by Travis Johnson, Stock Gumshoe | November 20, 2020 4:50 pm
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Source URL: https://www.stockgumshoe.com/2020/11/friday-file-spacs-big-news-from-gan-and-a-new-watchlist-stock/
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I like to invest in SPACs warrants: It does not tie up so much my capital and I can buy a lot of shares. All my warrants are winners this year. This one SBE-WT, I bought it on Sept. 2020 at about $3.10, yesterday and this morning it went up above $10. I will hold on them a little bit longer and will sell them all.
Last time after you explained to me how exactly I would exercise my warrants to Class A common stocks. I was thinking it was a GOOD deal if the warrant traded above $11.50 and the stock traded above $18.00 in 20 days out of 30 days, I would get 1 share of Class A common stock with
no money involved but you said that NO, I had to put up ONE WARRANT plus an additional $11,50 cash to get one share of Class A common stock! For example if I have 20,000 warrants in order to get 20,000 shares stock, I need to put up another $230,000 Cash. I just do not have that much cash laying around. One warrant Plus $11.50=One share common stock. that I have to
remember.
I do not buy warrant ahead of any deal I only buy it after the announcement,I may miss the initial pop, but it is much safer and I have time to dig up the target company if it makes any sense to me or not. It works out very good to me all the time but I am very selective thought.
Thank you, Travis.
PS. I had 20,000 warrants of FVAC (FVAC-WT) at $1.50 now is MP-WT, I think this one has a long way to go.
Sorry newbie here. Im wondering how can I buy a share on this SPAC. I can’t find it in Robinhood. or Any recommendation on what is a good platform I can use to buy a share. Thanks,
SPACs trade exactly like any other stock. Robinhood is a limited brokerage, they don’t allow trading in the full range of securities on the exchange (just most of them), so I don’t know if YSACU or YSAC will trade on Robinhood in the future or not… but they should be available through any regular brokerage account.
Travis, did you have a chance to buy into YSACU earlier and get warrants or was that not available to you?
I purchased YSACU from Schwab so I do not have any warrants. I would be interested to hear more about how get in early to also get warrants, could you comment on that.
Also, I know you follow warrants to some degree and is there a sight that provides current information on these and any listing of the large number of SPAC listings?
Have a great Thanksgiving week, so much to be thankful.
Thank you, Edward
If you bought YSACU, you own some warrants — each unit YSACU includes one share of YSAC and one half of a warrant. They will separate over the next couple weeks into YSAC and YSACW, most likely.
A Sober Look at SPACs -> Thought of sharing this article more informative regarding value dilution.
https://corpgov.law.harvard.edu/2020/11/19/a-sober-look-at-spacs/#:~:text=When%20a%20SPAC%20merges%2C%20the,is%20no%20less%20than%20%2410.
There are always two sides of the story.
For a small investor like me, SPACs are one of the opportunities of owning PRE-IPO companies at entry level prices, but investors ought to be very selective, for me I spend a lot of time to research the target companies, most of the time I do pick up real winners.
Would anyone like to weigh in on BALY vs GAN? It seems that Bally’s Corporation acquired its own sports-betting platform called Bet.Works around the same time that GAN did this past week. With the recent acquisition, Bally’s is (allegedly) expected to become the biggest iGaming and sports betting company in the U.S. — this in addition to the renowned brand name of its physical casinos.
BALY stock jumped 20.91% on 11/19 and then another 30.78% on top of that on 11/20! What’s the entry point to open a position on such a wild price action?
Reliance SPAC
Travis, thanks for the SPAC explanation. I bought YSACU, which will be my first SPAC with warrants. Also attended Barron’s “Investing in Tech” broadcast last week and Ms. Wood from ARK stated Pacific Bioscience is better positioned than Illumina to leap the chasm from short read to long read gene sequencing, which is the future. The whole interview, which includes other topics, is worth 30 minutes of your time, but the above discussion on ILMN/PACB starts at the 15 min mark.
If anyone is interested, it’s called (How to Identify Investing Opportunities in Disruptive Technologies):
I bought YSACU and now have a notice from my broker:
INSTRUCTION DEADLINE DATES
Final Date for Instructions: Dec 30, 2025 15:00 EST
Expiration Date: Dec 31, 2025
OPTIONS
Option 1:
Security
Rate: 1.00
Share Ratio: 1.00 New per 1.00 Old
New Security Description: YELLOWSTONE ACQUISITIONCO REG SH CL A
CUSIP: 98566K105
ISIN: US98566K1051
SEDOL: BMHL4R4
Security
Rate: 0.50
Share Ratio: 0.50 New per 1.00 Old
New Security Description: WT10 25YELLOWSTONEUSD
CUSIP: 98566K113
ISIN: US98566K1135
SEDOL: BM9GVN2
Fractional Share Code: OT
Holders can separate their Units into 1 Common and 0.50 Warrants
I’m not very savvy other than buying stocks, bonds, ETF’s, and Mutual funds so this is my 1st venture into warrants.
I called my broker – Merrill Edge – and they said all I had to do was elect to receive the warrants and pay a fee of $30.00 and I would keep my original shares and receive 1 warrant for every 2 shares.
Since the fee – $30 – is the same regardless of the # of shares, I am considering buying more shares before asking for the warrants.
Any thoughts on this. My one consideration is that I bought originally @ $10.10 and today YSACU is at $10.65
Thanks Gummie for making my retirement a whole lot more comfortable.
Chuck Meyer
PS Just wondering why it doesn’t indicate that I am an irregular next to my ID and profile picture?
I bought the same. Did not get any message from my broker (TDAmeri) What broker you have?