pushing mother share up to offload warrants. once warrants sold all, mother shares will go down due to massive selling and stay down for at least three months. wakakaka
another rip off stocks. will not up much until QA is in sight. Those initial IPO holders applied the mom for 50 sen but get warrant free. So you need to add the warrant + mom to get back your IPO price.
Hence, it is hard for the mom to go back to 50sen. Dream on until you got acquisition announcement.
SC must investigate. How can an IPO share can be valued at 050 and how come it can plunged 12sen on opening minute. who are the sellers. anyone violated the moratorium?.
I’ve found that you can usually make two profitable trades in a SPAC warrant that have high degrees of success. The first trade is often the easier money, but a harder trade to get into due to the small time window.
It requires that you pay careful attention to a list of SPACs and that you get an email alert when a SPAC announces it’s plan to purchase a business. The hard part of the trade is that it can be very time sensitive and occurs only episodically.
You can follow your SPAC list by putting the term “SPAC” into your Google alerts or, if you want to limit the number of alerts you get, you can put a little more time into your alert creation at the beginning. You can also create your own list of SPACs and place those names into your Google alerts. I include SPACs in my warrant database.
When alerted you have to be prepared to execute the trade quickly. I’ve found that you have a good chance of making a nice return as long as you can buy the warrant on the first day of the announcement.
Generally, the SPAC warrant moves up for a few days before selling off prior to the actual approval of the takeover.
Which brings us to the second trade.
Approval of the Acquisition
This trade is harder because it requires you to actually do some work (imagine that, working for a nice return).
The warrant generally tends to spike the day of the announcement, and for the next few days. and then drop again prior to the shareholder vote. If the vote goes through the warrant will usually spike again when the vote outcome is announced.
Your job is to determine whether or not the takeover / merger of the SPAC and it’s target company will be approved. I’ve found that in many cases it is relatively easy to predict the outcome by following what the SPAC management is doing prior to the vote.
One positive indicator you can look for is management buying out other shareholders in order to control the vote. If you believe the acquisition will be approved you can get long the warrant just prior to the shareholder vote.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
prakash012
37 posts
Posted by prakash012 > 2015-12-07 21:24 | Report Abuse
ahloha