180 Degree Capital Corp. Notes Average Discount of Net Asset Value Per Share to Stock Price for Ninth Month of Initial Measurement Period of Its Discount Management Program
180 Degree Capital Corp. (NASDAQ: TURN) reported an average discount of approximately 21% between its estimated daily net asset value per share (NAV) and its daily closing stock price in September 2024. The year-to-date average discount through September 2024 was about 20%, with a 24% discount on September 30, 2024. The company's Board of Directors is evaluating options under its Discount Management Program, which could include expanding the stock buyback program, cash distributions, or a tender offer if the average daily discount exceeds 12% during specified measurement periods.
CEO Kevin M. Rendino noted a potential shift in sentiment towards small-cap stocks, partly due to the Fed's interest rate reduction. The company believes the current discount to NAV doesn't reflect the potential upside of its portfolio. President Daniel B. Wolfe emphasized that no decisions have been made regarding ending the first measurement period early or taking specific actions, and the Board will prioritize the interests of all shareholders in any decisions made.
180 Degree Capital Corp. (NASDAQ: TURN) ha riportato uno sconto medio di circa il 21% tra il suo valore netto patrimoniale stimato per azione (NAV) e il prezzo di chiusura delle azioni quotidiane nel settembre 2024. Lo sconto medio dall'inizio dell'anno fino a settembre 2024 è stato di circa il 20%, con uno sconto del 24% il 30 settembre 2024. Il Consiglio di Amministrazione della società sta valutando opzioni nell'ambito del suo Programma di Gestione degli Sconti, che potrebbe includere l'espansione del programma di riacquisto delle azioni, distribuzioni in contante o un'offerta pubblica di acquisto, se lo sconto medio giornaliero supera il 12% durante i periodi di misurazione specificati.
Il CEO Kevin M. Rendino ha notato un potenziale cambiamento nel sentimento verso le azioni a piccola capitalizzazione, in parte dovuto alla riduzione dei tassi d'interesse da parte della Fed. La società ritiene che l'attuale sconto rispetto al NAV non rifletta il potenziale di crescita del suo portafoglio. Il Presidente Daniel B. Wolfe ha sottolineato che non sono state prese decisioni riguardo la cessazione anticipata del primo periodo di misurazione o azioni specifiche, e il Consiglio darà priorità agli interessi di tutti gli azionisti in qualsiasi decisione venga presa.
180 Degree Capital Corp. (NASDAQ: TURN) reportó un descuento promedio de aproximadamente el 21% entre su valor neto de activos estimado por acción (NAV) y el precio de cierre diario de sus acciones en septiembre de 2024. El descuento promedio desde el inicio del año hasta septiembre de 2024 fue de aproximadamente el 20%, con un descuento del 24% el 30 de septiembre de 2024. La Junta Directiva de la empresa está evaluando opciones en el marco de su Programa de Gestión de Descuentos, que podría incluir la expansión del programa de recompra de acciones, distribuciones de efectivo u una oferta pública de adquisición si el descuento promedio diario supera el 12% durante los períodos de medición específicos.
El CEO Kevin M. Rendino señaló un posible cambio en el sentimiento hacia las acciones de pequeña capitalización, en parte debido a la reducción de tasas de interés de la Fed. La empresa cree que el descuento actual en relación al NAV no refleja el potencial de aumento de su cartera. El presidente Daniel B. Wolfe enfatizó que no se han tomado decisiones sobre la finalización anticipada del primer período de medición o sobre acciones específicas, y la Junta priorizará los intereses de todos los accionistas en cualquier decisión que se tome.
180 Degree Capital Corp. (NASDAQ: TURN)은 2024년 9월에 주당 추정 순자산 가치(NAV)와 일일 종가 사이에 평균 약 21%의 할인율을 보고했습니다. 2024년 9월까지의 연초 평균 할인율은 약 20%였으며, 2024년 9월 30일에는 24%의 할인이 있었습니다. 회사의 이사회는 할인 관리 프로그램의 일환으로 옵션을 평가하고 있습니다, 여기에는 주식 매입 프로그램 확대, 현금 분배 또는 특정 측정 기간 동안 평균 일일 할인율이 12%를 초과할 경우 공개 매수 등이 포함될 수 있습니다.
CEO Kevin M. Rendino는 연준의 금리 인하로 인해 소형주에 대한 정서가 잠재적으로 변화할 수 있다고 언급했습니다. 회사는 현재 NAV에 대한 할인이 포트폴리오의 잠재적인 상승세를 반영하지 않는다고 믿습니다. 대통령 Daniel B. Wolfe는 첫 번째 측정 기간을 조기 종료하거나 특정 조치를 취하기에 대한 결정이 이루어지지 않았으며, 이사회는 모든 주주의 이익을 우선적으로 고려하겠다고 강조했습니다.
180 Degree Capital Corp. (NASDAQ: TURN) a rapporté un rabais moyen d'environ 21 % entre sa valeur nette d'actif estimée par action (NAV) et le prix de clôture quotidien de ses actions en septembre 2024. Le rabais moyen depuis le début de l'année jusqu'en septembre 2024 était d'environ 20 %, avec un rabais de 24 % le 30 septembre 2024. Le conseil d'administration de l'entreprise évalue des options dans le cadre de son programme de gestion des rabais, qui pourrait inclure l'expansion du programme de rachat d'actions, des distributions en espèces ou une offre publique d'achat si le rabais moyen quotidien dépasse 12 % pendant des périodes de mesure spécifiques.
Le PDG Kevin M. Rendino a noté un potentiel changement d'opinion envers les actions à faible capitalisation, en partie en raison de la réduction des taux d'intérêt de la Fed. L'entreprise estime que le rabais actuel par rapport au NAV ne reflète pas le potentiel de hausse de son portefeuille. Le Président Daniel B. Wolfe a souligné qu'aucune décision n'a été prise pour mettre fin anticipativement au premier délai de mesure ou pour prendre des mesures spécifiques, et que le conseil priorisera les intérêts de tous les actionnaires dans toutes les décisions prises.
180 Degree Capital Corp. (NASDAQ: TURN) berichtete im September 2024 von einem durchschnittlichen Rabatt von etwa 21% zwischen dem geschätzten täglichen Nettovermögen pro Aktie (NAV) und dem täglichen Schlusskurs der Aktie. Der durchschnittliche Rabatt seit Jahresbeginn bis September 2024 betrug etwa 20%, mit einem Rabatt von 24% am 30. September 2024. Der Vorstand des Unternehmens bewertet Optionen im Rahmen seines Rabattverwaltungsprogramms, das die Erweiterung des Aktienrückkaufprogramms, Barauszahlungen oder ein öffentliches Kaufangebot umfassen könnte, wenn der durchschnittliche tägliche Rabatt während festgelegter Messzeiträume 12% übersteigt.
CEO Kevin M. Rendino merkte einen möglichen Stimmungswechsel hin zu Aktien mit kleiner Marktkapitalisierung an, teilweise aufgrund der Zinssenkungen der Fed. Das Unternehmen ist der Ansicht, dass der aktuelle Rabatt zum NAV das Potenzial seiner Portfolios nicht widerspiegelt. Präsident Daniel B. Wolfe betonte, dass keine Entscheidungen über die vorzeitige Beendigung des ersten Messzeitraums oder über spezifische Maßnahmen getroffen wurden, und der Vorstand die Interessen aller Aktionäre bei allen getroffenen Entscheidungen priorisieren wird.
- Potential shift in sentiment towards small-cap stocks due to Fed's interest rate reduction
- Board considering options to address the NAV discount, including stock buyback expansion, cash distributions, or tender offer
- Company actively evaluating potential actions to increase shareholder value
- 21% average discount between NAV and stock price in September 2024
- 24% discount to NAV as of September 30, 2024
- Persistent NAV discount potentially undervaluing the company's portfolio
Insights
The news from 180 Degree Capital Corp. (TURN) highlights ongoing challenges with its stock trading at a significant discount to its net asset value (NAV). Key points include:
- Average discount to NAV of
21% in September 2024 and20% year-to-date - Discount was
24% as of September 30, 2024 - Board considering actions if average daily discount exceeds
12% during measurement periods - Potential actions include expanded stock buybacks, cash distributions, or tender offers
This persistent discount suggests investors are undervaluing TURN's portfolio. Management's focus on addressing this issue through the Discount Management Program is a positive step, but the effectiveness remains to be seen. The company's small market cap of
The persistent discount to NAV for TURN reflects broader market dynamics affecting small-cap stocks and closed-end funds. Key observations:
- Recent Fed interest rate reduction may positively impact sentiment towards small-caps
- Management believes current discount is inconsistent with portfolio upside potential
- Company is actively evaluating options beyond the Discount Management Program
- Focus on long-term value creation while addressing short-term discount concerns
This situation presents both risks and opportunities for investors. The discount could narrow if market sentiment improves or if management takes effective action, potentially leading to outsized returns. However, the persistent nature of the discount suggests structural challenges. Investors should consider TURN's underlying portfolio quality, management's track record in value creation and the potential catalysts for closing the valuation gap when assessing the investment opportunity.
