GSVC/Twitter/Facebook

[mimo_100]

From the GSV Capital SEC Filing on September 23, 2013.


GSVC owns 1,835,600 common shares of Twitter at a cost of $31,755,821. This is approximately 15% of the NAV of GSVC. This $17.30 per share.


The total cost of all securities at that time was $245,295,528. They have 20.3 million shares outstanding, so the NAV is $12.08. So at $15.70 per share, the shares are trading at about
a 30% premium over NAV.


If the IPO (after market close November 6) is priced at $20 per share, the NAV of GSVC will increase approximately 1.5%.

[billyjoe]

outstanding shares

mimo, My understanding is that Twitter has studied the Facebook IPO and wants to avoid the same mistakes. They are intentionally trying to keep the IPO at a lower level so that it will rapidly increase in value within a few days of the IPO. They also are keeping the number of shares available at a relatively low number. I had a hard time getting any FB even at 38 so I possibly might not be able to get any Twitter.
FB IPO'd 695 million shares, Twitter says it will sell 70 million. FB current float is 1.7 billion shares. Twitter will have 421 million. That is <17% of outstanding Twitter shares while FB offered 40% of theirs.
------------billy

[antioch6]

I wouldn't buy twitter for owning the business, but I might buy some for a rally on the hype.

[riverbabe]

GSVC

Could someone here please explain to me how or how not this lawsuit might affect the GSVC pps at Twitter IPO? Am not sure I understand the ramifications. Anyone?

http://dealbook.nytimes.com/2013/10/30/two-financial-advisers-accuse-twitter-of-secondary-market-fraud/?nl=business&emc=edit_dlbkam_20131031

[billyjoe]

River, It seems that GSV would be more involved than Twitter. Maybe the litigants are going after Twitter in hopes they will be offered low priced shares just to keep quite. It said they took millions of orders and deposited 4 million dollars. The numbers don't add up. Maybe it was wishful thinking on the part of Continental Advisors and Precedo trying desperately to get in on the ground floor. Why would they go after Twitter, not GSV when they admit not even having contact with Twitter? Hey, come to think of it, somebody on Twitter offered me a good deal on shares nearly a year ago. I think it was a guy named sharptra.... can't remember the last part.

-------------------billy

[riverbabe]

River, It seems that GSV would be more involved than Twitter. Maybe the litigants are going after Twitter in hopes they will be offered low priced shares just to keep quite. It said they took millions of orders and deposited 4 million dollars. The numbers don't add up. Maybe it was wishful thinking on the part of Continental Advisors and Precedo trying desperately to get in on the ground floor. Why would they go after Twitter, not GSV when they admit not even having contact with Twitter? Hey, come to think of it, somebody on Twitter offered me a good deal on shares nearly a year ago. I think it was a guy named sharptra.... can't remember the last part.

-------------------billy

LOL billy. What concerned me a little was the suggestion that Twitter controlled the shares that GSVC was offering. Does that mean the now-existing GSVC Twitter shares are also controlled by Twitter? Could this also mean that GSVC might not be able to sell them on the secondary market without Twitter's approval? Kind of nervous here.

[billyjoe]

River, Nothing to worry about. Can a company sell shares that cannot be resold? Would GSV put 10's of millions into an investment that wasn't liquid? I can see a time restraint such as "ye cannot sell said stock within 10 days of the IPO", but long term, no way. I'll be whistling through the local graveyard myself tonight.

-------------------billy

[tiedyed1]

My initial reaction to this suit being filed, and the timing of it, was that it sounded like sour grapes to me.
The fact GSVC was not sued as a Defendant makes me feel like there will be a whole other side to this story and once we hear Twitter's defense rebuttal we will have a better idea of what went down.
-Adam

Disclosure: I have 1000 @ 14.99

[riverbabe]

Thank you both, billy and Adam. My confidence is much higher now.

[tiedyed1]

My crystal ball is the same make and model as everyone else's, and my toughest decisions have always been when to sell.

If Twitter is going to up the anticipated range higher than the current 17-20 IPO range that should be done any day now. If they do up the range that will in turn give GSVC some momentum and she the worry that the IPO may be right around the cost basis they own their shares at. There has been little to no press lately regarding how the roadshow has been going (as Obamacare leads the headlines this week).

While that type of announcement would be a plus I feel the IPO day pop will be the determining factor that holds the most weight for the value of GSVC's shares; and my first thought is to sell GSVC on IPO day, assuming there is a pop on IPO day. However, there is always the case not to sell on IPO day as if everyone dumps GSVC on IPO day that would drag the price down too!

As expectations for the IPO were a higher pps than what most were anticipating (when looking at GSVC) I am not as excited about this position as when I first read the articles and decided to buy GSVC, but I am not seeing a significant downside at this time either. Either way, I am not adverse to the risk levels here.

Plenty of weight on both sides of the scale here; and wondering what other great Mr. Market member minds are thinking

-Adam

[riverbabe]

My crystal ball is the same make and model as everyone else's, and my toughest decisions have always been when to sell.

If Twitter is going to up the anticipated range higher than the current 17-20 IPO range that should be done any day now. If they do up the range that will in turn give GSVC some momentum and she the worry that the IPO may be right around the cost basis they own their shares at. There has been little to no press lately regarding how the roadshow has been going (as Obamacare leads the headlines this week).

While that type of announcement would be a plus I feel the IPO day pop will be the determining factor that holds the most weight for the value of GSVC's shares; and my first thought is to sell GSVC on IPO day, assuming there is a pop on IPO day. However, there is always the case not to sell on IPO day as if everyone dumps GSVC on IPO day that would drag the price down too!

As expectations for the IPO were a higher pps than what most were anticipating (when looking at GSVC) I am not as excited about this position as when I first read the articles and decided to buy GSVC, but I am not seeing a significant downside at this time either. Either way, I am not adverse to the risk levels here.

Plenty of weight on both sides of the scale here; and wondering what other great Mr. Market member minds are thinking

-Adam

Cost basis of GSVC shares is apparently 19.80. If there is a pop with no selling restrictions on GSVC, I can see some selling pressure on both Twitter and GSVC from GSVC profit-taking also. I suspect it won't be a repeat of FB, but I am not going to be greedy on this one. I'll take some green and wait till the dust settles. Cost basis of SVVC shares is "just under 23.00".

[mimo_100]

Cost basis of GSVC shares is apparently 19.80. If there is a pop with no selling restrictions on GSVC, I can see some selling pressure on both Twitter and GSVC from GSVC profit-taking also. I suspect it won't be a repeat of FB, but I am not going to be greedy on this one. I'll take some green and wait till the dust settles. Cost basis of SVVC shares is "just under 23.00".

GSVC owns 1,835,600 common shares of Twitter at a cost of $31,755,821. ...This $17.30 per share.

See post #16 above

[riverbabe]

GSVC owns 1,835,600 common shares of Twitter at a cost of $31,755,821. ...This $17.30 per share.

See post #16 above

I stand corrected. Thank you!

[tiedyed1]

Twitter Raises IPO Price Range, $23-$25

[tiedyed1]

Good morning all.

I was checking out this GSVC spreadsheet as well as the price action of GSVC up to the Facebook IPO and now wondering if I should sell part of my GSVC position today as a profitable hedge against what may happen tomorrow.

https://docs.google.com/spreadsheet/ccc?key=0AnRtDtgwjPS6dHU4THhvbTIxTFk2cnZMYkVRdkVSWWc&usp=drive_web&pli=1#gid=2

Thoughts?