SPAC sell off before merger... Normal?

Firstly, this is the first SPAC stock I own that has merged with it’s intended target.

I notice that last night just before the bell there was a significant sell off in $IPOB. This is due to become Opendoor ($OPEN) today - $IPOB to $OPEN Article

Q: Is this usual, or is it just people cashing in because they’re unsure if the new ticker will trade higher?

I hold some IPOB in my ISA account and whilst it’s still in profit I wonder if I should have cashed in.

Any guidance or info on what happens when SPACs merger would be greatly appreciated.

DC7 :+1::+1::+1:

In short, absolutely normal.

Some people are only in them to make a quick buck or two, double their money possibly, kind of thing. They’re selling on the news basically.

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Squeeky but time. (Ipob merger could of fallen through at the vote today. Its less risky to sell your position at a high. Wait on side line and re-enter.

Especially with hedge funds. It seen as profit taking and risk mitagtion. With 0% rates these hedge funds have no where else to put their money so they will buy back the positions.

Off load positions to pension funds later.

People are mad for any kind of growth. Look at door-dash and Airbnb (both priced 2 years into the future)

Open door will price at $32, next year grwoth to $46, but we already know opendoor are super busy. They report in feb 2021. If the price has hit $46 already its hitting it on first earnings call.

Institutional investors: Canadian Pension fund and ark invest. Ark know how to pick winners and pension funds dont like losing money.

Very bullish.

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Well so far, so good… :arrow_up: :arrow_up: :arrow_up:

DC7

So today, it’s up again and trading as $OPEN but the T212 platform won’t let me sell shares?

Any ideas why?

DC7

None, sorry. Is it still an issue?

@David @Martin @PeterA @Team212 - See above! :v:

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Apparently T212 has a clause that new tickers may not trade immediately. Of course no one would know this until it’s too late.

"Acquisitions & other corporate events might not get reflected immediately. The stock became tradeable at 15:00 GMT".

As above, @David advised that $OPEN could only start trading at 15:00 GMT. This is obviously 30 minutes after the US market opened.

In this period I went from £1,250 in profit to a £250 loss. There were no warnings that you couldn’t trade and no message advising when you could. As I was unable to trade, I missed out on a considerable profit. I bought the shares Friday with the intention of selling them at US open, given they were likely to rally (which they did).

I, like many of you no doubt, have invested in a variety of SPACs. If this happens every time then many T212 customers will miss out on the inevitable opportunity at open of the market.

Sadly, I feel once again that T212 have let us down. And once again, a lack of communication exacerbates the issue.

If you have invested in any SPAC holdings, be warned of the above.

DC7

Well I certainly look forward to this tomorrow then with HCAC :man_facepalming:

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I do hope you don’t have the same issues.

Keep us posted mate :+1:

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Rightly or wrongly I’ve got a bit attached to the company that’s merging and I’m going to hold and see what happens in a couple of years :ok_hand:

Therefore I’m not really bothered if there is some volatility for the next few months.

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Fully understand and I’m the same in my ISA account, it was the quick flip for profit in my Investing Account that stuffed me. It also meant I missed out on other opening trades whilst trading $OPEN was on hold for 30 mins. Miffed, as you can tell.

DC7 :+1:

Yeah I get you. Some SPACs are a good flip.

Currently in BTWN for a swing and hunting for another one at the moment.

I have liquidated all of my HCAC and IPOB one day before the merging date. It seems that it is a common trend that the stock will sell-off on the day the ticker symbol has changed. Sometimes significantly such as CCXX (multiplan). GRAF (Velodine Lidar VLDR). SHLL (Hyylion), lesson learnt. I was late to liquidate my position in Hyllion. But at least I still make significant profit.

But sometimes is might go up such as Quantum Scape, LAZR

But it seems there is always be a small window for re- entry point if you think it is a good investment in the long run.

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Yeah I agree. There is a risk with holding and I may regret it.

But let’s put it in context a little.

HCAC was not even at 20 pre merger and there is talk the new common could be issued at 18 , although I expect this be 11 in reality which will obviously knock the stock right back.

That being said Tortoise was up at 50 odd prior to the merger with Hyliion therefore I completely understand people taking profit at that point as they could of been up, say 300% or so.

So wish me luck and I give you permission to say I told you so :stuck_out_tongue_winking_eye:

I have reentered Hyliion (HYLN) with @$16.48. :smiley: :smile:
But this timen is not for SPAC play but for serius long term investment.

I’m in quite a few at entry prices - $OPEN, $XL, $IPOC, $IPOD, $IPOE, $IPOF, $PSTH and $BFT.

If you don’t already, Benzinga’s “Spacs Attack” Youtube is worth a watch. Geeky guys with a $0 production value but some very good tips, info and data - Benzinga Spac Attack

DC7

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Another lesson is HCAC / Canoo (GOEV) drop significantly after the the ticker symbols is changing.

IPOB drop but not significantly but you still gain a lot of advantage by exiting before the merger date. You could still re-enter when the price has been stabilised.
The problem with exiting on the merger date is there might be people who purchase a lot of shares at discounted price dump their share on day on ethe ticker symbol is changing. Also there might be a lot of retailer investor liquidate their stock to free up money and move to the next SPAC.

Yeah they had a 3% drop in the end which isn’t huge and I can stomach that though in fairness.

Warrants will be 16.50 so we’ll have to see what happens, I’m in long though so in 5 years it’ll probably be all forgotten.

IPOF and BTWN will are ones for me to quickly turn over next :ok_hand:

I am all over Chamath SPAC at near NAV. Already have A to F (A-B liquidated). But already re-enter SPCE might do for OPEN (later) as well, but only at “God Given Price:smiley: And this time is for serious long term investment, not for a SPAC play.
As soon as G_Z available will bite it. Also already open a small position with BTWN.

What people need to be aware of is to monitor is there is a buyout from Whales: PIPE, VC-investor, institutional who bought the share at NAV price and they do not have a lock up period. They have incentive to dump their share as soon as they can above the NAV price: the original the share price when they bought it. As soon as they dump million of their shares you might (not always) become a bag holder. I learn this lesson in a hard way from CCXX (now multi plan). With patients I mnage to get my principal bck.

Wtih Michael Klein SPAC (Churchill), keep your eyes on them they normally allow a massive buyout. Unfortunately, until they become public there is very little information available, Does anyone know a website to monitor this.

I bought into $DMYT last night, a bit late to the party but I like the team behind it and that it’s a ‘thing behind the thing’ play.

DMYT