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| Rediscovered Value
The Rediscovered Value program is directed at “venture stage”, publicly traded internet and technology related companies. It is believed that some of the best venture stage opportunities currently exist among the ~500 internet related firms that completed Initial Public Offerings in the period between Netscape’s IPO in 1995 and the bursting of the stock market bubble in 2000. Among the fundamental beliefs of the Rediscovered Value investment program are a) that a select number of performing companies have been overlooked by the dramatic, and quite appropriate, swing in investor sentiment, b) that applying operational knowledge of internet business models to rigorous fundamental analysis can identify which can create superior investment returns comparable to historical venture capital returns, and c) that while timing can be difficult to predict, the marketplace assures that value is ultimately realized. Many companies have raised enough capital to overcome funding risks, have as much cash value as market value, are approaching positive earnings momentum, and are not being accorded full risk-adjusted valuations. The market environment they are now facing is less able to adequately reflect the proper value of these "broken IPOs”. Their businesses are performing well, but the limited research coverage and recent lack of institutional attention have created inefficiencies in their share prices. Tremendous value opportunities can be uncovered by applying hands-on venture building expertise and rigorous private equity frameworks to select small capitalization technology companies. |
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