PreMarket Prep: Tracing the Price Action in the SPAC Stock CF Acquisition
The PSPC market has cooled, but there are still companies abandoning pending acquisitions. One of these companies is CF Acquisition Company (NASDAQ: CFVI), today’s stock for pre-market preparation.
CFVI news: After the close on Wednesday of last week, it was announced that the Rumble video platform would go public through a SPAC deal with CF Acquisition Corp. VI, with an initial enterprise value of $ 2.1 billion. The 8-K dossier included a presentation to investors from December 2021 highlighting Donald trump as having adopted the Rumble platform for its start-up Truth Social.
Price action to end the week: As expected, the show had a much higher open Thursday and sprinted that day to $ 14.58 and fell back to end the session at $ 10.58. Although it remained well below yesterday’s high on Friday, hitting just $ 12.28, it improved its closing price by over $ 1 to end the week at $ 11.90.
Huge projections for social truth: On Monday, for the first time, Truth Social announced details of its potential subscribers. The company plans to reach 81 million users by 2026 for the new social media platform.
The app, which has yet to be released, is expected to have 16 million users by 2022. Projections for Truth Social users are based on a Politico poll of registered voters, according to the presentation. With its Rumble interface, investors bought stocks aggressively.
During Monday’s session, the issue hit a new all-time high at $ 15.48 and fell to $ 12.70 (new all-time closing high).
Still in favor on Tuesday: Despite pulling back from the high and closing at the low end, the show still had buyers in Tuesday’s session. After a higher open, it found support a few cents before the close at $ 12.73 and continued its upward movement.
As of 2 p.m. EST Tuesday, the problem was having a day indoors. This means that the issue is trading in the previous day’s range with a lower and a higher lower.
To advance: The historic closing price of the issue ($ 12.70) was reached on Monday and it is important that the issue continues to improve.
As of Wednesday morning, the stock was trading down 7.39% to $ 12.15.
In addition, for the movement to continue, the problem will have to follow the monster volume of the three previous sessions (98.4 million, 47.5 million and 77.1 million).
New buyers will be needed to compensate sellers who own the show from much lower levels. Currently, the problem is not able to match or exceed even the three-day low at high volume.
Benzinga’s PreMarket Prep airs every morning from 8 a.m. to 9 a.m. ET. During this fast-paced and highly informative hour, traders and investors tune in to get the top news for the day, the catalysts behind these moves, and the corresponding price action for the upcoming session.
Each day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick as well as producer Spencer Israel.