once the merger is completed is an excellent long-term buy, primarily because it already has sold 29,000 vehicles (2021), it expects to produce 65,000 in 2022 and 290,000 annually by 2025. And Im not even a total car geek. The Gores Group led by chairman Alec Gores and CEO Mark Stone announced the deal between Gores Guggenheim Inc (NASDAQ: GGPI) and electric vehicle company Polestar. Today's announcement is a significant catalyst as investor anticipation intensifies toward an announced merger vote date. It is the biggest blank-check merger in the EV sector since Lucid Motors struck a $24-billion deal with Michael Klein's Churchill Capital IV Corp. in February. All rights reserved. An analyst thinks theres a good chance that PayPal will make an acquisition in the next few months and runs through the most likely -- and least likely -- scenarios. Owner Earnings per Share (TTM) explanation, calculation, his Place to discuss GGPI and Polestar. Im 66, we have more than $2 million, I just want to golf can I retire? Create your Watchlist to save your favorite quotes on Nasdaq.com. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. On the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Publications where hes appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network. The Company has selected December 31 st as its fiscal year-end. Defends Financial Benefits of IAA Deal. To the extent anyof the information contained herein may bedeemed to be investment advice, such information is impersonal and nottailored to the investment needs of any specific person. 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("Gores Guggenheim") (Nasdaq: GGPI, GGPIW and GGPIU), a special purpose acquisition company ("SPAC") formed by affiliates of The Gores Group and Guggenheim Capital, LLC, announced today that they have entered into a definitive business combination agreement (the "Business Combination Agreement"). Featured. In 2013, Polestar launched the Volvo S60 Polestar. Polestar is unique in that while its not the flashiest vehicle, the companys main selling proposition is to make reliable cars without gimmicks. Current equity holders of Polestar, who will roll their entire interest in the combined company, will retain about 94% ownership, it said. did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Assuming it hits its growth targets, delivering a six-figure amount of vehicles annually, and generating tens of billions in annual sales, within three years. It will also have a more daring design, InsideEVs reported Ingenlaths comments. Started over 40 years ago by a business visionary named Tom Phillips, we publish detailed research and recommendations for self-directed investors, financial advisors and money managers. Si no quieres que nosotros ni nuestros socios utilicemos cookies y datos personales para estos propsitos adicionales, haz clic en Rechazar todo. After many months of wait, the tie-up between Gores Guggenheim and Polestar is nearing completion. Article printed from InvestorPlace Media, https://investorplace.com/2022/03/ggpi-stock/. The post Gores Guggenheim Is a Buy, But Consider an Alternative in the Short Term appeared first on InvestorPlace. quotes delayed at least 15 minutes, all others at least 20 minutes. Aug. 17 2021, Published 3:11 p.m. Therefore, it might make sense to buy now before the merger, rather than afterwards. Targeted companies such as Disney and Salesforce are learning how to grab the momentum back from activists, and communicate more effectively. Is GGPI a buy now in 2021? In December, its currently down almost 16%. Our firm's recent successes include changing the law in a significant victory that lowered the standard of liability under Section 14(e) of the Exchange Act in the Ninth Circuit. All quotes are in local exchange time. Click here for more information: https://www.monteverdelaw.com/case/gores-guggenheim-inc. However, I also said that investors need not rush to buy the SPAC before the merger happens. Thats especially the case with GGPI stock. Will Ashworth has written about investments full-time since 2008. A buy under $10 would be an excellent entry point, in my opinion. Its a New Era for Tech Stocks. The Polestar deal will be supported. The company is headquartered in Sweden but manufactures its EVs in China. A Polestar will be more progressive and avant-garde; therefore, it will not be loved by everybody, but it will address its fans, Ingenlath stated. As the deal approaches a close, GGPI shares have formed a solid base of support. Written by As a result, I think its chances of survival are much higher than brands such as, On the date of publication, Will Ashworth. Valuation remains discounted, in our view, at an implied market cap of $26.1 billion ($12.40 and 2.125B shares outstanding), which implies 3.9x 2023E sales. If youre investing in AI stocks, watch out for these revenue and earnings tricks, After loss against Meta, Lina Khans ability to rein in Big Tech with the FTC is being questioned, Veris Residential and Rogers Stock See Action From Activist Investors, The U.S. housing market is crumbling under the weight of higher mortgage rates and rock-bottom affordability: Prices fell the most in these U.S. states, Am I crazy? After my mother died, my cousin took her designer purse, and my aunt took 8 paintings from her home then things really escalated. Puedes cambiar tus opciones en cualquier momento haciendo clic en el enlace Panel de control de privacidad de nuestros sitios y aplicaciones. Last year, a record 613 SPAC listings occurred on U.S. exchanges, raising a total of $145 billion. GGPI Stock Price - Gores Guggenheim, Inc. is