nice3 Dec 2018 11:06
INVESTORS CHRONICLE
October 03, 2018 (Just 7 weeks ago!)
TIP UPDATE: BUY AT 69.5p
Tip style: SPECULATIVE
Our previous tip: We said BUY at 162p on 25 Jan, 2018.
Tip performance to date: -57%
By Mark Robinson
Allied Minds (ALM), an IP commercialisation company, reported finance income of $4.3m (£3.3m) from a $58.2m loss due to a change in accounting methods. The company said the change was primarily from adjustments in its Spin Transfer, SciFluor and Precision Biopsy portfolio holdings.
Revenues were on the rise during the half-year on the back of contracts for Federated Wireless, offset in part by lower revenue from HawkEye360. Performance has been aided by thematic investing, focusing on creating businesses based on "theses and leveraged relationships with targeted research institutions".
President and chief executive Jill Smith said: "HawkEye360, Federated Wireless and STT are poised for commercialisation in 2019. Against this, Precision Biopsy and SciFluor have delayed the commencement of the next phase of their clinical trials by several months".
At the close of the period, Allied Minds total portfolio value was $350m, down from $396m million at its last report, with the decrease stemming from the reductions in value of Spin Transfer, SciFluor and Precision Biopsy.
IC VIEW
The shares have halved in value over the past year and sentiment remains bearish, a point borne out by a target price downgrade from Credit Suisse Group from 145p to 111p, suggesting 62 per cent upside from current levels. The consensus points to improvements in the gross margin and a reduction in the adjusted earnings loss, and though sentiment continues to weigh on the valuation, we think that the group still has potential to extract value from the existing portfolio. BUY.
Https://www.investorschronicle.co.uk/tips-ideas/2018/10/03/going-still-tough-for-allied-minds/
And what's the real kicker?
HawkEye360, Federated Wireless and STT are all poised for commercialisation in 2019.
In the meantime, the company's total portfolio value was £284.67m ($350m) against a market cap of £157.6m (69p).
TWO WORDS: PROFOUNDLY UNDERVALUED