Sean Udall Names His 3 Favorite SPACs On 'PreMarket Prep'

Special purpose acquisition companies have become a group trade, Quantum Trading Strategies CIO Sean Udall said Wednesday on Benzinga's YouTube show "PreMarket Prep."

Once a few of the SPACs bounce, "you are going to get a bounce in 40-50 of them," Udall said.

Udall said his three favorite SPACs are Opendoor Technologies Inc OPEN, Desktop Metal Inc DM and Metromile Inc MILE.

Udall On Opendoor: Udall said he doesn't know if Opendoor has bottomed, but at its current level it's only trading at 2x-3x sales.

People are making offers on houses above the asking price all over the country, Udall said.

Opendoor is "Redfin Corp RDFN part two," he said, adding that the company is a "best-of-breed house flipper."

Udall On Desktop Metal: The companies that were early in the 3D printing space will be "out-innovated" by the newer 3D printing companies, Udall said.

Desktop Metal is one of those disruptive companies, he said.

Metromile: This stock has never been hot, he said, adding that the stock price is cheap because SPACs have been beaten up.

Price Action: Opendoor was up 8.45% to $17.83 at last check Wednesday.

Desktop Metal was up 8.27% at $12.18.

Metromile was up 5.88% to $8.02.