Chart of the Day: IPOs Are Exciting if You Already Own a Piece

No doubt SuRo Capital (SSSS) will be examining the IPO of SpaceX closely this coming Friday.

On June 12, SpaceX will likely be trading publicly for the first time, but SuRo is not an investor in the company. However, they do have a stake in OpenAI, which confidentially filed for an IPO this week. That IPO date is out into the future, probably some time in the fall.

SuRo is not an investor in Anthropic but that IPO will also draw its attention, this being very close perhaps to how the OpenAI market will look. OpenAI is SuRo’s largest portfolio position at 20.6%. We are happy to have a position in a company that will participate in one of the largest IPOs in history.

If the reception for SpaceX is big then SuRo might be ready for some nice upside when OpenAI goes public.

As for the SSSS chart, the stock remains in a solid uptrend. Higher highs, higher lows is the hallmark of an uptrend pattern, the candles remain blue or teal as volume trends are bullish.

The indicators are mixed, with bullishness in the Chaikin money flow (bottom pane) but a rollover in the MACD and stochastics. That is not bearish, rather it just alludes to a slowdown of the recent price trend in SuRo. A rest, if you will. However, with the OpenAI IPO on the way that “rest” may be short-lived.

Look for a move towards the $16-17 area as investors start sniffing around for opportunities in this space. SuRo is one of the few public companies where you can participate in owning shares before they are released into the wild.

We like SuRo in TheStreet Pro Portfolio and rate it a One, or “buy at anytime.”

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At the time of publication, TheStreet Pro Portfolio was long SSSS.