Vision Research Alerts
“Anyone…..Anyone”…..”Bueller…..Bueller”…..Is “anyone” on top of what is transpiring in the SPAC market? Our SPAC product seeks to systematically analyze the SPAC universe while considering dilution, promote, sponsor and underwriter quality, redemption ratio, PIPEs, multiples, safe-harbor projections and numerous other data points to highlight a group of “unrealistic & ill-advised” SPACs that should be monitored for the deal they end up announcing.
Vision will potentially be doing some fundamental and qualitative analysis in preparation for the de-SPAC event.
Academic research has shown several data points are helpful in identifying the SPACs that will materially underperform the market and break below the $10 trust floor after a deal is approved and the de-SPAC occurs.
Alerts are basically an initiation piece, providing an in-depth analysis of the fundamentals surrounding a company and its industry, the qualitative issues or catalysts, and valuation (absolute, relative to peers, and relative to itself over time). We aim to issue close to 20 ideas per year in the US, approximately 10 Non-US ideas per year, and the quantity of IPO reports is determined by the equity calendar and the size of offerings in a given year. We primarily cover companies in Consumer, Industrial, and TMT sectors. Our analysis can include any of the following: review of transcripts and filings of the individual equity and any of its public customers, competitors, and suppliers; contacting PE firms that own an investment in the same space and any other public or private customers, competitors, and suppliers; industry trends; assessment of management and the business or business model and competitive landscape; visiting stores and on-line product and price comparisons; evaluation of the large holders and insider stock transactions; quality of earnings or forensic accounting analysis; and valuation work.
Our US product is focused on uncovering alpha-generating ideas inside the U.S. markets. Our target market cap exceeds $750mn, with AD$V > $10mn. The actual median for market cap and AD$V has been multiples of these targets.
Our international product is focused on uncovering alpha-generating ideas outside of the U.S. markets. Our target market cap also exceeds $750mn, with AD$V > $10mn. The actual median for market cap and AD$V has been multiples of these targets. At the present time, the majority of these companies are European.