SPACs have been one of the hottest stories for investing in 2020 and look to be a major theme in 2021, with hundreds of potential deals that could be announced.
Benzinga is home to the live SPACs Attack show that airs Monday through Friday at 11 a.m. ET. On Wednesday, co-hosts Chris Katje and Mitch Hoch shared their top SPACs that are trading between $10 and $11.
Chris’s Picks: RedBall Acquisition (NASDAQ: RBAC) has been linked to merging with Fenway Sports Group. A deal would give investors another publicly traded sports team. Fenway Sports Group owns MLB’s Boston Red Sox and the Liverpool Football Club of the English Premier League.
Both teams have strong brand awareness and could attract investments from fans. Another catalyst mentioned was the media rights. A new deal with Fox Corp (NASDAQ: FOX) kicks in for MLB in 2022, and the EPL is negotiating new deals as well. Fenway Sports Group also is a majority owner in a local sports media company that airs Red Sox games.
Falcon Capital Acquisition (NASDAQ: FCAC) is targeting a company in media or consumer technology sectors. The team behind the SPAC includes Jeff Sagansky. The pick here is following Sagansky, who is part of the team that did deals for DraftKings Inc (NASDAQ: DKNG) and Skillz Inc (NASDAQ: SKLZ).
The team behind Hyliion Holdings (NASDAQ: HYLN) has a second SPAC that could be a good pick below $11. Tortoise Acquisition Corp II (NASDAQ: SNPR) is targeting the sustainability field. The history of the Hyliion deal could make this SPAC attractive to a target company. Hyliion shares traded over $50 and were one of the best performing SPACs earlier in 2020.
Lefteris Acquisition Corp (NASDAQ: LFTR) is targeting the fintech sector. With rumors of companies like Sofi, eToro and others going public, fintech could be a host sector to watch in 2021. The management team in the SPAC has history with ETrade, Coinbase and TD Ameritrade.
Burgundy Technology (NASDAQ: BTAQ) is a company targeting technology or enterprise software. The management team include Leo Apotheker, the former CEO of Hewlett-Packard (NASDAQ: HPE) and SAP SE (NASDAQ: SAP). Apotheker spent over 20 years at SAP and helped transform the company from a single product to a multi-solution business.
Co-CEO Jim Mackey spent years at Citigroup, SAP, OpenText and Blackberry (NASDAQ: BB). While at Blackberry, Mackey helped the company shift from a mobile company to end-point management.
Burgundy Technology mentions Israel as a target area in its filing. Apotheker graduated from the Hebrew University of Israel. Several large Israeli companies are targeting 2021 IPO or SPAC deals, which could make Burgundy a good pick here. The list of rumored names include REE Automotive, Taboola, Outbrain and eToro.
Mitch’s Picks: Sports Entertainment Acquisition Corp (NASDAQ: SEAH) is a name that has been mentioned on the show several times. The company is targeting the sports and entertainment sectors. Management includes Eric Grubman, who was the chairman of hospitality company On Location Experiences and also held roles with the NFL. John Collins, the acting CEO of the SPAC, spent time with the NHL and Cleveland Browns.
Supernova Partners Acquisition (NASDAQ: SPNV) is targeting the technology sector, looking for a company with a large addressable market, a well-defined vision, competitive moats and the ability to scale its operations. The management team includes Spencer Rascoff, the co-founder of Zillow Group (NASDAQ: Z) and Hotwire. Rascoff was the CEO of Zillow for over 10 years and led the company through 15 acquisitions including large rival Trulia.
A SPAC from Goldman Sachs could land a high growth company, including eToro who was in recent talks with the company. GS Acquisition Holdings Corp II (NASDAQ: GSAH) is still trading under $11 and was a top pick from Hoch. The SPAC raised $700 million and did not specify a target area of focus.
Churchill Capital Corp IV (NASDAQ: CCIV) is one of the largest SPACs currently seeking a target. The SPAC is linked as a finalist in the bidding for DIRECTV, being sold by AT&T (NYSE: T). Hoch favors the valuation of the SPAC trading closer to $10. Landing DIRECTV wouldn’t be a great deal, according to Hoch, and he said he would be more excited about a different target.
Cerberus Telecom Acquisition (NYSE: CTAC) is a SPAC led by CEO Tim Donahue, who is the former chairman of Sprint Nextel. Hoch calls it a long-term play based off of the chart.
Click here to watch the full episode of SPACs Attack from Wednesday December 30.
Disclosure: Author is long HYLN, BTAQ
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