The technical storage or access that is used exclusively for statistical purposes. Around the same time as my article, fellow InvestorPlace contributor Chris Tyler argued that technical analysis of the stock suggested the beginning of December wasnt the time to buy either. With all that said, your question is between taking the risk of GGPI tanking after merger vs maybe missing out a huge chunk of gains. While EV stocks were hot as recently as last fall, thats far from the case today. Deal Announcement for ISAA /HYPEBEAST . . The deal announcement stated it would close before June 30, 2022. It could continue to deliver similar performance in the short-term. The deal relates primarily to the EV makers Model 3. While its debatable how much of a deal pop well see on close, the fundamentals here are whats most important. So far this year, there have only been 11 SPAC listings valued at $25 million or more. And Im not even a total car geek. Despite being outside the top 10, its a reasonable amount of exposure. Matterport merged with Gores Holdings VI back in July and Gores brought $310 million in cash to the deal after redemptions. While the vast majority of these vehicles will be sold in China, the company is also making a push into other Asian markets. Para obtener ms informacin sobre cmo utilizamos tus datos personales, consulta nuestra Poltica de privacidad y Poltica de cookies. As a result, Geely owns 50.5% of Polestars equity while Volvo owns 49.5%. If you owned common stock in the Company and wish to obtain additional information and protect your investments free of charge, please visit our website or contact Juan E. Monteverde, Esq. For 2022 and 2023, Polestar has guided to $3.2 B and $6.7B in sales, respectively. Owner Earnings per Share (TTM) explanation, calculation, his As I stated in January, I think GGPI stock soon to be PSNY once the merger is completed is an excellent long-term buy, primarily because it already has sold 29,000 vehicles (2021), it expects to produce 65,000 in 2022 and 290,000 annually by 2025. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Copyright 2023 MarketWatch, Inc. All rights reserved. InvestorPlace->, InvestorPlace - Stock Market News, Stock Advice & Trading Tips. If you havent bought it, thats great news because you still have time to get in before GGPI takes off post-merger. In addition to the Geely relationship, Polestar has access to Volvos manufacturing infrastructure. Salesforce Inc. (CRM) surges after hours following earnings amidst potential activist activity and todays SPAC, IPO, and Exec News. In December, its currently down almost 16%. No representation or warranty, expressed or implied, is made on behalf of Boardroom Alpha as to the accuracy or completeness of the information contained herein. We earn $400,000 and spend beyond our means. Its beginning dates back to. All Rights Reserved. Investors still bullish on EV stocks can purchase shares of Polestar once PSNY stock starts trading tomorrow morning. This news follows the September announcement of Polestar's intention to list on Nasdaq in connection with its proposed business combination with Gores Guggenheim, Inc. (Nasdaq: GGPI, GGPIW, and GGPIU), which is expected to close in the first half of 2022. API access to institutional grade SPAC database. Our firm's recent successes include changing the law in a significant victory that lowered the standard of liability under Section 14(e) of the Exchange Act in the Ninth Circuit. At writing, its at $9.97 per share, just a penny above its debut price. For aggressive, long-term investors who seek exposure to electric vehicles and dont already own GGPI stock, it is an excellent name to buy. Bruce Ogilvie and Jeff Walker discuss Alliance Entertainment going public via Adara Acquisition Corp. (ADRA). At the time of this writing, the stock is down 2.83% on the day, closing in on $11. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. Press J to jump to the feed. Attorney Advertising. In fact, he should be used by U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler as an example of the good accomplished with blank-check names. That is, when EV companies, in the process of ramping up production, can get their facilities firing on all cylinders. Will Ashworth has written about investments full-time since 2008. Strong underwriting, an Asia expansion, and a history of consistent dividend raises make the shares attractive. GGPI - , Reddit Mentions and Sentiments | Memeberg Terminal GGPI shares have been trading in a steady ~$11 range prior to days announcement (shares are up 8% intraday). As reference, LCID, which is still in early production, trades at ~10x 2023E sales. Anyways we could very well see 20-30$. The latest deal will provide a key test of investor appetite for SPAC deals after other such transactions in the electric vehicle sector soured over the past few months. In 2013, Polestar launched the Volvo S60 Polestar. Its safe to say this isnt the best market for an EV company to debut. Under the terms of the agreement, GGPI shareholders will retain less than 6% ownership of the combined company. