If youāre interested in their current niche with the first carbon fibre composite launch vehicle along with 3D printed electric pump engines Iād recommend Scott Manley, specifically the below videos. Also the Neutron video Kali linked is a good overview of their operations.
This is their sales pitch Rocket Lab - Investor Relations and they have their own YouTube channel too Rocket Lab - YouTube where they have videos from 11 years ago filmed in potato quality from their initial tests.
I also hold RTX along with Boeing as Boeing have an ISS contract and human spaceflight funding from the US government
Just be careful with the SPAC stock right now. There is currently sentiment against SPAC stock.
Many Blockbuster SPACs have been free falling.
If you buy it near NAV (e.g., close to US$!10) your risk is very low.
Another space stock you might be interested is SFTW which will merge with Blacksky.
If you were lucky today you would have caught it it at US$9.96.
Given the floor price is US$10. There is literally no downside if you manage to get it @US$10 or below. But you might be winning the lottery later when they announce the merger a few months from now and the sentiment against SPAC have faded away. Also if it get picked as part of ARKX ETF
There is a fatigue in the SPACWorld now of unrealistic future projections and fantasy valuations.
The amount of new created spacs diluted the overall quality. Hopefully this and recent SEC inquiry (maybe also some new rules about fairer incentives, alignment with businesses and regular investors) will weed out ābucket shop operatorsā.
Floor price in theory doesnāt work for us because T212 doesnāt have an infrastructure to redeem our shares for 10$.
I am fully aware about redeem and voting on T212. But given that vast majority of people got it @US$10+. On the voting date they will say not No to merger and the merger will not go through.
I remember someone explain it here on T212 you could vote indirectly on T212 by sending them email. I fully believe similar platform where people could not vote directly, could use proxy voting or other similar method.
Noone rational would vote āyesā for losing money.
But what does it have to do with us? We can only sell in the open market. The stock will not magically return to 10 if the merger is rejected. There might be some institution that will step in and bid it up to collect the arbitrage later down the road but it is not guaranteed.
AFAIK if the SPAC liquidate or the SPAC does not complete a merger within the time frame (e.g max 2years without extention), the SPAC liquidates and the IPO proceeds are returned to the public shareholders.
The value of share will not be lower than US$10 as they do not do any business.
But it might not be as straight forward with T212. Someone from T212 might be able to explain this.
In my opinion, this doesnāt concern me as Iām not looking for a quick flip. This has been put in my ālong termā purchases, and was always intended to be.
I believe RocketLab are a good company and unlike half the SPACs that have hit the market, they actually have a functioning product, with āfirst in businessā technology.
Under the assumption the merger does go ahead, Iām most interested in five years time when they hopefully have their human rated Neutron rocket in regular service.
As @Joey_Fantana mentioned first rejected merger can lead to -
From S-4 of ACEV:
"Additionally, if we do not obtain shareholder approval at the extraordinary general meeting, Achronix can continually obligate us to hold additional extraordinary general meetings to vote on the Condition Precedent Proposals until the earlier of such shareholder approval being obtained and the Agreement End Date. This could limit our ability to seek an alternative business combination that our shareholders may prefer after such initial vote. "
And also
āIf third parties bring claims against us, the proceeds held in the trust account could be reduced and the per share redemption amount received by shareholders may be less than $10.00 per share.ā
And then there might be situations like this one
āHowever, at the first extension vote, according to their right of redemption (a common mechanism in SPACs), Modern Media shareholders redeemed $61 million from the trust. At the second extension vote, on June 17, 2019, Modern Media did not offer any contribution to its trust and an additional nearly $140 million was redeemed, which left it with an extremely low amount of cash on hand for any business combination.ā
When a SPAC Buys a Lemon: The Song and Dance at Akazoo
This is not one of āthere is huge hype around this new IPO/SPAC and its gluten free lets buy and triple in one weekā kind of purchase for me. I bought about half my holdings at 13.3 and half at 11.47 with an average 12.21 share price.
It is unfair to blanket compare other SPACs with RocketLab (even other space shares with rocket lab) because this is a company with a working product, that is generating revenue, that has clearly outlined products and projects in mid-term with a top notch research team that is already established.
As long as the merger goes through, I have no regrets. Yeah I couldāve wouldāve shouldāve bought may be lower, but not one of my worries for years to come.
