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Hey Fek,
If truth be told, I would have expected aRTO be done by now if a target was found.
I think the valuation of this SpAc vs it’s nav has been the likely issue here as it’s Probably been too high to negotiate a deal, if value of target was also relatively low This is just my thoughts based on what I’ve observed with other SPACS and that RNS the advisors put out in April
I reckon the closer we get to deadline day It will drift lower, but volumes have totally dropped the last week or so, so everyone invested is just waiting now
Another possible explanation for surge is a short squeeze.
When I sold out, earlier in week, there were still significnat shorts still in play.
They all disappeared yesterday, so looks like this was a bear trap play by bulls and this has caught some Shorters out who were presumably then forced to close postions.
Well done all that held
I think I need to go back to drawing board and do less over analysing of situations
Hey 1509
Still on learning journey with SPACs, but this is the picture as I see it.
SPC currently valued at over £6m and is about 70% above the placing, so it is looking a bit of a high premium for a cash shell if you compare it to RDGC, but is less than half value of QTZ. The dual listing on AQSE Is a first I’ve seen for any SpAC so this is the intrique, but most likely signal intent to rto
It’s being heavily linked to Hellenic Dynamics which is muted as being valued @ £50m pre-ipo, so if this does transpire to be target rto with that sort of valuation SPC could very well negotiate a pre-ipo placing at a sp north of 0.3 for rest of shares to meet valuation.
But at the end of day, the whole of Investing in SPACs is growth post RTO, so u need to be comfortable with the whole process of going into suspension for a few months and then seeing how it does post RTO.
Agree John - this has been a tranquil one to trade for one.
Also, today is first time in weeks my pfolio is looking healthy. Only sick one still is RDGC.
Also my watchlist is also mainly blue today. Is the tide turning now and the bulls are coming back.
Sincerely hope so. Need a pick me up.
GLA
The big question is if and when RTO happens what will be the pre ipo valuation and placing price of target company vs NAV of RDGC. Will be around 1p mark or less.
If it’s less, it’s gonna have to multibag when ipo floats just to break even for a lot of RDGC investors
I think the larger than expected rise today was linked to a separate mention in RNs by JM of the fact that they are now commencing phase 3 trial dosing in India where the need and opportunity for COvid therapeutics is huge.
With BTC still plummeting, is this a sign that More liquidity moving to equity stocks or is crypto liquidity coming out of markets period?
Markets do look very fragile at the minute as too much money appears to be invested in crypto and all other sectors seem to have a watching brief waiting for more liquidity to come in.
I hope we see some renewed investment in other sectors during summer else I may have to switch to a more traders mindset and take more short terms postions which I don’t want to do....