Top Five SPACs to Buy Right Now!!!

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What a bloody week in the markets. Which means there are buying opportunities to be had.

Number 5 – Payoneer going public with FTOC. I have spoken about Payoneer in the past and with the recent price action in the stock. It is primed for investing. Currently, it sits at $11.80 and is 18% above its $10 offering, 22% above its low of $9.60, and another 22% from its ATH of $14.50. So, it is currently sitting right in the goldilocks spot. Payoneer is a payment system that allows small businesses and freelancers to make and receive payments from over 190 countries. The deal will value the company at $3.3 billion and provide it with over $560 million in cash for it to make deals and grow operations. Obviously, with COVID, sales for businesses are down across the board; however, with vaccines heading out and a recovery is being projected, it looks like Payoneer will be able to weather the storm and have the cash to buy companies that might not be able to make it through this whole shutdown. The deal is expected to close in the first half of this year, so you still have some time to get into this one before it is official.

Number 4 – PaySafe merging with BFT. Announced back in December. Another payment processor you might be saying? Yes. One reason why I like this industry is that consumer sales are only increasing, even during this pandemic, sales, and specifically, online sales have been exploding. People are rarely using cash, sorry no COD, and with the prolific usage of debit and credit cards, payment processors are needed to process the billions of dollars that are being spent online and in-person. Not only that, online gambling is increasing and relies heavily on payment processors. As the industry matures and enters more markets, the revenue for these processors will only increase. BFT sits at about $15.31. Which is 58% above its low, 29% below its high, and 52% from its initial offer. The deal will value PaySafe at around $13.7 billion. If you were to take a look at its expected EBITDA of $561 million, it has an implied 25x multiple. Which is on par with a competitor like Global Payments.

Number 3 – Pivoting out from payment processors and into next-gen batteries, Next up is Microvast merging with THCB. Being in the EV battery industry, what makes Microvast special is that they already have products in use today. They currently have their batteries in buses today that can fully recharge the batteries to 100% in about 10 minutes. They plan on moving on to other adjacent markets such as passenger vehicles, and energy storage. They have and &&D agreement with BMW and have customers such as Porsche and Oshkosh. With the deal, it is expected to have an equity value of about $3 billion and will have about $800 million in cash for expansion, R&D, and acquisitions. And if we look at the numbers, 81, 52, and 66%, it is trading at a higher valuation than others; however, looking at the industry, its competitors, and with EV announcements on a daily basis and future accouchements from EV users and industry moving to almost 100% EVs, then this might be the better play.

Number 2 – Now if you have EV batteries, you are going to need some way to charge up your EV. So, another low-priced SPAC is Volta merging with SNPR. The deal is valuing the combined entity value at about $2 billion. For comparison, other EV charging companies such as Blink, Beam, and EVgo are valued at $2.2 billion, $500 million, and $5.5 billion, respectively. The numbers of 35, 44, and 27% show there is some potential upside once the market calms down and/or when the merger is officially completed. To think that there will only be one charging company is Ludacris. Just look at the various different gas stations on the road now. In the short run, you can see an uptick in the SPAC share price, but this too has a long-term hold value.

Number 1 – Stepping a way back from the EV market but an industry that has been around for centuries. Gambling. More specifically, Lottery.com merging with TDAC. The numbers for this one, 22, 34, and 26% are pretty solid for some upsides. Lottery.com is currently operating in 10 states and plans to enter into another 20 and in several new countries in 2021. Founded in 2015, it has experienced a compounded annual growth of 279% as more states opened up legalizing mobile gambling. And because gambling and the lotto is almost a legal printing money operation, I can see this SPAC playing off for a long time and with a solid rebound expected in the markets.

So, there you have it, the top 5 SPACs to look into right now. I do not think these SPACs will stay low for too long but make sure you do your own research before investing as I am not your financial advisor. Don’t forget to like and subscribe to make sure you catch all of the future SPAC videos. But till next time…Peace!!!