Is This $18 Stock the Next Nikola?

More and more states report rises in COVID-19 cases…

And the markets continue to shrug it off.

Is this a shortsighted approach?

Perhaps.

But as traders, we have to play the prevailing trends.

So right now, we’ll continue biasing the upside – as dictated by the major market averages – all within our “quick, nimble and balanced” approach.

With that in mind, this leads right into today’s new Trade of the Day pick…

You see, a hugely popular trend that’s starting to gain serious traction right now is special purpose acquisition companies(SPACs).

Some characterize them as “blank check” companies simply because they raise money from investors in an initial public offering (IPO) and then use those funds to acquire businesses – typically within a two-year timeframe.

This is how popular names like DraftKings, Virgin Galactic and Nikola Corp. all went public – by merging with SPACs and forgoing the traditional IPO route.

Based on the early returns we’ve been seeing, this model has clearly gained acceptance with both investors and traders alike.

So…

What’s the next group of SPAC names we should consider?

The biggest mover lately has been Tortoise Acquisition Corp. (NYSE: SHLL).

The chart speaks for itself…

Action Plan: Tortoise Acquisition Corp.does not trade options (yet). However, if you have some super-speculative funds, you may consider owning some Tortoise Acquisition Corp. stock, just in case it emerges into the next Nikola.

After all, when it comes to these SPAC plays, valuation and earnings don’t matter – it’s all about the promise of the future.

P.S. Other names currently without options include B. Riley Principal Merger (NYSE: BMRG), CC Neuberger Principal (NYSE: PCPL) and Churchill Capital (NYSE: CCXX). Some names with options include Vivint Smart Home (NYSE: VVNT) and Vertiv Holdings (NYSE: VRT).

This morning before the open, I told all War Room members about Tortoise Acquisition Corp. And by lunchtime, the stock was up 32%. If you’d like to hear about these plays before anyone else, you’re invited to join me in The War Room today!

Best of all, profiting is easy. All you need to do is listen for one unique sound, check your account and odds are you’ll have profits. It’s called the “Sound of Money.” Wanna hear it? Then just click below.

Play the “Sound of Money” Right Here


Topics
More on Trade of the Day
facebook twitter
Popular posts