Skip to main content
This Board Has Moved

This board has been migrated to our new platform! Check out the new home page at discussion.fool.com or click below to go directly to the new Board on the new site.

Go to the New Site
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
UTK has customers who form strategic alliances with them. That means the customer pays UTK a retainer fee each month to look for technoilogy that the customer might be interested in licensing. If they find it, say at a university, UTK forms a subsidiary company which licenses the product or technolgy. Then UTK does a stock swap with their customer in which they swap all of the shares of their subsidiary company for stock, (or sometimes cash), in their customers company.

They value the stock at a discount of 35 % from market, realizing that it may be tough to sell. They agree to hold it for a year. They thus have a huge stock portfolio, like a mutual fund.

Their earnings last quarter were huge, and this quarter will be huger still. They have signed 9 new alliances already this quarter and have done about 7 or 8 technology transfers so far, beating the record, which was last quarter.

Hope this helps
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.