Central Securities Corporation Releases Report to Stockholders

Rhea-AI Summary

Central Securities (NYSE American: CET), a closed-end investment company, has released its Report to Stockholders for the six months ended June 30, 2024. The report highlights significant growth in the company's financial position compared to the previous year:

• Net assets per common share increased from $44.18 to $52.58
• Total net assets grew from $1,235,924,219 to $1,492,593,177
• Shares outstanding rose from 27,976,386 to 28,387,828

These figures demonstrate substantial year-over-year growth in both per-share value and total assets under management for Central Securities

Positive

• Net assets per common share increased by 19% from $44.18 to $52.58
• Total net assets grew by 20.8% from $1.24 billion to $1.49 billion
• Number of shares outstanding increased by 1.5% from 27,976,386 to 28,387,828

Negative

• None.

Insights

Financial Analyst

The report from Central Securities reveals significant growth in their financial position. Net assets per common share increased by 19.0% year-over-year, rising from $44.18 to $52.58. This substantial growth indicates strong performance in the company's investment portfolio.

Total net assets grew by an impressive 20.8%, reaching $1.49 billion. This outpaces the increase in shares outstanding, which only grew by 1.5%. The disproportionate growth in assets compared to share count suggests that the majority of the gain came from investment appreciation rather than new capital inflows.

For investors, this report signals robust performance and effective management of the closed-end fund. However, it's important to consider market conditions and whether this growth rate is sustainable in the long term.

Market Research Analyst

Central Securities 's performance should be viewed in the context of the broader market. The S&P 500, a common benchmark, saw an increase of approximately 15% over the same period. CET's 19% growth in net asset value per share outperformed this benchmark, indicating strong stock selection and portfolio management.

The increase in shares outstanding, albeit small, could suggest some investor interest in the fund. However, as a closed-end fund, CET's market price can deviate from its NAV and investors should be aware of any premium or discount at which the fund trades.

While this report is positive, it's important to note that past performance doesn't guarantee future results, especially given the volatile nature of financial markets.

Investment Strategist

Central Securities 's report presents a strong case for active management in the current market environment. The significant outperformance compared to broader market indices suggests that the fund's managers have successfully identified and capitalized on profitable investment opportunities.

The closed-end structure of CET offers potential advantages, such as the ability to use leverage and invest in less liquid assets. However, it also means that the fund's market price can diverge significantly from its NAV, creating opportunities or risks for investors depending on the premium/discount situation.

Investors should consider CET's sector allocations and top holdings to understand the sources of this outperformance and assess whether the strategy aligns with their investment goals and market outlook. Additionally, examining the fund's expense ratio and distribution policy would provide a more comprehensive view of its attractiveness as an investment vehicle.

NEW YORK--(BUSINESS WIRE)-- Central Securities Corporation (NYSE American: CET), a closed-end investment company, today released its Report to Stockholders for the six months ended June 30, 2024.

Figures as of June 30, 2024 compared with those of one year ago, are as follows:

		June 30,		June 30,
		2024		2023
Net assets per common share		$52.58		$44.18
Net assets		$1,492,593,177		$1,235,924,219
Shares outstanding		28,387,828		27,976,386

Additional details are available at www.centralsecurities.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240814340421/en/

Central Securities Corporation

Marlene A. Krumholz, Secretary

212-698-2020

Source: Central Securities Corporation

FAQ

What was Central Securities 's (CET) net asset value per share on June 30, 2024?

Central Securities 's net asset value per share was $52.58 on June 30, 2024.

How much did Central Securities 's (CET) total net assets increase from June 30, 2023 to June 30, 2024?

Central Securities 's total net assets increased from $1,235,924,219 on June 30, 2023 to $1,492,593,177 on June 30, 2024, representing a growth of approximately $256.67 million or 20.8%.

What was the percentage increase in Central Securities 's (CET) net asset value per share from June 30, 2023 to June 30, 2024?

Central Securities 's net asset value per share increased by approximately 19%, from $44.18 on June 30, 2023 to $52.58 on June 30, 2024.

How many shares of Central Securities (CET) were outstanding as of June 30, 2024?

As of June 30, 2024, Central Securities had 28,387,828 shares outstanding.