Jim Cramer told Mad Money viewers Monday evening that SPACs have fallen out of favor on Wall Street, just as he predicted, but that doesn't mean all SPACs are created equal. Monday, he highlighted one of the good ones, Altimeter Growth Corp (AGC) , which will soon be merging with Grab, the dominant ride sharing platform in Singapore and Southeast Asia.
Think of Grab as a combination of Lyft (LYFT) , DoorDash (DASH) and PayPal (PYPL) , as the company includes all three services. It enjoys a 72% market share in ride sharing, 50% in food delivery and a 23% share in the online wallet space.
Cramer said Grab is well run, growing fast and is making great strides towards profitability now that it has achieved the scale it needs.
Let's look at the charts of AGC.
In this daily Japanese candlestick chart of AGC, below, we can see two lows in March and three peaks in January, March and April. Prices are trading around the 20-day and 50-day moving averages but the On-Balance-Volume (OBV) line shows an uptrend from early March. There are cover shorts buy signals from the Moving Average Convergence Divergence (MACD) oscillator in March and early April.
In this daily Point and Figure chart of AGC, below, we can see a $24 price target. A trade at $16 will be an upside breakout.
Bottom line strategy: Aggressive traders could go long AGC at current levels risking to $11.50. Buy more above $16. $24 is our first price target.