Betting on ‘blank check’ companies

These are strange days for the stock market. You can take a company public without actually having a business, customers, or revenue. And if you’re Woody Benson, you can do it from the master bathroom of your home in Bonita Bay, Fla., showing slides over Zoom to prospective investors.

It Pays To Be A (SPAC) Winner

If you want to place a bet on who comes out on top in the next Disney (DIS) cartoon, bet on plucky little upstarts. The smaller, weaker outcasts defy the odds and win the day pretty much every day. That’s how it works in the movies. It’s not how it works in the world generally or in special purpose acquisition companies (SPACs). As I wrote in SPAC Size Matters, the best opportunities are in the biggest SPACs.