Recent IPO success
Control4 Corp (NASDAQ:CTRL) recently went public. The company, which offers smart house tools to customers, has seen its share rise. With 782,821 shares in ownership, GSV’s stake is significant and worth much more than the $7.5 million value reported in the second quarter. As the company’s IPO is digested and investors continue to see the significant growth ahead for Control4, GSV should see a huge increase in this valuation.
Control4 has done something remarkable in its take on the smart-home market. The company has made it affordable for normal customers to automate items like lights and thermostats without expensive remodels. The company should see strong growth ahead as it capitalizes on trends like going green and using technology through smartphones. While there are competitors in the field, ABI Research estimates that 12 million homes will have a smart system by 2016. This represents a huge opportunity, considering only 1.8 million houses had smart technologies in 2011. Control4 has a strong distribution channel of more than 1,600 dealers, and its technology has been used in homes in more than 80 countries.
Conclusion
Shares of GSV Capital have been up so far this year, thanks in part to the rise of Facebook. The increase in Facebook’s value has helped GSV’s small stake and also the possible public valuation of Twitter, the largest holding of the company. However, shares of GSV Capital still seem significantly undervalued with the possibility of rising valuations of several top-10 holdings that are likely to go public in the next two years.
Shares of GSV Capital are approaching 52-week highs thanks to Facebook’s rise. With the possibility of several IPOs, the company should see a nice boost toward the end of 2013. The sale of stakes in several publicly traded companies could also yield nice returns for investors. Shares also trade under their current net asset value of $12.87.
GSV Capital provides investors with an easy way to invest in privately owned technology companies. The prospects are risky, as some investments fail, but the risks are worth it in the end. GSV Capital has several large, well-known companies that will provide a nice reward for patient investors. As Twitter and others approach IPOs, investors should get familiar with GSV Capital.
The article Make Money From Twitter Before Its IPO originally appeared on Fool.com is written by Chris Katje.
Chris Katje has no position in any stocks mentioned. The Motley Fool recommends Facebook. The Motley Fool owns shares of Facebook.
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