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I was literally just talking to a SPAC CEO last weekend that was in a deal with Goldman that got dropped by them. Apparently, there are regulations coming down
by joshocar 4y ago
I was literally just talking to a SPAC CEO last weekend that was in a deal with Goldman that got dropped by them. Apparently, there are regulations coming down from the SEC and Goldman didn't want to deal with them and/or the regulations changed the profit calculus.
- mattbrewsbytes 4y agoI suspect that similar to how the "market" has various things "priced in", larger financial firms want to stay ahead of regulation and essentially change their business models around ahead of regulations. I think they all operate on the principle of being first for everything is more profitable, including exiting poor investments.
- ericmay 4y agoThe best way to think of "priced in" when you are reading something that someone else wrote is to replace those two words with "I don't know". Nothing is priced in. Everything is priced in. When someone thinks of an idea, by virtue of sharing that idea it's deemed to be "priced in".
- totoglazer 4y agoNo, that’s kind of nonsense.
- ericmay 4y agoIt’s really not. “It’s priced in” is just religion at this point and it’s really just surface level useless banter. The market is random and softly guided by macroeconomic forces. Interest rates go up and then the share price of Google goes up? Priced in. They go down and the share price goes up? Priced in. Company has a bad quarterly? Already pride in by the nefarious “market”. Etc. Recognizing things like that is a good first step toward having a coherent investment thesis.
- aaaaaaaaata 4y ago> Priced in By the time you are talking about, it largely will be.
- solveit 4y ago"Priced in" is not explanatory, it is predictive and the prediction is that you cannot consistently beat the market (where you are a generic smart person with no particular reason to have an edge, like most HN commenters).
- JumpCrisscross 4y ago> rates go up and then the share price of Google goes up? Priced in. Google is profitable and trading at a below-market multiple. It's a poor rates play. Rates directly influence broad-market multiples, which Google will track, but "market goes down and Google goes up...priced in" isn't an intelligent thing to say.
- ericmay 4y ago> Rates directly influence broad-market multiples, which Google will track, but "market goes down and Google goes up...priced in" isn't an intelligent thing to say. Right.. which is why people should ignore "priced in" comments and instead read them as "I don't know what I'm talking about whatsoever". There's no such thing as "priced in" - it's a contradiction and only used by people who are religiously inclined to talk about events that are random and don't have an explanation. If someone says "oh that was priced in" that's an extremely clear signal that they do not know what they are talking about. > Google is profitable and trading at a below-market multiple. It's a poor rates play. Did you intentionally miss the point or were you genuinely confused about what the discussion was about? It's very clear that I was not providing any sort of analysis about Google and interest rates rising (or lowering) and was talking about how people just say any action is "priced in" once it occurs.
- vmception 4y agoCan someone explain Goldman's role? What are they underwriting? SPAC's merge with companies with capital that SPAC's already have collected. Was Goldman underwriting the formation of new SPACs when those SPACs are initially collecting money?
- bradwood 4y agoSPACs themselves need to float before they can make an acquisition. The investment bank provides the primary markets support for this, sets up a syndicate, and markets the spac to the institutional investor community. There may be a level of underwriting going on also, as is the case with a rights issue or IPO, but it's probably more the marketing and access to the bank's client base that the spac benefits from.
- JumpCrisscross 4y ago> Was Goldman underwriting the formation of new SPACs when those SPACs are initially collecting money? SPACs are chock full of fees to Wall Street. When the SPAC goes public, it pays an IPO fee. The bank, having to comply with fewer regulations than in a traditional IPO, makes a healthy profit. When the SPAC negotiates a merger it pays M&A fees. When shareholders are presented with the merger and asked to vote that comes with a fee. If there is a PIPE, there are, of course, more fees. Later, when the sponsors sell their stock, there will be brokerage fees for the block trade. And I assume, in the final stage of a SPAC’s lifecycle, there will be de-listing, liquidation and/or distressed debt fees.