Friday Addition- A Random Walk

This morning I am just taking a walk through the markets kicking tires and turning over rocks in the constant search for opportunities. Rather than bore you with more data from the Fed (as important as that is in the weird world in which we are living) or discussions of conditions in the banking industry right now, I thought I would just share a few ideas I have been tracking that are probably worth accumulating no matter what the markets do over the rest of the year.

Alico (ALCO) owns something that is in very high demand right now. They have about 100,000 acres of land, mostly right here in Southwest Florida. Almost half of the properties are used for citrus crops, the biggest being oranges. Most of the crop is sold to Tropicana for the not from concentrate fresh juice market.

They also own over 50,000 acres of land that they lease for cattle grazing, recreational hunting, farming lease, mining, and conservation. They have been steadily selling parcels to the state government for conservation purposes. So far, Florida has bought 22,000 acres from Alico.

All told, Alico has sold more than $86 worth of land over the last 3 years.

They have been using that cash, along with cash generated from the citrus business, to increase the dividend, buyback stock, and reduce debt.

They have also been buying more orange groves as they recently bought 3,300 additional contiguous orange grove acres. They have just resigned a long-term deal with Tropicana, so the orange juice business should continue to produce cash for years.

This is not a flashy get-rich overnight stock. Alico is going to continue selling land for conservation, and I suspect that at some point, the prices will be too attractive not to start selling for development. That ...

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Friday Addition Edition- A Random Walk

This morning I am just taking a walk through the markets kicking tires and turning over rocks in the constant search for opportunities. Rather than bore you with more data from the Fed (as important as that is in the ...

Read More
Comments

Takeover #2 for the year- a 269% Return!

GREEN BAY, Wis. and MANISTIQUE, Mich., April 12, 2021 /PRNewswire/ -- Nicolet Bankshares, Inc. (NASDAQ: NCBS) ("Nicolet") and Mackinac Financial Corporation (NASDAQ: MFNC) ("Mackinac") today jointly announced the execution of a definitive merger agreement, ...

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Friday Edition- More Insiders

I was thinking about what I should write about this morning over my coffee. My core instinct was to send a two-word edition of eh Friday note that just said: "Do nothing."

Markets have rallied straight up since last March. ...

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Friday Addition Edition- Apollos Inflation Hedge

The Fed has made it clear that they are content to let inflation run a little hot if it keeps the economy moving higher. They had adopted that as policy last year. Deflation has become the real fear for central ...

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Friday Edition SPAC Opportunities

We saw a much-improved jobs report this morning with 379,000 new jobs created last month. That's well above analyst expectations of 179,000. While some analysts are not happy that 355,000 of these jobs are in leisure and hospitality, I would ...

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Friday Addition Edition - SPAC Opportunities

We saw a much-improved jobs report this morning with 379,000 new jobs created last month. That's well above analyst expectations of 179,000. While some analysts are not happy that 355,000 of these jobs are in leisure and hospitality, I would ...

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Friday Edition: Venture BDC's

Last week we took a look at some Business Development Companies with close ties to private equity firms. These firms are financing takeovers, expansions, and add-on acquisitions side by side with some of the greatest private equity investors on the ...

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Friday Edition: Venture BDC's

Last week we took a look at some Business Development Companies with close ties to private equity firms. These firms are financing takeovers, expansions, and add-on acquisitions side by side with some of the greatest private equity investors on the ...

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Comments

Business Development Companies with a PE disposition

Let's talk about business development companies today. For the record, I love BDC's. They are banks on steroids with a lot less regulation.

BDC’s have been around since an amendment to the 40-act bringing them into being was passed back ...

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Friday Addition Edition Addition- Business Development Companies with a PE disposition

Let's talk about business development companies today. For the record, I love BDC's. They are banks on steroids with a lot less regulation.

BDC’s have been around since an amendment to the 40-act bringing them into being was passed back ...

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CEF Activism and Takeover Artists

I had a discussion this morning about the future direction of the stock market+ with an old friend. He is quite bullish based on the hope for a $1.9 trillion stimulus package and an infrastructure bill's eventual passing. I get ...

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