Valuing the Intellectual Property of the South Bay

Certainly the foundation that a short sale property purchase will lie upon is that of value. If again the purchase is entered into at a margin below the valuation, the objective of every investor is realized. In similar fashion, intellectual property to date is yet to be the subject of an accurate valuation system; it is far too fluid a medium.

Accordingly, valuation of intellectual property has failed to succumb to any type of uniform accounting convention, and balance sheets routinely omit attributing value to this type of asset. If indeed they do it is either an arbitrary or nominal amount. This being the case, entities that are laden with intellectual property will necessarily be undervalued, and so offer great investment potential. Those that derive their very character from intellectual property will offer the most potential for profit of all.

The South Bay district encompasses what is the world’s largest concentration of technological research and development. Clearly, this intellectual property will also remain unrecognized and so offers similar economies of investment for prospective buyers.

In this respect, the short sale that has necessitated months of inane deliberation before closing will in all likelihood remain an investment of exceptional quality considering the great undervaluation at its onset. Furthering the call to decisive action on the part of the buyer in a short sale transaction, the South Bay region stands alone as a geographical anomaly offering such promise.

Indeed the very onset of intellectual property recognition in areas such as California’s Silicon Valley may well ignite similar specialization in property markets around the epicenters of the world’s technology. For the moment, the Silicon Valley seems to bear that title.

Of course, the benefit of property surrounding its intellectual counterpart is limited, and at some point the market will reasonably price in an adaptation of its reasonable value. Until then however, intellectual property has gone unnoticed and rarely factored into the machinations of investment decisions. It is simply due to an inability to measure them that they have eluded us thus far.

When balance sheets around the world begin to display a carefully deduced intellectual property valuation, it will be too late to invest in the South Bay. It is a commitment to the acquisition of property now that will allow a healthy profit; otherwise the value would have long since been exploited by market predators.

The prevalence of short sales available in the South Bay at present is unlikely to continue. While banks prefer to be depleted of bad debts, they do indeed benefit from a known and controlled sale in the present, without having to enter into an unknown transaction in the future. Regardless of the volume of bad debts, any individual bank needs to convert these debts into cash, and only then can they reconsider the practice of lending to the private sector The private sector will use its intellectual property in time to develop unbounded innovation. Corporations thrive on innovation. This is what makes corporations an excellent hedge against inflation. As innovation increases, productivity does too, and this will invariably lead to an increase in the share price, and economic growth.

Posted by Eureka Expert on Mar 28 2010. Filed under Economy, Housing, Short Sales. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry