This board is filled with rookies. They have not disclosed their new purchases, and the use of cash that was raised during the Feb secondary.. Moe said it takes 30-60 days to close deals. Theyn have not announced any uses of the cash. This is classic venture capital. You invest in this company, similar to a CMGI back dueing the internet bubble days, because they are able to get a place at the table for private companies , emerging technologies etc that are looking to go public. You are in on the ground floor, before they come to market. They need to fund operations, which includes their strategic plan to "invest" in these companies. The risk is they overpay in the private market, and when the companies go public, they can sell and make a capital gain. Its that simple. All of the other non-sense posted on this board is just that "non-sense". Fact is only two of these companies have gone public, Zynga and Groupon. Zynga is hedged, to limit downside, and participate upside. Groupn is losing them money. You are invested here for Facebook, and Twitter and some of the others. If you can't understand the business model, DONT INVEST!!!! Just my two cents.. SB3
Obviously, like I posted around the secondary, these guys needed capital. The underwriters floated the demand and price, and management took $15.. They needed the cash to fund operations (invest in start-ups and private companies). Better to get the cash, then have the market conditions change and they are out of luck. Wise decision. So a few people think they were screwed by dilution. REview in 2-3 years when their holdings go public and the stock is at $50
explain that when every investment they have made to date none have made a profit. Per today's releasing all investments are underwater except Facebook by 86k. They have lost half their investment on Groupon and are locked into the share to May the 12th. So what would give you the thought it would reach 50pps? You have to make profits in investments and to do date they haven't. Not even one and that!!! Their luck that the short's covered 25% the last 15days, else it would be a lot worse after hours and tomorrow. Not to mention their nave is 12 and change according to their quarter. So it's at a 50% premium right now!!! Major correction coming.
FIDUCIARY RESPONSIBILITY TO SHAREHOLDERS... No immediate need for more capital, sometime in the future if shareholders wish to generate higher returns and invest in more start-ups, secondary will be considered.