That’s exactly what happened yesterday. It’s quite a potential de-SPAC (de-Special Purpose Acquisition Company), especially since these charging companies have performed really well in that segment compared to the share price curves of other de-SPACs.
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Just when you think the SPAC craziness is over, a new one comes along.
I wonder if it was a post-merger squeeze or a pure pump and dump. At least people are completely out of the loop with this, if you scroll through Stocktwits, for example.
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The pace of SPAC announcements and rumors has almost completely frozen—or perhaps I’m not following them very closely. However, I’m keeping an eye on a few tickers, and there’s apparently a new Letter of Intent (LOI) between Games Global Ltd and Tailwind $TWND
So this is what it’s about: a mobile game distributor, founded last year (!) with a valuation of $3B 
Games Global was founded last year and is led by CEO Walter Bugno, who was formerly executive vice president of new business and strategic initiatives at International Game Technology (NYSE:IGT)
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@kettunen, have you been following BigBear.ai yet? It just caught my attention again at some point because it rises almost every day by the same amount that PayShit drops, and that’s a lot. Since January, it’s already up almost +100%. The trading volume is quite small though.
I didn’t find much other than that their clients are in the military and energy sectors, but it has risen quite well compared to other spaces.
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I still actually have a sizable bunch of warrants in my gaming portfolio.
It’s probably the one and only of my holdings that is positive YTD 
I sold a small portion at the previous peak a couple of days ago. However, I didn’t buy back when it dropped below $1. 
There hasn’t really been much to follow, as the news flow has been nonexistent. However, the AI side is in demand in the current world situation, BigBear has contracts with US agencies, and that’s probably why the stock has gotten a boost now. The US MoD is apparently the biggest customer, from what I’ve understood. How sustainable this rise is, could be another matter. The next quarterly report, which will reveal more, is due in a week.
But that’s a pretty unique graph 
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I’ll post this here since BigBear.ai was discussed and a thread hasn’t been opened yet.
Big EPS miss for Q4, partly due to merger effects. Revenue also significantly lower than expected, hence Afterhours:
.
- Q4 GAAP EPS of -$1.02 misses by $1.00.
- Revenue of $33.48M misses by $8.75M.
2021
- Revenue of $145.6 million for the year ended December 31, 2021
- Gross margin of 23% for the year ended December 31, 2021
- Analytics segment adjusted gross margin of 45% for the year ended December 31, 2021
- Nine new prime contracts won; ending total backlog of $465 million for the year
Outlook
For the year ended December 31, 2022, the Company is projecting:
- Revenue between $175 million and $205 million, including approximately $20 million of commercial revenue
- Positive Adjusted EBITDA*
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I’ve latched onto this now; there was a rather aggressive redemption, and then the price dropped by almost 80%. In my opinion, the valuation is currently absurd.
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It seems to have dropped off my radar, even though I intended to keep an eye on it.
The stock price has definitely dropped sharply, and the valuation is harder to grasp. The latest investor presentation seems to be from last summer, and other material seemed difficult to find.
Investor pages can be found, but the content is quite weak
https://qualtekservices.com/
Some kind of 2022 EBITDA guidance has been mentioned, and a reasonably sized backlog has been published, but otherwise, there’s little information.
QTEK was apparently supposed to be at the Roth event on March 14, but there’s no SEC filing or other information about it
https://seekingalpha.com/pr/18702646-qualtek-to-present-34th-annual-roth-conference
Qualtek should be a suitable investment in the current global situation. @tedmel, did you find any other information besides these that served as the basis for your investment?
Edit: The S1 filing is, of course, available after the merger
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Looks like I posted this in the wrong thread, so I’ll post it here again.
I was wondering why BigBear’s (BBAI) stock price manages to hover well above NAV in this market, when a couple of months ago it was at $4 and all SPACs are still being steadily driven into the ground. The reason then became clear: it seems that people might be looking for a squeeze there, as there are very few shares available for shorts and the loan interest rate is admittedly quite high
Indeed, I haven’t come across such loan interest rates of almost 800% many times, so one must be quite crazy to short it at the moment.
After Friday, there has been ugly damage again on the SPAC front, meaning many have already ended up around or below $2, and some are even around $1. Truly steep drops from the peaks of 1-1.5 years ago. For example, Skillz 45.x → 2.x dollars in just over a year, and there are many more like these.
DeSPACs are in an interesting situation in this market, as most of them are debt-free after last/this year’s IPOs and have cash in their treasuries, so they might sail through the whole thing without fear of bankruptcies. But will the end result be a pile of companies that all trade at or below cash value?
