SPAC is a special-purpose acquisition company. Many young companies have gone public via SPACs in a frenzy since 2020. There was a bubble in SPACs for sure. The market has corrected many of the overvalued SPACs rightfully. There will be some SPAC stocks that may not exist in the future because their businesses are not proven.
The sentiment in SPACs is low and the time is right to invest in the right SPAC stock. Last Friday a SPAC ticker VOSO announced:
Wejo, a Global Leader in Connected Vehicle Data, to List Publicly in the U.S. Through a Business Combination with Virtuoso Acquisition Corp.
Transaction Positions Wejo to Continue Building the Industry Standard within the Connected Vehicle Ecosystem
Please click on this link for more detailed information.
The main reasons we will invest in this SPAC VOSO are:
- Wejo is in the right kind of business that will grow significantly for the next ten years. The Auto industry will be completely transformed through EV, autonomous driving, etc.. The connected vehicle data will be one of the foundational tools for the transformation.
- The founder and management have attracted institutional investors. GM invested significantly prior to this public listing and is investing again with PLTR in this IPO.
- The price is right. Wejo wanted $2 billion in the negotiation, but only got $1.1 billion in valuation in this IPO.
We believe this is a ground floor opportunity to get in Wejo. VOSO investors have paid $10 per share. VOSO closed at $9.80 last Friday.
This is fresh off the press, so few people are aware of this yet. The price may jump on Tuesday because people had time to digest the news and investigate.
This is a young company and not generating profit yet. So volatility will be higher than more matured stocks. We should learn to take advantage of volatility and profit from it.
This is a stock for the next 10 years. There will be plenty of ups and downs. So please be prepared for the volatility before you invest.