ANGLE - 83p ANGLE was formed in 1994 by former executives of KPMG's high technology consulting group to capitalise on the commercialisation of intellectual property.

Although the group has a consulting and management business, which is growing steadily, its principal activity is its Ventures business, which is used to establish, develop and create value in technology companies.

ANGLE has developed a proprietary process, Progeny, to develop these companies, which are referred to as Progeny companies. The group's unique business model means that it actually creates new companies that it owns during the critical early stages of development, before securing third party funding to move them to the next stage of development. The group believes that by leading the development of the new company, it is possible to both substantially exceed standard investment returns and reduce investment risk.

The Ventures business has successfully developed new companies in which it retains substantial equity stakes in the biotechnology, electronics and IT sectors. Ultimately, the objective is to exit the venture company at a profit and, last June, ANGLE floated its Progeny company Provexis on AIM through a reverse takeover.

At the placing price, ANGLE had made a gain of £2m, a ninefold increase on its original investment and, since then, the value of its stake has almost doubled as Provexis's share price has shot up.

To help fund its future development, ANGLE recently announced a share placing at 79p to raise up to £8.1m. The proceeds of this will be used to further develop the Ventures business and it is encouraging that the placing has been supported by existing and new institutional shareholders.

The company continues to make good headway, as demonstrated by the interim results to last October, where the highlight was the flotation of Provexis, although other Progeny companies also reported good technical progress. Overall, the group made a loss of £0.8m during the period mainly due to the continued investment in its Progeny companies although the outlook for the Ventures business is very encouraging.

A number of new companies are likely to be set up with the proceeds of the recent share placing and the group continues to work closely with major corporations and universities in both the UK and US.

The company's share price now stands at the lowest level since flotation in 2004 and we believe that this represents an excellent buying opportunity. Given the nature of the business, we have to say that the shares are relatively speculative, but those investors who are prepared to take a bit of a risk could be well rewarded. SPECULATIVE BUY.

WARNING: Opinions expressed are the writers' judgments at the time of writing. The information does not constitute a personal recommendation and readers should seek their own professional advice as to the suitability of the investments.