So these Special Purpose Acquisition Companies seem to me to be a sham. I don’t see the same transparency as you’d have with the filings you’d get from other large companies and seems a bit bitcoinish/furby-ish/tulipy to me.
Also interesting to see that mortgage companies are going public when their profits are getting lower (lower rates mean lower amortization income and interest for bondholders on secondary markets). They’re all making money because of volume and easy cash/credit flowing through the economy, but what happens when those stop and the folks buying houses at the top of the market get underwater on their homes? Yikes!
I’m no pro on SPACs, but I’ll say that no matter how a company comes to market…they’re almost always overvalued from the start. So I never have any desire to get into IPOs, no matter how they’re originally formed.
Toward market tops, things get loose and towards market bottoms, what’s allowed gets tightened up. It’s just another sign of a speculative market top, in my opinion.
These business owners want to get the public cash, while sentiment is still super positive. That way, they’ll have all of this cash in hand when markets plummet. And if they didn’t do it quickly, no retail cash would want to do in it in the market downtrend or shortly thereafter. So, their window to go public is closing in on them. So I’d imagine its why they want these quick paths.