- Pro forma net cash position accounts for 73 per cent of market capitalisation.
- Portfolio of investee companies in the price for 67 per cent below estimated book value.
- Board restructured and operating costs being significantly reduced.
This biotech investment company is a classic Ben Graham recovery play. Having fallen out of favour under previous management, shareholders’ fortunes have turned a corner under a new board who are mandated to realise value from the portfolio.
There are some exciting investments, too, that have attracted the interest of heavyweight technology investors in recent funding rounds. This adds substance to the likelihood of further profitable exits in the future. Investee companies are also attracting the interest of big pharma.
Such exciting prospects are simply not being priced in, with the shares trading on an unwarranted 36 per cent discount to the read through portfolio valuation, even though cash backs up 73 per cent of the company's market capitalisation.
Download PDF
