|Bid||28.02 x 800|
|Ask||27.75 x 800|
|Day's Range||28.44 - 31.93|
|52 Week Range||10.55 - 39.24|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||36.50|
Social Capital Hedosophia Holdings IV (NYSE:IPOD) is a special purpose acquisition company (SPAC) that has not yet announced a merger partner. However, IPOD stock is already getting significant investor interest. The shares started trading around $10 in late November. On Jan. 25, they hit a record high of $18.31. Now IPOD stock is shy of $15. Source: NESPIX / Shutterstock.com Consistent InvestorPlace readers should be well versed in the world of SPACs. Such a shell entity acquires a privately held business, which it takes public in a reverse-merger. As most SPACs have about two years to complete this important transaction, the SPAC management team’s background and ability to find a suitable partner become important factors that determine the success of an eventual merger. Therefore, today’s article discusses what investors could expect of IPOD stock in the weeks to come. Management In Focus IPOD stock is led by Chamath Palihapitiya and Ian Osborne. The blank-check company was formed with the focus of merging with a private technology company. The IPO raised $400 million, offering 40 million shares for $10 a piece. At this time, they still have no merger in place, and there is not much word on the street about which company could be in line.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 8 Stocks to Buy for March Although we cannot speculate about the company, we can focus on the management team and their track record in the SPAC field. IPOD stock is the fourth SPAC launched by Chamath. Out of the six companies created, three have already merged. They are: Virgin Galactic (NYSE:SPCE), which was initially IPOA stock prior to the merger; Opendoor Technologies (NASDAQ:OPEN), which was initially IPOB stock prior to the merger; Clover Health Investments (NASDAQ:CLOV), which was initially IPOC stock prior to the merger. In addition, Social Capital Hedosophia Holdings Corp. V (NYSE:IPOE) has an agreement in place to merge with SoFi, a personal finance company. There are two standout names that merged with Chamath’s SPAC companies. Firstly, Virgin Galactic, Sir Richard Branson’s space exploration company, has seen a surge in investor demand over the past year. Second is Clover Health, which offers Medicare Advantage plans at low costs. Virgin Galactic currently has a market cap of over $8.8 billion. The time frame since the merger has been about 18 months, which isn’t that long for the recent significant returns taking into account the market crash of March 2020. Over the past 12 months, SPCE stock is up about 17%. The merger went smoothly, and Chamath has the position of chairman on the Board. The second name, Clover Health, reached highs of $17.45 in early January from its $10 IPO. However, over the past several week, it has come under scrutiny over not reporting a Department of Justice investigation that was exposed by a short seller’s report. Clover Health’s response to this was interpreted as vague due to their choice of words. How much knowledge Chamath had of this is unknown. The Bottom Line on IPOD Stock Recent months have shown that after mergers are announced, these SPAC companies have generally seen very strong initial growth. Considering the relatively new nature of SPACs in the market, some investors regard it as a good sign. On the other hand, others see it as a bubble. Chamath has a very powerful say on Wall Street, similar to the likes of Elon Musk. But such attention at times puts these executives in the cross hairs of short sellers, like we have seen with the Clover Health report. In the past, short positions have also targeted Tesla (NASDAQ:TSLA). Therefore, investors need to keep in mind potential short-selling as a risk factor for any SPAC company that Chamath sets up. Another risk surrounds SPACs as a whole. They have been a hot topic in the last year, and 2021 is continuing the trend. So far in the year, there have been close to 190 SPAC IPOS, raising close to $60 billion. If broader markets were to take a long breather in the weeks to come, this growth could also take a hit. The success of IPOD stock will depend heavily on when a merger is announced and who the company is. The price currently sits at around $14, which is much higher than the initial IPO, but if a merger is announced with a big name, the stock price could see significant growth. As such, I feel it is a risky play for investors, but one that could yield high returns. On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next Potential Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. #1 Play to Profit from Biden's Presidency The post When Social Capital Hedosophia Holdings IV Names A Partner, IPOD Stock Could Become Another Winner appeared first on InvestorPlace.
