Do you mean an uplift in NTA (aka NAV) or the share price?At the...

Do you mean an uplift in NTA (aka NAV) or the share price?

At the highest level, the thesis here (PVL) is that we have a portfolio of venture capital (VC) style investments (mostly deep tech; quantum, space, clean energy, etc.) that have a net asset value (NAV) of ~9c per share versus a current share price of ~5c. I.e. deeply out of favour with the market today.

So there are two ways to make money here, either the discount of share price to NAV closes from 45% to something closer to 10% or the underlying NAV rises over time as the portfolio companies (like Liquid Instruments) continue to grow and go through new funding rounds.

Some believe that Liquid Instruments will be the first Unicorn from the ANU. I'm also interested in Skykraft & Quantum Brilliance (both also in the portfolio and both also with Canberra ties actually).

The risks are that i) the discount of share price to NAV never closes (although the share price actually traded at a premium to NAV in 2021) or that ii) the underlying rise in net asset value does not exceed the (small) level of operating cash burn (i.e. the VC investments don't perform well enough).

As you can see in the chart below, NTA has climbed from 7.3c/share in Dec 2021 to 9.1c/share as of late. That's a 25% increase in 1.5 years. Not bad. I'd be very impressed if they continue to compound NTA at >15% CAGR.