a blank check company. Additionally, a possible third alternative here is to buy the First Trust Nasdaq Global Auto Index Fund (NASDAQ:CARZ). Historical and current end-of-day data provided by FACTSET. What happens to my Social Security benefit if my husband dies? By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Market is a lot different now versus CCIV/LCID times. Joanna has been analyzing and investing in emerging technologies for over two decades, having led the Technology, Media, and Telecom research at several global investment banks, including Mizuho Securities and Canaccord Genuity. The opinions and information contained herein have been obtained or derived from sources believed to be reliable, butBoardroom Alphacannot guarantee its accuracy and completeness, and thatofthe opinions based thereon. The deal also includes a PIPE, or private investment in public equity, of $250 million from top-tier institutional investors. Anticipation on GGPI/Polestar merger. Of course, shares of many EV companies are down this year, including market leader Tesla (NASDAQ:TSLA). He particularly enjoys creating model portfolios that stand the test of time. Now, with volatility likely to continue into 2022, some possible alternatives exist as a short-term solution for risk-averse EV investors. Polestar, founded in 2017 by Volvo Car Group (VOLVb.ST) and China's Zhejiang Geely Holding (GEELY.UL), also counts Hollywood actor Leonardo DiCaprio among its investors. Sign up for free newsletters and get more CNBC delivered to your inbox. Got a confidential news tip? The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. It formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination. After a bustling 2021, the entire SPAC market has slowed markedly amid theglobal marketdownturn. The deal comes at a time when large SPAC mergers have become rare, as the business of blank-check dealmaking deteriorated rapidly over the summer after investors were spooked by the poor financial performance of many SPACs and a regulatory crackdown led by the U.S. Securities and Exchange Commission over their disclosures. So, this all gives you two alternatives to GGPI stock: either Volvo or Geely. Once the reverse merger is finalized, shares of Polestar will begin trading on the Nasdaq tomorrow under the PSNY ticker symbol. Under the terms of the agreement, GGPI . Polestar have confirmed the previously rumoured SPAC merger with GGPI bringing the EV manufacturer to the NASDAQ with a valuation of $20 billion. Its beginning dates back to. But its a very different market now, amidst a more tepid outlook for growth stocks. GGPI shares have been trading in a steady ~$11 range prior to days announcement (shares are up 8% intraday). Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. A recovery may not happen until the market has absorbed the changes in economic and market conditions. The deal comes at a time when large SPAC mergers have become rare, as the business of blank-check dealmaking deteriorated rapidly over the summer after investors were spooked by the poor financial performance of many SPACs and a regulatory crackdown led by the U.S. Securities and Exchange Commission over their disclosures. Build your trading network; Follow your favorite assets . InvestorPlace is one of Americas largest, longest-standing independent financial research firms. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. The stock did rise the day after the shareholder vote announcement, but since then, its drifting lower. Gores has done as good a job as anyone demonstrating that blank-check companies can deliver the goods. An alternative to Tesla. As a result, I think its chances of survival are much higher than brands such as Lucid (NASDAQ:LCID) and Rivian (NASDAQ:RIVN). Polestar has been developing electric vehicles since 2017, the latest of which is a performance roadster. The critical distinction about Polestar is that its not a startup. You might even get a better price in the process.. Polestar joins other EV makers in the public market, including Tesla (TSLA.O) and Lucid Motors (LCID.O), which went public in a $24 billion SPAC deal in February. Our Standards: The Thomson Reuters Trust Principles. As we move into the merger vote, we think GGPI should be trading closer to $20. However, what he said next did. Polestar, backed by Volvo Car Group and affiliates of Geely Chairman Eric Li, also counts Hollywood actor Leonardo DiCaprio among its investors. The merger between Polestar and Gores Guggenheim (NASDAQ:GGPI) is expected to happen in the first half of 2022. 5 Penny Cryptos With the Most Potential for Growth, 3 Cream-of-the-Crop Growth Stocks to Buy for 2023, Gores Guggenheim Stock Will Pop Post Merger, But Theres Still Time to Buy. Korn Ferrys Head of Board Effectiveness Anthony Goodman talks board evaluations, universal proxies, and more with David Drapkin. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. However, it was what he said Polestar is and, The aim of the Polestar range is to be sportier and to have a stronger focus on the driver. Polestar said at the Beijing Motor Show last year that it has another model in development called the Precept, which is a larger sedan. Nelzon Peltz and Trian dropped their proxy fight against Walt Disney Co. (DIS) following Disneys cost cutting, reorg, and board appointments. The vehicles will be produced at its new factory in Casa Grande, Arizona. It may not be until the supply chain issues are resolved. Two years later, it made a move to electric-powered performance vehicles. in July and Gores brought $310 million in cash to the deal after redemptions. Polestar itself is a joint venture between, However, because Geely owns 78.4% of Volvo Cars stock not to mention nearly 97% of its voting power Polestar will ultimately be controlled by the Chinese car company and billionaire Li Shufu, the worlds, Additionally, a possible third alternative here is to buy the. At the end of November, I argued that GGPI stock was a better buy for aggressive investors than, f a stock is destined to be a long-term winner (five to 10 years out), there is no rush to run out and buy it. