$TURN 180 Degree Capital -True Value Play w/ Tremendous Upside
180 Degree Capital Corp. (NASDAQ: TURN)
Alert Price: $1.87
Book Value Per Share: $2.70
Average Analyst Price Target: $4.00
Float: 29.26M
Insider Activity
Please turn your immediate attention to 180 Degree Capital Corp. (TURN).
TURN may be one of the most undervalued companies trading on the Nasdaq at the moment.
TURN's current Book Value Per Shares is $2.70, and its average analyst price target is $4.00, representing upsides of +44.39% and +113.90% respectively.
It's no surprise that insiders have made 66 open market buys, and zero sells over the past 12-months.
In fact, TURN's Chairman and CEO Kevin Rendino filed a Form 4 with the SEC on Tuesday, September 29. Mr. Rendino bought 4,000 shares of TURN at an average price of $1.86. After the transaction, the executive's stake in 180 Degree Capital Inc. moved to 943,831 shares.
The Importance of Insider Transactions
Insiders buying stock after a notable sell off can indicate an insider's long-term belief in the success of the company.
You now have the opportunity to grab up shares at roughly the same price, or better than TURN's CEO.
The smart money is accumulating shares in TURN right now, and we are looking forward to seeing what type of ROI we can see in both the short and long term.
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.
The Bullish Case For TURN
• Has A Razor Thin Float
• Upgraded To Buy On Barchart.com
• Is Trading Well Below Book Value ($2.70)
• Just Had A Major Insider Buy
• Has A History Of Single-Day Breakouts
TURN Reports +27.4% Growth and $2.70 Per Share NAV as of June 30, 2020, and Developments From Q3 2020
“The second quarter of 2020 was an important step forward for 180,” said Kevin M. Rendino, Chief Executive Officer of 180. “Our NAV rebounded significantly after our tough first quarter through material contributions from our public and private portfolios. On the public side, our gross total return of +23.9% was solid on an absolute return basis, was mixed in relation to the Russell Microcap Index total return of +30.5% and the Russell Microcap Value Index total return of +22.7%. On the private side, the +30.6% gross return was driven largely by the acquisition of one of our life science company, Petra Pharma Corporation, by an undisclosed acquirer. We also began managing a $25 million allocation from a publicly traded company’s pension fund. This allocation marks our first big win in our efforts to manage additional capital, but we are determined to not have it be our last. We will continue to build our asset base for those that want to invest in our strategy.”
“The third quarter has started off positively as well,” added Daniel B. Wolfe, President of 180. “We generated a gross total return of +11.7% in July 2020, and this strong performance has continued into August. Our public portfolio gross total return for the third quarter through August 7, 2020 was +19.1%, which equates to an increase in value of $8.5 million or $0.27 per share. Our total cash plus securities of public companies as of August 7, 2020, is $1.70 per share. With this increase in value, we note that our public portfolio gross total return through August 7, 2020, is now positive for the year. We are also pleased with the performance of the $25 million separately managed account that we began investing on June 2, 2020. Through August 7, 2020, the gross total return of this account is +12.9%. While it is too early to know where NAV will end up as of the end of the third quarter or the full year, we are encouraged by our performance through the beginning of August.”
Review of Q2 2020
Q2 2020
Stock Price $1.3582 -> $1.74 (28.1%)
Net Asset Value per Share (“NAV”) $2.12 -> $2.70 (27.4%)
Stock Price / NAV 64% -> 64%
Cash + Liquid Securities* $32.4 million -> $44.6 million (37.7%)
*Net of unsettled trades as of the end of the period.
• Public portfolio gross total return was +23.9% versus the Russell Microcap Index of +30.5%. Public portfolio increased in value by approximately $8.3 million, or $0.27 per share.
• Private portfolio increased in value by approximately $10.6 million, or $0.34 per share.
