PEP - The Bottom Fishing Club: Buy Alico's Florida Orange Groves At 50% Discount
2024-05-31 08:43:20 ET
Summary
- Alico is a Florida orange grove owner with 54,000+ acres, making it one of the largest U.S. citrus growers.
- Management estimates its grove and land holdings are worth as much as $635 million based on comparable property sales vs. $114 million listed on its balance sheet at cost.
- Using company numbers, I estimate a minimum after-tax liquidation value of $51 is available for investors at $26 per share today.
I have been searching for safer food companies to buy in 2024. Plus, I love an intelligent bargain backed by underreported real estate values. Today's pick scores highly on both ideas. Alico, Inc. ( ALCO ) is a Florida orange grove owner, with roughly 54,574 acres in its portfolio (48,949 used for citrus farming). Alico ranks as one of the largest U.S. growers of oranges, selling much of its production to Tropicana [owned by PepsiCo ( PEP ) and PAI Partners ]. This single customer accounted for 81% of FY 2023 sales ....
The Bottom Fishing Club: Buy Alico's Florida Orange Groves At 50% Discount