This morning I saw an article by Evan Niu, CFA (TMFNewCow) writing for The Motley Fool:
Bloomberg Was Wrong About Lucid Motors and Churchill Capital IV
I am curious how Bloomberg will respond to his article by The Motley Fool as this may get really interesting as these two giants in the news business go at it.
Personally, I do not invest or trade on rumors, however, if I already have a position in the shares or warrants on a specific company I have to pay attention to all of the news, even if some of it is rumors.
I was in early on Churchill Capital (CCIV and CCIV.WS) before the rumors started and I have made some serious money on this position in both the shares and warrants and continue to hold a smaller position. I believe as the merger with Lucid Motors is completed in the second quarter of 2021 that the shares and warrants will trade at substantially higher prices.
The unfortunate thing for many investors was the rumors started by Bloomberg drove the common shares and warrants up to unrealistic prices and many investors probably lost money by following the rumors.
I wrote a brief article on this subject on Feb 26, 2021:
SPACS: When Investor Expectations Exceed Reality