At some point, watching Churchill Capital Corp IV (NYSE:CCIV) stock blow away its SPAC competition just becomes an embarrassing spectacle. Thursday was one of those days.
The respective stock movements of this blank check company told the story: On a day when tech stocks were mired in the red along with the Nasdaq, CCIV shares ended 3.77% higher, and that is after hitting ATH of $64.86 at one moment. The latest rally is fueled by this news, where Reuters said how CCIV-Lucid Motors merger will go through at a roughly $12-billion valuation.
And this valuation is the reason behind the latest Twitter argument, staring Ross Gerber, president of Gerber Kawasaki Wealth & Investment Management in Santa Monica, Calif., on one side and younger (mainstream media would call them Reddit Gang, probably) investors on the other side.
When he advised the Young Investor that he should sell CCIV shares after 404% rally all hell broke lose. “Take profits” Mr. Gerber said.
But Young Investor noted how CCIV will fly on merger. Gerber noted that while the CCIV stock is going higher, “the higher this stock goes. Less likely a deal gets done”.
Deal isn’t done. The stock moving up this much makes lucid wonder if $12 bil is fair. Then the spac people would own less. The saudis aren’t going to sell low. The higher this stock goes. Less likely a deal gets done...— Ross Gerber (@GerberKawasaki) February 18, 2021
He was then confronted by other retail investors:”You sold at early man… deal with it.”-said Alex Cutler, a well known CCIV promoter.
So, are the Saudis thinking about going with a higher valuation or is the deal done when it comes to CCIV Lucid merger?
Downturn or no downturn, recession or no recession, if you can buy a company with Lucid’s resume for half it’s expected IPO price, it’s a hard proposition to turn down. And so far this year, the smart investors have been buying.