Spreading the risk30 Jun 2020 22:27
Questors view on IPGroup. Risky but interested in views from all - shares the risk a bit and need less £ to spread your risk.
Anyone have a view??
The portfolio is nicely diversified and progress at holdings such as Ceres Power, the fuel cell developer, Featurespace, the machine learning specialist, and Oxford Nanopore, the genomic sequencing expert involved in the fight against Covid-19, has allowed IP Group to raise £114m from asset sales in 2020, already beating last year’s record of nearly £80m. The proceeds will buttress a balance sheet that already had net cash.
In addition, the shares trade at a 41pc discount to their last stated net asset value of 108p. Granted, the methods used to value early-stage companies are subject to debate but such a lowly valuation factors in a lot of the dangers.
IP Group is still a risky play but it could pay off in the long term.