Steel City Capital: “ATEX’s Share Price will Persist Until Management Starts Putting Points on the Board Consistently”

Steel City Capital, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. Steel City Capital, LP (the “Partnership”) was essentially flat in the first quarter of 2022, net of fees and expenses. The Partnership declined 1.4% in April, bringing YTD’22 results to a negative 1.5%. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Steel City Capital mentioned Anterix Inc.(NASDAQ:ATEX) and explained its insights for the company. Founded in 1997, Anterix Inc.(NASDAQ:ATEX)  is a New Jersey-based telecommunications industry with a $954.0 million market capitalization. Anterix Inc.(NASDAQ:ATEX)  delivered a -11.64% return since the beginning of the year, while its 12-month returns are up by 9.17%. The stock closed at $51.92 per share on May 05, 2022.

Here is what Steel City Capital has to say about Anterix Inc.(NASDAQ:ATEX) in its Q1 2022 investor letter:

“Anterix (Nasdaq: ATEX): During its last earnings call, management warned that the goals it laid out for FY’22 (ended March 31) were at risk of slipping beyond quarter end. As a general matter, the slippage in and of itself doesn’t bother me that much – a month here or there doesn’t detract directly from the value of the company’s spectrum holdings. What does irk me about the delay is that management should have already learned their lesson about over-promising and under-delivering by even a hair (see September 2020). The gap between private market value and ATEX’s share price will persist until management starts putting points on the board consistently.”

Photo by Mika Baumeister on Unsplash

Our calculations show that Anterix Inc.(NASDAQ:ATEX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Anterix Inc.(NASDAQ:ATEX) was in 19 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 16 funds in the previous quarter. Anterix Inc.(NASDAQ:ATEX) delivered a 4.11% return in the past 3 months.

In February 2022, we also shared another hedge fund’s views on Anterix Inc.(NASDAQ:ATEX) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.