Ian King is a private investor who has been using an SPAC portfolio for the past few years. He recently started tweeting about his top 3 picks and how he sees them in the future.
“Can a spac acquire multiple companies?” is the question that Ian King asks in his blog. He gives us three SPACs to consider, which are “Lamden”, “Aurora” and “Numerai”.
I just attended a “extended webinar” hosted by Ian King of Banyan Hill Publishing about his “Private SPAC Portfolio.”
Over 700 firms worth over $2.3 trillion might go public shortly, according to the presentation, and Ian King says he’s especially interested in three SPACs.
https://pro.banyanhill.com/p/WMC-KIN2021-002/EKINXB25/WMC-KIN2021-002/EKINXB25/WMC-KIN2021-002/EKINXB25/WMC-KIN202
https://pro.banyanhill.com/p/WMC-KIN2021-002/EKINXB25/WMC-KIN2021-002/EKINXB25/WMC-KIN2021-002/EKINXB25/WMC-KIN202However, you’ll have to pay $2,995 to join Ian’s advising service, New Era Fortunes, to find out which firms he’s optimistic on. And since not everyone has that kind of cash on hand, I decided to write this piece to assist you decide whether it’s worth it.
Let’s start with a definition of SPACs and why people invest in them. We’ll next dissect Ian’s Private SPAC Portfolio presentation to see what he’s proposing.
What Is a SPAC and Why Are They Used?
SPAC is a phrase that you’ve probably heard before. They seem to be gaining in popularity recently, particularly among financial experts.
But what is a SPAC, exactly?
A Special Purpose Acquisition Firm (SPAC) is a business formed with the intention of acquiring or merging with another private company.
To put it another way, a SPAC is effectively a “shell” business that exists to acquire cash from investors with the intention of utilizing those funds to assist with the public offering of another firm.
An Initial Public Offering (IPO) is how most firms go public (are listed on a public stock market) (IPO).
The IPO procedure, on the other hand, can be expensive and time-consuming, and SPACs provide private firms a possibly cheaper and speedier option to becoming public.
SPACs may also provide you with the opportunity to participate in a private firm before it goes public.
In this way, it’s comparable to investing in a pre-IPO transaction, when you put money into a private firm before the public can purchase stock on the stock market.
A SPAC, on the other hand, is not a direct investment in a private firm. Instead, you invest in the SPAC in the hopes that it would eventually combine with the private firm.
Another distinction between pre-IPOs and SPACs is that pre-IPOs are often restricted to institutional investors due to the large sums of money required to participate, and there are also limits on who may invest. A publicly traded SPAC, on the other hand, is open to almost anybody.
However, there are considerable hazards associated with this kind of activity.
For example, depending on which SPAC you buy in and when, you may have no clue who you’re investing in. To put it another way, it’s unclear which firm the SPAC will combine with or buy. There are also no assurances that the SPAC will be successful.
As a result, I suggest doing your own study on this issue to ensure that you have a thorough grasp of what a SPAC is and the hazards associated with it. I’ve explained how they function to you. And that should give you a rough notion. There’s a lot more to it, however.
Let’s examine Ian King’s lecture now that we’ve covered the fundamentals of SPACs.
Teaser for Ian King’s Private SPAC Portfolio
Ian King started his presentation by discussing how conventional IPOs are losing favor with individual investors, while SPACs are gaining appeal.
“There’s a lot of money to be made investing in SPACs,” he adds, “but there’s also a lot of money to be lost if you don’t know what you’re doing.” Retail investors, he claims, “may be placing their fortunes and futures in jeopardy” by investing in SPACs.
To cut a long tale short, Ian King claimed he created the presentation to highlight his readers the advantages and possible hazards of SPAC transactions.
In terms of prospective advantages, Ian King claims that SPACs benefit from “four important features” that typical IPOs lack.
To begin, he points out that SPACs enable anybody to buy stock in a private company, but pre-IPO agreements sometimes require you to be an accredited or institutional investor.
Second, Ian claims that owing to a “unique trigger event,” SPACs are “built to rocket higher.”
What exactly does he mean when he says “trigger event”?
Ian clarifies that the “trigger event” he’s referring to is when the SPAC and the private business it seeks to combine with reach an agreement. In essence, he’s implying that when the news is made, the SPAC’s share price might skyrocket.
This is when the SPAC and the private firm it will combine with reach a final agreement.