Acquisition of Life Science Private Portfolio Company
• On May 14, 2020, the acquisition of Petra Pharma Corporation by an undisclosed acquirer closed. The terms of the deal are confidential, so we can only disclose what 180 received from the transaction. 180 received approximately $4.4 million in cash at closing. In addition, we received $305,000 in cash from 180’s ownership in an entity affiliated with Petra, Accelerator IV-New York Corporation. Also, approximately $350,000 will be held in escrow for one year from the date of closing. 180 is also eligible, through its ownership of Petra and Accelerator, to receive up to approximately $86.9 million in potential future payments upon the achievement of undisclosed development and commercial milestones. 180 currently estimates that the first milestone payment could occur in 2-3 years, and subsequent milestone payments could occur at various points over the subsequent 10-20 years. The timing and likelihood of the acquirer achieving these milestones is highly uncertain, and if these milestones are achieved, the timing may be materially different than current estimates. These factors were used to develop a fair market value based on a probability-weighted net present value analysis of the potential future milestone payments of approximately $6.4 million. We note that successful completion of the first milestone would result in payment of approximately $6.8 million to 180. Lastly, simultaneous with the close of the transaction, Petra spun out certain assets into a new company. We own shares of this new company, Revanna Pharmaceuticals, Inc.
Q3 2020 Developments
• Public portfolio gross total return in July 2020 was +11.7%, increasing in value by $5.2 million, or $0.17/share. The Russell Microcap Index total return during July 2020 was +1.1%
Value stocks will soar when the economy recovers, top strategist David Rosenberg says
Value investors have trailed growth investors in recent years thanks to the outperformance of technology stocks. They will eventually be rewarded for their patience, David Rosenberg, chief economist and strategist at Rosenberg Research Associates, said in a RealVision interview released this week.
"If we go into a new economic cycle, the value stocks are going to surge," Rosenberg said. "It's way too early right now but that day is going to come, and you'll get paid to wait."
Technical Analysis
Based on our very own technical analysis, we see the potential for a significant move from here.
We are anticipating a move well past $2.00 in the short-term, and potentially much higher in the long-term.
Bullish Indicators
• Perfect bounce off the rising channel trendline,setting up a bullish wedge break. Indicators all in bullish reversal.
• Bullish divergence on MACD
• Stochastic bullish crossover complete
The Bottom Line:
TURN is a true value play that should show traders some nice returns in both the short and long-term.
TURN's strong technicals and heavy insider buying paint a picture of a stock that is ready to breakout big.
We ask that you start your research now, and consider building a position in TURN.
By Viewing this Content, you Agree that you Have Read and are in Full Understanding of both our Disclaimer & Privacy Policy(*Remember to use a Stop-Loss Order to protect your gains, as well as limit possible losses.)
Alert Price: $1.87
Book Value Per Share: $2.70
Average Analyst Price Target: $4.00
Float: 29.26M
Insider Activity
Please turn your immediate attention to 180 Degree Capital Corp. (TURN).
TURN may be one of the most undervalued companies trading on the Nasdaq at the moment.
TURN's current Book Value Per Shares is $2.70, and its average analyst price target is $4.00, representing upsides of +44.39% and +113.90% respectively.
It's no surprise that insiders have made 66 open market buys, and zero sells over the past 12-months.
In fact, TURN's Chairman and CEO Kevin Rendino filed a Form 4 with the SEC on Tuesday, September 29. Mr. Rendino bought 4,000 shares of TURN at an average price of $1.86. After the transaction, the executive's stake in 180 Degree Capital Inc. moved to 943,831 shares.
The Importance of Insider Transactions
Insiders buying stock after a notable sell off can indicate an insider's long-term belief in the success of the company.
You now have the opportunity to grab up shares at roughly the same price, or better than TURN's CEO.
The smart money is accumulating shares in TURN right now, and we are looking forward to seeing what type of ROI we can see in both the short and long term.
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.
The Bullish Case For TURN
• Has A Razor Thin Float
• Upgraded To Buy On Barchart.com
• Is Trading Well Below Book Value ($2.70)
• Just Had A Major Insider Buy
• Has A History Of Single-Day Breakouts
TURN Reports +27.4% Growth and $2.70 Per Share NAV as of June 30, 2020, and Developments From Q3 2020
“The second quarter of 2020 was an important step forward for 180,” said Kevin M. Rendino, Chief Executive Officer of 180. “Our NAV rebounded significantly after our tough first quarter through material contributions from our public and private portfolios. On the public side, our gross total return of +23.9% was solid on an absolute return basis, was mixed in relation to the Russell Microcap Index total return of +30.5% and the Russell Microcap Value Index total return of +22.7%. On the private side, the +30.6% gross return was driven largely by the acquisition of one of our life science company, Petra Pharma Corporation, by an undisclosed acquirer. We also began managing a $25 million allocation from a publicly traded company’s pension fund. This allocation marks our first big win in our efforts to manage additional capital, but we are determined to not have it be our last. We will continue to build our asset base for those that want to invest in our strategy.”