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved. The Polestar deal will be supported by cash proceeds of around $800 million from Gores Guggenheim, assuming no share redemptions by public stockholders of the blank-check firm. The post Keep an Eye on Gores Guggenheim Stock, as it Gears Up for its EV Merger appeared first on InvestorPlace. In other words, hes saying if you buy a Polestar, youll be getting something unique and special. We live in purgatory: My wife has a multimillion-dollar trust fund, but my mother-in-law controls it. While EV stocks were hot as recently as last fall, thats far from the case today. from 8 AM - 9 PM ET. Its safe to say this isnt the best market for an EV company to debut. Banking giant TD still wants to buy First Horizon a year after megadeal was announced, but the purchase price may drop, given lower sector valuations. That said, unlike LCID, which was a pre-revenue, pre-production company, Polestar is very much established, having met its production target of 29,000 cars in 2021. Despite being outside the top 10, its a reasonable amount of exposure. I entered GGPI and will increase my position tomorrow tho. Twitter Reports 40% Drop in Revenue and Adjusted Earnings to Investors: WSJ. But no matter when exactly the recovery begins, it may be worthwhile to lock down positions before it happens rather than after it happens. The premium EV maker's offering includes two models: a hybrid car known as Polestar 1 and a fully electric Polestar 2. PSQ Holdings is a marketplace that connects who it describes as "freedom-loving" Americans. This news follows the September announcement of Polestar's intention to list on Nasdaq in connection with its proposed business combination with Gores Guggenheim, Inc. (Nasdaq: GGPI, GGPIW, and GGPIU), which is expected to close in the first half of 2022. Type a symbol or company name. We are a national class action securities litigation law firm that has recovered millions of dollars and is committed to protecting shareholders from corporate wrongdoing. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Polestar's listing plan comes as automakers shift their focus to environment-friendly vehicles, amid rising pressure from lawmakers and investors concerned about climate change. No representation or warranty, expressed or implied, is made on behalf of Boardroom Alpha as to the accuracy or completeness of the information contained herein. Our lawyers have significant experience litigating Mergers & Acquisitions and Securities Class Actions. Source: Jeppe Gustafsson / Shutterstock.com, CEO Thomas Ingenlath recently discussed the companys plans with, CEO had a lot to say on the subject. The post GGPI Stock Heats Up as Polestar SPAC Merger Closes appeared first on InvestorPlace. Thats well above where it currently trades under the $11.50 level. On the date of publication, neither LouisNavellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article. The company raised $550 million in external funding in April and announced plans in June to build Polestar 3 electric sport utility vehicles at Volvo's U.S. plant in South Carolina from next year. EV maker Polestar going public via a SPAC with Gores Guggenheim. . After a bustling 2021, the entire SPAC market has slowed markedly amid the global market. Transaction is expected to be completed in the second quarter of 2022. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. InvestorPlace - Stock Market News, Stock Advice & Trading Tips. Sept 27 (Reuters) - Swedish electric-car maker Polestar said on Monday it will go public by merging with a U.S.-listed blank-check firm backed by billionaire Alec Gores and investment bank Guggenheim Partners at an enterprise value of $20 billion. Polestar intends to list on the Nasdaq in a proposed business combination with Gores Guggenheim, Inc. (Nasdaq: GGPI, GGPIW, and GGPIU), which is expected to close in June 2022. For 2022 and 2023, Polestar has guided to $3.2 B and $6.7B in sales, respectively. Most important, the company is well underway with production and revenue generation ($1.6B in 2021 sales). The opinions expressed in this article are those of the writer, subject to the, Gores Guggenheim Is a Buy, But Consider an Alternative in the Short Term, Biden Hears Oval Office Plea for Alaska Oil Project in Lobbying Frenzy, Apple tops ranking of global companies with the most 'green' revenue, UPDATE 2-North Korea says UN should demand end to S.Korea-US military drills, US Treasury puts cost of outbound investment risk program at $10 million, US Jobs Report and Powell Testimony Take Center Stage: Eco Week. Ive learned in recent years that businesses operating in the middle have less chance of success. Joel Baglole for This deal received tremendous fanfare as the single-largest ever purchase for electric cars for 100,000 vehicles as well as a partnership with Uber (UBER) to provide 50,000 of those vehicles to its delivery drivers. Para obtener ms informacin sobre cmo utilizamos tus datos personales, consulta nuestra Poltica de privacidad y Poltica de cookies.
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