This post was just published on ZYX Buy Change Alert.
Twitter has started the process of its IPO. GS will be the lead underwriter. At this time it is not known the names of other brokers who will be members of the syndicate. When the time comes subscribers may consider getting as much Twitter as they can in the IPO.
Prior to the IPO there are two publicly traded vehicles that investors may consider — GSVC and SVVC.
About 15% of GSVC NAV is in Twitter. On emotion and momentum, GSVC can easily run up to $20. As of this writing it is trading at $13.70. Please be aware that according to the Quantitative Screen of the ZYX Change Method from a long-term perspective the fair value of GSVC is about $10.
About 10% of SVVC NAV is in Twitter. SVVC can easily run to mid $30s. As of this writing it is trading at $24.85. Please be aware that according to the Quantitative Screen of the ZYX Change Method from a long-term perspective the fair value of SVVC is about $20.
For us to recommend, a stock must pass at least four of the six screens. We prefer a stock to meet all six screens. Our rigorous criteria has led to enviable performance over a long period of time. We periodically provide intelligence on trades that we do not recommend, but our subscribers may be able to take advantage.
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