Most Promising Q4 SPAC Play, potential to repeat SHLL and DPHC.

1 ott 2020

Hennessy Capital Corp IV NASDAQ:HCAC, as the name suggests is the 4th time this management team has helped a company go public in 6 years. However with 2020 SPAC market being as wild as it is, it has become hard to differentiate the good SPAC's from the poor. When Hennessy Capital announced its target as the Los Angeles based Electric Vehicle subscription company Canoo, it was met with a lot of disappointment from investors who were expecting other, more established companies. 2 months ago, Canoo was seen as that company most people had only seen on Jay Leno as a group of awkward people with a millennial targeted van they are trying to sell on a subscription model, not to mention the hideous looks, but what most investors ignored was the Skateboard platform that caught the eyes of Hyundai almost a year ago. Since then however, Canoo has shifted its focus to its skateboard platform and showcased the possibilities it can lead to. It's only a matter of time before the potential of this young EV startup is no longer hidden behind the Van and volume start picking up.

Another area where Canoo has seen the lots of potential is the Last Mile Delivery industry, which is possibly the greatest source of revenue in the future for this company.

PRICE TARGETS

October 30th 2020: $14 with warrants trading at $4.75
November 20th 2020: $19 with warrants trading at $9
December 11th 2020: $25 with warrants trading at $13

What makes SPACs such a safe play is the NAV of $10 at which you can redeem your share prior to the merger, limiting any potential losses significantly.

Always keep in mind those are price targets based off of the success of solid SPACs from this year and are not guarantees. Any money you invest is your own financial decision and you should always do your own due diligence.