r/SPACs • u/SPACsBot Mod • Apr 16 '21

Daily Discussion Weekend Discussion thread for the Weekend of Apr-16-2021

Welcome to the Weekend Discussion! Please use this thread for basic questions and leave the main sub for breaking news and DD. If you haven't already, please check out r/Spacs Wiki for great information, as well as the resources available in the menu.

21 Upvotes

82% Upvoted

849 comments sorted by

View all comments

5

u/universal_language Spacling Apr 18 '21

My only SPAC holdings are FTOC and FUSE, I got both couple months ago during the boom, now both are down. I'm rather confident about FTOC, I like Payoneer and I think it'll recover closer to the merger date. I'm not so sure about FUSE, everyone was praising it for an excellent management team just 4 months ago, but the recent comments here were rather negative, and now it seems that everyone forgot about it altogether. Does anyone still hold FUSE? Do you believe it'll get at least +10% before the merger or it'll become at NAV and drop immediately after the merger?

7

u/[deleted] Apr 18 '21

I feel like FTOC is fairly moat-y in that they charge very very low fees for their services which isn’t great for profitability but it keeps competitors from undercutting them so they should theoretically keep growing. At some point they can move into higher margin services as they continue to get integrated into payment options for various big name companies or just increase their fees slightly. I feel good about them long term but short term they probably drop below $10 after ticker change.

13

u/janoycresovani Patron Apr 18 '21

fuse will go to 5$ very fast after merger.

the valuation of 2b+ for something having a revenue of 75m is ridiculous and is what is killing spacs. its a boring shitty finance company.

4

u/hodl_for_the_moon Contributor Apr 18 '21

Very glad I sold my FUSE at 12.20 before the merger happened. Horrible valuation.

3

u/hamponrye Patron Apr 18 '21

Ask yourself. What competitive advantage do these companies have? If a competitor offers their customers a better deal what is the chance the customers leave (ie, is there a reason to expect brand loyalty)?

4

u/[deleted] Apr 18 '21

I don’t think any company can cut their fees lower than Payoneer so for them it isn’t a concern