Initiation: December 14, 2017
J Capital Research ("J Cap") is an investment advisor to private funds. J Cap has analyzed the U.K.-listed company IP Group plc (“IPO”) and is hereby publishing the outcome and the conclusions of our analysis, based on publicly available information. Some of our clients may be short shares of IPO, and, for this reason, there might be a conflict of interest.
Disaster waiting to happen
IP Group has hurried to diversify risk from its biggest asset, Oxford Nanopore, a company that cannot make its technology work but whose valuation has been bloated by successive rounds of investment. Now, facing cash shortages, the company looks to be on the precipice of a major devaluation if not failure. That single company could drag down IPO’s price by 20%.
Screwy book values
IP Group is an accounting game more than a company and has an atrocious track record of delivering bankable returns.
Can’t help themselves
Private investors in IP Group share a collusive interest in creating high paper values for tech concept companies that generally fail.
We think the company is worth half its posted value at best.