Even before the merger, once this “trigger event” is publicized, stock prices may begin to rise.
https://pro.banyanhill.com/p/WMC-KIN2021-002/EKINXB25/Full/WMC-KIN2021-002/EKINXB25/Full/WMC-KIN2021-002/EKINXB25/Full/WMC
Third, SPACs “usually always trade right around $10 coming out of the gate,” according to Ian. And, based on this SEC report regarding SPACs, that seems to be the case. And, from what I can see, Ian thinks this is a good thing since you know how much you’ll have to spend.
Fourth, Ian King claims that using SPACs, your initial risk is limited:
If the triggering event never occurs…
You virtually always have a contractual assurance of getting your money back… at the underlying cash assets’ value, which is generally approximately $10.
As a result, your initial risk is restricted by law.
What exactly does he mean?
If the firm doesn’t locate a good transaction, Ian seems to be implying that you “may receive the entire $10 back on your investment.” And, although I’m no expert in SPACs, it looks that what he’s saying is correct.
In brief, when you buy in a SPAC during its initial public offering (IPO), your money is usually placed in a trust account, minus certain fees and charges. Investors may be entitled to a pro-rata portion of the trust account based on the SPAC’s IPO price if the SPAC does not locate a suitable transaction within a certain time period (typically two years).
For example, if the SPAC IPOs for $10 per share and you buy one share of the SPAC for $15 later, you can only expect to get back up to $10.
Again, I encourage that you do your own research before making any decisions. Also, please don’t take anything I say as financial advice. It’s not the case. However, that is my interpretation of how it works, and these are the possible advantages of SPACs that Ian King discusses in his presentation.
He also discusses some of the possible disadvantages.
The first flaw he mentions has to do with who is in charge of the SPAC. According to Ian, SPACs are being started by more than just investing specialists; sportsmen and politicians are now getting involved, so it’s critical to ensure that the individual operating the SPAC understands what they’re doing.
The second disadvantage he cites is that SPACs sometimes have two years to reach an agreement. As a result, he advises that you “don’t invest more money than you’re willing to commit for 12 to 36 months.”
He summarizes it by adding that due diligence is “extraordinarily vital” when it comes to selecting the top SPACs, and that he’s established a “particular technique” to do so.
That’s why I devised a system for identifying SPACs with the best chance of outperforming the market.
What is the nature of his strategy?
Ian King employs a similar technique to locate SPAC projects that he feels have promise as he does with Strategic Fortunes. He compares his strategy to a “funnel with five filters” that enables him to spot the correct opportunity at the right moment.
Here’s how each “filter” (also known as a step) works:
- Identifying a “tipping-point” trend is the first step. Ian says he searches for developing trends on the cusp of a breakthrough that might have a significant impact on our daily lives.
- Next, Ian says he searches for firms that have a “X-factor,” or a field of business that is undervalued by investors. Consider a new technological advancement.
- Third, he looks for sales momentum, which he defines as companies that are expanding their sales by at least 20% each year.
- In Ian’s method, the fourth phase is all about time. One of the most crucial components of his method, he claims, is determining when to become engaged with an investment.
- The fifth and last phase, according to Ian, is to invest in firms that “have the greatest opportunity to become the next Microsoft, Amazon, or Tesla.” He seeks for “small-cap disruptors,” which implies that many of the firms he follows have a market value of less than $2 billion.
So, according to Ian King, he utilizes this method to uncover SPACs with the most potential, and the ideal place to look for them is “in the group of 700 private firms with values of $1 billion or more.”
These businesses are “waiting on the IPO sidelines,” according to him, and are “worth more than $2.3 trillion.” And he selects the finest ones using his five-step technique.
Ian King’s Top 3 SPACs to Buy Right Now
According to the presentation, Ian King advocates investing in three SPACs immediately now. He does not, however, publish the names of these businesses. Instead, he publishes a report titled “Ian King’s Top 3 SPACs to Buy Now,” which outlines each selection.
While he doesn’t mention the firms he’s suggesting, he does note that he and his team “discovered many possibilities that might rocket 10 times higher in the next 12 to 36 months.”
So, although I’m just guessing, it looks like Ian is looking for 10X gains in his SPAC choices within a few years. Of course, nothing is certain, but it seems that this is the purpose.
In any event, since the report is really a bonus that comes with a New Era Fortunes membership, the only way to get it is to join New Era Fortunes.
What Is New Era Fortunes, and How Does It Work?
Ian King of Banyan Hill Publishing runs New Era Fortunes, a financial advising business. The service’s primary concentration is on creative small-cap equities.
