![]() ![]() ![]() Until then, he feels it’s too difficult to evaluate the company’s chances. My InvestorPlace colleague, Dana Blankenhorn, recently discussed the issue about Lucid Motors and its pending merger with Churchill Capital IV (NYSE: CCIV).īlankenhorn recommended investors avoid CCIV stock until the whole issue is sorted with the SEC and the combination is completed. Part of the reason SPACs have been underperforming in recent weeks has to do with the Securities and Exchange Commission (SEC) stating that warrants issued by SPACs, generally considered equity on a company’s balance sheet, would need to be reclassified as a liability if they’re tied to the performance of the underlying stock or if they include a cash-out provision. It’s lost all of its momentum and then some. Near the end of STEM’s first day of trading, it’s at $28, around where it was in January. It needed to jump 50% from there to get to my colleague’s $67.91 valuation. When I chimed in around mid-to-late February, it was up 63% to $44. At the time of Hake’s article, STPK was trading around $27. InvestorPlace’s Mark Hake argued at the end of January that it would easily double post-merger. In February, I wrote about Star Peak Energy and the odds of it doubling once it merged with Stem. Even my InvestorPlace colleague Chris MacDonald noted the absence of excitement surrounding Stem’s first day of trading. Seriously, a company operating in the electrification field should get more attention. Of course, it doesn’t help that CLOV is down 46% year-to-date through April 29 and has fallen below $10, the price at which the SPAC sold units. 8, very little appeared in the mainstream media except for a press release announcing the vote results. However, when the SPAC’s shareholders approved the merger on Jan. It got a decent amount of coverage in 2020 when it announced it would combine with Social Capital Hedosophia Holdings Corp III, a SPAC backed by Chamath Palihapitiya raised $720 million in April 2020. STPK Stock or STEM Stock It Really Doesn’t MatterĪ classic example of the lethargy set in involves Clover Health Investments (NASDAQ: CLOV).
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