So PVL has invested $12.4 million over a 12 year period and that is worth $14.3m. Even accepting the low 20%pa target return stated by the CEO, and assuming the average investment life of the portfolio is 6 years then the $12.4m would be worth $37m not $14.3m ---- this reflects how poor PVL has been at investing in growth businesses.
What is worse however continues to be the unsubstantiated hype they try and deliver....e.g. Motim will provide a A$3.6m uplift in big print and in fine print - provided that Motim's DD says the deal works, that the shareholders approve and that the new company is IPOed for US$15m. Of course the uplift could be $100m if the IPO is at a higher valuation, or could be zero. In my view PVL has been very slective in its disclosure around this deal and is definitely back tracking on earlier statements.
Uplift in Invert Robotics - sorry they just did a capital round so unless they do another in the next 6 months then there is no grounds for an uplift in valuation, in my view.....making sales and signing commercial deals, will help validate the business but that is the basis of the exising investment.....I certainly hope that Invert is not forced into listing too ealry, like Crop Logic - the value destruction in that move is amazing.
PVL Price at posting:
25.0¢ Sentiment: Sell Disclosure: Not Held
