Harris & Harris Group: Big Portfolio, Hidden Gem
WallStArb • 19 Comments
WallStArb • 19 Comments
Harris And Harris Group Trading At Sharp Discount With Upcoming Catalysts And New Found Strategy
Chris Katje • 21 Comments
Chris Katje • 21 Comments
Tue, Aug. 9, 2:53 PM
Tue, May 31, 7:58 PM
- Patricia N. Egan is resigning and Harris & Harris' (NASDAQ:TINY) CFO and chief compliance officer, effective June 30. President/COO Daniel B. Wolfe is replacing Egan as CFO and compliance chief; Wolfe was previously CFO from 2008-2013. (8-K filing)
- The company also says it's eliminating the title of COO, as well as that of managing director. Wolfe and chairman/CEO Doug Jamison have held the title of managing director.
Tue, May 10, 12:02 AM
Wed, Mar. 16, 6:10 AM
Wed, Feb. 3, 12:41 PM
- Harris & Harris' (TINY +6.3%) Magic Leap raises $793.5M in a new funding round led by Alibaba Group.
- Another portfolio company - Mersana Therapeutics - enters a partnership with Takeda Pharmaceuticals giving Takeda the rights to market Mersana's XMT-1522 outside the U.S. and Canada. Mersana will receive an upfront payment of $40M and another $20M upon clearance of the investigational new drug application by the FDA. Milestone payments could go above $750M, as well as royalties.
Mon, Jan. 25, 3:16 PM
- Modest declines in the major averages are masking the continued liquidation in a number of financial sectors.
- Hotel REITs: Pebblebrook Hotel (PEB -2.4%), LaSalle Hotel (LHO -2.2%), FelCor Lodging (FCH -2.9%), DiamondRock Hospitality (DRH -3.3%)
- Nonbank servicing: Ocwen Financial (OCN -6.9%), Walter Investment (WAC -10.5%), Nationstar Mortgage (NSM -6.7%), Altisource Portfolio (ASPS -4.6%), New Residential (NRZ -3.2%)
- Mortgage REITs: Two Harbors (TWO -3.8%), Invesco (IVR -4.3%), American Capital Mortgage (MTGE -3.4%), Western Asset (WMC -3.7%), Apollo Residential (AMTG -3.8%), AG Mortgage (MITT -3.9%)
- BDCs: Prospect Capital (PSEC -4%), Apollo Investment (AINV -2.2%), Medley Capital (MCC -4.1%), Gladstone Capital (GLAD -4.4%). A few in this sector are managing gains though: Main Street (MAIN +1%), TICC Capital (TICC +1.9%), Harris & Harris (TINY +1.8%)
Dec. 28, 2015, 12:41 PM
- Venture capital outfit Harris & Harris (TINY -0.5%) receives $2.1M from the achievement of an undisclosed milestone associated with Amgen's acquisition of BioVex Group in March 2011. The payment increases its total gross proceeds from the sale to ~$12.8M, more that triple its original investment of ~$4M. Its return could increase by another $5.4M upon the achievement of additional undisclosed milestones.
Nov. 16, 2015, 10:57 AM
- Harris & Harris Group's (TINY +1.4%) portfolio company, D-Wave Systems, has entered into a multi-year agreement with Lockheed Martin (LMT +2.4%) to upgrade the firm's 512-qubit D-Wave Two quantum computer to the new D-Wave 2X system with 1,000+ qubits.
- This represents the second system upgrade since Lockheed Martin became D-Wave's first customer in 2011 with the purchase of a 128-qubit D-Wave One system.
Nov. 10, 2015, 7:51 AM
- Frustrated by the "paradox" of company investments performing well, but said performance not being translated into a stronger NAV or share price, Harris & Harris (NASDAQ:TINY) announces four steps to be taken immediately:
- 1) Cut net operating losses by 25-30% next year by slashing some $4M in expenses;
- 2) Return a higher portion of future realized gains to owners in the form of dividends and buybacks. The company launched a $2.5M six-month buyback plan in Q3, and to date has repurchased 418.2K shares;
- 3) Focus new investments on companies with the potential to generate near-term income;
- 4) Seek to build certain current/future portfolio companies addressing the precision health and medicine markets as majority-owned subsidiaries or controlled partner companies.
- NAV per share of $2.80 as of Sept. 30 fell from $3.34 one quarter earlier. Last night's close was $2.11.
Oct. 27, 2015, 12:36 PM
- After pricing its 5M-share IPO at $5 (well below an initial range of $10-$12), Adesto Technologies (NASDAQ:IOTS) opened at $5.60 and is currently at $5.89, up 17.9%.
- Adesto, which makes low-power memory for wireless and embedded/IoT devices, is valued at a modest $87M, or 2.1x 2014 sales. Harris & Harris (TINY -0.5%) has a 1.57M-share (10.6%) post-IPO stake currently worth $9.2M.
