180 Degree Capital Corp. (TURN) | Investment Case

1. Company Snapshot

1.a. Company Description

180 Degree Capital Corp.is a is a publicly owned hedge fund sponsor.The firm provides its services to pooled investment vehicles and pension and profit sharing plans.

It also manages separate client-focused equity portfolios.The firm invests in public equity markets.It primarily invests in deep value stocks of small cap companies.

The firm seeks to impact the business and valuation of its portfolio through constructive activism.It employs fundamental analysis, plan development, investment execution and exit analysis to make its portfolios.180 Degree Capital Corp.

was founded in 1981 and is based in Montclair, New Jersey.

Show Full description

1.b. Last Insights on TURN

The recent performance of 180 Degree Capital Corp. has been negatively impacted by the proposed merger with Mount Logan Capital Inc. The company's Board of Directors has been criticized for its handling of the merger, with several shareholders expressing concerns about the process and motivations behind the deal. The Board's rejection of an alternative proposal from Source Capital has raised questions about its commitment to maximizing shareholder value. Additionally, the company's decision to pursue the merger with Mount Logan has been met with skepticism, with some analysts questioning the valuation of the deal. The proposed merger has also led to a series of shareholder alerts and investigations into potential breaches of fiduciary duty.

1.c. Company Highlights

Last Price	4.96
Change Percentage	6.21%
Open	4.67
Previous Close	4.67
Market Cap ( Millions)	50
Volume	66553
Year High	8.74
Year Low	3.12
M A 50	4.71
M A 200	4.08

FCF Yield	1.16%
Dividend Yield	0.00%
ROE	7.71%
Debt / Equity	0.00%
Net Debt / EBIDTA	10.99%
Price To Book	1.08
Price Earnings Ratio	14.27
Price To FCF	85.92
Price To sales	-8.87
EV / EBITDA	-9.33

2. Transcript Summary

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3. NewsRoom

Mount Logan Capital Inc. Begins Trading on Nasdaq Under “MLCI”

Sep -17

Source: globenewswire.com

Marlton Partners Comments on 180 Degree Capital Corp. and Mount Logan Capital Inc. Business Combination

Sep -12

Source: prnewswire.com

Mount Logan Capital Inc. and 180 Degree Capital Corp. Close Strategic Business Combination

Sep -12

Source: globenewswire.com

Mount Logan Capital Inc. Shareholders Approve Previously Announced Business Combination with 180 Degree Capital Corp.

Aug -29

Source: globenewswire.com

180 Degree Capital Announces Results of Special Meeting of Shareholders to Approve the Proposed Business Combination With Mount Logan Capital Inc.

Aug -22

Source: globenewswire.com

180 Degree Capital Corp. and Mount Logan Capital Inc. Announce Revised Terms of Business Combination in Response to Constructive Conversations with Shareholders

Aug -18

Source: globenewswire.com

Marlton Partners Files Preliminary Proxy Statement Related to Election of Directors for the 180 Degree Capital Board of Directors

Aug -15

Source: prnewswire.com

180 Degree Capital Corp. and Mount Logan Capital Inc. Provide Update on Proposed Business Combination

Aug -15

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.40%)

6. Segments

Investment and Related Activities

Expected Growth: 15.4%

The Investment and Related Activities segment is poised for growth driven by increasing demand for venture capital-backed companies, rising investments in startups, and 180 Degree Capital Corp.'s strategic support to its portfolio companies.

7. Detailed Products

Growth Capital

180 Degree Capital Corp. provides growth capital to private and public companies, enabling them to accelerate their growth and expansion plans.

Mergers and Acquisitions Advisory

The company offers advisory services for mergers and acquisitions, helping clients navigate complex transactions and achieve their strategic goals.

Restructuring and Turnaround

180 Degree Capital Corp. provides restructuring and turnaround services to help distressed companies recover and return to profitability.

Equity and Debt Financing

The company offers equity and debt financing solutions to help clients achieve their funding needs.

Strategic Advisory

180 Degree Capital Corp. provides strategic advisory services to help clients develop and implement their business strategies.

8. 180 Degree Capital Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for 180 Degree Capital Corp. is medium due to the presence of alternative investment options available to investors.

Bargaining Power Of Customers

The bargaining power of customers for 180 Degree Capital Corp. is low due to the company's diversified investor base and lack of dependence on a single customer.

Bargaining Power Of Suppliers

The bargaining power of suppliers for 180 Degree Capital Corp. is medium due to the company's reliance on a few key service providers.

Threat Of New Entrants

The threat of new entrants for 180 Degree Capital Corp. is high due to the relatively low barriers to entry in the investment management industry.

Intensity Of Rivalry

The intensity of rivalry for 180 Degree Capital Corp. is high due to the competitive nature of the investment management industry and the presence of several established players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.07%
Debt Cost	3.95%
Equity Weight	99.93%
Equity Cost	7.95%
WACC	7.95%
Leverage	0.07%

11. Quality Control: 180 Degree Capital Corp. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Investcorp Credit Management BDC

A-Score: 6.5/10

Value: 7.8

Growth: 3.8

Quality: 7.3

Yield: 10.0

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

SWK Holdings

A-Score: 6.2/10

Value: 6.6

Growth: 3.6

Quality: 8.3

Yield: 10.0

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

180 Degree Capital

A-Score: 5.7/10

Value: 6.5

Growth: 2.6

Quality: 7.1

Yield: 0.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

Brookfield

A-Score: 4.9/10

Value: 8.8

Growth: 1.7

Quality: 3.6

Yield: 2.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

Bridge Investment Group Holdings

A-Score: 4.7/10

Value: 5.3

Growth: 2.0

Quality: 3.6

Yield: 8.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

Equus Total Return

A-Score: 4.7/10

Value: 8.2

Growth: 3.1

Quality: 4.9

Yield: 0.0

Momentum: 9.5

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

27.25%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.95%

180 Degree Capital Corp. - US68235B2088

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TURN

1.c. Company Highlights

Lower Growth

Cheaper

Weak Momentum

Lower Yield

Better Quality

Lower Quality

Strong Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.40%)

6. Segments

Investment and Related Activities

Expected Growth: 15.4%

7. Detailed Products

Growth Capital

Mergers and Acquisitions Advisory

Restructuring and Turnaround

Equity and Debt Financing

Strategic Advisory

8. 180 Degree Capital Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: 180 Degree Capital Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.96$

Current Price

4.96$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA