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An unloved deep value play

A Boston-based intellectual property (IP) commercialisation company is undertaking a strategic review that could lead to a sale of the company and release value to shareholders
An unloved deep value play
  • Strategic review could lead to an outright sale of the investment company
  • Latest funding round of portfolio company Federated Wireless implies Allied Minds’ stake is worth 40 per cent more than its own market capitalisation
  • Investee company Orbital Sidekick in discussions with strategic partners to provide funding to add its product to an additional six satellite launches

Allied Minds (ALM:17.5p), a Boston-based intellectual property (IP) commercialisation company focused on investing in early-stage companies with disruptive technologies, is undertaking a strategic review that could lead to an outright sale of the company, or alternatively distribution of its assets and cash reserves to its long-suffering shareholders.

The complexities of IFRS accounting standards means that the best way to value Allied Minds is on a sum-of-the-parts basis given that the last reported net asset value of $44.65mn (15.1p a share) in the recently published 2021 annual accounts materially understates the value held in its portfolio companies.

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