180 Degree Capital Corp. Notes Average Discount of Net Asset Value Per Share to Stock Price for Eighth Month of Initial Measurement Period of Its Discount Management Program
180 Degree Capital Corp. (NASDAQ: TURN) reported an average discount of 21% between its estimated daily net asset value per share (NAV) and daily closing stock price in August 2024, with a year-to-date average of 19%. The company's Board of Directors is evaluating this discount as part of its Discount Management Program, which could lead to actions such as 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 emphasized that long-term investors support the company's belief in the potential upside of its current portfolio, despite the recent bear market for small-cap stocks. The company aims to balance addressing the trading discount with preserving long-term value creation potential.
180 Degree Capital Corp. (NASDAQ: TURN) ha riportato uno sconto medio del 21% tra il valore netto patrimoniale stimato per azione (NAV) e il prezzo di chiusura giornaliero delle azioni nel mese di agosto 2024, con una media dall'inizio dell'anno del 19%. Il Consiglio di Amministrazione della società sta valutando questo sconto come parte del suo Programma di Gestione degli Sconti, che potrebbe portare a azioni come l'espansione del programma di riacquisto delle azioni, distribuzioni in contante o un'offerta di acquisto se lo sconto medio giornaliero supera il 12% durante determinati periodi di misurazione.
Il CEO Kevin M. Rendino ha sottolineato che gli investitori a lungo termine sostengono la fiducia della società nel potenziale di crescita del suo portafoglio attuale, nonostante il recente mercato ribassista delle azioni a piccola capitalizzazione. L'azienda punta a bilanciare l'affrontare lo sconto di negoziazione con la preservazione del potenziale di creazione di valore a lungo termine.
180 Degree Capital Corp. (NASDAQ: TURN) reportó un descuento promedio del 21% entre su valor neto de activos estimado por acción (NAV) y el precio de cierre diario de las acciones en agosto de 2024, con un promedio del 19% desde el inicio del año. La Junta Directiva de la empresa está evaluando este descuento como parte de su Programa de Gestión de Descuentos, lo que podría llevar a acciones como la expansión del programa de recompra de acciones, distribuciones en efectivo o una oferta pública si el descuento diario promedio supera el 12% durante períodos de medición específicos.
El CEO Kevin M. Rendino enfatizó que los inversionistas a largo plazo respaldan la creencia de la compañía en el potencial de crecimiento de su cartera actual, a pesar del reciente mercado bajista para acciones de pequeña capitalización. La compañía busca equilibrar la gestión del descuento de negociación con la preservación del potencial de creación de valor a largo plazo.
180 Degree Capital Corp. (NASDAQ: TURN)는 2024년 8월 주당 추정 순자산 가치(NAV)와 일일 종가 간의 평균 할인율이 21%에 달했다고 보고했으며, 연초 평균 할인율은 19%였습니다. 회사의 이사회는 이 할인을 할인 관리 프로그램의 일환으로 평가하고 있으며, 이러한 평균 일일 할인이 특정 측정 기간 동안 12%를 초과할 경우 주식 매입 프로그램 확대, 현금 분배 또는 공개 매수 제안과 같은 조치를 취할 수 있습니다.
CEO 케빈 M. 렌디노는 최근 소형주 시장 하락에도 불구하고 장기 투자자들이 현 포트폴리오의 잠재적 성장에 대한 회사의 신뢰를 지지하고 있다고 강조했습니다. 회사는 거래 할인 문제를 해결하는 것과 장기 가치 창출 잠재력을 보존하는 것 사이의 균형을 맞추려 하고 있습니다.
180 Degree Capital Corp. (NASDAQ: TURN) a annoncé un rabais moyen de 21% entre sa valeur nette d'actif estimée par action (NAV) et le prix de clôture quotidien de l'action en août 2024, avec une moyenne depuis le début de l'année de 19%. Le conseil d'administration de l'entreprise évalue ce rabais dans le cadre de son Programme de Gestion des Rabais, ce qui pourrait conduire à des actions telles que l'élargissement du programme de rachat d'actions, des distributions en espèces ou une offre d'achat si le rabais quotidien moyen dépasse 12% pendant certaines périodes de mesure.
Le PDG Kevin M. Rendino a souligné que les investisseurs à long terme soutiennent la conviction de l'entreprise quant au potentiel de croissance de son portefeuille actuel, malgré le récent marché baissier pour les actions de petite capitalisation. L'entreprise vise à équilibrer la gestion du rabais de négociation avec la préservation du potentiel de création de valeur à long terme.
