The Daily Dish (09/06/21)
Ackman’s recent Debacle over the rollout of his SPAC shows that even the most successful investors can become victims of their hype. Ackman saw much fanfare with PSTH, which included investor favourable provisions.
With the number of new SPAC issuance going through the roof, Ackman also jumped on the trend. But Ackman decided to buy stock in UMG instead of looking for an acquisition target. Ackman believed that this was okay as long as he offered to pay his investors the original offer price of the SPACs stock.
But this was a bad deal as investors paid a premium to buy the stock because they expected Ackman to find a great target company. Ackman now seems desperate to not go through with his SPAC. The rate of new SPAC issuance has dramatically declined in recent months, many investors in existing SPACs have asked for their money back and the performance of post SPAC merger companies has been dismal.
While Ackman thinks that the major problems have been caused by the lawsuits against PSTH, critics claim that Ackman’s problems have been caused by tone deafness. By trying to capitalise on a sudden trend and leverage his investing brand, he forewent due diligence and realised too late that he had gone down an unsustainable path.
Investment manager Tikehau Capital is planning to raise as much as S$300 Million ($223 million) through a SPAC and is one of the several firms that is rushing to taker advantage of the city-state’s new listing framework.
The European alternative asset manager is in the advanced stages of its preparations and is aiming to be the first SPAC to file an IPO in Singapore.
Indonesia’s Traveloka has halted its talks to go public through a SPAC merger with Bridgetown Holdings, which is backed by billionaires Richard Li and Peter Theil.
The board of directors of the online travel giant have decided to not pursue a SPAC listing as the enthusiasm in the market has waned. Traveloka will now explore options to go public through a traditional IPO in the US instead.
Shares in IronNet surged 23% at close on Friday and is up 75% pre-market before trading begins on Friday. The gamma squeeze may continue if the stock catches on in r/WallStreetBets.
Insurance Company MetroMile surged 8% on Friday as it continued its recovery after weak Q2 results. Shares are now up over 30% from the bottom and are trading at close to $4.94.
NASA has started testing flights with Joby Aviation electric VTOL aircraft to help model and simulate future airspace with these taxis in service.