LCIDW - SPAC Stocks: Don't Be Fooled By 'Optimistically Biased' Forecasts

• Special purpose acquisition companies as an alternative to IPOs have gone mainstream. SPAC mergers allow companies to go public faster and with less disclosure.
• The SPAC boom took off in 2020 but now risks losing steam as investor disillusionment mounts and regulatory scrutiny intensifies.
• Evidence is mounting that companies going public via SPAC are more prone to overstatement in their forecasts.
• Investors interested in SPAC-related stocks need to be especially mindful of any aspirational claims from company management.

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