20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
A pure-play robotics company proving automation solutions is hitting the public markets with a SPAC deal announced Wednesday morning.
The SPAC Deal: Berkshire Grey, which uses artificial intelligence for robotics and automation solutions, announced a SPAC merger with Revolution Acceleration Acquisition Corp (NASDAQ:RAAC).
The deal values Berkshire Grey at a post-transaction equity value of $2.7 billion. Berkshire Gray will receive $413 million in cash proceeds from the deal and have no debt after closing.
A $165 million PIPE was anchored by Chamath Palihapitiya and BlackRock.
Current Revolution Acceleration Acquisition shareholders will own 10% of the company if the merger is approved.
About Berkshire Grey: Berkshire Grey automates warehouses and logistics fulfillment centers. The company was founded by Tom Wagner, the former chief technology officer of iRobot Corp (NASDAQ:IRBT).
Berkshire Grey said in its investor presentation that only 5% of warehouses are automated, which could provide a substantial opportunity for the company going forward. An Amazon.com Inc. (NASDAQ:AMZN) effect of automation driving warehouses and logistics is causing other retailers to adapt.
Anchor customers listed in the investor presentation are Walmart Inc (NYSE:WMT), Target Corporation (NYSE:TGT), FedEx Corporation (NYSE:FDX) and TJX Companies Inc (NYSE:TJX).
Related Link: 10 SPACs Trading Under $11 For Investors To Consider In 2021
Growth Ahead: Berkshire Grey plans on deepening its relationships in key sectors and building out new value added services for its growth ahead, including its recurring revenue platform called robotics as a service.
Geographic expansion was listed in the investor presentation as another area of growth.
Five focus verticals for the company are retail, ecommerce, grocery, parcels and third-party logistics.
Financials: Berkshire Grey has a pipeline of $1.7 billion in deals. This has grown significantly from a reported $100 million at the start of 2020. The company’s order backlog and ongoing negotiations include several multinational retailers and ecommerce companies.
Backlog represents 85% of fiscal 2021 and 40% of fiscal 2022 revenue projections.
The company is guiding for revenue of $59 million in fiscal 2021, $119 million in fiscal 2022 and $248 million in fiscal 2023. Revenue is expected to hit $927 million in fiscal 2025.
Price Action: Shares of Revolution Acceleration Acquisition are up 17% to $12.77.
Disclosure: The author is long shares RAAC
(Photo: Berkshire Grey)
20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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