![]() Simon has invested heavily in its properties in ways that are keeping them full no matter what e-commerce is doing. If you've been to a Simon mall, they're a class in their own. Simon has a fantastic track record when it comes to capital allocation, especially recently. They are vague on purpose because it gives them a lot of options.įrankel: They don't want to limit themselves to say, we're going to acquire a fintech provider that focuses on the real estate industry, because that's a very narrow scope. They are targeting - let me get this right - a disruptive retail, hospitality, entertainment, or real estate business. SPACs usually before they have a deal, they'll issue a registration statement, it will say what they're targeting. Like most SPACs, what they're going to acquire is very vague at this point. They recently went public, $10 IPO price. If a SPAC does well, if they can find a target that the market really receives well, Simon can make hundreds of millions, if not billions of dollars, for very little risk. Plus will have about 5 million warrants to buy more stock if it does well, for contribution of $5 million. If the deal works out, Simon will own 20% of the SPAC shares for free, essentially. Why not? Why are so many of these companies like Simon issuing SPACs? The answer is the economics are fantastic if it works out.įrankel: Simon's only real contribution to this deal is I think they paid about $5 million to buy warrants in the SPAC that are essentially options. Matt Frankel: Simon Property Group, the leading mall operator in the world, recently completed a SPAC IPO because it's 2021. Tell us a little bit about Simon Property Acquisition, what do you think they may be looking? I've heard you talking a lot about Simon before on our show here, Matt, I know that you're a big fan of Simon Property Group. Simon Property Acquisition - the ticker there today is SPGS. ![]() Jason Moser: OK well, let's talk about one that doesn't have anything in the hopper right now, but it sounds like they are on the hunt at least. *Stock Advisor returns as of February 24, 2021 wasn't one of them! That's right - they think these 10 stocks are even better buys. and Simon Property Group Acquisition Holdings, Inc. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*ĭavid and Tom just revealed what they believe are the ten best stocks for investors to buy right now. When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. 10 stocks we like better than Simon Property Group Acquisition Holdings, Inc.
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