On the one hand, EV-related stocks have some serious momentum. That implies that Arrival’s EV-sales multiple will be more than 1x. A Strong Management Team. Speaking via CNBC, Cramer had a lot of praise for Arrival. The last time I wrote about CIIC stock in early January, I suggested that aggressive investors might buy in the low $20s or high teens. To start, investors may need a quick refresher on the story here. CIIC stock is once again climbing higher ahead of the Arrival SPAC merger. The SPAC's stock, which has gotten attention from the Reddit crowd, tumbled the day of the merger announcement as some investors pointed to the company's valuation. December 15, 2020 - 6:44 am. A big investor complaint about SPAC mergers is that sometimes, there just is not a whole lot of information to digest outside of required U.S. Securities and Exchange Commission filings. The company was founded by F. Peter Cuneo, Gavin M. Cuneo and Michael Minnick on September 19, 2019 and is headquartered in New York, NY. In addition, we have to deduct the $669 million. 2021 InvestorPlace Media, LLC. CIIG Merger Corp (NASDAQ:CIIC) announced on Nov. 18 that it had reached a merger agreement with a prominent electric vehicle (EV) company. Valuations have gotten stretched. Importantly, prior to coming public, Arrival has already racked up institutional support from the likes of BlackRock (NYSE:BLK) and automakers like Hyundai (OTCMKTS:HYMTF). Sarah Smith is a Web Content Producer with InvestorPlace.com. The bottom line is that CIIC stock, at $25.91 is 26% higher than the company’s implied calculation of its own value. Once again, Cramer has shares of CIIC stock absolutely rocketing. CIIG Merger Corp. [NASDAQ: CIIC] closed the trading session at $28.65 on 12/11/20. This is all that it needs to become profitable by 2023. The company is in the process of making electric buses there and will go into full production mode once the deal closes. 2) Cerberus Telecom Acquisition Corp. II (CTII) The EV value for CIIC stock (ARVL stock) should be $18.99 billion (i.e., 1.3 x $14.1 billion). Arrival already has two microfactories, with one in the U.K. and the other in Rock Hill, South Carolina. 1125 N. Charles St, Baltimore, MD 21201. SPAC asymmetry with a $10 pre-merger floor is your best friend. All rights reserved. I believe that CIIC stock is among the top electric vehicle stocks to consider for the year. Share on Facebook Tweet on Twitter Post to Reddit. Arrival now ready to go public as CIIC approved the merger, stock ticker changes to ARVL. CIIC Stock Is Now Overvalued Before Its Merger With Arrival, 10 Best Stocks to Buy for Investors Under 30, 7 Dividend Stocks to Avoid in Your Retirement Portfolio, Louis Navellier and the InvestorPlace Research Staff. CIIG Merger Corp. (NASDAQ: CIICU) units traded up about 28% at $19.48, after posting a new high of $20.50. Get the annual and quarterly balance sheet of CIIG Merger Corp. (CIIC) including details of assets, liabilities and shareholders' equity. Previous Post. Therefore, the $18.33 billion market value is worth $10.48 billion today. How long will the party last? For example, using a 15% annual discount rate the present value factor compounds out to 57.175%. And although Cramer recommended buying CIIC stock below $17.50, many investors are diving in right away. That works out to $20.66 per share. EDIT: Some of you are asking why this isn't another NKLA? SPACs are event-driven trades rich in catalysts before merger closing featuring a $10 hard floor. CIIC: CIIG Merger Corp. - Class A: Common stocks: Analyze: CLAA+: Colonnade Acquisition Corp. II Warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50 per share: Shell Companies: $11.50: $0.93: $9.69: $0: 260: CLAA: Colonnade Acquisition Corp. II Class A: That EV company, Arrival Group, is based in the U.K. and already has two factories, including one in South Carolina. This can be seen on page 42 of the slide presentation. This is especially true if you have been watching CIIG Merger (NASDAQ:CIIC) as it plans to take Arrival public. If CIIC stock can clear $30, it could put the 61.8% retracement of the current range on the table, up near $32.50. With the reverse merger set to close some time in 2021, CIIC stock has been climbing higher. Mark Hake runs the Total Yield Value Guide which you can review here. If you are a fan of electric vehicle stocks and special purpose acquisition company mergers, TV analyst Jim Cramer may just be your favorite person. In November 2020, CIIG Merger announced a business combination plan with Arrival. The California based company's CEO and CTO Peter Rawlinson used was the Chief Engineer of the Tesla Model S in 2009. Sam Altman (Co-founder & CEO of OpenAI, Chairman of Y Combinator, and Director of Expedia Group and Reddit) Sponsor’s Previous SPAC to Announce a Deal: Michael Klein’s Churchill Capital Corp IV (CCIV) announced a merger deal with Lucid Motors last month. Upper Bollinger band is at 28 and lower is at 18, while middle bands are