Social Capital Hedosophia Holdings Corp VI (NYSE:IPOF) is the next SPAC (special purpose acquisition company ) vehicle that Chamath Palihapitiya has put in-line to merge with a large private technology company. If you believe in his stock value creation track record, IPOF stock is likely to do well. Source: Shutterstock That is why it now trades for over $15 per share, even though its IPO was at $1o. If the company does not find a target in time, it will have to return its $566 million in cash, according to its latest 10-Q, to shareholders at $1o. Management has until Oct. 14, 2022, according to page 6 of its 10-Q, to find and complete a merger. For all practical purposes, this means that the deal has to be announced no later than 6 months before then, or April 2022. So, IPOF stock has at least a year and three months left before you might see any major news.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Or not. Never mind, investors say, he is more than likely to find a good target and we want to get a jump on the price when it announces the target. That is why the price is at a premium. Track Record Counts with SPACs Finding a quality private company where the owners are willing to take shares in a SPAC is highly dependent on the SPAC’s sponsor reputation. Chamath Palihapitiya has a stellar reputation in Silicon Valley. Palihapitiya has apparently reserved all the symbols from IPOA to IPOZ on the NYSE for potential SPAC issues. He has an excellent track record. 8 Cheap Stocks Under $20 That Could Double For example, he was an early investor in Slack (NYSE:WORK) which now has a $25 billion market capitalization. His first SPAC (IPOA) took Virgin Galactic (NYSE:SPCE) public, and it now is at an all-time high with a $14 billion market valuation. His next SPAC (IPOB) took Opendoor Technologies (NASDAQ:OPEN) public at the end of 2020, now with a $19 billion market cap. However, one stumble was Clover Health (NASDAQ:CLOV), previously IPOC, which went public in early January. Since then the stock has fallen 22% or so. However, although Social Capital Hedosophia IV (NYSE:IPOD) stock has no target it is trading above $16. But Social Capital Hedosophia V (NYSE:IPOE) recently announced that it will merge with Millennial finance company Sofi Finance. IPOE stock is now at $23. What to Do With IPOF Stock Therefore, to be blunt, this is what investors in IPOF stock expect what will happen. When the target is announced, unless it is a real dud like Clover Health, they expect to see IPOF to move at least 40% to 50% higher in value. For example, if IPOF stock moves to $23, that implies a potential gain of over 50% over today’s price of $15.06 per share. Of course, a lot of the upside will depend on the target. Recent reports emerged of a rumor that Stripe, a major fintech transactions company based in Silicon Valley, was a target for IPOF. If that report comes to pass, you can expect that IPOF stock will move higher. According to Crunchbase, Stripe is large enough now that it makes acquisitions of other smaller fintech companies. For example, Wikipedia reports that the latest valuation was $36 billion as of April 2020. It’s a Gamble If Palihapitiya is able to pull off a merger with Stripe at a higher valuation than $36 billion, IPOF stock will soar. I suspect it would easily double. The question is why would Stripe merge with this Palihapitiya SPAC when they could easily just go and do an IPO? If they like working with Palihapitiya, then I can see this happening. This is especially so since a SPAC deal will clarify ahead of time how much capital the company will receive. I suspect that along with the $566 million in the IPOF SPAC coffers, there would be another $500 million in PIPE investment money (private investment in public equities). That is what might attract Stripe to this deal. Please note, there is no guarantee that this is even IPOF stock’s target. It’s all speculation now. However, I believe, that given the excellent Palihapitiya track record, and the potential Stripe merger rumors, it is worth gambling a little on IPOF stock. On the date of publication, Mark R. Hake does not hold a long or short position in any of the stocks in this article. Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next Potential Winner It doesn’t matter if you have $500 in savings or $5 million. Do this now. #1 Play to Profit from Biden's Presidency The post IPOF Stock Has No Target Yet, But Chamath Palihapitiya Is Worth Betting On appeared first on InvestorPlace.
The big shareholder groups in Opendoor Technologies Inc. ( NASDAQ:OPEN ) have power over the company. Large companies...