Best stocks to watch in 2021 (Cont.)
#4 FinServ Acquisition (FSRV), merging with Katapult
Believe it or not, there’s still some value in certain SPACs. The whole SPAC sector has been red hot, but one in particular has been overlooked in my opinion. I’m talking about FSRV/Finserv Acquistion Corp, which has announced a target called Katapult. While FSRV has had a pop from the trust value/share price of $9.74 up to a high of $15.00, but it’s now trading at $12.50 as of market close 12/31/2020 (Happy New Year btw, never been so relieved to end a year), and there is certainly some value if we look closely at the acquisition target and the equity value after merging.
Katapult is a BNPL(Buy Now, Pay Later) point-of-sale platform. These BNPL providers are essentially providing credit without a credit card and are implemented at POS and e-commerce checkouts. This let's the user have some flexibility when making purchases, as well as benefitting the merchant by bringing in more customers who otherwise may not have the funds to make a purchase at that time. BNPL providers don't run credit checks, they have their own approval process to analyze risk. You've probably seen this kind of paymnent option popping up a lot recently at check out, but the market is still in it's infancy and the addressable market is huge.
