So is this just a heady gamble, you invest your cash and you hope that eventually one day the guy running this SPAC will use its value to buy/merge with a very large unknown and unidentified private company?
That’s my reading of it, would love to hear from the bulls if there is a more subtle investment thesis here.
Also, if this fails to find anything in the 2 year period, do investors get back what they paid, or just what the starting/issue price was, which I think is $10 per share? (I’m genuinely looking for an education on this.)
I am no expert and the below should not be treated as advice
To some effect you are right, you are betting on the management team and their quality to find a suitable target. FT did an interesting piece a few weeks back on Spacs: [What's a SPAC? - Invest Hub | Freetrade]
Ultimately the decision is yours to make (so it is important to DYOR), considering the risk the company may fail (once merged) or spac may not get a target in 2 years (receive the initial $10/$20 back). Again I am no expert so others can feel free to correct me on the above
This started at $20 and now trades at about $22.42, so investing now would mean paying around a 12% premium on the cash value of the SPAC.
This podcast is well worth listening to. I understand now why people might be willing to pay that premium. They talk specifically about PSTH.
Flat for many days, just add to watch list.
Does someone know what was pushing the stock price down yesterday?
My avg price is around $23. I’m thinking to buy more.
Must just be due to the overall market, (bar the bloomberg denial) dont see what could have moved the price. Yahoo finance is great tool to keep up to date with what’s happening and some of the chats are quite interesting so would recommend (i am not a financial adviser so always DYOR). Noticed PSH are raising $500m for corporate purposes which referenced PSTH
After much online reading I’m daydreaming about which company Ackman could take public.
Here’s what we know about what he is looking for:
- A large private company ($5b valuation and above), selling 30-50% stake at a good valuation to get access to public markets
- A “mature unicorn” meaning an established profitable business but with some growth potential left
- His history is not in tech, while Chamath Palihapatya’s is
This is a list of all private companies over $10b up to $40b according to Forbes
$37 Ernst & Young
$36.4 Publix Super Markets
$36.1 Reyes Holdings
$30 Pilot Flying J
$28 C&S Wholesale Grocers
$27 Enterprise Holdings
$25.5 Cox Enterprises
$21 Fidelity Investments
$20.4 Love’s Travel Stops & Country Stores
$20 Southern Glazer’s Wine & Spirits
$17.8 JM Family Enterprises
$16.3 Gordon Food Service
$14 Allegis Group
$13.4 Smart & Final
$11.9 Medline Industries
$11.4 World Wide Technology
$11.2 RaceTrac Petroleum
$11.1 ABC Supply
$10.5 SC Johnson
$10.5 McKinsey & Company
This is Wikipedia’s list of American “Mature Unicorns” with a $10+ billion valuation
$15 Epic Games
What do we think is likely?
Grasping at straws here, given the board composition and rumours would love either Sripe or Bloomberg. The criteria for a target is very comprehensive so can hope that it’s a good deal and a future s&p 500 firm
SpaceX is Elons baby and he could pull an ipo off. Airbnb ipo in December and some of the others have also confidentially filed. I think we will be daydreaming for a while my friend
Bloomberg is Billionaire Michael Bloomberg’s company. He’ll never sell it like this
Same goes for the Mars family.
One can daydream though
Bill Ackman endorsed Michael Bloomberg as a prospective candidate for US presidency, so there’s a little history there.
Pilot Flying J would be interesting. Trucking is huge in the US, and I’m bullish on the US economy.
Don’t think it’s likely but Stripe or UIPath would be great.
Majority want Stripe to be honest, on Wells Fargo that’s what I have seen too looks interesting.
@Connor that’s just the sale of buildings, not a company.
Yep, I believe garden path references that people misread that the investor was buying both companies. The outbid PSTH sounds like they are having some fun with it, so wouldn’t read too much into it. As far as I am aware they get bombarded a lot on Twitter with PSTH questions so wouldn’t blame them. Whether a deal will happen who knows we just have to wait and see what company PSTH go for, BA has some events at the deal makers summit this week so we may get an update on how the search is going.
Has there been any news on this? Hoping they are working on Stripe.
Price has been on the up over the last few days but don’t really see why. I believe PSH have an earnings call today so wonder if we get an update today.