Friday, July 8, 2011

More on Global Silicon Valley Corp (GSVC)

2:23 pm (Hawaii) So how much are you worth if you buy $6.6 million worth of a company valued at $70 billion or $210 billion? If you're GSVC, which I mentioned earlier today, and you own those 225,000 shares of Facebook after paying $6.6 mil, it's interesting. At 29.28 per share, acquired from ex-Facebook employees, is it possible you got a discount? A steal? A great bargain?

There are no black-and-white answers here. With GSVC shares at an all-time high after hours (16.60), I didn't bother touching it. I still think it pulls back next week, as it did two weeks ago, following a huge surge. It could see 15.55 before bouncing again. Yes, it will bounce. What else can it do with just 3.34 million outstanding shares? This is going to be a crazy ride for traders who step into this roller coaster and strap the belt on. I'll pass on this ride and wait for a better price, then trade very, very, very small.

GSVC's Facebook stake is just 15% of its total portfolio, the rest of which is not sexy. How far can the company go? As Le Fly wrote today, Global Silicon Valley could attempt to emulate that "incubator" venture capital king of the late 1990s, CMGI, which eventually rose above 220, then imploded with the internet bubble. CMGI went to 1. Great for insiders who sold near the top. Not so great for "investors" who didn't jump ship in time.

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)
Reuters: Wall Street Journal top stories (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)
SEC: Form 8-K, Other Events (June 6)
Globe Newswire: GSV Capital invests in Kno (June 6)
Globe Newswire: NeXt Innovation Corp. changes name to GSV Capital Corp. (June 1)
Globe Newswire: NeXt Innovation Corp. prices IPO (Apr 28)

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