Large-scale agriculture is a different sort of business, and that's
not just because so much depends on the weather (in your area and in
competitive growing regions) and other uncontrollable factors. Not
unlike timber companies like Plum Creek (PCL) and Weyerhaeuser (WY) or Brazilian agriculture companies like SLC Agricola (OTCPK:SLCJY) and Adecoagro (AGRO),
value is created both above the ground (growing/harvesting crops and
maximizing productivity) and with the ground through selective sales and
real estate development.
Real estate figures prominently in the Limoneira (LMNR)
story. This company is already a major U.S. grower of lemons and
avocados, but if the company's plans work out it will leverage the sale
of valuable acreage near Los Angeles (in Ventura County) into a
significant expansion of its agricultural lands. Many things could knock
this plan off stride, and this is not a well-followed or particularly
liquid stock, but the unrealized value potential here seems significant.
Read the full article here:
Limoneira An Under-Followed Growth Story In The Making
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