SPAC is similar to a venture capital fund. If you believe that the manager of the fund has better networks and contacts, and they are in a better position to access opportunities, then, that is their value. A venture capital fund invests in various start-ups, most of which probable will fail. But if they get one right, then that is where the returns will come from. Being listed, SPAC allows for the small investors to participate in opportunities that the average Joe prob cant access. The principle is the same as investing in a Venture Capital Fund which normally will require a minimum investment of a more substantial sum. Not saying SONA is great or lousy. It is just another investment option. If you believe in the managment, good. Otherwise, crap...
Blog: IPO - Sona Petroleum Berhad (SONA)
2013-07-29 15:53 | Report Abuse
SPAC is similar to a venture capital fund. If you believe that the manager of the fund has better networks and contacts, and they are in a better position to access opportunities, then, that is their value. A venture capital fund invests in various start-ups, most of which probable will fail. But if they get one right, then that is where the returns will come from. Being listed, SPAC allows for the small investors to participate in opportunities that the average Joe prob cant access. The principle is the same as investing in a Venture Capital Fund which normally will require a minimum investment of a more substantial sum. Not saying SONA is great or lousy. It is just another investment option. If you believe in the managment, good. Otherwise, crap...