lux research credibility

Lux Research credibility

From my scratching around it appears these reports are not paid for by the company being researched.

It is a subscription service accessed from many around the world including governments and companies.

Japans Nikkei is using Lux Research for their clients. Up to 70% of listed companies in Japan have access to this research.

Unlike broker reports there appears to be arms length assessment and that it relates to the prospects of the company and not related to share price performance or predictions.

A lot of the companies being researched are found by their secondary research ie looking at competitors to companies they are researching. Also by tips/requests from Lux clients as to who to research.(Could this be how POH got researched? A prospective partner or customer doing due diligence?)

They speak to the key personal at the company in interviews.

Their researchers are PHDs in relevent areas.

By nature with their research they end up looking at many if not all companies within a technology area. They then compare these companies and rate them. This is an ongoing assessment done yearly.

They have their own ratings based on:
(This has been taken from a video of a Lux Research Targeted Delivery presentation)

4 criteria for Technical Value
10% technology/solution value
30% IP position
30% competitive landscape
30% targeted delivery performance

5 criteria for Business Execution
25% momentum
20% partnerships
10% revenue
20% barriers to growth
5% regulatory factors

4 criteria for Maturity
30% employee count
30% stage of development
30% revenue
10% age

Here is an example from Nov 2010