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GSV Capital Presents Opportunity
From the Buzz & Banter: This investment fund looks attractive.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MV PRO+.

I just went long publicly-traded investment fund GSV Capital (NASDAQ:GSVC) again here at $12.49, an idea I had been considering,

Facebook (FB) has been steadily heading higher, and GSV's number-one holding Twitter (TWTR) looks like it may be stabilizing.

Additionally, I'm confident that the valuations on some of GSV's private holdings, namely Dropbox and Spotify, are going to skyrocket, courtesy of some of the bubbly deals in the sector (like Facebook's purchase of WhatsApp).

There's also a big divergence between GSV and its closest equivalent, the Global X Social Media ETF (SOCL). Using eSignal, I created a chart showing SOCL (multi-colored bars) vs. GSV's relative performance against SOCL (blue line, calculated as GSVC/SOCL).


Click to enlarge

While the performance differential isn't as big as it was in December, it could still provide something of a cushion, and in fact, shorting SOCL vs. a long position in GSVC could make for a nice pairs trade.

If social stocks simply hold steady, I think the gap can close.

And if Twitter regains its footing, I expect GSV to reach the $13.25-$13.50 range in short order, at which point I'd look to exit.

On the flip side, I'd look to cut my losses on a decline to the $12 range.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
GSV Capital Presents Opportunity
From the Buzz & Banter: This investment fund looks attractive.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MV PRO+.

I just went long publicly-traded investment fund GSV Capital (NASDAQ:GSVC) again here at $12.49, an idea I had been considering,

Facebook (FB) has been steadily heading higher, and GSV's number-one holding Twitter (TWTR) looks like it may be stabilizing.

Additionally, I'm confident that the valuations on some of GSV's private holdings, namely Dropbox and Spotify, are going to skyrocket, courtesy of some of the bubbly deals in the sector (like Facebook's purchase of WhatsApp).

There's also a big divergence between GSV and its closest equivalent, the Global X Social Media ETF (SOCL). Using eSignal, I created a chart showing SOCL (multi-colored bars) vs. GSV's relative performance against SOCL (blue line, calculated as GSVC/SOCL).


Click to enlarge

While the performance differential isn't as big as it was in December, it could still provide something of a cushion, and in fact, shorting SOCL vs. a long position in GSVC could make for a nice pairs trade.

If social stocks simply hold steady, I think the gap can close.

And if Twitter regains its footing, I expect GSV to reach the $13.25-$13.50 range in short order, at which point I'd look to exit.

On the flip side, I'd look to cut my losses on a decline to the $12 range.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
More From Michael Comeau
GSV Capital Presents Opportunity
From the Buzz & Banter: This investment fund looks attractive.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MV PRO+.

I just went long publicly-traded investment fund GSV Capital (NASDAQ:GSVC) again here at $12.49, an idea I had been considering,

Facebook (FB) has been steadily heading higher, and GSV's number-one holding Twitter (TWTR) looks like it may be stabilizing.

Additionally, I'm confident that the valuations on some of GSV's private holdings, namely Dropbox and Spotify, are going to skyrocket, courtesy of some of the bubbly deals in the sector (like Facebook's purchase of WhatsApp).

There's also a big divergence between GSV and its closest equivalent, the Global X Social Media ETF (SOCL). Using eSignal, I created a chart showing SOCL (multi-colored bars) vs. GSV's relative performance against SOCL (blue line, calculated as GSVC/SOCL).


Click to enlarge

While the performance differential isn't as big as it was in December, it could still provide something of a cushion, and in fact, shorting SOCL vs. a long position in GSVC could make for a nice pairs trade.

If social stocks simply hold steady, I think the gap can close.

And if Twitter regains its footing, I expect GSV to reach the $13.25-$13.50 range in short order, at which point I'd look to exit.

On the flip side, I'd look to cut my losses on a decline to the $12 range.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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