SPACs have been one of the hottest stories to invest in 2020 and appear to be an important topic in 2021, with hundreds of potential deals that can be announced.
Benzinga is the home of the SPACs Attack live program, which airs Monday to Friday at 11 am Eastern Time. On Wednesday, co-hosts Chris Katje and Mitch Hoch shared their top SPACs that are currently trading between $ 10 and $ 11.
Chris’ Picks: Acquisition of RedBall (NASDAQ: RBAC) was associated with the merger with Fenway Sports Group. A deal would give investors another publicly traded sports team. Fenway Sports Group owns the Boston Red Sox of the MLB and the Liverpool Football Club of the English Premier League.
Both teams have strong brand recognition and can attract investment from fans. Another catalyst mentioned was media rights. A new agreement with Fox Corp (NASDAQ: FOX) goes into action for the MLB in 2022, and the EPL is also negotiating new deals. Fenway Sports Group is also the majority owner of a local sports media company that shows Red Sox games.
Acquisition of Falcon Capital (NASDAQ: FCAC) targets a company in the media or consumer technology sectors. The team behind SPAC includes Jeff Sagansky. The choice here is to follow Sagansky, who is part of the team that did business for DraftKings Inc (NASDAQ: DKNG) and Skillz Inc (NASDAQ: SKLZ).
The team behind Hyliion Holdings (NASDAQ: HYLN) has a second SPAC that can be a good choice under $ 11. Tortoise Acquisition Corp II (NASDAQ: SNPR) targets the field of sustainability. The history of the business with Hyliion can make this SPAC attractive to a target company. Hyliion’s shares traded above $ 50 and were one of the best performing SPACs in early 2020.
Lefteris Acquisition Corp (NASDAQ: LFTR) targets the fintech industry. With rumors that companies like Sofi, eToro and others have gone public, fintech may be a host sector to watch in 2021. The SPAC management team has a history with ETrade, Coinbase and TD Ameritrade.
Burgundy technology (NASDAQ: BTAQ) is a company focused on corporate technology or software. The management team includes Leo Apotheker, the former CEO of Hewlett-Packard (NASDAQ: HPE) and SAP SE (NASDAQ: SAP). Apotheker spent more than 20 years at SAP and helped transform the company from a single product into a multi-solution business.
Co-CEO Jim Mackey spent years at Citigroup, SAP, OpenText and Blackberry (NASDAQ: BB). While at Blackberry, Mackey helped the company move from a mobile phone company to terminal management.
Burgundy Technology mentions Israel as a target area in its process. Apotheker graduated from the Hebrew University of Israel. Several large Israeli companies are targeting 2021 IPO or SPAC business, which could make Burgundy a good choice here. The list of rumored names includes REE Automotive, Taboola, Outbrain and eToro.
Related link: 12 new offers filed by SPACS on Friday: what investors should know
Mitch’s Picks: Sports Entertainment Acquisition Corp (NASDAQ: SEAH) is a name that was mentioned several times in the program. The company targets the sports and entertainment sectors. Management includes Eric Grubman, who was president of the hospitality company On Location Experiences and also held positions in the NFL. John Collins, the interim CEO of SPAC, spent time with the NHL and Cleveland Browns.
Acquisition of Supernova Partners (NASDAQ: SPNV) targets the technology sector, looking for a company with a large addressable market, a well-defined vision, competitive moats and the ability to scale its operations. The management team includes Spencer Rascoff, the co-founder of Zillow Group (NASDAQ: Z) and Hotwire. Rascoff was the CEO of Zillow for more than 10 years and led the company through 15 acquisitions, including the great rival Trulia.
A Goldman Sachs SPAC could bring in a high-growth company, including eToro, which was in recent negotiations with the company. GS Acquisition Holdings Corp II (NASDAQ: GSAH) is still trading below $ 11 and was one of Hoch’s top options. SPAC raised $ 700 million and did not specify a target area of focus.
Churchill Capital Corp IV (NASDAQ: CCIV) is one of the largest SPACs in search of a target. SPAC is linked as a finalist in the DIRECTV bidding process, being sold by ATT (NYSE: T). Hoch favors the appreciation of SPAC trading to close to $ 10. Taking DIRECTV would not be a big deal, according to Hoch, and he said he would be more excited about a different target.
Acquisition of Cerberus Telecom (NYSE: CTAC) is a SPAC led by CEO Tim Donahue, who is the former president of Sprint Nextel. Hoch calls this a long-term game based off the chart.
Click here to watch the full episode of SPACs Attack on Wednesday, December 30th.
Disclosure: the author is over HYLN, BTAQ
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