MONTCLAIR, N.J., Oct. 01, 2024 (GLOBE NEWSWIRE) -- 180 Degree Capital Corp. (“180 Degree Capital”) (NASDAQ: TURN), noted today that the average discount between its estimated daily net asset value per share (“NAV”) and its daily closing stock price during September 2024 and year-to-date through the end of September 2024, were approximately
As previously disclosed in a press release on November 13, 2023, 180 Degree Capital’s Board of Directors (the “Board”) has set two measurement periods of 1) January 1, 2024 to December 31, 2024, and 2) January 1, 2025 to June 30, 2025, in which it will evaluate the average discount between TURN’s estimated daily NAV and its closing stock price pursuant to a Discount Management Program. Should TURN’s common stock trade at an average daily discount to NAV of more than
“We believe that what we stated in our press release at the beginning of September remains true today,” said Kevin M. Rendino, Chief Executive Officer of 180 Degree Capital. “We believe the sentiment towards small capitalization stocks has started to shift, in part, as a result of the first reduction in interest rates by the Fed in over two years. This action, coupled with improvements in cyclical industries that are sensitive to interest rates and the realization that a soft landing is indeed possible should accrue to the benefit of companies such as those we own. We continue to believe that our current discount to NAV is wholly inconsistent with what we believe is the potential upside within our existing portfolio as well as our actual NAV. We have spent a lot of time evaluating options related to the Discount Management Program, as well as other additional paths designed to increase shareholder value. We appreciate the perspectives provided by our stockholders, particularly our long-term shareholders, and are committed to approaching our decisions with shareholder interests as our number one priority. While we do not have anything to announce on this front as of today, do not let that give you the impression we are sitting idle. We are actively evaluating potential actions to take regarding the Discount Management Program, as well as other ways of potentially building stockholder value.”
Daniel B. Wolfe, President of 180 Degree Capital, added, “We continue to greatly appreciate the support of our largest and long-term investors. To be clear, the Board has not decided about ending the first measurement period early, and/or if it decides to do so, what steps might be taken amongst those mentioned previously or other available alternatives. Any decisions made will be made by the Board in order to serve the best interests of all shareholders of TURN, which is why we appreciate the thoughts and feedback Kevin mentioned above. We remain laser focused on taking steps that we believe will lead to the creation of value for all shareholders, whether that be through growth of net assets, the Discount Management Program, or other strategic efforts.”
About 180 Degree Capital Corp.
180 Degree Capital Corp. is a publicly traded registered closed-end fund focused on investing in and providing value-added assistance through constructive activism to what we believe are substantially undervalued small, publicly traded companies that have potential for significant turnarounds. Our goal is that the result of our constructive activism leads to a reversal in direction for the share price of these investee companies, i.e., a 180-degree turn. Detailed information about 180 and its holdings can be found on its website at www.180degreecapital.com.
Press Contact:
Daniel B. Wolfe
Robert E. Bigelow
180 Degree Capital Corp.
973-746-4500
ir@180degreecapital.com
Mo Shafroth
RF Binder
Morrison.shafroth@rfbinder.com
Forward-Looking Statements
This press release may contain statements of a forward-looking nature relating to future events. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements reflect the Company's current beliefs, and a number of important factors could cause actual results to differ materially from those expressed in this press release. Please see the Company's securities filings filed with the Securities and Exchange Commission for a more detailed discussion of the risks and uncertainties associated with the Company's business and other significant factors that could affect the Company's actual results. Except as otherwise required by Federal securities laws, the Company undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties. The reference and link to the website www.180degreecapital.com has been provided as a convenience, and the information contained on such website is not incorporated by reference into this press release. 180 is not responsible for the contents of third-party websites.
1. Daily estimated NAVs used for the discount calculation outside of quarter-end dates are determined as prescribed in 180’s Valuation Procedures for Level 3 assets. Non-investment-related assets and liabilities used to determine estimated daily NAV are those reported as of the end of the prior quarter.
FAQ
What was 180 Degree Capital's (TURN) average discount to NAV in September 2024?
What options is 180 Degree Capital (TURN) considering under its Discount Management Program?
What factors does 180 Degree Capital (TURN) believe are contributing to a potential shift in small-cap stock sentiment?
Has 180 Degree Capital (TURN) made any decisions about ending the first measurement period early as of October 1, 2024?
