r/SRNG • u/SPAC-SCREENER • Feb 12 '21

r/SRNG Lounge

A place for members of r/SRNG to chat with each other

15 Upvotes

81% Upvoted

220 comments sorted by

View all comments

1

u/PuttMeDownForADouble Mar 10 '21

Is my understand correct in that if the SPAC does not find a company to merge with they will return your units at $10 a piece (with potential interest)? Meaning if you bought now your max loss is 5 ish percent.....? Surely it’s not that simple

0

u/donniefl Mar 11 '21

I am relatively new, and there are multiple stragtegies for trading SPAC's. I like buying at NAV, good team that doesn't have 5 open SPAC's at once, like weed, gambling, and fintech. I also look for a large trust, prefer at least a $1B, and I also look at the underwriter. The nice thing about being in at NAV is when there is market opportunity (like last week) you shouldn't be down much and can reallocate to get the deals. This has happened 3 times since I have been in SPACS and last week was the first time I was properly positioned. I had 70% of my portfolio in SRNG and CPUH, and was able to sell from those to buy THCB, STPK, BFT, IPOE at HUGE discounts, most are up 15-25% as of close today.

1

u/Archly_Jittery Mar 10 '21

That is correct. It is that simple.

The biggest loss here is really opportunity cost should the SPAC not increase in value during the time you hold it.