I really don't understand the concept of SPAC's well enough yet (if there is anything underneath the surface to understand, that is) to comment on the subject extensively or with any certainty.
To me, the whole concept seems a little fishy and one of those strange phenomenons one would expect to find in a bull market as crazy as this.
However, I do see how they can maybe be a Special Situation investing type thing, like those Greenblatt mentions in his first book. (Where, if you're willing to do the work, there may be a substantial upside hidden in plain sight.)
(Àpropos things one would find in a crazy bull market: I don't know if you have that in the US presently, but in Sweden it's much like the late 90's – IPO's that go up 50 % in the first day of trading is not unusual at all. Matter of fact, one like that took place happened today, come to think of it. I am more skeptic of growth stocks than ever, but I do believe that even the most careful Value Investor can allow oneself to partake in a little Intelligent Speculation like investing in safe-bet IPO's, or indeed SPAC's, so long as one doesn't make that too large a part of one's portfolio and thus making one unable to manage a significant downturn. It's all about the odds.) |
