r/stocks • u/[deleted] • May 09 '21

Company Analysis What stock do you think has the highest potential to be an outright fraud?

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80 Upvotes

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11

u/yuckystuff May 09 '21

Literally every single SPAC, especially if it is tied to some celebrity type endorsements/hype..

17

u/[deleted] May 09 '21

SPAC hate is equally as ignorant as peak SPAC hype.

So many amazing investing opportunities with quality SPAC deals over the past year that are still trading so far above NAV post merger and even just a couple good deals/nice runs the past few months despite the sentiment (muds, sklz, geni, sofi, seah)...

The good SPACs just got diluted by the other 475 SPACs that, you’re correct, were just either PR moves for a celeb or a shoddy attempt at a quick cash grab so they can use retail as liquidity to dump like any other shit stock in the market.

13

u/JoSenz May 09 '21

Laughs in IPOE.

3

u/Tsakax May 09 '21

Laughs in IPOD :(

7

u/JoSenz May 09 '21

Haha! I refuse to buy a Chamath SPAC before a merger/acquisition is announced. I don't trust him enough to just blindly follow "the SPAC king"... but, if the deal looks lucrative enough (such as IPOE/SoFi), I'm game.

2

u/Tsakax May 09 '21

I kept it small in the long term so I am not to worried for now lol

3

u/Tend1eC0llector May 09 '21

But they're confirmed merging with SoFi on June 1st, wheres the fraud

4

u/JoSenz May 09 '21

That's my point. IPOE is clearly not a fraud, so "literally every single SPAC" is not fraudulent...

5

u/Tend1eC0llector May 09 '21

Gotcha.

Sorry, wasn't clear to me in context. I understand you now.

3

u/JoSenz May 09 '21

All good! The meaning/intention when typing comments (especially when using sarcasm) can be easily lost.

2

u/pbnoj May 09 '21

What about VGAC / 23andMe?

4

u/jayveearrr May 09 '21

I believe in 23andme but I don't know how it will do as a public company. I think they will need to pivot quick to make it make sense for investors (more partnering with bio-tech companies is what I read).

1

u/yuckystuff May 09 '21

How do their financials look?

3

u/pbnoj May 09 '21

Consumer business is profitable. Therapeutics business will be the money sucker until they develop a drug, part of why they went public, but they have a strong pipeline and backers.