2020 - Q1 Carolinas Index Update

A rough start to 2020 has come and gone, and The Carolinas Index has been updated to reflect changes throughout the North Carolina and South Carolina investing landscape.

After what seemed to be smooth sailing, the Q1 2020 landed on rocky soil. The Carolinas' Index is an equally weighted index of the top 75 companies in North and South Carolina. The Index ended the quarter returning -36.27%, with drawdowns lead by names in the Financials, Consumer Discretionary, Healthcare, and Industrials Sectors.. Our region has been consistently recognized as a hub for innovation and commerce, as well as one of the best places to do business in the nation. The Carolinas Index, compiled by Capital Investment Companies and Nottingham, is a barometer for the performance of public companies in the region: capturing the growth potential of smaller companies while being supported by a network of large blue-chips, all with equal representation.

Due to M&A, market fluctuations, and the financial performance of all selectable stocks, the following companies replaced those previously included in the Carolinas Index:

NEWCOMERS

• Ingersoll Rand Inc. completed a spin-off from Ireland-based Trane Technologies on March 2. The new company is headquartered in Davidson, NC (NYSE:IR) - #13

• PPD, Inc. completed an IPO on February 10. The company is headquartered in Wilmington, NC (NASDAQ:PPD) - #16

• Cornerstone Building Brands, Inc. is headquartered in Cary, NC. Previously Ply-Gem, it merged with NCI Building Systems in 2018 and has been added as a correction to the Index. (NYSE:CNR) - #47

• Liquidia Technologies Inc., headquartered in Morrisville, NC. (NASDAQ:LQDA) - #72

• Oconee Federal Financial Corp., headquartered in Seneca, SC. (NASDAQ:OFED) - #75

DEPARTURES

• AVX Corporation - Previously #28, was acquired by Japanese Kyocera Corporation. The all-cash deal closed in 3/2020 for $21.75 per share.

• Primo Water Corp. - Previously #60, was acquired in an exchange offer by Tampa Bay-based Cott Corp. in 1/2020 for $14.00 per share, payable in cash, stock, or a combination of the two.

• NN, Inc (NASDAQ:NNBR) - Previously #63: Market Cap of $72 MM.

• Delta Apparel (NASDAQ:DLA) - Previously #71: Market Cap of $80 MM.

• Culp, Inc. (NASDAQ:CULP) - Previously #74: Market Cap of $92 MM.

OTHER ANNOUNCEMENTS

• #45 - Carolina Financial Corporation (NASDAQ:CARO) is to be acquired by D.C. based United Bankshares, Inc. (NYSE:UBSI). The deal is expected to close in 1H 2020.

• #69 - North State Communications (OTC:NORSA) is to be acquired by Segra for $80 per share. The deal is expected to close Q2 2020.

• Washington based Fortive Corp. (NASDAQ:FTV) is to spin-off Vontier Inc., which will be based in Raleigh, NC. The spin-off is expected in 2H 2020.

View the latest release of the Carolinas Index here.

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DISCLOSURES:

It is not possible to invest directly in an index; therefore, the performance of an index is not illustrative of any particular investment. Past performance of the underlying securities is not a guarantee of future performance. This material has been prepared solely for informational purposes, based on data generally available to the public, and from sources believed to be reliable. The information contained herein is provided by Capital Investment Companies and The Nottingham Company. Links to any external webpages do not necessarily represent the views of Capital Investment Companies or any of its affiliates.