Anyway, on a more serious note, I’m not sure why anybody will purchase any of PSTH II since PSTH I is already on the market.
A month ago, I believed that anybody involved in joining NYST PSTH WS at https://www.webull.com/quote/nyse-psth-ws before the declaration of a target had to act quickly. Investors are also waiting for Billy Boy to make his major announcement a month back.
The more Ackman delays, the harder it becomes for customers, as SPACs without acquisition partners have to bear the brunt of the losses. On April 14, InvestorPlace’s Vince Martin reported that $81 billion in SPACs are trading below $10.
When you consider that the average SPAC in 2021 will be $324 million, that means 250 of the 432 SPACs will be underwater looking for a target.
I’m also convinced that the SPAC lottery winners would target smaller firms rather than bigger companies. Nonetheless, I think Ackman has the network to discover something interesting.
However, investors have no means of telling whether there is worth above $25 until we realize what the goal is.
PSTH is also overpriced, as my colleague points out, having dropped from $32 to $25.
Is PSTH, at $25, overpriced?
Martin’s point of view is clear.
PSTH has a cash balance of $20.74. PSTH is now trading at $24.66, a 19% premium to its cash kept in confidence, as of this writing. This equates to $1.3 billion. The premium above the redemption price of $20 is 23%.
According to the markets, Ackman’s goal is expected to generate between $1.3 billion and $1.6 billion in stock value. We don’t know whether that’s accurate or not, according to Martin. As a result, it more than justifies a lower price than $24.66.
When you think about it, he’s right.
You’re essentially rudderless because you know the target organization in question and have answers to the finer points of the business and finances.
It’s the same as before there was a pandemic and people were buying houses. Many citizens from Toronto (where I moved from in February 2018) have purchased homes sight unseen here in Halifax, Nova Scotia, where I reside.
Sure, they’ve seen pictures, but in my opinion, all bets are off before you walk into a house and sense the energy or lack thereof. It’s much too much to spend for a clearer picture of what you’re receiving.
Now, 100 shares of PSTH stock aren’t quite as expensive, but they’re not enough to survive on.
On the one side, getting $4 billion allows you to pursue a far larger goal than many other SPACs would. That’s the bright side. The downside is that there are only too many “mature unicorns” available, and not many of those will be willing to hold a constructive conversation. You can find other stock like nyse t at https://www.webull.com/quote/nyse-t before investing.