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Spartan

02/21/2021 01:23

$Churchill Capital Corp IV I’ve seen a lot of posts here that lead me to believe this is many folks first SPAC, or that they dont understand how these mergers typically work. Let me provide some clarity:

The first thing that has to happen is a Definitive Avreement. This takes the merger from rumor to reality. After the DA announcement, the price usually shoots up. We’ve already increased significantly on the rumor and I do expect a boost on DA, but perhaps not as much percentagewise as it is typical for SPAC announcements.

The next phase is usually the waiting period. During this time, details are being worked out, investigations take place, SEC questioning, etc. This usually takes a few months and most SPAC’s pullback from DA announcement highs until the next round of news comes out. Againc this isnt a typical SPAC, as I believe they will want to have the merger completed before spring. That being said, it will be at least a few weeks before an actual merger vote and ticker change takes place. Anything can happen during that time period, including the date being delayed and the mergwr even being canceled. I believe the liklihood of either of those scenarios is very small, but its important to understand the possibilities so that people arent confused by misinformation.

For me, this stock is a buy and hold. There will be dips, and there will be rockets, but ultimately you are unlikely to lose if the merger goes off without a hitch and you hold for a few months (or even years depending on your investing goals). Just wanted to bring some clarity here.
Disclaimer: The comments, opinions and analysis expressed herein are for informational and educational purposes only and shoulk not be considered as individual investment advice or recommendations. Webull is not responsible or liable in any way for comments posted by pur users.

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All Comments(8)

956****10902/21/2021 08:25
stfu

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hts***com02/21/2021 02:59
Thank you , i appreciate your knowledgeable Commitment.
To many off the hip commentators for my paycheck .

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mar***com02/21/2021 01:33
you get a follow on gp.

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Dir***com02/21/2021 01:33
Thank you for the clarity!

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base_hits02/21/2021 01:32
Thank you

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Stud muffin 02/21/2021 01:32
Money maker

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ins***com02/21/2021 01:30
These Comment Sections need more People like you 👍

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Mortimer Duke 02/21/2021 01:28
that you for your time and info

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