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. But no matter when exactly the recovery begins, it may be worthwhile to lock down positions before it happens rather than after it happens. The vehicles will be produced at its new factory in Casa Grande, Arizona. First, despite its also-ran reputation, its one of the more promising early stage names in this space. SPAC Merger. The good news for GGPI stock is that relatively speaking Polestar seems far less likely than peers to be one of those companies. Featured. However, thats an entirely different subject than whether you should buy GGPI at todays prices. On the date of publication, Will Ashworth. Post merger, the combined company will be named Polestar Automotive Holding UK Ltd. and will trade under the symbol "PSNY" on the Nasdaq. in July and Gores brought $310 million in cash to the deal after redemptions. Press question mark to learn the rest of the keyboard shortcuts. He particularly enjoys creating model portfolios that stand the test of time. The Company will not generate any operating revenues until after the completion of its Business Combination, at the earliest. Of course, shares of many EV companies are down this year, including market leader Tesla (NASDAQ:TSLA). Publications where hes appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. PublicSq. This is a collection of 34 auto manufacturers, including Geely at a 3.22% weighting. For this, if youre very aggressive, Id suggest taking a half position today and waiting to see if it falls lower. Intraday data delayed at least 15 minutes or per exchange requirements. This announcement comes alongside ongoing Over-The-Air (OTA) updates that are delivering new features to Polestar 2 owners and pre-empts a future option to purchase a performance software upgrade that adds an extra 67-hp for the dual-motor variant. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. If youre investing in AI stocks, watch out for these revenue and earnings tricks, After loss against Meta, Lina Khans ability to rein in Big Tech with the FTC is being questioned, Veris Residential and Rogers Stock See Action From Activist Investors, The U.S. housing market is crumbling under the weight of higher mortgage rates and rock-bottom affordability: Prices fell the most in these U.S. states, Am I crazy? After my mother died, my cousin took her designer purse, and my aunt took 8 paintings from her home then things really escalated. Our 3 Top Picks. Polestar is unique in that while its not the flashiest vehicle, the companys main selling proposition is to make reliable cars without gimmicks. If you own the shares of the EV maker already, dont worry about its poor performance recently, I wrote in January. Merging with Colombier Acquisition in $200M Deal. quotes delayed at least 15 minutes, all others at least 20 minutes. GGPI Stock Heats Up as Polestar SPAC Merger Closes, Do Not Sell My Personal Information (CA Residents Only). Changing market conditions (namely, rising interest rates) have put pressure on their valuations. Currently, this stock earns a B rating in my Portfolio Grader. Even if its an SUV such as the Polestar 3, it will have a sleek silhouette, meaning there will be less emphasis on cargo space and more emphasis on propulsion. The opinions expressed in this article are those of the writer, subject to the, 5 Hypergrowth Stocks With 10X Potential in 2023, Robert Bollinger: Meet the Man Behind Mullens Push Into Commercial EVs, A.I. In fact, as its already reached the billion dollar mark in terms of sales, calling it early stage may be a misnomer. The Polestar deal will be supported by cash proceeds of around $800 million from Gores Guggenheim Inc, assuming no share redemptions by public stockholders of the blank-check firm. It will also have a more daring design, InsideEVs reported Ingenlaths comments. See here for a complete list of exchanges and delays. DWAC (Digital World Acquisition) Accumulated other comprehe Heres why you should consider them. The company, which delivered about 10,000 vehicles last year, said it expects to sell about 290,000 vehicles per year by 2025 and plans to launch three new models by 2024. That said, I suppose you could also argue that GGPI will move significantly higher once its trading under its new symbol, PSNY. The deal also includes a PIPE, or private investment in public equity, of $250 million from top-tier institutional investors. Anticipation on GGPI/Polestar merger. 2023 CNBC LLC. Recently, I also suggested that, That company provides digital twins of properties. Polestar SPAC Merger Makes GGPI Stock a Hot Item - InvestorPlace Gores Guggenheim and Polestar Announce Effectiveness of | GGPI Stock News Publications where hes appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. Will Ashworth has written about investments full-time since 2008. However, it was what he said Polestar is and isnt that caught my attention. Polestar looks to be a nich brand, which makes GGPI stock attractive here. Silicon Valley Confronts the End of Growth. Thats well above where it currently trades under the $11.50 level. The opinions expressed in this article are those of the writer, subject to the, Gores Guggenheim Is a Buy, But Consider an Alternative in the Short Term, Biden Hears Oval Office Plea for Alaska Oil Project in Lobbying Frenzy, Apple tops ranking of global companies with the most 'green' revenue, UPDATE 2-North Korea says UN should demand end to S.Korea-US military drills, US Treasury puts cost of outbound investment risk program at $10 million, US Jobs Report and Powell Testimony Take Center Stage: Eco Week. For Hertz, the partnership builds on the companys ongoing commitment to lead in electrification and shared mobility. did not hold (either directly or indirectly) any positions in the securities mentioned in this article. PSQ Holdings is a marketplace that connects who it describes as "freedom-loving" Americans. A Division of NBCUniversal. March 1, 2023. The technology is used widely in the. Once the deal is completed, Polestar will trade under the ticker symbol PSNY on the Nasdaq. Nevertheless, even as EV stock mania has waned, the EV trend isnt going away. On May 25, the blank-check company formally announced the date on which shareholders will vote to approve the transaction (June 22). GGPI hasn't announced a definitive merger date with Polestar but the two companies expect to complete the business combination in the first half of 2022. GGPI Stock Heats Up as Polestar SPAC Merger Closes - Nasdaq Its beginning dates back to 1996. Polestar, founded in 2017 by Volvo Car Group (VOLVb.ST) and China's Zhejiang Geely Holding (GEELY.UL), also counts Hollywood actor Leonardo DiCaprio among its investors. This deal received tremendous fanfare as the single-largest ever purchase for electric cars for 100,000 vehicles as well as a partnership with Uber (UBER) to provide 50,000 of those vehicles to its delivery drivers. Nosotros, Yahoo, somos parte de la familia de marcas de Yahoo. Thats especially the case with GGPI stock. Copyright Polestar, backed by Volvo Car Group and affiliates of Geely Chairman Eric Li, also counts Hollywood actor Leonardo DiCaprio among its investors. Plus500. The deal comes at a time when large SPAC mergers have become rare, as the business of blank-check dealmaking deteriorated rapidly over the summer after investors were spooked by the poor financial performance of many SPACs and a regulatory crackdown led by the U.S. Securities and Exchange Commission over their disclosures. A key advantage we have highlighted repeatedly is Polestars existing partnerships / manufacturing relationships. Transaction is expected to be completed in the second quarter of 2022. Excluding employee stock compensation from one measure of earnings make them look more favorable. Initial orders are for the Polestar 2 sedan. We want to hear from you. The Car Design Award was established in 1984 by Fulvio Cinti, founder and editor-in-chief of Auto&Design for more than thirty years. Navigating stock market volatility since it all began in 2000. This is because either your product or service appeals to the top 20% of household incomes or the bottom 20%. Join the Conversation! The industry leader for online information for tax, accounting and finance professionals. Boardroom Alpha does not accept any liability for any direct,indirector consequential loss or damage suffered by any person as a result of relying on all or any part of this research and any liability is expressly disclaimed. Prior to merger deal announcements, SPAC stocks tend to stay close to $10 a share. 2023 InvestorPlace Media, LLC. GGPI Stock Will Pop Post Merger, But There's Still Time to Buy Visit a quote page and your recently viewed tickers will be displayed here. Sam Zaid, CEO of Getaround, joins David Drapkin on the podcast to discus what makes carsharing company Getaround so special and their journey to go public. Enthusiasm about the deal, which was announced last fall, has seen a big drop in recent months. Moreover, Polestar put together a very good slide deck presentation . Oklahoma's governor set a special vote for March 7 after a pot referendum was pulled off the November ballot, and in Pennsylvania, a lawmaker launched new bill. We use cookies to optimize our website and our service. Puedes cambiar tus opciones en cualquier momento haciendo clic en el enlace Panel de control de privacidad de nuestros sitios y aplicaciones. The reverse merger between GGPI and Polestar is one of the few large SPAC deals to happen this year. It previously said it has another model in development called the Precept, which is a larger sedan. Joel Baglole for Polestar was first established in 1996by Swedish automotive giantVolvo (OTCMKTS:VLVLY). Get in Now on Tiny $3 Forever Battery Stock, Early Bitcoin Millionaire Reveals His Next Big Crypto Trade On Air. The investigation focuses on whether GGPI and its Board of Directors violated securities laws and/or breached their fiduciary duties to the Company by 1) failing to conduct a fair process, and 2) whether the transaction is properly valued. The post Gores Guggenheim Is a Buy, But Consider an Alternative in the Short Term appeared first on InvestorPlace. You should notrely solely upon the research herein forpurposes of transacting securities or other investments, and you areencouraged to conduct your own research and due diligence, and to seekthe advice of a qualifiedsecurities professional beforeyou make anyinvestment. The decision is yours to make. Polestar have confirmed the previously rumoured SPAC merger with GGPI bringing the EV manufacturer to the NASDAQ with a valuation of $20 billion. Broadcom continued to