Nanotechnology Now

Our NanoNews Digest Sponsors

Heifer International

Wikipedia Affiliate Button

Home > News > Whipsawed Nanotech VC Value

June 26th, 2007

Whipsawed Nanotech VC Value

Abstract:
It's no secret that certain nanotechnology stocks get whipsawed as news and investor enthusiasm for this new science heats up and then cools. Publicly traded nanotechnology venture capital firm Harris & Harris Group (nasdaq: TINY - news - people ) is a case in point.

This New York City-based firm is invested in a diversified range of early-stage nanotech companies. Its portfolio consists of 27 private companies, and its shares trade mostly on investor hype over their potential for growth. Earlier this month, the stock hovered around $11.50, with a market cap of $245.2 million. But with net assets of $113,930,303 and 21,015,017 shares outstanding at the end of 2006, TINY's net asset value (NAV) per outstanding share was $5.42. That means investors were getting $5.42 worth of value for a share price of $11.50--not a great trade if you're measuring performance by the usual metrics of sales and profits.

But, as I've written in earlier issues, conventional valuation metrics do not apply well to business development companies (BDCs) like Harris & Harris or similar firms, such as Allied Capital (nyse: ALD - news - people ) or MCG Capital (nasdaq: MCGC - news - people ). Since the growth of BDCs is so closely linked to the potential appreciation of their portfolios, most investors pay closer attention to the NAV--or more specifically, to how the share price compares with the NAV. Even by that measure, however, TINY's stock would seem overvalued.

Source:
forbes.com

Bookmark:
Delicious Digg Newsvine Google Yahoo Reddit Magnoliacom Furl Facebook

Related News Press

Investments/IPO's/Splits

Nanotech Grants Options September 22nd, 2016

Arrowhead Pharmaceuticals to Present at Upcoming September Conferences September 1st, 2016

Industrial Nanotech, Inc. Provides Shareholder Update August 22nd, 2016

Carbodeon Ltd Oy Closes EUR 1.5 million Funding Round From Straightforward Capital: Carbodeon will accelerate its nanodiamonds business and expand manufacturing capacity August 21st, 2016

Interviews/Book Reviews/Essays/Reports/Podcasts/Journals/White papers

Fighting cancer with sticky nanoparticles September 27th, 2016

Gold nanoparticles conjugated quercetin inhibits epithelial-mesenchymal transition, angiogenesis and invasiveness via EGFR/VEGFR-2 mediated pathway in breast cancer September 27th, 2016

Crystalline Fault Lines Provide Pathway for Solar Cell Current: New tomographic AFM imaging technique reveals that microstructural defects, generally thought to be detrimental, actually improve conductivity in cadmium telluride solar cells September 26th, 2016

Researchers at the Catalan Institute of Nanoscience and Nanotechnology show that bending semiconductors generates electricity September 26th, 2016

NanoNews-Digest
The latest news from around the world, FREE




  Premium Products
NanoNews-Custom
Only the news you want to read!
 Learn More
NanoTech-Transfer
University Technology Transfer & Patents
 Learn More
NanoStrategies
Full-service, expert consulting
 Learn More











ASP
Nanotechnology Now Featured Books




NNN

The Hunger Project







Car Brands
Buy website traffic