We initiated coverage of Harris & Harris (TINY) in January and published another update Thursday. The recent IPO of NeoPhotonics (NASDAQ: NPTN) and acquisition of BioVex for around $1B were certainly positive developments. But things have continued to get better. In fact, we see a growing number of companies across an expanding set of industries that are enjoying commercial success with nanotechnology. And when I say that I mean impressive revenue growth, profitability and reaching a scale of operation that will allow some (like Solazyme) to become public companies and others to become desirable and substantive acquisition targets. The improved environment for “liquidity” directly benefits the Harris & Harris business and investment model.
The highlights of our Harris & Harris Coverage Update Report April 28 2011 (pdf) are provided below and include more background on several Harris & Harris portfolio companies. The report also takes a deeper dive into Metabolon in the molecular diagnostics space and Laser Light Engines, which represents a key part of what will be the next generation of digital projectors and entertainment. As described in our original report, Harris & Harris has a diverse portfolio of outstanding companies in these and other nanotechnology-focused innovation areas. We believe the current NAV of the portfolio understates the value of the assets and that the company deserves a premium to NAV which it will earn over time. Our intrinsic value estimate (IV) remains $12.
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