Sutter Rock Capital (SSSS) owns about 5.77m Palantir (PLTR) shares dating back to 2012. Sutter Rock Capital gave it a fair value stock price of $5.29 in their last 10Q but Wall Street Journal posted an article last night that Palantir’s IPO will likely open trading at $10. I predict Palantir will trade around $12 to $15+ with Sutter Rock Capital trading around $16 to $23 dollars.
Secretive counterterrorism and data analytics company Palantir Technologies has filed to go public in September.
Palantir recently filed to go public via a direct listing that will take place in September.
Early estimates call for a $20 billion or more valuation for the data analytics company, which is venturing from the private sector to public sector in hopes of growing revenue. The company is estimating that 2020 revenue will hit $1 billion and rise to $1.5 billion in 2021.
Sutter Rock Capital (SSSS) & Palantir (PLTR)’s relationship
In the second quarter, Sutter Rock Capital reported a net asset value of $11.84 per share. This was an increase from the $10.22 reported in the first quarter. Palantir was the company’s third-largest holding.
Sutter Rock is valuing its stake in Palantir at $30.5 million with a cost basis of $16.2 million. This makes the stake just over 15% of the company’s portfolio. According to its earnings call, Sutter Rock has an implied valuation of $12 billion for Palantir.
Should you invest in Sutter Rock Capital (SSSS)?
Shares of Sutter Rock Capital (SSSS) appear to be a very good investment option, the Money Midnight Indicator is expecting its price to increase considerably in the next several years. The majority of the metrics point to this investment being highly attractive.