SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: petal who wrote (65622)12/8/2020 12:15:47 PM
From: Madharry1 Recommendation

Recommended By
petal

  Read Replies (1) of 78863
 
the concept of a spac is quite simple. at the start you are giving guys a blank check to run out and find some company to buy or merge with. if you dont like the deal you can ask for your money back. after the deal is announced you need to look at the operating entity and decided whether you want to be an investor speculator in that company or not. I looked at one spac, bought a small amount and then sold it right away because when i looked at the operating company i couldnt figure out who actually had expertise in running that kind of business. the two spacs I purchased I am much more confident in the managers of the operating companies after looking at their presentations on line. Its hard to place a valuation on these companies because there are two many unknown unknowns. thats why these are speculations just like most IPOs.

the difference being that you can potentially purchase shares in them at a fairer price than most investors have trying to buy shares in a popular ipo. In these speculations i am looking at potential market size relative to market cap and trying to assess whether the company can be successful at what they are doing. For in both cases the answer was yes. so i am in for a small amount of my portfoliio. again these are not value plays where you can are getting something with free cash flow dividends or at fraction of book value.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News