Stock Talk
Launched 8 Months Ago
Hi, I’m Papa Phil, the founder of a space called Stock Talk. I combine my decades in Finance, Entrepreneurship & Technology with my passion and curiosity to find great businesses. This provides my readers with more confidence to invest or trade.
In 2021, SPACs were the market’s wild child. “Special Purpose Acquisition Companies” stormed onto Wall Street with a pitch so seductive it felt like free money: raise billions today, find a company tomorrow, and let everyone in early. For a moment, it worked. Investors believed they were front-row witnesses to the future of electric cars, space travel, and biotech breakthroughs.
The problem? Most of those promises aged faster than milk on a summer porch. Companies with no revenue strutted onto the stage, only to watch their share prices collapse once reality set in. The pitch was irresistible. SPACs allowed everyday investors to get in on companies before they went public through traditional IPOs. Regulators moved in, lawsuits followed, and retail investors learned the hard way that blank checks often bounce. Papa Phil translation: “If you buy smoke and mirrors, do not be shocked when your mirror is broken into tiny pieces”.
And yet, here we are in 2025, and SPACs are back again. With markets at full valuation, (and then some), investors are hunting for growth, the old carnival has reopened its gates. New SPAC deals are being announced.
Buyer beware. While some SPACs may succeed, most are still built on the same fragile foundation: optimism over substance. These vehicles thrive in environments where excitement outpaces scrutiny. They roar back not because the model has been perfected, but because Wall Street knows investor appetites are cyclical. When money wants a thrill, SPACs gladly provide it.
Here’s the problem. A parade of SPACs quickly turned into a circus. Many of the companies that went public through this method were not ready for prime time. They were still in development mode, burning through cash with little or no revenue. When the music slowed and investors looked around, they realized they were underwater and holding bags filled with rocks, instead of profits.
By 2022, the dream had soured. Regulators started poking around, lawsuits piled up, and share prices collapsed. A handful of SPAC deals produced winners, SOFI is one example, but the great majority left retail investors staring at charts that looked like ski slopes. Many who thought they were buying a ticket to the moon found themselves grounded before takeoff.
What’s left today is a cautionary tale. SPACs are not dead, (they probably should be) but they are no longer the belle of the ball. They are now a reminder that excitement without discipline is dangerous investing. The lesson is simple but powerful: just because Wall Street invents a shiny new vehicle does not mean it will get you where you want to go.
Remember, investing should be guided by my fundamentals, not fads. Or as Papa Phil likes to say, “Hope is not a strategy when dealing with your cash.” Because in the end, investing is not about cheering for the parade. It is about knowing when to leave the carnival before the tents come down.
Results are not typical. I teach methods that have made other traders’ and investors’ money, but that does not guarantee you will make money. Success in trading and investing requires work and a bit of dedication. Past performance does not indicate future results. All trading and investing carries risk.