Small-cap firms are equities with a market capitalization of $300 million to $2 billion that are publicly traded in the United States. And, for the most part, the businesses Ian advises are tiny businesses engaged in cutting-edge technology or biotechnology.
5G, IoT, machine learning, electric cars, precision medicine, and artificial intelligence are just a few examples.
Although not all of the chances he advises are SPACs, the majority of his New Era Fortunes picks are tiny tech firms.
Overall, the service and the technique he use to locate the firms he advises are comparable to Strategic Fortunes. New Era Fortunes, on the other hand, is more costly and, in general, more speculative, at $5,000 per year.
The cost of getting started with New Era Fortunes is $2,995 per year if you join up via the “private SPAC portfolio” presentation.
What do you receive if you become a member?
The monthly trading notifications are the most important aspect of the New Era Fortunes service. Each “alert” is sent by email and includes Ian King’s latest investment suggestion, as well as a detailed discussion of each decision and how it fits into his five-step approach.
You’ll also have access to the model portfolio, which contains all of his current recommendations, as well as weekly webinar updates and two extra reports:
- The Top 3 SPACs to Buy Right Now, according to Ian King
- The Top 3 “New Era” Windfall Opportunities, according to Ian King
Is New Era Fortunes a reputable company?
Over the last 14 months, Ian King claims to have suggested at least three triple-digit stocks. Overall, he claims, the service has delivered “average returns of 20% across 28 suggestions” with a six-month average hold duration.
Of all, regardless of previous success, there’s no assurance that any service will produce money in the future. However, the service looks to have a solid reputation.
Is Ian King the Genuine Article?
Ian King is a seasoned investor. He worked for financial organizations such as Salomon Brothers, Citigroup, and Peahi Capital as a former hedge fund manager.
Overall, he’s worked in the finance industry for almost 20 years and joined Banyan Hill Publishing in 2017 to focus on financial education.
He operates Strategic Fortunes, New Era Fortunes, and Next Wave Crypto Fortunes, and he contributes to Winning Investor Daily as of this writing.
What are Ian King’s current top stock picks?
Across his services, Ian advises hundreds of particular stocks, which fluctuate based on the market and what his research reveals. And the suggestions you gain access to depending on which service you join.
Having said that, I’ve written about a few of Ian King’s stock recommendations in recent months. In my piece on New Era Fortunes, for example, I expose three tech companies I believe he’s teasing, and I provide my estimate about his number one EV stock here.
If you’re interested in learning more about the stocks Ian King recommends, I suggest reading any of those articles.
Conclusion
The potential advantages of investing in SPACs, or Special Purpose Acquisition Companies, are the focus of Ian King’s “Private SPAC Portfolio” presentation.
In brief, he claims that SPACs are better and more accessible to average investors than conventional IPOs, and that he’s especially interested in three private firms, which he details in a report titled “Ian King’s Top 3 SPACs to Buy Now.”
The only way to get this report and see which firms he’s teasing is to sign up for New Era Fortunes, which costs $2,995 per year.
Is it really worth it?
Only you can determine whether or not New Era Fortunes is worth your time.
On the one hand, if you’re interested in learning about small-cap firms and SPAC agreements, it could be useful. Ian King has a strong track record in the industry and has advised a number of excellent businesses over the years.
I wouldn’t anticipate every stock choice to return 10X, since that’s unlikely, but the service may help you develop a solid portfolio over time.
In any case, it’s worth noting that SPACs and smaller-cap companies may be dangerous investments. When speculating on this kind of item, you run the risk of losing part or all of your money. It’s also impossible to seek a cash return for the service.
However, I don’t think Ian King’s Private SPAC Portfolio presentation or his New Era Fortunes service are a rip-off. So, whether or not it’s perfect for you will come down to your investing objectives, preferences, and budget at the end of the day.
The “de-spac transaction” is a private SPAC that I am invested in. The de-spac transaction has been around for awhile and it’s one of the top 3 SPACs according to Ian King.
Frequently Asked Questions
What are the top SPACs?
A: The top SPACs are as follows. 1) 1st District Police Department 2) 1st District SWAT Team 3) 1st Judicial Court
Can SPACs drop below $10?
A: The price of SPACs is highly dependent on the market value. They can go as low as $10 or higher than $100 at times, but most likely they will fluctuate around a median price of around $30 for a bit.
How many SPACs are there in 2021?
A: There are 2,394 SPACs in 2021.
Related Tags
- what happens to a spac after merger
- how does a spac merger work
- if you buy spac shares on the open market and choose to redeem them, you will receive:
- spac risks
- de-spac process
