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Innovaro, Inc. Message Board

  • wolfteeth_1 wolfteeth_1 Oct 30, 2006 12:52 PM Flag

    Stop the Kvetching!

    That means stop the complaining and bitching and moaning!

    With respect to why the company has not responded to the Mark Cuban blog, I can only guess that the company does not want to respond to a blog. I believe if the New York Times or investment business daily came calling, perhaps the company would respond. Why give credibility to a blog that may or may not be accurate even if it is Mark Cuban speaking his mind?

    I would surmise that the company in due time will respond to what the blog has spelled out.

    However, I am aware that 13 of the companies mentioned in the blog are not current customers of utek. Also multiple companies mentioned actually acquired technologies more than three years ago.

    I am also aware that throughout the history of the company the outflow of cash to acquire technology licenses from university or government labs exceeds by about $1 million or so the cash received upon selling stock. Also the company reported in their financial statements about $60 million in investments that are discounted from 30 to 50%.

    I am also aware that all revenues reported are discounted by 30 to 50% by independent valuation. Also all assets reported are discounted by 30 to 50% by an independent valuation. The independent valuation is conducted every 90 days led by a Wharton business school associate.

    The utek board that approves the technologies for transfer includes a former Nobel Prize winner and other members of the distinguished scientific community. As far as customers go utek meets with them and also the University that transfers the technology also meets with the company.

    I would recommend to all those who are kvetching to go to the website of utek. I think one can learn a lot about the company and one can get the feeling like I have that Mr. Cuban does not understand the technology transfer business.

    Mr. Cuban has successfully driven down the stock. I find it personally repulsive that he financially benefited from his celebrity. I would have more respect for the man if he articulated his position on utek before taking a financial bet on the stock before releasing his blog.

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    • Thanks for all the messages I have seen. I am holding on! In fact I may buy more, but they are having a earnings report and conference call on November 3rd. Thus, they will probably address it there.

    • wolf,

      Good post, couple comments. First, I don't feel the source of the information that resulted in the company losing almost half its market cap should matter. The sooner it responds the faster the air is cleared.

      Second, the following information from the 10Q shows that the companies are not necessarily valued by an independent party.

      "The value of all securities for which there is no readily available market value is determined in good faith by the
      Board of Directors. In making its determination, the Board of Directors has considered valuation appraisals provided
      by an independent valuation service provider."

      "At June 30, 2006 and December 31, 2005, investments amounting to $61.6 million or 86% of our net assets and $26.4 million or 59% of our net assets, respectively, have been valued at fair value as determined by our Board of Directors. Pursuant to the requirements of the 1940 Act, our Board of Directors is responsible for determining in good faith the fair value of our investments for which market quotations are not readily available. Because there is typically no readily available market value for the investments in our portfolio, our Board of Directors determines in good faith the fair value of these investments
      pursuant to a valuation policy and a consistently applied valuation process. There is no single standard for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. If we were required to sell any of such investments, there is no assurance that the fair value, as determined by the Board of Directors, would be obtained. If we were unable to obtain fair value for such investments, there
      would be an adverse effect on our net asset value and on the price of our common stock."

      Third, I don't think it was right to post the article without first allowing the company to respond to it. If the company's books are in order, then the damage will have already been done.

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