Friday, July 8, 2011

Fazzy, fizzly Friday and what is GSVC?

10:59 am (Hawaii) FAZ did me no good today and I got out before the closing bell with a miniscule loss ($30). It's the one ETF that I'd never hold overnight, with its whimsical flair and the constant puppetry exhibited by central banks and the Fed. Monday morning might be a good time to step back in.

Still holding AGQ, XG and DGP. With AGQ and XG flat after I opened positions, it was EXK that made a nice move higher during the day. My plan is to stay long these issues from time to time, and use dips to buy physical. Though there are dozens of gurus out there who insist that the global fiat currency house of cards could crumble any day, my take is it's still early enough to buy on dips rather than hot streaks. Silver is better at 33 than 49, better at 35 than 40. Same with gold, though I don't expect another sub-1500 drop.

Volume-wise, EXK had nearly as much as yesterday while gaining 2.5% to a high of 10.00. AGQ, similar volume. XG, very low volume on a slightly down (-0.7%) day — the pause the refreshes. (I really should've stayed in XG weeks ago at 9 or so, before Eric Sprott's involvement/purchase of shares.) XG at 14.12 afterhours. Volume in metals was generally solid, comparable to the rest of the week. SLW's volume was down today some; the stock has gone from 30 to 36 in two weeks.

The PMs have had two pieces of really interesting news recently. The first is that Andrew Maguire will speak on August 4 in London at GATA's annual metalpalooza event. He showed up on a video about China's new gold exchange (posted here a couple of times), disproving the non-believers who had insisted that Maguire is a figment of imaginations.

Second, India announced yesterday that it will import 350 tons of gold and 1,200 tons of silver in the 2011-12 fiscal year due to rising demand. As US jobs are outsourced more and more, India is one of the markets that has benefited. The middle class is swelling, they have money to spend on those beautiful Hindu-influenced pieces of jewelry, and PMs will be affected immensely.

AAPL is at 360, still rolling after yesterday's news about a possible deal with China Mobile. Here, the stock is close to an all-time high, which is astounding. Just a couple of weeks ago, AAPL was at 310. What Euro debt crisis??

Today wasn't just Aloha Friday, end of the week, blahblahblah. It also marked another huge gain for something called GSV Capital Corp. (GSVC), as noted by mad genius Le Fly here and here. The stock exploded 10.2% in today's session to 16.20, and that's coming off a major gap up in late June. That's when GSVC purchased a 15% share in an unknown internet loser known as Facebook and went from 10.27 to 13.90 overnight. The 225,000 shares at $29.28 per represent 15% of GSV's total portfolio

I joke about Facebook, but with that move, GSV Capital provided the market with a measurement of value. Because of GSVC, Facebook is now "valued" at 220 BEEEEEEEEEELLLLLIOOONNNNN dollars. Is it a joke? Who knows. GSVC consolidated for all of seven sessions before erupting once again today on huge (for them) volume, 456K shares. That's almost as many as the first rip on June 27.

GSVC's Yahoo summary page looks like a penny stock: mostly "NA". Outstanding shares: 3.34 million. It began trading in late April and there aren't truly visible statistics to measure it by. All that is known is that it is the only publicly traded entity besides Goldman Sachs to own a piece of Facebook. With Zynga being valued in the billions — who would've thought it a few years ago as Facebook users became addicted to online games like Farmville — this is a virtual world to be MINED. GSVC was available briefly for less than 11 bucks when the stock caved a few weeks back. Maybe that was the impetus that led to the Facebook move.

Whatever the case, on GSVC's first big move up to 13.90, the stock dipped back to the middle of that candlestick four sessions later to a temporary low of 13.55. Today's tenacious rise? A perfectly normally profit-taking move back to the middle of today's candlestick brings shares to roughly 15.55. Can I wait for that? Surely, if the market tanks next week, all things decline with it, including GSVC, AAPL, LULU, NFLX ... any hot stock.

But if the market does NOT tank, then 16.40 could be a bargain. I think I'll chisel in with a tiny piece today. This Facebook thing ... it might be big one day!

More, more, more about GSV
GSV Capital website
Le Fly: It's CMGI all over again (July 8)
Seeking Alpha (OneMedPlace radio): Michael Moe interview (July 4)
Minyanville: GSV Capital announcing a stake in Facebook (June 29)
Seeking Alpha (Igor Greenwald): Do I hear $210 billion for Facebook (June 29)
CNN (Ken Sweet): Stocks soar on housing data (June 28)
Seeking Alpha ( 6 wild story stocks you can't ignore (June 28)
Wall Street Journal: Stocks to watch (June 28)
Seeking Alpha (Ian Bezek): GSV Capital's 40% Facebook pop sets up great short (June 28)
CNN (Dan Primack): Zynga IPO is a market test for Facebook (June 28)
CNN (Pan Primack): How GSV got Facebook at 'only' $70 billion (June 27)
(video) CNN: GSV Capital 'likes' Facebook (June 27)
CNN (Julianne Pepitone): GSV investment values Facebook at $70 billion (June 27)
Globe Newswire: GSV Capital invests in Facebook (June 27)
Forbes (Tomio Geron): GSV Capital makes its first investment in Kno (June 6)
Globe Newswire: GSV Capital invests in Kno (June 6)
Globe Newswire: NeXt Innovation Corp. prices IPO (Apr 28)

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