at 21 and 26 . On the one hand, one can assume that the $669 million will be used up by 2024. The Gold Standard ——————————————-Carnivore 2021 Portfolio YTD 1/1/21 Start Value: $196,452.20*** It is formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, and similar business combination with one or more businesses. Earlier in November, electric vehicle maker Arrival announced it was coming public via CIIG Merger. What do I mean? CIIG Merger Corp. [NASDAQ: CIIC] price surged by 5.91 percent to reach at $0.6. For example, on page 44 of the deck, the average EV-sales multiple of its peers is 1.3x sales. Therefore, since CIIC stock has risen to $25.91 since the announcement, it now has a pro forma market capitalization of $15.706 billion (i.e., $25.91 times 606.179 million pro forma shares outstanding). Over the past few weeks, CIIC stock has enjoyed tremendous demand, suggesting greater things to come. On the other hand, it highly likely that the company will be profitable and/or it may have raised additional cash by then. For example, $15.037 billion in EV (its present pro forma enterprise value) divided by $14.1 billion in pro forma sales by 2024, a ratio of 107%. All rights reserved. 1125 N. Charles St, Baltimore, MD 21201. What Did the Stock Market Do Today? CIIC stock is worth only $20.66 using present value, or 26% above its own implied value. Tortoise Acquisition Corp. II does not have significant operations. EV companies of every kind attracted attention in 2020 and will continue to do so in 2021. CCIV closed the day at $28.69. One exception: flatbed holding company Daeske Inc. (NASDAQ: DSKE).The roll-up of family-owned trucking companies went public in a reverse merger with Hennessy Capital Acquisition Corp. in February 2017. Find the next Tesla, invest in it early and ride it up to massive gains. Once the merger closes, CIIC stock (ARVL stock) will have 606.179 million shares outstanding. Announces Investigation of CIIG Merger Corp. Merger GlobeNewswire: Jan-19-21 12:42PM: Arrival Group (CIIC): One of the Best Positioned Electrification Plays TipRanks: Jan-15-21 02:29AM ... Larry Ramer held a long position in CIIG Merger. A 30% move in a SPAC from $10 -> $13 is FAR superior than in a SPAC from $45 -> $60. CIIG Merger Corp. ( CIIC) Warrants (CIICW) on the other hand have gone from below $1 on Nov. 15 to $6.55 during the same time frame.They touched $8.50 at one point. Which will then trigger the infinity short squeeze which sends us to $100k+.”-said Reddit user that goes under KitrosReddit. Merger agreement just came out today, news hasn't spreaded around retail investors yet. The company was incorporated in 2019 and is based in Venice, California. So what do you actually need to know about it before the Arrival SPAC merger? CIIG Merger (NASDAQ:CIIC) is at an interesting crossroads in the market. CARNIVORE IS EATING THE TRADING WORLD. Price is coming down . This time, credit goes to TV analyst Jim Cramer. Arrival now ready to go public as CIIC approved the merger, stock ticker changes to ARVL. quotes delayed at least 15 minutes, all others at least 20 minutes. March 1, 2021 - 8:00 am. We really need a good DD on WSB for this :). However, using a more typical 10% discount rate, the PV factor is 68.3% and its value is $12.52 billion. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. Moore Kuehn Encourages PROS, JWS, OXFD, and CIIC Investors to Contact Law Firm PR Newswire: Jan-21-21 03:16AM: SHAREHOLDER ALERT: Rigrodsky Law, P.A. Ripple Crypto News: The May 21 Date That XRP Investors Need to Know, Cardano (ADA) Price Predictions: Why ADA Just Hit a Record High Despite Today’s Crypto Crash. Connect with friends faster than ever with the new Facebook app. That puts it at least 26% overvalued. Now to get the pro forma enterprise value we subtract the $669 million in cash, for an EV of $15.037 billion. Arrival specializes in making electric buses and vans. Essentially, this speaks to the heart of what investors are trying to do. We have to discount the 2024 forecast value to the present. The year 2024 is a long time in the future to compare Arrival’s theoretical revenue and value with today’s CIIC stock price. Price is below 20day SMA . Innoviz Technologies. NASDAQ CIIC stock news:Arrival Announces New Microfactory Producing Electric Delivery Vans in Charlotte. Moreover, Arrival already has $1.2 billion in orders, including 10,000 EV vans for UPS (NYSE:UPS). But is it really worth this on a present value basis? … Here is why. On the date of publication, Mark R. Hake did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. However, what this does mean is that expert commentary can go a long way in validating the hype and reassuring investors. Tortoise Acquisition Corp. does not have significant operations 2020, CIIG merger a. Change its name to Arrival and the other in Rock Hill, South Carolina ride it to! Larry Ramer held a long position in CIIG merger Corp few years will... 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