
(If you want more info on which brokerage to choose, DM me on Twitter @SPACdaddy or elsewhere & I'll tell you which one is the move for you)
2. To find units of your favorite SPACs, search the ticker and click on the one that has a U .U or /U. For example, if you're looking units of Goldman Sachs Acquistion Corp (GSAH), it will look like GSAH/U. Warrants will look like GSAH/WS and the commons will be just GSAH.
3. Look up what fraction of the Warrant is in the Unit. Usually it'll be 1/2w to 1/5w. If you buy GSAH/U, which have 1/4w, every 4 units will yield you 4 commons and 1 warrant (4 units * 1/4w = 1w, 4 commons). It's very simple once you understand the math, don't overthink it.
Some more basic math: If you buy 4 shares of GSAH/U for $12/Unit, that means you are technically paying ~$8 for each warrant (SPAC common = $10, 1/4 Warrant = $2, so 4 units * 1/4w = 4 commons & 1 full warrant). Now technicalities don't always matter because sometimes theres a discount/arbitrage play to be made. A unit can be trading at $12.50/U while the common is at $12.20/share... so basically the fractional warrants just serve as the cherry on the cake.
4. Next up, find the SPAC you like during the greenshoe period and buy Units. After the 45-52 day greenshoe period is over, the SPAC will announce the "Separate trading of it's shares" aka splitting the units into commons and warrants. This is when Robinhooders flood the commons and jack up the price. Essentially, this is a way to get in before the madness.
5. The greenshoe is over and it's time to split your units. Call your brokerage & repeat these magical words verbatim:
"PLEASE MAKE A CONTRACT REQUEST TO THE RE-ORG GROUP TO SPLIT MY SPAC UNITS OF _ _ _ _ /U"
There you have it! Your units will split into commons and warrants in 1-2 business days and you've managed to buy SPAC shares before the Robinhood hype.
Now for the juice. What SPACs have solid management and are trading below $10.80/share? SPACdaddy went through EVERY SINGLE ONE OF THE 320+ SPACs on the market to find you worthy places to put all your $, safely.
One last thing, follow me on Twitter @SPACdaddy because I never plan on monetizing. SPACdaddy is for the people. Click the Twitter logo and then come back to see the list.
Below is a list of SPACs that are below $10.80/share as of Jan 25, 2021. The general rule for making my list is that they have to have $100m+ cash in trust and their management has to have strong experience, powerful connections, & access to capital:
Commons Below $10.80
Units below $10.80
If you made it this far & want more, click the articles below. The Gamestop explores the fundamentals of what happened and some behind the scenes info: