Are SPAC Warrants Still Undervalued?
Warrants are misunderstood, not obsolete.
James C. explains how he evaluates SPAC warrants, why pricing under 25 cents still matters, and how basket strategies can create asymmetric outcomes with defined risk.
This is a disciplined view of optionality, not speculation.
Connect with the Guest: James Campanella
Connect with the Hosts & The SPAC Podcast:
Michael Blankenship LinkedIn: https://www.linkedin.com/in/mikeblankenship/
Joshua Wilson LinkedIn: https://www.linkedin.com/in/joshuabrucewilson/
YouTube Channel: https://www.youtube.com/@Thespacpodcast
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Michael J. Blankenship is a licensed attorney and is a partner at Winston & Strawn LLP. Joshua Wilson is a licensed Florida real estate broker and holds FINRA Series 79 and Series 63 licensure. The content of this podcast is intended for informational and educational purposes only and should not be interpreted as legal, financial, or compliance advice. The views and opinions expressed by the hosts and guests are their own and do not necessarily reflect the official policies or positions of any regulatory agency, law firm, employer, or organization.
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Let’s Connect on LinkedIn:
👉 Michael J. Blankenship - https://www.linkedin.com/in/mikeblankenship/
👉 ...
Let's talk about warrants. Are there any good warrant values, um, still out there that you see?
Well, I still think the CCIX at a dollar is a good value, but obviously your downside now is a little bit, uh, worse than if they were 20 cents. So the way that I look at warrants are there are a number of warrants out there in SPACs that are trading under 20 cents.
Um, there's a group of them, and maybe that's because time is running out. Maybe that's back when public, it only has 18 months to go, 14 months to go. We know these warrants are kind of like an expiring option, right? As time goes on, they're going to get cheaper. But for me, if you're looking at some warrants that, you know, A CIC was a warrant that was 20 cents about a week ago and they just announced the deal.
So from, you know, I don't really have any specific that I could tell you that's 20 cents. But I think in this environment, any warrant that you see, 15 20 cents, if you're looking to put risk capital on, um, I think if you run a basket of those and you bought, you know, a hundred thousand shares of, you know, 15 SPACs that are 20 cents or less and you know, you look at your portfolio in a year or 18 months, I think you'll see a couple of those.
'cause all you need is one or two of those to go five x pace for the whole portfolio. And then you're kind of, uh, playing with house money. I think anything under 25 cents is still a tremendous, tremendous value.