Why Churchill Capital Stock Could Be The Leader In A Return To The SPAC Trade

Lucid Motors is set to go public via the special purpose acquisition company Churchill Capital Corp IV CCIV in an $11.75-billion deal. 

Benzinga's Dennis Dick and Mitch Hoch discussed why the company might be the one to watch for a turnaround in the SPAC trade Thursday on Benzinga's YouTube show "PreMarket Prep."

A relief rally in SPACs took place Wednesday. Churchill Capital Corp IV closed the session 7.8% higher at $19.89.

If the stock continues moving higher, the SPAC trade could return, Hoch said. 

Related Link: Lucid Motors CEO Says Technology Will Be Key To $25K EV: What Investors Should Know

Dick said the SPAC sell-off started when the company announced its deal and the stock sold off. Churchill Capital Corp IV has been the leader of the SPAC sector downfall for the last month-and-a half. 

If the stock starts to catch a bid, the "PreMarket Prep" co-host said some of the other SPACs could follow. 

If it is able to hold above the psychological level of $20, it becomes much more interesting, he said. 

SPAC Deal: The Lucid Motors deal with Churchill Capital Corp IV was announced on Feb. 22. The transaction is expected to close in the second quarter. Pending shareholder approval, Lucid Motors will be listed on the New York Stock Exchange under the ticker symbol "LCID."

CCIV Price Action: Churchill Capital Corp IV was down 3.47% at $19.20 at last check. 

See also: What are the Risks of SPACs?

Photo courtesy of Lucid Motors.