CCIV Stock Price and News: Churchill Capital Corp IV opens above $60 up 4%

Shares in Churchill open higher by 4% on Friday.
Churchill Capital IV remains the subject of an anticipated merger with Lucid Motors.
Investors growing increasingly optimistic about the Lucid Motors merger.

Ivan Brian FXStreet

Update, February 19: Shares in CCIV continued to be bulled up by traders on Friday. CCIV shares opened up 4% above $60 on Friday. No new news has come to light yet about the Churchill Capital Lucid Motors merger but traders are backing the confirmation being imminent. CCIV shares are now up sixfold from their IPO booking nice returns for the many retail investors.

See CCIV a deep dive

Update: Shares in Churchill Capital continue to surge on Thursday, breaking through $60 for the first time. No new news just continued anticipation in relation to a merger with Lucid motors.

Shares in Churchill Capital IV remained strong yesterday as investors continued to back the highly anticipated merger with Lucid Motors. CCIV shares have been strong for all of 2021 and have been the retail stock of choice for the last number of weeks. CCIV has been one of the most trending stocks on Twitter for the last two weeks. CCIV shares are currently at $57.50 up 2% in Thursday premarket trading.

CCIV Stock Forecast

So what next. Well, the probability of a merger is strongly priced in with shares up nearly fivefold from the $10 launch. A report from Reuters has driven the latest gains with the deal now looking imminent. It is unclear if a wall crossing exercise has begun or not in relation to the PIPE transaction. A PIPE is a Private Investment in Public Equity, basically a discounted share placing to raise capital. Reuters reports that the PIPE for CCIV Lucid merger could be up to $1.5 billion. A Wallcrossing is where potential subscribers to the PIPE are asked in advance if they have an interest in Churchill, but no specifics are given as to the nature of the transaction. Once they are wall crossed they are effectively an insider and are prevented from any discussions under insider trading rules.

In this case, the PIPE is likely at $10 so obviously, demand will be huge given the share price north of $50. This may stop any pre-hedging short selling as investors will likely be heavily scaled back in their allocations as demand outstrips supply.

See all Stock market latest news

Churchill Capital Corp IV News

So a quick recap. Churchill Capital IV was set up by Michael Klein a former Citigroup dealmaker. Once rumoured to be next in line for the CEO job at Citi, Klein set up his own investment and advisory firm. He is incredibly well connected having worked on some of the largest mergers in history. He worked with Lucid Motors CEO Peter Rawlinson hen Rawlinson was CEO of Dow Chemical on the DuPont Dow merger. Klein has also advised the Saudi sovereign wealth fund Public Investment Fund (PIF) on its global investment strategy. The PIF is Lucid Motors major backer having a stake reportedly near 60% in Lucid.

Tesla (TSLA) cuts prices

Once or if the merger between Churchill Capital and Lucid Motors goes through the next step is to value Lucid Motors. Whether due to competition concerns over Lucid's impending launch or general competitve pressure from mainstream auto manufactures entering the EV space, Tesla has announced Price cuts to the entry level version of its Model 3 and Model Y models. Tesla has increased the price of the more high performance models.

The author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.