The spac (special purpose acquisition company) boom that started in 2021 has created an odd situation. Almost 300 companies have de-spac-ed. More than half of them are trading below the book value of the equity. Trading below the book value could be a sign that the company is cheap.
I attended a charity dinner for a Nepalese orphanage recently. The black-tie event was arranged by a generous fund manager. Over $150,000 were raised, which went a long way. The funds were to be used for the education of the children.
An irony was missed by the investors in attendance. There are orphans of a different kind staring them in the faces. These kids are not in need of charity. Instead, they could do with some investment.
