As we approach another market week tomorrow, I'm as excited as most! That said, just a few reminders for those newer to #SPACs; be careful what you pay! There are no guarantees a SPAC: 1) goes up on a deal announcement, 2) goes up on a merger, 3) ever merges. (1/11)

If no merger happens, warrants will go to zero; if one does happen, most warrants eventually go to zero anyway. The only real "guarantee" is that share downside is limited by cash in trust, at least up until a merge. Right now average SPAC premiums vs. NAV exceed 20%. (2/11)

As recently as 10 weeks ago, average SPAC traded approx. = to NAV. Discounts abounded. Last check, no U.S. SPACs were at discount to NAV. The main holders of SPACs (SPAC funds) are NOT in the business of holding until a merger. They buy at/below NAV and are OUT by merge. (3/11)

Some people treat SPACs as volatile, IPO type opportunities, and that's fine. I treat SPACs as a fixed income substitute. . . worst case return profile is that of U.S. treasuries with (theoretically) uncapped upside. One can only do that when paying cheap enough prices. (4/11)

If you buy SPACs, just know what your strategy is, and understand how they work. There is NO FREE LUNCH unless you buy at or below NAV. SPAC supply is exploding higher, with IPOs as fast as they can be filed and marketed. (5/11)

That likely won't stop, or slow down much, until some SPAC IPOs go back to breaking their $10/unit offering price (which believe it or not does happen). Sub $10 units are a gift. An average 20% premium for SPAC common shares? Not a gift. Just be careful. (6/11)

SPAC opportunities will abound for months and years to come, for those who have the capital to participate. Just be careful to protect your capital stack so you can be in that position when this market rolls over. (7/11)

My personal suspicion is that good SPAC deals will get harder to come by, and more SPACs will be competing for those deals. The market itself will get more selective in bidding up SPACs upon merger news. One should focus on better management teams, and on cheap prices. (8/11)

Right now, the market abounds with bad management team SPACs at unattractive prices, and good management teams at very high prices. Some good opportunities are out there now, including many overlooked SPAC IPOs that came out during a less hot window. (9/11)

I'm seeing relative values in deals that IPO'ed several weeks back, many that haven't hit unit split yet. The universe is broad enough that you can find some gems by doing the work, and not necessarily piling into what ever #SPAC tickers are trending on #fintwit. (10/11)

I choose to stay largely fully invested, and by owning mainly the cheapest (and hopefully decent quality) SPACs, I'll be able to rotate that capital into the newer opportunities as they present themselves. (11/11)