Why Brandon thinks SPACs are a bad idea for investors
Going into an environment of Fed rate hikes and continued high inflation Brandon says stay away from high growth/no earnings tech stocks
Brandon says tentatively buy Cerner with about a 5% risk premium to Oracle’s buyout price and then once the Cerner shareholders approve the deal to buy more. As shareholder lawsuits come in and regulatory pressures come (all par for the course for M&A activity) add in when you get 5% risk premiums or more. Monitor the news on this just to make sure the deal isn’t going to be rejected but Brandon thinks Cerner shareholders would be wrong to reject the offer and doesn’t see it happening. Microsoft’s acquisition of Nuance and the subsequent acceptance by regulators has seemingly paved the way for this deal to go through.
Dave says if you still own $RIOT do not panic here.
Tickers mentioned on this episode $PTON, $TSLA, $CERN, $ORCL, $RIOT
Link to article mentioned in this show: https://seekingalpha.com/article/4397498-beware-spac-how-work-and-why-are-bad
