• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

My Top SPAC Play for 2021

As this story becomes more widely understood, it should attract additional interest.
By JAMES "REV SHARK" DEPORRE
Jan 05, 2021 | 12:30 PM EST
Stocks quotes in this article: BFT, BX, SQ, PYPL

It is that time of year when we try to predict what stocks will perform the best in the 12 months ahead. While this isn't my preferred way to approach the market (and others agree with me), it is helpful to identify stocks with strong potential to put on your watch list and aggressively trade as technical conditions develop.

First up is my top play in the SPAC sector.

There is concern that SPACs have become a frenzy and that the sector will be disappointing going forward, but there will likely be some standout plays. The quality of SPAC deals varies widely, and there will be many names with great fundamentals and valuations that will perform well regardless of what the overall sector might do.

While there are likely to be SPAC names that make bigger moves, I believe that Foley Trasimene Acquisition II (BFT) has the best chance of solid performance in 2021.

BFT is a SPAC formed in October by Bill Foley. Foley has been involved in more than 100 acquisitions and many spinoffs. His success stories include Fidelity & Guaranty Life, which he took over in 1984 and made into a Fortune 500 company, Black Knight, Dun & Bradstreet, and Foley Family Wines.

On Dec. 7, it was announced that BFT had signed a definitive agreement and plan of merger with Paysafe Group, an integrated payments platform. Upon closing of the transaction, the newly combined company will operate as Paysafe and plans to list on the New York Stock Exchange under the symbol PSFE.

The transaction reflects an implied pro-forma enterprise value for Paysafe of approximately $9 billion. Paysafe operates a payments platform with a two-sided consumer and merchant network, whose core purpose is to enable businesses and consumers to connect and transact through payment processing, digital wallet, and online cash solutions.

Existing Paysafe equity holders, including Blackstone (BX) , CVC, and management, will remain the largest investors in the company. The transaction is expected to close in the first half of 2021. A complete investor presentation can be found here.

The great appeal here is the payment platform sector. There are currently two main competitors -- Square (SQ) and PayPal (PYPL) . As the Paysafe story becomes more widely understood, it should attract additional interest.

I have a core position and will be looking to build it as the chart develops further.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Rev Shark was long BFT.

TAGS: Investing | Markets | Stocks | Trading | Fintech | U.S. Equity

More from Stocks

Navigating the Cycles of the Market

James "Rev Shark" DePorre
Apr 17, 2021 10:00 AM EDT

How Recency Bias and the Pareto Principle impact your trading decisions.

Market Indices Continue to Hide Crazy Rotational Action

James "Rev Shark" DePorre
Apr 16, 2021 4:41 PM EDT

Fundamentals and valuations are secondary to shifting money into certain sectors.

Is the Market Wrong on Bank of America? Here's What the Charts Say

Bruce Kamich
Apr 16, 2021 2:21 PM EDT

Let's check in again on BAC after its latest earnings.

Liquid Media Group Is a Hidden Gem

Timothy Collins
Apr 16, 2021 1:33 PM EDT

With the options open, I believe the near-term puts offer an attractive play.

Taking Another Look at Twilio's Charts

Bruce Kamich
Apr 16, 2021 1:12 PM EDT

Aggressive traders could begin probing the long side of TWLO.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:05 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How recency bias and the Pareto Principle impact y...
  • 02:42 PM EDT PAUL PRICE

    Wednesday on Real Money Pro

    Make this stock a 'part' of your portfolio.
  • 04:44 PM EDT PAUL PRICE

    Pretty Incredible + Hard to Believe

  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login