8 SPAC Trade Ideas From Benzinga's 'SPACs Attack' Hosts


SPACs Attack” co-hosts Mitch Hoch and Chris Katje shared some new investment ideas of SPACs and companies that had de-SPACd on their show Friday.

Hoch’s SPAC Picks: Hoch encouraged viewers to start a shopping list of stocks they like so when there is a red day, people can time their entries into the stocks.

“That’s what I like to do, get in off support," he said.

Hoch’s recent purchases include Rush Street Interactive Inc RSI, Opendoor Technologies Inc OPEN, Desktop Metal DM and Velodyne Lidar Inc VLDR, four companies that completed their mergers, and Jaws Spitfire Acquisition Corp SPFR.

Hoch likes the 3D printing component of Jaws Spitfire partner Velo3D along with its partnership with SpaceX. The trend could be coming back in 3D printing stocks as Hoch pointed out a move in 3D Systems Corp DDD, a leader in the space.

Desktop Metal is growing its 3D printing business and announced its entry into 3D printing dental products.

“Shares didn’t react on the news,” said Hoch, who thinks shares could react soon on the diversification of the company’s business lines.

“The trend is coming back in 3D.”

Opendoor, an online home buying and selling platform has been downtrending since Feb. 11, Hoch noted.

“Looking for a quick move right back up,” Hoch said.

Hoch also added shares of Velodyne Lidar, one of several companies in the lidar space that have gone public via SPAC.

“I want some kind of skin in the game in lidar," Hoch said.

Katje’s SPAC Picks: Co-host Katje offered up three picks in the SPAC space with one pick that has not announced a deal, one with a pending merger and one that completed its SPAC merger already.

IG Acquisition Corp IGAC is targeting the gaming and hospitality space. The SPAC has Bradley Tusk, who was an early investor in FanDuel and others from the gaming space attached to the SPAC.

“To me, I see sports betting,” Katje said.

FanDuel is still exploring a public listing and BetMGM could get spun out of MGM Resorts International MGM, Katje said.

Several SPACs have dropped below $10 but at $9.73, IGAC shares are among the cheapest pre-deal announced SPACs out there.

Related Link: Why IG Acquisition Could Be Attractive SPAC In Gaming Space

One of the big stories in the automotive industry has been a shortage of semiconductors and chips that have caused supply issues.

Indie Semiconductor, which is going public through a SPAC merger with Thunder Bridge Acquisition II Ltd THBR, helps automotive companies with autonomous connectivity and electrification.

“This is a company that could help with this,” said Katje.

Indie is partnered with 12 Tier One automotive companies and could get mentioned more in the automotive chip sector when the deal gets completed, Katje added.

Luminar Technologies Inc LAZR is one of several companies in the lidar space and rumored to be involved with Tesla Inc TSLA.

The rumor is Tesla could be working with Luminar for lidar technology because images of Tesla vehicles having Luminar technology on the roof were spotted and shared by InsideEVs.

Tesla CEO Elon Musk had previously spoken out against lidar and called it “a fool’s errand.” The involvement by Tesla and a reversal in thought by Musk could help the entire lidar sector.

Shares of Luminar were down 8% at the time of Friday’s show, which Katje called a surprise with the rumors out connecting the company to Tesla. Musk is one of the most-watched names in the auto sector.

“Stuff can move when they’re connected to Tesla,” Katje noted.

Disclosure: Author is long shares of SPFR and IGAC.

(Photo: Benzinga's "SPACs Attack")

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