produce better results and forecast better near-term sales than Wall Street expects Thursday, and shares rose in extended trading. GGPI / Polestar gaining momentum on 5-Year HTZ Deal The merger between Polestar and Gores Guggenheim (NASDAQ:GGPI) is expected to happen in the first half of 2022. Polestar's listing plan comes as automakers shift their focus to environment-friendly vehicles, amid rising pressure from lawmakers and investors concerned about climate change. Mergers and Acquisitions Lightspeed Commerce Oper Chief Brandon Nussey Steps Down Shopping at Kroger can be up to four times cheaper than eating out, CEO says ACI 0.00% Broadcom stock moves. The critical distinction about Polestar is that its not a startup. I also said that, at these prices, GGPI stock would, The critical distinction about Polestar is that its not a startup. For the best MarketWatch.com experience, please update to a modern browser. once the merger is completed is an excellent long-term buy, primarily because it already has sold 29,000 vehicles (2021), it expects to produce 65,000 in 2022 and 290,000 annually by 2025. To the extent anyof the information contained herein may bedeemed to be investment advice, such information is impersonal and nottailored to the investment needs of any specific person. The premium EV maker's offering includes two models: a hybrid car known as Polestar 1 and a fully electric Polestar 2. GGPI Stock Is Worth 20% More Based on Polestar's Excellent Outlook What's next for bonds in 2023 after the worst year in history, It broke me: Everyone says you need power of attorney, but nobody tells you how hard it is to use. When typing in this field, a list of search results will appear and be automatically updated as you type. Again, such middling performance could carry on, before and after the deal closing. Gores Guggenheim completed its initial public offering in April 2021, raising approximately USD 800 million in cash proceeds for the purpose of effecting a merger, capital stock exchange, asset. Most important, the company is well underway with production and revenue generation ($1.6B in 2021 sales). You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Polestar delivered about 10,000 vehicles globally last year and expects to sell about 290,000 vehicles per year by 2025. Source: Jeppe Gustafsson / Shutterstock.com, CEO Thomas Ingenlath recently discussed the companys plans with, CEO had a lot to say on the subject. Lastly, the fact that Ingenlath doesnt want to be something to everyone suggests that he fully understands Polestars target market. Instead, it would be a niche producer of EVs. The Gravity performance luxury SUV is expected to come to market in North America in 2023. American Airlines (AAL) announces its new chairman of the board as Gregory D. Smith, the former CEO of Boeing (BA). We continue to view GGPI shares as undervalued heading into the merger. SPACs are publicly listed companies that are raised with the intention of merging with a private company at a later date. About the Car Design Award. Pending SPAC Mergers - Stock Market MBA You might even get a better price in the process., Around the same time as my article, fellow, Chris Tyler argued that technical analysis of the stock suggested the beginning of December. Yet while its made this major progress, its not resulting in a big move for shares. Todays announcement is a significant catalyst as investor anticipation intensifies toward an announced merger vote date. A buy under $10 would be an excellent entry point, in my opinion. From the day the Polestar 1 was launched, I have been a fan of the brands designs. Written by Polestar, the Global Electric Performance Car Company, Signs Agreement It is free and there is no cost or obligation to you. Critics of the practice include Warren Buffett. InvestorPlace - Stock Market News, Stock Advice & Trading Tips. files S-4 for merger with Blade Therapeutics (BBTX). read more. Hedge funds sells stakes in Trump SPAC firm DWAC after merger news - CNBC Nordstroms off-price Rack stores are struggling. On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. Because if it runs as Polestar it will do so premarket. , including Geely at a 3.22% weighting. The deal with Gores Guggenheim (GGPI.O) will provide Polestar cash proceeds of over $1 billion, including $800 million from the special purpose acquisition company (SPAC), and a PIPE, or private. Its a New Era for Tech Stocks. Current equity holders of Polestar, who will roll their entire interest in the combined company, will retain about 94% ownership, it said. It doesnt matter if you have $500 in savings or $5 million. Sure, its excellent that Polestar plans to be sportier, more focused on the driving experience, than it does on being a luxury ride, but these particular words didnt move me. The higher the price point, the easier it is to pull off. Despite being outside the top 10, its a reasonable amount of exposure. Illusion versus reality. The transaction is expected to close in the first half of the year. The partnership with Polestar builds on Hertzs announcement last October to offer its customers the largest EV rental fleet in North America and one of the largest in the world. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.