Four Tickers to Play the Red-Hot SPAC Market
Amanda Heckman|May 22, 2021
Anytime something gets hot, the media tends to overreact. (Crypto this week, anyone?)
And there’s no question SPACs – special purpose acquisition companies – are hot.
As we’ve written quite a bit recently… it’s easy to see why.
There are a lot of reasons to like them… The biggest is the fact that everyday investors can jump into some of the youngest pre-IPO opportunities… for the low, low price of just $10.
So naturally, when SPAC listings took a bit of a breather in April after a rapid-fire start to the year…
The mainstream media was quick to pronounce the end of the SPAC boom…
WRONG.
After a brief dip in April, SPAC listings are back on the upswing… big time. May’s count has already surpassed April’s.
And some very impressive deals have come out.
It’s yet another reason to ignore the headlines and find the real facts.
Big Deals
One SPAC deal that’s sure to be big is in the mobile app space. Israeli startup ironSource Ltd. agreed to merge with a SPAC sponsored by Thoma Bravo, the Silicon Valley private equity giant that manages $80 billion in software holdings.
The SPAC, called Thoma Bravo Advantage, trades under the ticker TBA.
IronSource provides advertising services for app-based game developers such as Activision Blizzard Inc. And it’s a huge leader in this market.
The company reports that 14 of the 19 games published through its platform were ranked among the top 10 most downloaded games on either the Apple App Store or Google Play Store over the course of 2020. One of them – Join Clash – was the most downloaded game in the world in February 2021.
The deal will take ironSource public at a massive $11.1 billion valuation.
This is just one of the many exciting deals that may come out.
Earlier this week, Andy told us about a new and exciting way to play gold’s next surge.
He wrote:
A new SPAC – African Gold Acquisition (AGAC) – just listed on the NYSE. Its aim is to soon bring a private gold mine to the public markets.
That’s an exciting idea – especially right now.
How many folks have ever had the chance to buy a gold mine… before it went public?
It represents a huge pre-IPO opportunity for investors who own the SPAC.
More Ways to Play
And as the SPAC market as a whole gets bigger, there will be more ways to play it…
On Wednesday, two SPAC ETFs began trading on the NYSE. The De-SPAC ETF (DSPC) and the Short De-SPAC ETF (SOGU) are the first ETFs to offer pure-play exposure to a basket of de-SPAC’d stocks.
(De-SPAC’d stocks are the publicly traded “final” result of the merger between a SPAC and private company.)
And with more than 400 SPACs (comprising $135 billion in capital) seeking merger partners, there is major potential in investing in the SPAC market in a variety of ways. We could soon see a SPAC ETF for every sector the SPAC market touches.
Here’s how Matthew Tuttle, CEO and chief information officer of Tuttle Capital Management and advisor to these two funds, sees it… “We are very much in the de-SPAC dawn right now, and there are going to be many investment opportunities to hit the U.S. public markets in the years ahead.”
Clearly, the SPAC market is still young and growing. That means there will be plenty of opportunities to find exciting companies to invest in… with the potential for huge growth.
In fact, Andy just revealed his No. 1 SPAC pick for 2021. Fortune magazine says it could “kick-start a personalized healthcare revolution.” And we just got word that it’s set make a big announcement on June 10. So if you want in, you need to act quickly. Click here for details.
