Did some DD and got a stock that could be put on the watchlist:
They’re a SPAC with options and currently the NAV protection is at $10.37.
Starting float is ~7M shares (less than half of what $RAM was) and they just had their extension vote and we will get redemption #s any day now.
It needs ~68% redemption for this to be the lowest float with NAV (~2.2M) and it needs ~73% redemption for this to be at ~1.9M float.
Sponsor is also promising 10-15¢ contribution to NAV, so it’ll be somewhere between $10.45-$10.52 after it’s all said and done.
Lots of “what ifs” and this could very well be a dud like $RAM became if there were better terms given to arbs. However, right now at $10.45 risk is ~1% on the downside.
I have a position, at $10.45 - this is not financial advice.
I am in this as well (shares only, as it was impossible to get decent fills on 10c). Many worse places to store recent profits than RAM and BWAC.
I kind of like these as a binary play. Decent redemptions should see a nice little pump just from the twitter furus talking about it. I’ll have to take a deeper look but high redemptions has pretty consistently been good for a nice little pop
I am not that hopeful for actual high redemptions on this one given how much volume there has been above NAV and the sponsor seems to be trying to maintain/bolster trust value to discourage redemptions. It’s also been a popular ticker with retail (unlike RAM) so there may be bag holders out there who wouldn’t have chosen to redeem.
On the other hand, this is a lot closer to NAV today than where RAM was yesterday (so negligible risk on commons) and a lot of these do see some anticipatory price action near end of day (such as RAM yesterday) that you can trim on.
Generally I either make 5%-10% or lose 1% or 2% when playing these tickers with commons, with about an equal number of wins and losses.
The vote was this Monday on the 15th and I don’t see much volume at all on the ticker in the days prior. Just because of the anemic volume in general I think redemptions should come in higher.
Looks like redemptions came in lower than expected.
Only ~2.8 million shares redeemed with around 4.2 million left. Perhaps due to how much the sponsor will be contributing to the trust. That’s too bad.
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