Still, one cannot say that most of these are anywhere near buying prices, so my guess is that the decline will continue. I’ve added new companies to my watchlist again, and at some point, I might start picking up a small SPAC lottery portfolio from $1 prices 
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With the right picks, one could achieve manifold returns in the longer run when growth stocks start attracting market interest again. My own strategy is shifting from speculating on SPAC warrants and timing movements more towards deSPACs. Specifically, screening downtrodden ones and holding them for longer. I’ve already picked up a few, but I still assume that the general direction is mostly downwards.
A few warrants are still burning a hole in my pocket; fortunately, there’s still time to find a target. Unfortunately, there hasn’t been much activity regarding these lately Rather the opposite, a few have already gone into liquidation, and the pace is likely to accelerate rapidly within the next year.
BigBear’s movements were certainly peculiar. It hinted at very different short/squeeze patterns that I’ve seen before. I made a good profit with warrants relative to the investment. ~80% return, as I patiently held through the consolidation period and managed to time the sales relatively well at the peaks.
It’s still an interesting company fundamentally, even though the numbers from the latest Q-report weren’t good. If it drops back to the $3-5 range with the current backdrop, I’ll have to reconsider it according to my deSPAC strategy.
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It’s slowly starting to find interesting stuff, as we’ve descended 80-90% from NAV. Not too many SPACs have come out in the last 2 years that would have been priced even relatively sensibly (UTZ + maybe a couple of others), but surely not all of them were x9-10 overpriced. I’m also slowly compiling a list of those with plenty of cash left and business still rolling. These are the ones that are likely to survive interest rate hikes and even a recession without bankruptcy or massive dilution. If you compare recent US IPOs and SPACs, after all the drops, deSPACs are starting to look even cheap compared to IPOs
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A quick look at the SPAC situation after a long time
SPAC Track as a source, filtering has improved at least.
Slow response on the page, but with patience, you can get something done.
https://spactrack.io/spacs/
Total of 987 SPACs , of which 787 are active.
A couple of hundred are still in pre-IPO status, hopefully not coming to the market too soon…
Definitive Agreements made with 110. A reasonable number, however, this year alone there is a whole list of them, quickly counted 44 pieces. A significant part of these also in November-December.
Only 23 rumors, confirmed or unconfirmed 
These are perhaps not so actively hunted anymore, so they do not appear as comprehensively.
So there is some hope of getting deals done. Of course, a really large number are looking for suitable targets, several liquidations have also been seen this spring.
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Following up with some slightly different statistics
Now the liquidations begin
https://twitter.com/dspacapp/status/1521167570035949570?s=20&t=QXDW8maaryKheM92TlSM3g
And here’s the AlphaRank SPAC Monitor, with about the same numbers as in the previous message, now in graph form
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With these stats, I don’t feel like touching warrants. If the market recovers through liquidations, then maybe when a new round of QE is in sight again.
As a small exception, I hold a very small amount of KCGI warrants.
It has been very quiet in my SPAC portfolio. YTD, SPACs are slightly in the black, but it’s hard to see how those could achieve reasonable returns either. Small profits have been made with GGPI and IPOF (trading SPACs) but that’s it.
Hello.
This SPAC thread was hot a couple of years ago. Do you still remember Zanite? Back then, it was speculated that they’d make a quick deal with Volocopter. Well, we were off base once again, just rumors. 
I just wanted to say that I noticed Zanite finally found a partner, it took them two years. On the 6th, they voted, and the merger went through. As I understand it, the ticker changes tomorrow, EVEX. I’ll continue to follow Eve, not as an investor, but out of interest in eVTOL (electric Vertical Take-Off and Landing).
https://eveairmobility.com/
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So now the announcement regarding the GGPI and Polestar merger vote on June 22nd has finally arrived:
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The second largest deal after Grab. I don’t have detailed information about the target or the merger, but this certainly doesn’t encourage new listings through SPACs.
When this DA was announced, there were a lot of suspicions of foul play. I haven’t looked into it since, but I wouldn’t be surprised if this caused some repercussions in court or from the SEC.
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I haven’t been following these for a while, but has @kettunen looked into LanzaTech NZ Inc? It’s going public with AMCI Acquisition Corp II. Does it make sense to buy it at $10… It’s quite an interesting company.
I haven’t been keeping up with new companies either. I’ve made one pick lately, a completely speculative combination, OneMedNet + DKDCA. The warrants were cheap even though the DA was done.
That’s the biggest challenge, even if it were an interesting target.
High valuation and very low revenue. Profitability is far off.
I wouldn’t buy anything before a merger at the moment anyway. Everything seems to be coming down across the board. AMCI also had a really challenging previous merger, even though it went through with it.
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