Jump to content

What are you buying today?


LowIQinvestor

Recommended Posts

On 5/3/2021 at 1:09 PM, Gregmal said:

added to ALCO

Don't feel like starting a separate thread, but nice release here.

https://www.alicoinc.com/news/detail/1359/alico-inc-announces-strategic-actions-to-increase

So again, not the most exciting setup, but to me its a great quasi cash alternative(or free-2% carry if you've got some balls and some margin tolerance). Similar to FRP Holdings setup. You've seen the stress tested downside last year. Now there's material changes to the upside, and a proven management team. Alico has quietly taken some very positive and pro shareholder steps. The targeted ~40M annual EBITDA in a few years makes this compelling and still gives you a lot of free call options. And yea, there's started to be interest in the land. Which IMO is definitely not the best located land in FL, but FL land nonetheless and the soil they are situation on is ideal for building w/ high sand content. If, as alluded to by management, land sales start coming in(some already under contract), you could get a massive rerating here. Regardless, should see continued balance sheet improvement, cash flow ramp, and dividend increases. Just my 2C. Feel free to short it as well.

Edited by Gregmal
Link to comment
Share on other sites

I added more ATTO on the post earnings sell off. I think intrinsic value ($80+) is higher post these results off of the strong sales but the market is selling ATTO off based on a perceived disappointment in margins in Q1. Full year EBITDA margin guidance is unchanged and with stronger sales, should end up higher than previously anticipated. 
 

 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...