Seeking Alpha

GSV Capital rises again as Twitter's big rally continues

  • With Twitter having jumped 31% this week to new post-IPO highs, it's not surprising GSV Capital (GSVC +2%) has trekked higher as well, albeit to a lesser extent. GSV, which owns positions in a plethora of growth-stage private tech companies, finished the week up 7%, but remains down 26% from where it traded going into Twitter's IPO.
  • GSV owned 1.9M Twitter shares at the end of Q3. At current levels, those shares are worth $112M, a figure that's equal to 51% of GSV's total market cap.
Comments (9)
  • sethlemay
    , contributor
    Comments (197) | Send Message
     
    The question is does GSV still own the shares? If so then woo hoo!
    13 Dec 2013, 06:03 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (5768) | Send Message
     
    GSV has restrictions that prevents it from selling shares for typically 6 months. Almost 100% certain that it disclosed the restriction applied to Twitter as well.
    14 Dec 2013, 12:26 AM Reply Like
  • mike1226
    , contributor
    Comments (2) | Send Message
     
    They have twitter 100% . They can't sell for six months. go on there site and listen to there 3rd quarter earnings report.
    15 Dec 2013, 02:34 AM Reply Like
  • vlewis4Christ@gmail.com
    , contributor
    Comment (1) | Send Message
     
    Settlemay, do you know if they sold Twitter, are you trying to create doubt in owners' thoughts, or do you just want to know? How do we find out?
    13 Dec 2013, 10:10 PM Reply Like
  • sethlemay
    , contributor
    Comments (197) | Send Message
     
    Actually it is the contrary. I just picked up a small stake in GSVC early Friday based on twitters performance hoping to get a residual bump that other people have given up on at this point. Seems reasonably priced at 11.
    14 Dec 2013, 02:58 AM Reply Like
  • mike1226
    , contributor
    Comments (2) | Send Message
     
    they own it 100%. go on there site and listen to there 3rd quarter earnings report. It says it there very clearly. There locked in for six months.
    15 Dec 2013, 02:33 AM Reply Like
  • spiritrider1951
    , contributor
    Comments (3) | Send Message
     
    GSVC has been a thorn on my portfolio for a while. Almost seems as though they are playing with the stock price. Would it be too much to ask that they take all profits now and invest in other stocks? What is the plan? Is the stock price ever going to go back up to $17+ levels?
    13 Dec 2013, 10:19 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (5768) | Send Message
     
    Part of the deal for buying these shares pre-IPO requires that the shares be held for a lock-up period of 6 months. Ideally the shares would be sold now and re-invested in some private firms. After all, anybody that wants to invest in TWTR can now do that in the public market. As well, selling TWTR for a huge gain would finally prove out how this process works by allowing for a distribution of profits to shareholders.
    14 Dec 2013, 12:30 AM Reply Like
  • Igor Tsukerman
    , contributor
    Comments (46) | Send Message
     
    I believe GSVC has a 6-month lock-up on all their pre-IPO shares. Which means that their TWTR position now accounts for around 34% of their book value, which using conservative valuations for Palantir (before latest, much higher financing round) and Dropbox, is at $312M, or $16.15 per share, at 3pm Monday. But since GSVC is now selling at over 30% discount to that NAV, the known TWTR stake accounts for just about 50% of the market value. This seems like a very assymetrical opportunity to me, and I'm long. Here's a sheet by MicroFundy, just update CHGG market price: http://bit.ly/1aGfcdh
    16 Dec 2013, 03:22 PM Reply Like
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