 Not many investors are familiar with special purpose acquisition companies SPACs, a special breed of IPO stocks that enable well-connected sponsors to raise hundreds of millions of dollars from the public markets.Often referred to as blank-check companies or blind pools, the sponsors have 24 months from the day the IPO funds are raised to acquire an operating business. That business is then combined with the SPAC through a reverse merger, turning the private company into a public one.SPACs first came into being in the 1980s, used by penny-stock promoters, to make millions off unsuspecting investors. As a result, the federal government introduced the Penny Stock Reform Act of 1990, which took steps to stop these fraudulent activities.InvestorPlace - Stock Market News, Stock Advice Trading TipsLater in the decade, financier David Nussbaum reintroduced SPACs, focusing on legitimizing this form of IPO stocks through the use of specific requirements such as putting the funds raised in escrow and putting a time limit on the amount of time to make a qualifying acquisition.The other day I wrote about 10 Ways to Diversify Your Portfolio at This Time of Crisis. Although I mentioned several different options to help lessen the blow to your investment portfolio at this challenging time, one option I didnt bring up was SPACs.Back in 2007, SPACs gained popularity with hedge funds as a way to protect their capital against downside threats, while generating a good yield and providing potential upside should an acquisition get completed within the 24 months.In 2019, there were 59 SPAC IPOs that collectively raised 13.6 billion. As the bull run looks to be coming to an end, I suspect the SPAC hedge is going to come back into fashion. 7 Stocks to Sell as We Enter a Bear Market If so, here are 10 SPAC IPO stocks to buy now. Five have recently completed or found a target company, while five have yet to find an acquisition. IPO Stocks: Virgin Galactic SPCESource: Christopher Penler Shutterstock.com As far as SPACs go, the merger between Social Capital Hedosophia, which raised 600 million in September 2017 for its first of three SPACs, and Richard Bransons space travel company, Virgin Galactic NYSE:SPCE, is as a big deal. The merger was first announced in July 2019. The combination created a company with an enterprise value of 1.5 billion. Bransons Virgin Group owns 58.7 of the business with Social Capitals shareholders owning the rest. Recently, I suggested that Virgin Galactic could be the next Tesla NASDAQ:TSLA. Although it plans to develop a large space tourism business, the commercial applications of space flight are tremendous. The company expects its first space flight to happen later this year. With 8,000 people signed up ready to spend 250,000 to go into space, and many more to come out of the woodwork once a successful flight is in the books, the future revenue potential is tremendous. However, this is not a stock for those who cant see the long-term picture; risks will remain high for several years. Act II Global Acquisition Merisant Whole Earth ACTTSource: Shutterstock On Dec. 20, 2019, Act II Global Acquisition Corp. NASDAQ:ACTT announced that it was combining with Merisant Company and MAFCO Worldwide LLC. Both are currently owned by MacAndrews Forbes, the holding company of billionaire Ronald O. Perelman. Merisant specializes in zero and low-calorie sugar substitutes, while MAFCO is the worlds leading maker of natural licorice products. The two businesses and Act II will operate under the name Whole Earth Brands, which includes the Whole Earth brand of sweeteners.The chairman of Whole Earth Brands is Irwin Simon, the current CEO of Aphria NYSE:APHA, a Canadian cannabis company. Before Aphria, Simon co-founded and was CEO of Hain Celestial Group NASDAQ:HAIN, one of the worlds largest natural and organic foods company. Once trading on Nasdaq, Whole Earth Brands will have an enterprise value of 575 million, 8.1 times 2020 pro forma EBITDA of 71 million. Simon and CEO Albert Manzone plan to use the companys stable free cash flow to grow its business organically and through acquisitions. 7 Stocks to Sell as We Enter a Bear Market Simons involvement makes this an exciting company to watch. Repay Holdings RPAYSource: Shutterstock Repay Holdings NASDAQ:RPAY announced in January 2019 that it was merging with Thunder Bridge Acquisition Ltd., a SPAC that raised 225 million 25 million higher than initially proposed in June 2018. Repay operates a proprietary, integrated payment technology platform that reduces improves the customer experience while simplifying the process for merchants. The management team, including co-founder and CEO, John Morris, stayed on to run the company. In 2018, Repay processed approximately 7 billion of payment volume for personal loans, car loans, and receivables management. Thunder Bridge paid 581 million for Repay. It is led by Gary Simanson, who previously founded Endeavor Capital Management, a New York-based boutique private equity firm. In August of last year, Simanson raised 300 million for Thunder Bridge Acquisition II Ltd. NASDAQ:THBR, a SPAC geared to finding another fintech acquisition. Diamond Eagle Acquisition DraftKings SBTech DEACSource: Shutterstock In late December, Diamond Eagle Acquisition Corp. NASDAQ:DEAC announced it would combine with DraftKings and SBTech, to form a 3.3 billion vertically integrated sports betting and online gaming company. Once the combination is complete sometime in the first half of 2020, it will operate as DraftKings, and trade under a new stock symbol. The three-way merger comes more than two years after DraftKings and FanDuel canceled their merger over concerns from the Federal Trade Commission. For those needing a program to tell whos who, Diamond Eagle Acquisition is the fifth SPAC for Hollywood executives Harry Sloan and Jeff Sagansky. This particular version raised 400 million in May 2019. Since 2011, the five SPACs have raised a total of 1.7 billion. If anyone can make this work, its these two guys. If you bet on sports, youve probably heard DraftKings. Ive yet to see anything come up due to the coronavirus, but I would guess it might postpone when the deal gets done. DraftKings just announced their annual results -- it generated 323 million in sales in 2019, 43 higher than a year earlier -- and while they were good, if there arent any professional sports teams playing, there wouldnt be anything to bet on, severely reducing short-term revenues. As for SBTech, it provides its clients with betting and gaming solutions, which is why this unusual three-way combination makes sense. 7 Stocks to Sell as We Enter a Bear Market Like all SPAC acquisitions, Diamond Eagles shareholders have to vote in favor of the transaction for it to go ahead. With the coronavirus beginning to take a toll on U.S. sporting events, its suddenly not a sure thing. Leisure Acquisition Gateway Casinos Entertainment LACQSource: Michał Parzuchowski via UnsplashAlso in the world of betting, Leisure Acquisition Corp. NASDAQ:LACQ announced on December 27, 2019, that it would combine with Gateway Casinos Entertainment, a Canadian casino operation with 25 gaming and entertainment destinations, 12,800 slot machines, 365 table games, and 72 food and beverage outlets. Shareholders of the SPAC will receive one share of Gateway on a one-to-one basis. Any outstanding warrants to purchase shares of Leisure Acquisition will be converted to warrants to purchase Gateway stock at 11.50 a share. Gateway will be listed on the NYSE and trade under the symbol GTWY.Also, HG Vora Capital Management has agreed to buy 3 million units of Gateway for 10 per unit in a private placement. The cash from the private placement along with the money from Leisure Acquisitions trust account and any excess cash on both companies balance sheets will go to pay down Gateways 154 million in debt. In 2020, Gateway is expected to generate adjusted EBITDA of 149 million on 659 million in revenue. That puts Gateways enterprise value at 7.5x 2020 adjusted EBITDA.Long-time gaming executive Marc Falcone will take the reins as its chief executive. Current Gateway CEO, Tony Santo, will retire. Flying Eagle Acquisition FEACSource: Shutterstock.com Harry Sloan and Jeff Sagansky have done it again. On March 5, the duo sold 60 million units of Flying Acquisition Corp. NASDAQ:FEACU at 10 per unit. Five days later, the underwriters exercised their 15 over-allotment and bought another 9 million units at 10 per unit. In addition to one share of Class A common stock symbol FEACon NASDAQ, investors got one-fourth of one warrant, with each warrant entitling the investor to buy another share for 11.50. The shares began trading on March 6. The sixth SPAC from the duo, it raised gross proceeds of 690 million. The pair arent limiting their search to one particular industry. The net funds raised, after subtracting for 800,000 in offering expenses and initial working capital of 450,000 will be kept in a trust account bearing interest at 1.5 annually. If an acquisition isnt found within 24 months, the funds in the trust account would be returned to investors. 7 Stocks to Sell as We Enter a Bear Market The chances are excellent; theyll figure something out. Acamar Partners Acquisition ACAMSource: Shutterstock.com Acamar Partners Acquisition Corp. NASDAQ:ACAMU sold 30 million units at 10 per unit on February 22, 2019. The units consist of one Class A common stock symbol ACAM on NASDAQ one-third of a warrant symbol ACAMW on NASDAQ with each warrant entitling the investor to buy another share for 11.50. 