180 Degree Capital Corp. (NASDAQ: TURN) berichtete über einen durchschnittlichen Abschlag von 21% zwischen dem geschätzten täglichen Nettovermögenswert pro Aktie (NAV) und dem täglichen Schlusskurs der Aktien im August 2024, mit einem jahresaktuellen Durchschnitt von 19%. Der Vorstand des Unternehmens bewertet diesen Abschlag im Rahmen seines Rabattmanagementprogramms, was zu Maßnahmen wie der Erweiterung des Aktienrückkaufprogramms, Barverteilungen oder einem Übernahmeangebot führen könnte, wenn der durchschnittliche tägliche Abschlag während bestimmter Messzeiträume 12% übersteigt.
CEO Kevin M. Rendino betonte, dass langfristige Investoren den Glauben des Unternehmens an das Wachstumspotenzial seines aktuellen Portfolios unterstützen, trotz des kürzlichen Bärenmarkts für Small-Cap-Aktien. Das Unternehmen strebt an, das Handelsrabattproblem zu adressieren und gleichzeitig das Potenzial zur Schaffung von langfristigem Wert zu erhalten.
- Implementation of a Discount Management Program to address the gap between NAV and stock price
- Support from large and long-term investors for the company's long-term strategy
- Potential for significant upside in the existing portfolio as small-cap stocks may be nearing the end of a bear market
- Strong investment performance and rising NAV during the first five years of TURN's existence
- Average discount of 21% between NAV and stock price in August 2024
- Year-to-date average discount of 19% through August 2024
- Potential for actions that could impact long-term value if the discount remains high
Insights
The news about 180 Degree Capital Corp.'s (TURN) discount management program is not significantly impactful for investors. The company is merely reporting on the ongoing status of a previously announced initiative. The average discount between NAV and stock price (
However, it's worth noting that if the discount exceeds
The management's stance against sacrificing long-term potential for short-term gains suggests a focus on preserving the company's growth prospects. This approach may appeal to long-term investors but might frustrate those seeking immediate returns from the current discount.
MONTCLAIR, N.J., Sept. 03, 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 August 2024 and year-to-date through the end of August 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
“From conversations after we announced the Discount Management Program, we were pleased our shareholders appreciated and supported our decision to implement it,” said Kevin M. Rendino, Chief Executive Officer of 180 Degree Capital. “As I always have said, we do what we say we are going to do. On our last shareholder call, I noted that I believe 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. This comment led to an outpouring of suggestions and opinions from many of our shareholders, including many of our largest and long-term investors who have been holders of TURN since Daniel and I began TURN’s transformation in 2017, if not longer. As a result of those conversations, we believe that these large and long-term investors fully appreciate our belief that our current portfolio offers significant upside potential, in part because we may be nearing the end of the bear market for small capitalization stocks. Our largest and long-term investors individually made it clear to us that they have no desire to materially trade that potential upside to chase short-term gains at this point. Based on the outreach from shareholders to us, we currently believe this opinion is shared by holders of at least a third of TURN’s outstanding stock.”
Mr. Rendino continued, “We also understand that more recent shareholders may be focused on capturing our trading discount for short-term gains through a larger tender offer or distribution, even if it means foregoing material portions of what we believe is future upside within our portfolio. We are activists and work for all shareholders. We will continue to make decisions that accrue to the benefit of all shareholders and will never sacrifice material portions of what we believe to be future potential for short-term gains. Many of our shareholders have a keen memory of the heavy lift we undertook when we took over our predecessor company that was structured as a business development company (BDC) solely focused on venture capital investments. Our first five years produced strong investment performance and a rising NAV. While historical results may not be indicative of future results, we currently believe this macro headwind of poor small cap performance versus large capitalization stocks will reverse, and we believe we are well positioned to deliver again, strong growth in NAV as we did during the first five years of TURN’s existence.”
Daniel B. Wolfe, President of 180 Degree Capital, added, “We appreciate that our largest and long-term investors remain supportive of our investment approach and share our belief that the potential future returns from our investments could lead to substantially larger growth in NAV than capturing all or a significant portion of the discount today. 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 the best interest of all shareholders of TURN, which is why we appreciate the thoughts and feedback Kevin mentioned above, particularly from our long-term and largest shareholders.”
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 is the average discount between 180 Degree Capital's NAV and stock price for August 2024?
What actions might 180 Degree Capital's Board consider if the discount remains high?
How long are the measurement periods for 180 Degree Capital's Discount Management Program?
What is the current stock buyback program limit for 180 Degree Capital (TURN)?