“The third quarter has started off positively as well,” added Daniel B. Wolfe, President of 180. “We generated a gross total return of +11.7% in July 2020, and this strong performance has continued into August. Our public portfolio gross total return for the third quarter through August 7, 2020 was +19.1%, which equates to an increase in value of $8.5 million or $0.27 per share. Our total cash plus securities of public companies as of August 7, 2020, is $1.70 per share. With this increase in value, we note that our public portfolio gross total return through August 7, 2020, is now positive for the year. We are also pleased with the performance of the $25 million separately managed account that we began investing on June 2, 2020. Through August 7, 2020, the gross total return of this account is +12.9%. While it is too early to know where NAV will end up as of the end of the third quarter or the full year, we are encouraged by our performance through the beginning of August.”
Review of Q2 2020
Q2 2020
Stock Price $1.3582 -> $1.74 (28.1%)
Net Asset Value per Share (“NAV”) $2.12 -> $2.70 (27.4%)
Stock Price / NAV 64% -> 64%
Cash + Liquid Securities* $32.4 million -> $44.6 million (37.7%)
*Net of unsettled trades as of the end of the period.
• Public portfolio gross total return was +23.9% versus the Russell Microcap Index of +30.5%. Public portfolio increased in value by approximately $8.3 million, or $0.27 per share.
• Private portfolio increased in value by approximately $10.6 million, or $0.34 per share.
Acquisition of Life Science Private Portfolio Company
• On May 14, 2020, the acquisition of Petra Pharma Corporation by an undisclosed acquirer closed. The terms of the deal are confidential, so we can only disclose what 180 received from the transaction. 180 received approximately $4.4 million in cash at closing. In addition, we received $305,000 in cash from 180’s ownership in an entity affiliated with Petra, Accelerator IV-New York Corporation. Also, approximately $350,000 will be held in escrow for one year from the date of closing. 180 is also eligible, through its ownership of Petra and Accelerator, to receive up to approximately $86.9 million in potential future payments upon the achievement of undisclosed development and commercial milestones. 180 currently estimates that the first milestone payment could occur in 2-3 years, and subsequent milestone payments could occur at various points over the subsequent 10-20 years. The timing and likelihood of the acquirer achieving these milestones is highly uncertain, and if these milestones are achieved, the timing may be materially different than current estimates. These factors were used to develop a fair market value based on a probability-weighted net present value analysis of the potential future milestone payments of approximately $6.4 million. We note that successful completion of the first milestone would result in payment of approximately $6.8 million to 180. Lastly, simultaneous with the close of the transaction, Petra spun out certain assets into a new company. We own shares of this new company, Revanna Pharmaceuticals, Inc.
Q3 2020 Developments
• Public portfolio gross total return in July 2020 was +11.7%, increasing in value by $5.2 million, or $0.17/share. The Russell Microcap Index total return during July 2020 was +1.1%
Value stocks will soar when the economy recovers, top strategist David Rosenberg says
Value investors have trailed growth investors in recent years thanks to the outperformance of technology stocks. They will eventually be rewarded for their patience, David Rosenberg, chief economist and strategist at Rosenberg Research Associates, said in a RealVision interview released this week.
"If we go into a new economic cycle, the value stocks are going to surge," Rosenberg said. "It's way too early right now but that day is going to come, and you'll get paid to wait."
Technical Analysis
Based on our very own technical analysis, we see the potential for a significant move from here.
We are anticipating a move well past $2.00 in the short-term, and potentially much higher in the long-term.
Bullish Indicators
• Perfect bounce off the rising channel trendline,setting up a bullish wedge break. Indicators all in bullish reversal.
• Bullish divergence on MACD
• Stochastic bullish crossover complete
The Bottom Line:
TURN is a true value play that should show traders some nice returns in both the short and long-term.
TURN's strong technicals and heavy insider buying paint a picture of a stock that is ready to breakout big.
We ask that you start your research now, and consider building a position in TURN.
By Viewing this Content, you Agree that you Have Read and are in Full Understanding of both our Disclaimer & Privacy Policy(*Remember to use a Stop-Loss Order to protect your gains, as well as limit possible losses.)