( $IDEA ) Research Report out on IDEA
http://thirdpointresearch.com/wp-content/uplo...2014-2.pdf
• INVENT Ventures, Inc. is a publicly traded Business Development Company (BDC) focusing on very early stage venture investments in Internet, mobile communications, and biotech arenas.
• We believe the portfolio of companies assembled by INVENT’s management team is exciting because of the clear focus on disruptive technologies, near-term revenue opportunities, significantly sized markets, and social media interaction.
• The companies within the portfolio are clearly very early stage, but because these companies are focused on areas that could potentially grow very rapidly – it appears to us there is significant upside possibilities.
• It appears the REVENUE.COM platform, operated by portfolio company VIRURL, Inc., is growing rapidly. The Company recently announced a public offering for this business unit, which could yield strong returns for investors who own IDEA shares. We also believe the listed net asset value of Sanguine BioSciences, Inc. is significantly too low.
• As of the end of the March quarter, stated net asset value per share was $0.14. Currently, shares trade at $0.23, which indicates that investors believe the portfolio is worth far more than the carried net asset value per share. Our recalculated estimated fair value for the shares is $0.42.
• We could easily see a scenario where either VIRURL and/or Sanguine are actually valued higher than our estimate. Additionally, we did not adjust the stated market value of Stockr, Inc., which we believe could easily be valued considerably higher should the business plan be executed as planned.
• We believe investing in publically traded BDCs involved in the venture funding of emerging companies is a sound way for risk adverse investors to potentially significantly increase returns by gaining investment exposure to some of the most exciting technology companies entering the marketplace.
• Shares are rated Strong Speculative Buy.
