3 SPACs That Short-Sellers Are Targeting
It's certainly been a weird year to be a short-seller. Just ask anyone betting that selling physical video games out of retail stores during a deadly pandemic is a terrible business to be in. At the same time, the market for special-purpose acquisition companies (SPACs) has cooled significantly in recent months, with investors shunning speculative stocks fetching lofty valuations. Seeing an opportunity to capitalize on the downtrend, short-sellers have been piling on to push prices down even further.
Short-sellers borrow stock and then sell it, hoping that it declines so that they can buy it back at a lower price in order to return the shares that were borrowed. Here are three companies -- that have already closed their SPAC mergers or are preparing to -- that the shorts have been targeting and have the highest short interest as a percentage of float, according to recent data from short-selling analytics specialist S3 Partners.
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Source Fool.com
