"Less than a year ago, Link dramatically marked up the value of Woodford’s holding in the unquoted company by 357 per cent.Link said its revaluation of Industrial Heat “considered that the company’s development had not progressed at the rate upon which previous reviews were based”.
A Woodford spokesperson said: “Woodford is not responsible for unquoted valuations across any of its funds."
It has become clear, after a catalogue of poor stock picking, that Woodfords due diligence is fantasy. We probably knew this after the Rossi fiasco.
Additionally the valuations of the shares they bought is nothing to do with Woodford.
The valuations are the responsibility of Link
But how do Link put a value on IH
On what was the previous 357 percent based
How much do they know about what IH is doing
Have they popped in and had tea with Darden
Was the cup of tea produced using cold fusion
Sounds like this is also based on fantasy valuations.
No wonder they call such investments "unicorns".
So if the latest status update is disappointing then not much chance of good news from IH at ICCF22 in two weeks.
I am currently working on a project to produce flying pigs. But things are not progressing at the rate I hoped so I will be selling shares at only 300 percent mark up on the base value.
The base value is based on research I carried out while dreaming and assumes a market for flying pigs of 28 gazillion quatloos.
More seriously, in actual fact the stock markets are currently full of such fantasy valuations. Which is one of the reasons why a large market drop is looking increasingly likely.