3 Hot SPAC Stocks to Buy Now
SPAC stocks are the hottest investment of the year but do you know what you’re really getting when you invest? In this video, I’ll give you a complete guide to special purpose acquisition companies, how to invest and how to make money!
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SPACs are special shell companies set up to raise money, issue stock and then acquire a privately-held company. It’s like a backdoor way to get listed in the stock market because after the acquisition, the shares of the SPAC change their name to the acquired company.
After some hugely popular SPAC stocks have produced triple-digit returns this year, the theme has exploded and there are more than 200 SPACs trading on the market. There are a lot of hidden risks though that most investors don’t realize. There’s a reason they call these Blank Check Companies!
Until the SPAC announces its acquisition target, you have to be willing to write the sponsor a ‘blank check’ for your investment because you don’t really know what you’ll be investing in. A lot of these sponsors have decades of experience in the stock market so most know what they’re doing.
That doesn’t mean you can invest blindly though and you need to know how to analyze SPAC stocks. That means a two-step process, researching the sponsor to the SPAC and then analyzing the acquisition target.
I’ll show you how to find SPAC stocks to buy, how to analyze these investments and then reveal three Special Purpose Acquisition Companies to watch right now.
0:53 What are Special Purpose Acquisition Companies?
2:09 How do SPACs Work?
2:43 SPAC Example
3:28 What are the Returns for SPAC Stocks?
3:54 How are SPACs different from other Stocks?
4:49 Why do they call them Blank Check Companies?
6:22 How to Find SPAC Stocks to Buy
7:26 How do you analyze SPAC Stocks?
8:26 SPAC stock analysis example
10:49 Three SPAC stocks to watch
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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.