Venture: Mid Cap Venture Capital
Issue 9;
Significantly undervalued VC Portfolio.
IP Group (IPO)
I last recommended IPO in Whisky at 69.5p in July 2020 and sold it a year later for 114p. We may do even better this time. The recently updated analysts’ forecast from Berenberg and Numis is 133p, and if correct, this is dirt cheap with an implied 164% upside. This follows on from recent recommendations for undervalued diversified portfolios in Soda.
IP Group is Dirt Cheap
IPO has a diversified portfolio of companies split across life sciences, deeptech and cleantech. Their ideas are generated from universities, which they help to commercialise.
They just announced that one of their companies, Autifony, has signed a deal worth up to $770 million with Jazz Pharma. It is a reminder that some of their assets are hugely valuable, and this is an opportunity to acquire a diversified portfolio at a knockdown price. Company insiders have been net buyers for the past two years.
Risk
This is a diversified portfolio. Market liquidity is the main reason for the slump, and with the shares trading just £600k per day, it is unsuitable for Whisky. Sooner or later, liquidity will recover, and the price will rise. It is one for the patient. I deem this to be medium to high risk.
Venture Update
Nice to see the stocks looking perkier following the recent inflation data. Small and mid-caps stand a much better chance of success than mainstream large caps. TIG just reported good results. I reiterate BUY.
Please let me know your thoughts by emailing me at charlie.morris@bytetree.com or tweeting me @AtlasPulse.
Many thanks,
Charlie Morris
Editor, Venture
Venture is issued by ByteTree Asset Management Ltd, an appointed representative of Strata Global which is authorised and regulated by the Financial Conduct Authority. ByteTree Asset Management is a wholly owned subsidiary of CryptoComposite Ltd.
General - Your capital is at risk when you invest, never risk more than you can afford to lose. Past performance and forecasts are not reliable indicators of future results. Bid/offer spreads, commissions, fees and other charges can reduce returns from investments. There is no guarantee dividends will be paid. Overseas shares - Some recommendations may be denominated in a currency other than sterling. The return from these may increase or decrease as a result of currency fluctuations. Any dividends will be taxed at source in the country of issue.
Funds - Fund performance relies on the performance of the underlying investments, and there is counterparty default risk which could result in a loss not represented by the underlying investment. Exchange Traded Funds (ETFs) with derivative exposure (leveraged or inverted ETFs) are highly speculative and are not suitable for risk-averse investors.
Bonds - Investing in bonds carries interest rate risk. A bondholder has committed to receiving a fixed rate of return for a fixed period. If the market interest rate rises from the date of the bond's purchase, the bond's price will fall. There is also the risk that the bond issuer could default on their obligations to pay interest as scheduled, or to repay capital at the maturity of the bond.
Taxation - Profits from investments, and any profits from converting cryptocurrency back into fiat currency is subject to capital gains tax. Tax treatment depends on individual circumstances and may be subject to change.
Investment Director: Charlie Morris. Editors or contributors may have an interest in recommendations. Information and opinions expressed do not necessarily reflect the views of other editors/contributors of CryptoComposite Ltd. ByteTree Asset Management (FRN 933150) is an Appointed Representative of Strata Global Ltd (FRN 563834), which is regulated by the Financial Conduct Authority. https://register.fca.org.uk/
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