SPACs were one of the most popular stories to invest in 2020 and look set to be a major theme in 2021, with hundreds of potential deals to be announced.
Benzinga is home to the live SPACs Attack show presented Monday through Friday at 11 a.m. ET. On Wednesday, co-hosts Chris Katje and Mitch Hoch shared their best SPACs trading between $ 10 and $ 11.
Chris’ choices: RedBall acquisition (NASDAQ: RBAC) has been linked to the merger with Fenway Sports Group. An agreement offers investors another sports team that is publicly traded. Fenway Sports Group owns the MLB Boston Red Sox and the English Premier League Liverpool Football Club.
Both teams have a strong brand awareness and can attract investors from fans. Another catalyst mentioned was the media rights. A new agreement with Fox Corp. (NASDAQ: FOX) starts in 2022 for MLB, and the EPL is also negotiating new deals. Fenway Sports Group is also a majority owner of a local sports media company that broadcasts Red Sox games.
Falcon Capital Acquisition (NASDAQ: FCAC) is aimed at an enterprise in media or consumer technology sectors. The team behind the SPAC includes Jeff Sagansky. The selection here follows Sagansky, who is part of the team for which transactions were made DraftKings Inc. (NASDAQ: DKNG) and Skillz Inc. (NASDAQ: SKLZ).
The team behind Hyliion Holdings (NASDAQ: HYLN) has a second SPAC that could be less than $ 11. Tortoise Acquisition Corp II (NASDAQ: SNPR) is focused on the sustainability field. The history of the Hyliion Agreement could make this SPAC attractive to a target business. Hyliion shares traded above $ 50 and were one of the best performing SPACs earlier in 2020.
Lefteris Acquisition Corp. (NASDAQ: LFTR) is focused on the fintech sector. With rumors about companies like Sofi, eToro and others going public, fintech could be a host sector in 2021. The management team in the SPAC has history with ETrade, Coinbase and TD Ameritrade.
Burgundian Technology (NASDAQ: BTAQ) is a company that directs technology or enterprise software. The management team includes Leo Apotheker, the former CEO of Hewlett Packard (NASDAQ: HPE) and SAP SE (NASDAQ: SAP). Pharmacist has been with SAP for over twenty years and has helped transform the business from a single product to a multi-solution business.
Co-CEO Jim Mackey spent years with Citigroup, SAP, OpenText and Blackberry (NASDAQ: BB). While at Blackberry, Mackey helped the company change from a mobile company to endpoint management.
Burgundy Technology cites Israel as a target area in its submission. Pharmacist is graduating from the Hebrew University of Israel. Several major Israeli companies are targeting 2021 IPO or SPAC deals, which could make Burgundy a good choice here. The list of rumors includes REE Automotive, Taboola, Outbrain and eToro.
Related link: 12 new spacs submitted deals on Friday: what investors need to know
Mitch’s Picks: Sports Entertainment Acquisition Corp. (NASDAQ: SEAH) is a name that has been mentioned several times on the program. The company focuses on the sports and entertainment sector. Management includes Eric Grubman, who was the chairman of the hospitality business On Location Experiences and also held roles at the NFL. SPAC acting chief executive John Collins has spent time with the NHL and Cleveland Browns.
Supernova Partners acquisition (NASDAQ: SPNV) is focused on the technology sector, looking for a company with a large addressable market, a well-defined vision, competitive digging and the ability to expand its operations. The management team includes Spencer Rascoff, the co-founder of Zillow Group (NASDAQ: Z) and Hotwire. Rascoff has been the CEO of Zillow for more than ten years and has led the company through 15 acquisitions, including major competitor Trulia.
A SPAC from Goldman Sachs could land a high-growth company, including eToro, which recently spoke with the company. GS Acquisition Holdings Corp II (NASDAQ: GSAH) is still trading below $ 11 and was a top pick from Hoch. The SPAC raised $ 700 million and did not specify a target area.
Churchill Capital Corp IV (NASDAQ: CCIV) is one of the largest SPACs currently seeking a target. The SPAC is linked as a finalist in the presentation of DIRECTV, which is sold by AT&T (NYSE: T). Hoch prefers the valuation of the SPAC trade closer to $ 10. According to Hoch, DIRECTV would not pay much, and he said he would be more excited about another target.
Cerberus Telecom acquisition (NYSE: CTAC) is a SPAC led by CEO Tim Donahue, who is the former chairman of Sprint Nextel. Hoch calls it a long-term play based on the graph.
Click here to watch the full episode of SPACs Attack from Wednesday, December 30th.
Disclosure: The author is long HYLN, BTAQ
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