dani face dani quote

SPACs

Lately, there’s been a lot of talk surrounding SPACs. What are they? Are they a good investment? And where do I see the most opportunity?

Let’s start with defining SPACs…

SPACs stands for Special Purpose Acquisition Companies. Companies use this method to go public, without having to go through the rigorous process of listing shares via IPO.

Why SPACs should be treated differently…

While it’s easier for the company and can get shares into investors’ hands, buyers should beware and remain cautious surrounding SPACs because it’s clear that companies are taking advantage of the rush in retail trading and mania surrounding IPOs and SPACs in general.

SPACs are a different breed of trading, and they simply will not get the amount of certainty that comes with buying something like Microsoft (MSFT). However, if given due diligence, you most certainly can find diamonds in the rough.

Here is my SPACs checklist:

Each ticker I consider must go through this checklist to determine whether or not it’d be a good candidate for investment.

  • Are they a disrupter in their field?

  • Are they led by someone with experience and a history of success?

  • Are they ahead of all others in their field thus far?

  • Is this something that I can imagine will take off with current generations?

  • Are they truly Innovative?

With a SPACs, you can’t expect to look at fundamentals and use those as a deciding factor. It’s all about companies that are innovative, have proven to be unique leaders, and are being taken public by somebody that knows what they’re doing. Because there are so many of them, it’s critical to look at who is running them, ask yourself – are they innovative themselves, and would they put their name behind companies and brands that are likely to grow?

Tune in next week, where I will share with you my top three SPACs that I see the most potential with.

Leave a Comment

Up Next...

Inflation Not To Blame For Market Pullback…

Hey 5-Star Trader, May is seasonally a weak month for the market and the media likes to blame different things for its poor performance. Lately, they’ve named the fear of inflation as the latest culprit. Yes, there are some legitimate fears of inflation, especially with the excess money printing thanks to several stimulus checks, but there … Read more

Read More

Entering Final ‘Run into Earnings’ Wave…

Hey 5-Star Trader, “Tuesday Trade” Journal: One of the most important concepts in trading is to review your work, and learn from the good and the bad. Identifying what is working is critical — to do more of it. So, to lead by example, each Tuesday, you’ll get a trade from my trading journal, in … Read more

Read More

Don’t Count Out ‘Average’ Retail Traders

Hey 5-Star Trader, Recently, Dogecoin has been making headlines as its value continues to spike, leaving Wall Street in awe. Are we on the cusp of a trading revolution? Is history repeating itself? At the beginning of this year, we saw a major market shift in favor of Gamestop (GME). Previously, it was a dying … Read more

Read More

Subscribe Today!

Want to walk the path to trading success together? Join Danielle’s “Five Star Trader” E-Letter for market insights, tips, tricks, and special bonuses.

Sign Up Now

Free Downloads

Squeeze Checklist

When you find a squeeze, check these boxes to see if you’re looking at a higher probability bet.

Risk Checklist

Before we can make money we must define the rules that define our risk parameters.

High Probability Plays in a Directional Market

Download Danielle's free eBook

10 Steps to Becoming a Successful Trader

Commit to becoming a successful Trader

Strategy Selection Risk Gauge

Danielle focuses on creating a constant stream of income through the selection of trend-following, directional plays.

Upcoming Appearances

Check Back for Upcoming Dates

all-as-seen-on-logos