NEW YORK, April 20, 2017 /PRNewswire/ -- On April 7, 2017, Devonshire Research Group issued
an in-depth analysis of Allied Minds (LON: ALM), a Boston-based venture firm trading on the
London Stock Exchange with investments in the life science and
technology sectors. The report describes the rationale behind
Devonshire's short position on Allied Minds. Devonshire Research
Group argues that Allied Minds is overvalued because it has not to
date demonstrated success in identifying and monetizing technology,
and has limited potential to do so going forward. ALM's share price
has plummeted in recent days, a decline that reflects a broader
loss of confidence in the licensing-based business models of stocks
like ALM - publicly traded intellectual property companies, known
as PIPCOs.
Allied Minds has built a portfolio of investments in
university-based technologies via seed stage startups at early
stages of technology readiness. The technologies in Allied Minds'
portfolio, while promising in some respects, are typically many
years away from commercialization and have many potential failure
points ahead of them. While Allied Minds has had limited successful
monetization events or exits in their portfolio to date, they have
seen an average of two of their startup investments going out of
business per year, with a cumulative total of twelve startup
investment failures since 2010.
Devonshire Research Group has conducted a comprehensive
assessment of the value potential in each of Allied Minds'
subsidiaries. For businesses with little to no revenue, this is
typically quite difficult to do, but Devonshire's analysis applies
sophisticated patent analysis tools to evaluate the intellectual
property positions of each of Allied Minds' investment positions.
The report concludes that the subsidiaries lack the requisite IP to
be competitive in the markets they are attempting to enter and
possess patent portfolios that are both smaller and less central
than their competitors.
In addition to the comprehensive assessment of its subsidiary
technologies, the Devonshire Research Group report also compares
Allied Minds to other PIPCOs. Allied Minds has long based its
technology business development around university based
technologies protected by patents. Relative to other PIPCO's,
however, Allied Minds compares unfavorably: its subsidiaries have
little to no licensing revenue, the early-stage technologies
protected by its patents are many years away from commercialization
and its modest-sized patent portfolio is highly fragmented. Based
on the combination of its patent portfolio assessment and the
comparison to peers, Devonshire Research Group argues that ALM's
stock price is overvalued even after its sharp recent declines. The
full report is available for download at
www.devonshireresearch.com.
About Devonshire Research Group
Devonshire Research Group, LLC is a Registered Investment
Adviser pioneering advanced analytical methods and machine
learning techniques in uncovering overstated assets, investments,
and companies. The firm advises its clients on hard-to-value and
illiquid asset portfolio risks, valuation exposures, and
periodically publishes public research.
Legal Disclosure
This press release is not an attempt at solicitation by
Devonshire Research Group or its clients. Devonshire Research Group
is a FINRA-compliant state Registered Investment Adviser. Please
visit the website for additional compliance disclosures.
Devonshire Research Group is a member of the Financial Industry
Regulatory Authority, CRD number 283618.
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