Investment Q&A

Q: Good morning

This is a mixed bag. For a 3 year period, I am looking for those with most upside potential. Which would you advise to buy more and those to sell in order to buy more.
Thank you

Q: Hope all is well! Can you please walk me through the PSTH SPAC? From my understanding, units were originally sold at $20 and each unit consists of one share of common stock and a warrant for one-ninth of a share. With PSTH now at $25.40, if the market hates their proposed deal can you walk me through downside scenarios?
If shareholders vote down the eventual deal or there is no deal before deadline can you redeem for $20 and have a max loss of $5.40?
Is it correct to assume that the only way to lose more than $5.40 would be if the market doesn’t like the deal, shareholders still approve the deal ($20 floor goes away) and then the stock drifts lower on the back of company prospects?
I am interested because of Ackman involvement and the high implied vol on the shares in the options market. I am considering various bullish strategies (selling puts, risk reversals and covered calls) but just trying to develop a clear understanding of downside risks if the market hates their deal, shareholders vote down the deal or no deal happens.
I see the $23 strike warrants trading for around $9.20 with an 07/24/2025 expiration date, do only original unitholders get warrants or will unitholders that buy today and hold through a deal get a warrant for every 9 shares?
Thanks for your guidance!

Q: I was watching fast money while I was doing my hour cycle. What really struck me were all the special acquisition quotes I saw coming across the ticker. There must have been 5 or 6 and they were all up 10 to 50% on the day.

Now that some time has passed since ackman made a big splash with his spaq have you discovered or researched any that you like and think has a bright future as a growth investment?

Sheldon

Q: Hello,

What are your thoughts on investing in SPAC like social Capital or Ackman's Pershing Square? Thanks.

Shyam

Q: Hello,

At what price would the warrants for PSTH need to be purchased to have them make sense vs buying common shares? I understood the warrants to be equal to 1/9 of a common share. At present time, the PSTH shares are at 21.97 and the warrants (PSTH.WS) are at 7.60. How would you compute when to buy shares vs. warrants? Part 2 of the question would be when and how does PSTH.WS become common shares?

Q: Hi there,

People have made good money investing in SPAC's this year (DraftKings, Virgin Galactic, Nikola) although I'm sure have been less successful. Ackman and Pershing Square seem to be bringing PSTH forward with a structure more friendly to the retail investors. My question is whether you consider PSTH to be a worthy investment at this time or if you would wait for an announcement about who they bring public? It would seem that if you have faith in Ackman you have to get in now to capture upside. Would you buy or wait and why?