CNBC host Jim Cramer has been vocal about the rise of SPACs. Cramer has criticized the large number of SPACs and recently went after celebrity SPACs. The host has featured interviews with executives from some of the companies going public via the SPAC route.
On Wednesday’s “Mad Money” show, Cramer recommended to that they watch for some high-quality SPACs that are trading down with the entire SPAC industry.
“The next time these higher-quality SPACs get hit … you need to be ready to buy,” Cramer said. “I’m saying you should watch them on the way down because they do break to lower levels.”
Here are the 10 SPACs to die for, according to Jim Cramer:
MP Materials: Rare earth mining company MP Materials (NYSE: MP) has been a favorite of Cramer’s. “It is high quality — I want you ready for the next pullback,” he said.
The company could benefit from the push by China to ban exports of rare earth minerals to the U.S. For more on the opportunity MP Materials has, watch Benzinga’s interview with CEO James Litinsky here.
Star Peak Energy: Cramer is a fan of Star Peak Energy Transition Corp (NYSE: STPK), a SPAC taking Stem public. “I think you’re going to get an even better buying opportunity once the deal closes.” Cramer said he would be a buyer of the SPAC under $30.
Porch Group: Software company Porch Group (NASDAQ: PRCH) helps power the home services market. Benchmark recently initiated coverage with a Buy rating and $24 price target.
“I actually think you can start buying Porch right here and maybe wait for a dip to buy some more,” Cramer said.
Utz Brands: Salty snacks company Utz Brands Inc (NYSE: UTZ) completed its SPAC merger in August 2020. The company hasn’t received the attention that some electric vehicle SPACs and other industries have commanded.
Shares have seen a steady rise in their price going from around $14 at the time of the merger close to around $25 today.
“You’re not getting much of an entry point, but if it pulls back to closer to $20, you need to be ready to pull the trigger on Utz,” Cramer said.
DraftKings: Online sports betting operator DraftKings Inc (NASDAQ: DKNG) is a favorite of Cramer’s. The CNBC host did clarify that he has a programming deal with the company, saying to take his advice “with a grain of salt.”
The company is generating real revenue and growing like a weed, he said.
Related Link: 10 Top SPAC Picks For Investors To Consider In 2021
Social Capital Hedosophia Holdings Corp V: The fifth SPAC under the IPOA to IPOZ umbrella from Chamath Palihapitiya is a favorite of Cramer’s due to the merger partner SoFi.
Cramer called SoFi “the personalized online banking play that’s disrupted the entire industry.”
The company is going public with Social Capital Hedosophia Holdings Corp V (NASDAQ: IPOE).
Vertiv: Hardware and software company Vertiv Holdings (NYSE: VRT) is another company that went public via SPAC merger that Cramer likes.
“You can put on a small position here, then hope it comes down to buy more,” Cramer said.
The CNBC host said the company recently reported a strong quarter.
Open Lending: Automated lending company Open Lending (NASDAQ: LPRO) has been a strong performing stock, with shares going from $13 to $40 over the last six months.
“The stock is not cheap, but if Open Lending hits the numbers well this thing’s going to look like a steal,” Cramer said.
Skillz: Mobile gaming company Skillz Inc (NASDAQ: SKLZ) helps companies monetize their games through offering person vs. person wagering and tournaments.
Cramer said Skillz has a great story, and he would be a buyer if it falls below $30. Cramer also noted that Cathie Wood added Skillz to the Ark Funds ETFs.
AppHarvest: Indoor agriculture company Appharvest (NASDAQ: APPH) wants to operate the world’s largest indoor and controlled farming portfolio to help Americans have access to fresh, affordable, healthy fruits and vegetables.
“The stock’s down 22% from its highs, looking more enticing currently at $33,” Cramer said. “If it falls to the high $20s, nibble.”
Photo by Tulane Public Relations via Wikimedia.
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