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 (NASDAQ: OPEN), Desktop Metal Inc (NYSE: DM) and Metromile Inc (NASDAQ: 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 (NASDAQ: 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. 

Related Link: Adaptive3D Partners with EnvisionTEC to Deliver Additive Manufacturing Elastomer Solutions at Scale

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.

Image by Photo Mix from Pixabay.