180 Degree Capital (US:TURN)2021-02-23 23:18Financial Data and Key Metrics Changes - The company reported a 7% growth in NAV for Q4 2020, consistent with Q3 performance, although public stock picking underperformed indices this quarter [5] - Cash and liquid securities increased from $20 million ($1.92 per share) in early 2017 to $59.7 million ($5.77 per share) at year-end 2020, and over $70 million ($7.02 per share) as of early 2021 [6][12] - The market is valuing the private portfolio at roughly zero, indicating a significant discrepancy between market valuation and intrinsic value [7] Business Line Data and Key Metrics Changes - The public portfolio saw strong performance from Quantum, Alta Group, and Potbelly, while Maven and Sonim lagged [7] - The private portfolio increased by $2.6 million, led by HALE and ORIG3N [41] Market Data and Key Metrics Changes - The company noted a shift in market sentiment post-vaccine announcement, with value stocks beginning to outperform growth stocks [19] - The discount to NAV improved to $0.70 on the dollar from $0.55, reflecting a stronger balance sheet [16] Company Strategy and Development Direction - The company is focusing on transforming its balance sheet into cash and liquid securities, with a goal of achieving a fully green pie chart representing asset allocation [39] - The management is optimistic about the potential for monetization of private portfolio holdings, particularly due to the growing acceptance of SPACs as a path to public listing [45][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the economy and the market, driven by vaccine distribution [112] - The company is more confident about monetization opportunities in 2021 compared to previous years, citing progress in private holdings and the SPAC trend [58] Other Important Information - The company completed a 1-for-3 stock split, which went smoothly [9] - Operating expenses were reduced significantly, with Q4 2020 expenses at approximately $645,000, down from $1.3 million per quarter prior to the strategy change [51][52] Q&A Session Summary Question: Are any private companies in discussions for IPO or SPAC? - Management confirmed that there is significant activity with private companies regarding SPAC discussions, although specific names cannot be disclosed [64][65] Question: What is the current environment in the micro-cap space? - Management noted a healthy market backdrop with a recovery underway, but acknowledged the potential for a pullback given recent market movements [112][113] Question: Does the company lend shares for interest income? - Management indicated that they would consider lending shares if there was demand, but noted that there hasn't been significant shorting of their holdings [118]