Hey Subscriber,

OK time for a SPAC update and a new play.

First off, let me introduce Steven Adams aka The Warrant King to you as he will co-editor of our upcoming SuperSPAC Trader newsletter service. Besides being a true bon vivant and neighbor of mine from the Bethesda MD area, he is literally the new king of the arcane (but insanely profitable) art of warrants trading. He learned from the OLD king of warrants and 20+ years Wall Street desk and later at Fidelity and other stops before going out on his own and back to Maryland to have kids.  

One of the most important lessons Steve has pounded into my cranium since this new era of
$200M-$4 BILLION SPACS SPACS emerged is this: It's the speculating & trading on the WARRANTS in pre-reveal SPACS where the 5-10-20-to-1 grand slam life-changing home run comes from. 

For example, Look at our $2.50 cost warrants in NKLA (part of the $15 VTIQU unit when the underlying VTIQ stock was $13.50. BTW--Steve first identified unusual trading in the VTIQ warrants at .85 cents, ok? (not jealous at all :). 


For the record, between June 8th and June 9th, we sold our April 23 $13.50 VTIQ/NKLA shares--for $87 for 6.4X return in 45 days (with 5% trailing stop loss on the move to $94 initiated per instructions June 8th)

But the REAL Millionaire Maker play was our $2.20 April 23 VTIQ/NKLA warrants which we sold for nearly $55 or nearly 25X times our money and the warrants we got from our $18 VTIQU unit (with a $6.50 cost basis) at 9X our cost basis.

I literally have dozens of texts and emails from All-Access members who held 5000-10,000 or more warrants after the VTIQU conversion (eh, just to do the math, 5000 X $55 is $275,000).

And let's not forget our June 19 VTIQ $30 calls under $2.20 we bought on May 16. When we put our SELL Advice on June 9 with 5% trailing stops, the stock closed out at $85 and the call options closed out at $55 and change for ANOTHER 25X grand slam on just $1,000 of call options.

SO you might have guessed that our focus in our SuperSPAC trading service will be only on trading the warrants and the options. We will still recommend SPACS in our TR Investor PRO service, but trading SPAC warrants and options is very time-intensive hands-to-hand combat now that the SPAC genie is out of the proverbial bottle.  More on this exciting new service shortly.

FMCI FMCIW

Soon to be the Tattooed Chef in early October,  FMCI mirrored our NKLA experience in just a smaller magnitude. It too had a warrant rumble before the reveal, shot to $20 on rumours it was merging with Impossible Foods, crashed back to find real buyers on the Tattooed Chef reveal, and has now gently moved up past $17 on the shares and $7 on the FMCIW warrants.

For our records, we put our FMCI/FMCIW/FMCIU buy out on June 15 at $13.80 and recommended again on the pullback at $15.50 on June 25 to start FMCI/FMCIW/FMCIU if you missed it on the first
"OMG I just heard they are buying Impossible Foods" rumor and melt-up.

So once again, here are the charts--and the warrant at $3.30 is once again the winner!

For some reason, Stockcharts.com -- a fabulous chart service worth every penny, does not have a FMCIU chart so here is the Yahoo chart in a pinch. IF you bought the units on the 16th you are a little bit ahead; if you bought on the re-recommendation you are ahead 20% ish. 

Advice: Hang Onto FMCI/FMCIU/FMCIW into the merger--and BUY THE WARRANT on a 10% pullback.

Fundamentally, the underlying company is hitting all cylinders and has another 90% of Walmart and Costco (and soon BJs/Whole Foods/Kroger et al) to break into and stock with their fabulous tasting plant-based brands. I guarantee the Q3 "COVID Quarter" will have another record broken for sales given the stay-at-home nature of the GenZ/Millennial prime audience. And there will be M&A opportunities post-merger. 

Our long term 3-5 year target is still $72 based on 7X multiple to 2025 EBITDA

We will ADD an October option when the technicals are right for the All-Access members--  

SPAQ SPAQW SPAQU

In the last 4 weeks, just about every automaker in the world has introduced a new BEV SUV including VW (who is supposed to be building the Fisker) with a suggested retail price of...wait for it...$40,000.

Sound familiar? Fisker says they have 33,000 registrations on their site for their SUV, but they have not responded to our inquiry as to actual $250 reservations (of which mine is one--thank you NKLA!). 

Advice: HOLD & SELL INTO THE MERGER Week It will move up into the October merger and will undoubtedly have some great news in its pocket when Henrik hits the business news week during the merger. The warrants again are what to hold into the merger. 

But the $2.9 billion imputed value on Fisker Corp. for a way cool vehicle with at least 30 different SUV BEVs ("battery electric vehicles) is an enormous marketing bloodbath ahead. Fisker has the upper income crunchy granola Sierra Clubbers in for sure--but it just too weird to have there manufacturing "partner" out with a literally identical look BEV at the same pricepoint with 400 dealers just in the US/Canada.

HCCO 
Healthcare Merger Corp (HCCO) SOC Telemed Merger
(Units: HCCOU / Common Stock: HCCO/ Warrants: HCCOW)
 
Actions to Take:
1) Buy HCCO warrants (HCCOW) under $2.00 (or close) and Q1 2021 $8 target.
2) BUY HCCO shares under $12.50 with 2022 $28 target

HCCO has gone nowhere and we are down 25 or 50 cents or so on our entry price and up a bit on the warrants and units. 

Yet the HCCO story has gotten nothing but better. I am about to be a private investor in a telemedicine start-up and the entire space is on fire since COVID-19. Telehealth leader AmWell is another telemedicine player who just announced its IPO and Google is throwing in $100 million pre-IPO. At the Amwell valuation, HCCO is worth $9-$12 right now!

The Livongo/Teledoc merger lit the flame--and HCCO is perfectly positioned to be the next part of that now $18 billion company. IF I had my investment banker hat on I would be telling you "it's a compelling perfect fit" and would be telling the God's honest truth (which is rare for investment bankers--trust me.) 

The whole space in on fire and private practices to big ACO organizations all came to the realization that "GEE--our patients would MUCH rather contact us from home (for most issues) and certainly chronic care. HCCO is taking that to another level by getting into 10 high-cost medical specialties that they bring to suburban and rural America. At the same time, the Medicare/Medicaid system just approved reimbursement for ALL modalities of telehealth in-home or in hospital.

Advice: BUY THE WARRANTS <$2 or close and hold at least till the year-end merger and into 2020. 
https://transformityresearch.com/transformitypro/2020/8/6/new-tr-ultra-growth-stock-pick
  
Next SPAC?

Doing final work on this company with a call in the morning. IF you are an eager beaver, the company is basically SHLL (still mad we missed the pull back on SHLL--doh!) for the vehicle industry.

They have the same "skateboard technology" patents and IP that Hyliion Holdings has for the trucking industry which means they provide ALL the chassis, drivetrain, and battery system for new EV automakers so they can focus on the rest of the look, feel, and driver/passenger technology.

The company is Canoo out of Southern California run by another 25-year BMW car guy. The "reveal" failed because people did not like the futuristic look of their demonstration vehicle (on top of their EV skateboard). 

The market just did not get that the odd-looking prototype--and frankly I think those people are small-minded simpleton nuts. Talk about missing the forest for the trees. These guys have major growth potential with not only the BEV skateboard but building on the engineering and IP license deal with Hyundai (and surely others because as I said about SPAQ--EVERY vehicle and truck company in the world is launching BEV's in the next 24-36 months.) 

The SPAC is Hennesy Acquisition Corp. HCAC and we WILL BE buying the HCACW warrants under $2.25--sound familiar?  

My preliminary price target is $30-$35 by 2025 based purely on the engineering, assembly deals, and the WAY cool full autonomy Canoo which I cannot wait for to cruise to a Scottsdale eatery/drinkery or ride up to Sedona or down San Diego whilst having my lunch and a cocktail watching reruns of "The West Wing" while whisking down/up the freeways at 80MPH and NOT FRIGGING DRIVING.

Expand your mind a little bit here--because they will also let your "subscribe" to this self-driving autonomous vehicle for a week or how long you need it! That is my dream--and should be for every urban/suburban household. 

Just have some additional details to get at, but since I know the "REDDIT/StockTwits/Yahoo" message boards will light up upon this recommendation, I want to get this out NOW ahead of some great news I strongly believe is coming. 

And with the stock valued at the redemption value of the SPACE trust--you literally have NO DOWNSIDE here (trust value is $10.20). 

This is the ultimate SPAC play--almost zero downside and nothing but upside!

And the warrants tell the real story. See Steve--I've learned! It's the warrants and the options, baby. 

Peace out!

Toby