- Prospectus, IPO analysis
- Previously: Low-power memory maker Adesto files for IPO
Oct. 11, 2015, 7:19 PM
- "Since landing in San Francisco on Wednesday, I’ve met with an assortment of senior venture capitalists, bankers, entrepreneurs and crossover investors," writes Fortune's Dan Primack in a recent column. "All of them have, in one way or another, been involved with so-called ‘unicorn’ companies. As in the past, they are nearly unanimous in sentiment. The difference now is that their sentiment is fear."
- With the Nasdaq having swooned in recent months (companies with steep multiples and/or heavy cash burn have been especially hard-hit) and several prominent tech IPOs trading below their offering prices, many of the investors who who poured money into dozens of private tech companies at $1B+ valuations are becoming more cautious.
- An unnamed tech banker: "This shift is only five or six weeks old, so most companies haven’t felt it yet. But I know of many companies who raised money at $1 billion valuations last year that are now being told that, to raise money now, they need to take around $700 million or $800 million."
- The ranks of private tech companies sporting $1B+ valuations (the proverbial unicorns) has exploded over the last three years, with much of their funding coming from non-traditional sources. UBER ($51B valuation), Airbnb (AIRB - $25.5B), Palantir ($20B), Snapchat ($16B), Flipkart (FPKT - $15B) are among the most high-profile unicorns.
- Publicly-traded investors in private tech companies: GSVC, SVVC, TINY
- 8 months ago: VC Gurley argues fear of missing out leading startup valuations to soar
Oct. 2, 2015, 10:13 AM
- Canon bought the former portfolio company of Harris & Harris (TINY -1.4%) in April 2014. Following the achievement of certain targets by Molecular, TINY received a check for $800K from Canon, bringing total gross proceeds from the sale of $7.8M.
- Harris & Harris could receive another $900K upon achievement of an additional milestone. Its original investment in Molecular was $4.5M.
Sep. 29, 2015, 3:24 PM
- It's not just about energy anymore, according to a BAML report. "The malaise is spreading." High-yield, says the team, "[is] a slow-moving train wreck that just seems to be accelerating."
- Equity-type proxies for the high-yield market, business development companies are under major selling pressure again today, with already large discounts to NAVs growing even wider.
- Previously: Ares Capital greenlighted for $100M in buybacks (Sept. 28)
- Prospect Capital (PSEC -3.6%), Ares Capital (ARCC -2.7%), Apollo Investment (AINV -4%), TCP Capital (TCPC -5.4%), Monroe Capital (MRCC -4.5%), Oxford Lane Capital (OXLC -5.4%), PennantPark Investment (PNNT -1.8%), American Capital (ACAS -2.5%), Medley Capital (MCC -4.1%), Harris & Harris (TINY -5.4%)
- ETFs: BDCL, BDCS, BIZD, FGB
Sep. 15, 2015, 12:04 PM
- Adesto Technologies, a company declaring itself to provide "the world’s lowest power memory solutions," has filed for an IPO under the symbol IOTS. Needham, Oppenheimer, and Roth are underwriting. (prospectus)
- Adesto's chips rely on a type of resistive RAM (ReRAM) called CBRAM, which (per Adesto) delivers lower power consumption and superior write speeds relative to rival non-volatile memories, and are well-suited for wireless and embedded/IoT devices. The company also sells serial flash ICs, and licenses its CBRAM IP to 3rd-party SoC developers.
- Rivals include Micron, Atmel, Cypress, and STMicroelectronics. Though Adesto's design wins have grown to 88 in 1H15 from just 32 in 2013, top-line growth has been hard to come by in recent quarters. The company had 1H15 revenue of $20.3M (-4% Y/Y), and a net loss of $4M. 2014 revenue totaled $41.5M (-16% Y/Y), and net loss $8.9M.
- VC firm Harris & Harris (TINY +1.7%) owns a 16.2% pre-IPO stake.
Aug. 11, 2015, 11:15 AM
- "When there is such a disconnect in the potential value of our Company and the price reflected in the stock, we believe one of the best investments we can make is in our own stock," says Harris & Harris (TINY +9.3%), announcing authorization to buy back up to $2.5M of company shares.
- That would be roughly 1M shares at the current price of $2.57, or just over 3% of the float.
- Cash received from the sale of some portfolio companies will be used to make the purchases.
- Net asset value per share of $3.34 as of June 30 vs. $3.51 at the start of the year, and $3.87 one year ago.
Jul. 22, 2015, 10:27 AM
- Smart-lighting company Bridgelux agrees to be acquired by an investment group led by China Electronics Corporation.
- Harris & Harris (NASDAQ:TINY) invested a total of $5.4M in Bridgelux, beginning with an initial amount of $3.5M in 2005. In addition to cash proceeds at the time of sale, TINY will receive equity in Xenio Corp., a spinoff company focused on commercializing Bridgelux's business.
Harris & Harris Group, Inc. (New York) is a business development company that makes venture capital investments in science-enabled companies, particularly those that are commercializing or integrating products enabled by nanotechnology or micro systems. The fund focuses on companies operating in... More
Industry: Diversified Investments
Country: United States