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IP2IPO - High quality pool of intellectual property

November 2003

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

 Spun out of stockbroker Evolution Beeson Gregory last month, the key point about shares in IP2IPO, 325p, which has been set up to commercialise university inventions, is the sheer size of the opportunity. According to broker Peel Hunt despite the high quality of academics and research in the UK, universities generated just £16m in 2001 from directly licensing their intellectual property.  This compares to the US and Canada, where total licensing income was US$1.1 billion, and has been growing at 15% each year. Columbia University alone generated US$133m in 2002 taking its licence income to over US$300m in the past five years. The number seems incredibly tiny when compared to the fact that universities received funding of £14 ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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