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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: petal who wrote (65639)	12/8/2020 6:20:49 PM
From: Steve Felix	Read Replies (2) \| Respond to of 78958

"If you get that with SPAC's too, I'm super-excited. First, you get the above-mentioned first day returns; second, they often seem to appreciate in price soon after being issued (whereas IPOs often go down dramatically the following weeks) following a merger rumor and consequent statement....." To my knowledge, the market still isn't giving anything away. Take a look at ATNF, merged with KBLM: MENLO PARK, Calif., Nov. 10, 2020 (GLOBE NEWSWIRE) -- 180 Life Sciences Corp. (NASDAQ: ATNF or the "Company"), a clinical-stage biotechnology company with its lead indication in Phase 2b/3, focused on the development of novel drugs that fulfill unmet needs in inflammatory diseases, fibrosis and pain, today announced the successful closing of its transaction with KBL Merger Corp IV. Before the final merger announcement ATNF was over $10, today $2.37. I never followed it, but I suppose the first announcement was the end of June, when the Spac warrants, KBLMW, traded from 11 cents to 48 cents in two days. ( you can find these on Barchart even after the symbol change. ) That is far from the only one. It is like short sellers. You hear about the home runs, but nobody talks about all the times they strike out. _____________________________________________________________________________________ Something to think about with these. 100 shares of KBLM would have cost $1000+ and would now be $237. Buying 1000 shares of the KBLM warrants, bought at the high would have been $480. Losing 100% on the warrants would have been cheaper than holding the stock at this point. Warrants are .19 today. On the other hand, look at LAZR. On Nov. 12th you could have bought 100 shares for $1020, or 400 warrants for $940. At close today the stock would be worth $4,180 with the warrants at $6,280. I'm far from an expert, so jmho, you either buy a pig in a poke before there is any announcement what so ever, or you wait for the time between the first announcement and the actual merger. I won't spend $10 a share for that pig, but I've spent .35 to $1. I never followed LAZR, but I'd bet that bump in September was the first announcement. Not seeing any bump on the ATNF chart. Realize that the exercise prices on the warrants is "generally" $11.50, so they have no real value until the stock reaches that price.