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Are SPAC Stocks Worth The Hype?

Apr. 08, 2021 8:39 AM ET8 Comments


  • In 2020 and 2021, there have been more than five hundred SPAC IPOs brought to market - a truly huge break from the historic trend.
  • Many investors have made big on SPAC stocks in this period, and many more expect to be able to do so going forward.
  • In truth, any SPAC deal is only as good as its sponsors, the small print in the securities documents, and the quality of the target operating company itself.
  • We dive deeper below.
  • Looking for more investing ideas like this one? Get them exclusively at The Fundamentals. Learn More »

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This article was written by

Cestrian Capital Research, Inc. is an independent, SEC-regulated investment research business led by CEO Alex King. Alex is a professional investor with 3 decades of experience. Cestrian specializes in covering growth stocks, index ETFs and index options, long-run investing, swing trading and risk management via hedging.

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Analyst’s Disclosure: I am/we are long SPCE, NSH, SFTW, ASTS, VACQ.

Business relationship disclosure: See disclaimer text at the top of this article.

Cestrian Capital Research, Inc staff personal accounts hold long positions in, inter alia, SPCE, NSH, NSH.W, VACQ.U, VACQ.W, ASTS.W and other SPAC stocks.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (8)

roccosun profile picture
No Momentus (SRAC) investment?
Cestrian Capital Research profile picture
@rogosun Held it early on and made very good money from the units. Sold out when it looked like the CEO was going to get replaced. No plans to buy back in just yet.
roccosun profile picture
@Cestrian Capital Research

I see. It's quite cheap again, so I consider putting it in my alternative/speculative basket. Long term conviction bets, not much trading here. I read/heard that the CEO's Russian descent could have caused regulatory problems...

I wasn't into space/SPAC before I read your piece on Spire (thank you!) and did some more research on it resulting in a buy. (I only bought Dragoneer DGNR & Altimeter AGC for the sponsors pre announcements before and still own them.) Then I got into BlackSky as well. Now I'm researching Momentus, Rocket Lab, Redwire and AST and many more non space related SPACs. Otonomo is an interesting company but has almost no existing revenue. Any thoughts on Redwire?
roccosun profile picture
@Cestrian Capital Research

SpaceNews' SPACs in Space ft. Spire, BlackSky, Rocket Lab, AST CEOs just released. Might be of interest. I'll watch it now.
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