Why GSV Capital Corp. Shares Slumped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of GSV Capital (NASDAQ: GSVC  ) , a business development company fund specialist that focuses on emerging-growth companies, sank as much as 11% after reporting its fourth-quarter results after the closing bell last night.

So what: For the quarter, GSV Capital reported a net investment loss of $0.05 per share and a net realized loss of $0.61 per share. GSV did experience hefty unrealized appreciation of $67.9 million thanks to gains in holdings like Twitter and Facebook, but its loss was a stunner considering that Wall Street's few estimates had anticipated a profit of $1.40 per share. The company also announced that it had applied to change its status and become a regulated investment company so as to reduce its tax burden and pay out at least 90% of its taxable income to shareholders as a dividend.

Now what: While today's EPS miss was nothing short of atrocious, there are a lot of positives coming out of this report. Primarily, that GSV Capital is seeing huge unrealized gains in its assets that should reflect positively on its EPS down the road, and also that it's likely shareholders will receive a handsome quarterly dividend if its RIC conversion is approved. As long as we remain in a bull market, GSV's growth-heavy holdings should outperform, leaving it plenty of room to possibly head higher.

GSV Capital shares have soared over the past year, but even it could struggle to keep pace with this top stock in 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 14, 2014, at 3:39 PM, Exanut wrote:

    Thanks for your informative article. I couldn't understand why this investment company, who managed to increase their NAV to 14.91$ dropped rather than climb closer to its fair value.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2876544, ~/Articles/ArticleHandler.aspx, 9/2/2015 11:15:21 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Sean Williams

A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and in investment planning topics. You'll usually find him writing about Obamacare, marijuana, developing drugs, diagnostics, and medical devices, Social Security, taxes, or any number of other macroeconomic issues.

Today's Market

updated Moments ago Sponsored by:
DOW 16,177.41 119.06 0.74%
S&P 500 1,925.99 12.14 0.63%
NASD 4,676.03 39.93 0.86%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 10:39 AM
GSVC $8.70 Up +0.09 +1.05%
GSV Capital Corp CAPS Rating: ****