Trade Alert: Covering Some Moonbeam Shorts, Adding To The New Space Stock
“$CCIV post ‘deal announcement’ low. I blame this name for the poor action in the entire SPAC sector.”
My old buddy, Rev Shark, from TheStreet.com, wrote the above quote last night on Twitter. Trading With Cody subscribers were once again a week or two ahead of the headlines though, as you might recall I wrote this last week:
“CCIV, a SPAC that has been supposed to merge with yet another start up Electric Vehicle Tesla-wannabe, Lucid Motors, finally announced last night that they are indeed going to do so. And in a classic Wall Street reaction, the market “sold the news” after long-having “bought the rumor”. CCIV was up 500% from where it came public as a blank-check company and today the stock market has wiped half of what its market value was perceived to be just yesterday at noon ET. This is a stock that I’d warned everybody about last week as one of the many “Random Number Generators” (RNG) that should be avoided. People and institutions who had for weeks been buying CCIV at $40, $50 or $60 or even $70 per share have suddenly seen a huge wipeout of value. They’re now, finally maybe, looking around at their other RNG SPACs and wondering if maybe they should actually look at the valuations that they’re paying for these companies and their ideas.
CCIV is likely a harbinger of more pain for those who ignore valuations, fundamentals.”
So, uh, yea, CCIV’s crash of 75% from its recent highs right before they formally announced their deal to where it is now since the market found out that it was right about what company CCIV was going to merge with…well, that has indeed taken almost every other SPAC down big from their recent highs too. I’ve been warning that valuations throughout the stock market were way out of whack but now with some good stocks out there getting slammed along with the rest of the market, I’m going to dig back into some of my favorite names and see if I should be adding more of them.
On that note, I did indeed, as I’d noted in the Trading With Cody Chat Room when the markets were at their lows this morning: “Covering more shorts, selling some puts, etc. Not doing much buying at all yet, except for buying more VACQ.”
We will do this week’s Live Q&A chat at 10am ET tomorrow (Friday), in the TWC Chat Room or just email us your question to support@tradingwithcody.com.
I leave you with these lyrics from Van Halen’s first album. I know there’s some stock market wisdom applicable to today’s stock market with these lyrics.
“I seen a lotta people lookin’ for a moonbeam.
Yeah, ya spent a lot. Ya got lost in the jet-stream.
But ev’rybody wants some. I want some too.
Ev’rybody wants some. Baby, how ’bout you?” – Van Halen
