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For Bird, they were sold on a SPAC at $154, so mission accomplished for the VCs. Retail is left holding the bag now.
by candiddevmike 3y ago
For Bird, they were sold on a SPAC at $154, so mission accomplished for the VCs. Retail is left holding the bag now.
- latchkey 3y agoSomeone should go to jail for that, but it is a highly regulated market, so it is ok.
- rchaud 3y agoSPACs (basically going public as a shell corp) are chosen specifically because it allows company insiders to cash out their equity without disclosing as much as regular IPO companies.
- latchkey 3y agoYea, fully aware. I was working at a company last year that almost SPAC’d. Maybe you missed my sarcasm?
- hnburnsy 3y agoJ need to start shorting these IPOs on day one.
- huijzer 3y agoIf you want to do such a random approach then do buy a bit off all because then you‘re upside goes toward infinite while downside is at most 100%. If you short, your downside goes toward infinite. Plus the market can stay irrational longer than you can stay solvent.
- FooBarBizBazz 3y agoI don't think people mean literal short positions. The safest way to do this would be to buy long-dated PUTs, and roll them if necessary. Not that that's free -- which goes to your "irrational longer than you can stay solvent" point.
- ianbutler 3y agoWell spacs were heavily regulated over the last two years, that combined with the inflationary climate should mean things like this are done with for now.