ALCO - Alico: The Time Isn't Ripe But There Are Signs Of Better Times To Come
2024-02-06 08:21:47 ET
Summary
- Alico, a major producer of citrus and other products, has seen a decline in revenue and profits due to a reduction in fruit harvest caused by Hurricane Ian.
- Despite the decline, there are positive developments in the industry, such as expected growth in orange production and consumption globally.
- Alico still holds significant acreage and has estimated the value of its properties to be higher than its current market capitalization, suggesting potential upside for shareholders.
- But now is not necessarily the best time for investors to get in, though it may not take much for this picture to change.
When it comes to investing, timing can sometimes be the most important factor. But just because you wait for an opportunity and the price of that opportunity declines, does not necessarily mean that the time is ripe to jump on board. As an example of this, I would like to discuss Alico ( ALCO ), a major producer of citrus and other products in the U.S. market. Back in August of 2022, I wrote an article that took a neutral stance on the firm. I said that the opportunity in the company was not yet ‘ripe’ because of concerns regarding the economy more broadly and because of weakening fundamentals. I recognized that these issues were temporary. But shares were not yet cheap enough to warrant any significant degree of optimism....
Alico: The Time Isn't Ripe, But There Are Signs Of Better Times To Come