Your opinion on CCIV (Churchill Capital Corp IV) SPAC please

I know this SPAC is managed by Michael Klein (Former Co-CEO of Citigroup Markets and Banking). A lot of people have a memory on him in relation to the merger of CCXX and Multiplan, where he allowed the PIPE investor to dump their share without a locking up period. In fact, these PIPE Investors are doing it on the first date of merger.

IMO It is good to avoid a SPAC with significant funding from the PIPE investor without locking up period. As there is an incentive for this institution for an arbitrage opportunity as they got their share with significant discount. They could then move to another SPAC project after bagging profit. For retailer investor, they will become a bag holder.

CCIV (Churchill Capital Corp IV) is still managed by Michael Klein (not good), but the attractive feature of this SPAC is that; they are one of the largest SPAC with US$2bil+ capital. This SPAC if managed by sensible people will attract a well-known unicorn who want to go public much faster.

There is a rumour that they are in talk (unconfirm) with direct TV. It is currently trading below NAV at US$9.97, so downside is very limited. But the name Michael Klein in it will make people to act very careful.

So, my question here:

  1. Is there any PIPE Investor without locking up period are getting involved in this SPAC?

  2. What do you think about this SPAC is there a good chance to turn up to become 2x+ in about one year from now?

Thanks

Well there’s the merger news …

After market down $10 already!

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I believe the current price of CCIV is highly effected by the market/sector rotation. It happens to almost tech stock since last week as the people are now rotating their money to recovery stocks such as Airlines, Banks, Cruises, Travel agents. Holiday bookers,

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Price is crashing. Will end up in the 30s.

Price is crashing because of the valuation of the deal, at current price 40$ (AH) is 64B, and they haven’t sold a single car yet. I was in since 16$ (100 shares), sold 30 at 61, so got my initial investment + some profits, and planned to sell 20/30 more at merger if the price would have gone up. Now I’ll just hold.

In my opinion Lucid might be a great company if they can execute properly and deliver what they are saying. A sort of American NIO. To be honest would not buy at 40$.

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Well there’s a lock up for PIPE investors so I don’t know where you got your info from, you can read the news and yeah the stock dropped to 40$ in after hours trading but know that all EV stocks are bleeding right now lead by Tesla and as for lucid motors I think if their delivery this quarter is impressive we can expect some large movements because some investors who missed out on Tesla are trying to use lucid as compensation for their massive missed opportunity.

Yes, I know about the PIPE, but previously there was a news saying about 12B valuation at 10$ per share, even at 50$ means a valuation of 60B for Lucid (Already high). Now with the deal and 24B at the PIPE offer price of 15$ a share means with 57$ at closing yesterday, Lucid’s valuation would be something like 90B+.

Lucid Valuation should be something around NIO.

70/80B with no sales yet? :thinking: