Tuesday, May 15, 2007
Sector Spotlight: SPACS
In case you've been locked up in an attic for the past three years and didn't know what Wall Street has been busy pitching, it's SPACS (special purpose acquisition companies).
Basically, they are blind pools of cash entrusted in the hands of proven executives, aka blank checks, who's job description is to go out and make an acquisition. The whole phenomenon started at a few small brokerage houses. But, due to its wild success, these type of deals have been adopted and expanded by the big dick swingers. Hence, the size and volume of these deals have exploded.
Typically the deals are structured as a unit, with warrants attached. In all cases that I am aware off, shareholders of the common have the ability to reject a proposed deal and get his money back, minus 10%.
Thus far, SPACS have been very successful and have been making a select group of investors money, hand over fist, for the past three years.
What's important to note is that the warrants are freely traded and often get bid up, in lieu of a deal being made.
In short, it's a form of private equity, which happens to be publicly traded.
The following is a list of SPAC warrants, which for the most part, have been on fucking fire:
CRB-WT or CRB' (Thomson & ILX)
OKN-WT
SEA-WT
ARGLW
PMQCW
BTC-WT
HAPNW
MEJ-WT
HAQ-WT
FREEW
FREEZ
GHN-WT
ISLTW
JKA-WT
MAQ-WT
EII-WT
GAV-WT
NAO-WT
ESA-WT
EDA-WT
III-WT
TIL-WT
AAB-WT
PXIAW
KHPAW
ASAQW
AAACW
ATCTW
BWLWF
CHNQW
CHVAF
CEUCW
GAC-WT
GVCMW
FSMOW
GLA-WT
GSPAZ
HDP-WT
NTQ-WT
IGPAW
IGPAZ
MEGUF
MPZ-WT
OMACW
RAK-WT
RPSDW
SHA-WT
SHNDW
SHJ-WT
CGNQF
FAACW
MQC-WT
CHV-WT
TAQ-WT
USQ-WT
EMDAW
IGC-WT
DEK-WT
VTRQW
PGRIW
Basically, they are blind pools of cash entrusted in the hands of proven executives, aka blank checks, who's job description is to go out and make an acquisition. The whole phenomenon started at a few small brokerage houses. But, due to its wild success, these type of deals have been adopted and expanded by the big dick swingers. Hence, the size and volume of these deals have exploded.
Typically the deals are structured as a unit, with warrants attached. In all cases that I am aware off, shareholders of the common have the ability to reject a proposed deal and get his money back, minus 10%.
Thus far, SPACS have been very successful and have been making a select group of investors money, hand over fist, for the past three years.
What's important to note is that the warrants are freely traded and often get bid up, in lieu of a deal being made.
In short, it's a form of private equity, which happens to be publicly traded.
The following is a list of SPAC warrants, which for the most part, have been on fucking fire:
CRB-WT or CRB' (Thomson & ILX)
OKN-WT
SEA-WT
ARGLW
PMQCW
BTC-WT
HAPNW
MEJ-WT
HAQ-WT
FREEW
FREEZ
GHN-WT
ISLTW
JKA-WT
MAQ-WT
EII-WT
GAV-WT
NAO-WT
ESA-WT
EDA-WT
III-WT
TIL-WT
AAB-WT
PXIAW
KHPAW
ASAQW
AAACW
ATCTW
BWLWF
CHNQW
CHVAF
CEUCW
GAC-WT
GVCMW
FSMOW
GLA-WT
GSPAZ
HDP-WT
NTQ-WT
IGPAW
IGPAZ
MEGUF
MPZ-WT
OMACW
RAK-WT
RPSDW
SHA-WT
SHNDW
SHJ-WT
CGNQF
FAACW
MQC-WT
CHV-WT
TAQ-WT
USQ-WT
EMDAW
IGC-WT
DEK-WT
VTRQW
PGRIW
Comments:
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HANS soon to become the DIVX of beverages. No wonder the fly examines the substitutability of pink verses green coffee containers.
thanks for the quick response! yesterday I asked about ntrz.ob. Do you know anything about this company? The company has a pretty compelling business model.
Wow...I had been wanting a list like this.
A list of the SPACs that have completed acquisitions would be great. For example, I think the ETWCW warrants are mispriced here and JMBAW will be interesting soon if they keep selling off.
Oh well, beggars can't be choosy. Thanks.
A list of the SPACs that have completed acquisitions would be great. For example, I think the ETWCW warrants are mispriced here and JMBAW will be interesting soon if they keep selling off.
Oh well, beggars can't be choosy. Thanks.
I joke around on here but this is a sincere word of warning. I will not name names. But I know that one of the principals associated with one of the SPACs on your list has an impressive non-business resume, but my due diligence revealed most of his business ventures failed. I don't have much desire to give that guy a blank check.
A principal of another SPAC that is NOT on your list has connections to a current high profile business scandal. Be careful with these and do tons of due diligence on the management teams.
A principal of another SPAC that is NOT on your list has connections to a current high profile business scandal. Be careful with these and do tons of due diligence on the management teams.
OK. You're right. It's public info, so what the fuck.
Not on your list is PGRI. Mark Nordlicht is the chairman and big swinging dick behind that SPAC. He also co-founded Optionable which is now involved in a public scandal. OPBL's President (not Nordlicht) was recently forced to resign after it was learned he had been sentenced to spend several years in prison for credit card fraud and tax evasion and failed to disclose that information to public shareholders and and OPBL's major trading partners. If you are as connected as widely believed, I suspect you may have already known about Nordlicht. He's got a pretty big reputation on the NMX.
The big swinging dick behind FAAC when it was being shopped was Thomas McMillen, a three time former U.S. Congressman. He was also involved in a couple of SPACs during the early 1990s SPAC frenzy. At least one of which filed for bankruptcy. Other ventures he was involved with are no longer in business. I did the due diligence on him 2-3 years ago, and there were other things we uncovered that kept us from investing. I seem to recall he was sued by someone, but I can't remember now the details surrounding the lawsuit.
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Not on your list is PGRI. Mark Nordlicht is the chairman and big swinging dick behind that SPAC. He also co-founded Optionable which is now involved in a public scandal. OPBL's President (not Nordlicht) was recently forced to resign after it was learned he had been sentenced to spend several years in prison for credit card fraud and tax evasion and failed to disclose that information to public shareholders and and OPBL's major trading partners. If you are as connected as widely believed, I suspect you may have already known about Nordlicht. He's got a pretty big reputation on the NMX.
The big swinging dick behind FAAC when it was being shopped was Thomas McMillen, a three time former U.S. Congressman. He was also involved in a couple of SPACs during the early 1990s SPAC frenzy. At least one of which filed for bankruptcy. Other ventures he was involved with are no longer in business. I did the due diligence on him 2-3 years ago, and there were other things we uncovered that kept us from investing. I seem to recall he was sued by someone, but I can't remember now the details surrounding the lawsuit.
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