A Golden Age of SPAC short-selling approaches.
Extreme valuations, IPO froth, economic frailty, & WSB chaos are nice...
..but the train wreck that is post-deal SPACs is epic.
Each day the SPAC machine issues 5-10 more, driving future shorting profits to the moon.
🤑🚀💥
1/n
Extreme valuations, IPO froth, economic frailty, & WSB chaos are nice...
..but the train wreck that is post-deal SPACs is epic.
Each day the SPAC machine issues 5-10 more, driving future shorting profits to the moon.
🤑🚀💥
1/n
Post-deal SPACs skew toward 𝐡𝐨𝐫𝐫𝐢𝐟𝐢𝐜 company quality. The best analog is IPOs c1999.
With luck, SPAC-mania lasts for quite a while, REALLY stocking the pond.
We are going to witness Desperation Buying (TM) by sponsors, as they fight to deploy capital into shitcos.
2/n
With luck, SPAC-mania lasts for quite a while, REALLY stocking the pond.
We are going to witness Desperation Buying (TM) by sponsors, as they fight to deploy capital into shitcos.
2/n
Why Desperation Buying (TM)?
Sponsors either: get a deal approved & receive massive pay; or fail to get a deal & lose their sponsor equity, is a perverse incentive driving bad behavior.
It’s going to get MUCH worse, as this vintage matures.
🤮
Build your shorting list now.
3/n
Sponsors either: get a deal approved & receive massive pay; or fail to get a deal & lose their sponsor equity, is a perverse incentive driving bad behavior.
It’s going to get MUCH worse, as this vintage matures.
🤮
Build your shorting list now.
3/n
We are seeing truly awful companies receive truly great valuations.
It’s very dangerous right now. But when the tide goes out, we will discover who’s been swimming naked.
Stay safe out there.
Let me know what deals you think are the most egregious below.
🥳🕵️♂️👀🌋💥👇👇
It’s very dangerous right now. But when the tide goes out, we will discover who’s been swimming naked.
Stay safe out there.
Let me know what deals you think are the most egregious below.
🥳🕵️♂️👀🌋💥👇👇
Tagging:
@hkuppy
@JulianKlymochko
@SpacGuru
Thoughts on worst sponsors, worst deals welcome. It’s going to be epic.
@hkuppy
@JulianKlymochko
@SpacGuru
Thoughts on worst sponsors, worst deals welcome. It’s going to be epic.
Here’s 12 SPAC deal announcements from this past week.
Some of these are fine businesses, others are dogs, and another walks dogs 🐶 .
Thank you, thank you. I’ll be here all week.
Some of these are fine businesses, others are dogs, and another walks dogs 🐶 .
Thank you, thank you. I’ll be here all week.
https://twitter.com/julianklymochko/status/1360751462343610370
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