Author Topic: PICO Holdings (PICO)  (Read 21112 times)

Fairfaxnut

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Re: PICO Holdings (PICO)
« Reply #40 on: November 21, 2014, 05:37:44 AM »
Oops..... this topic should be moved to Investment Ideas.


Scudbucket

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Re: PICO Holdings (PICO)
« Reply #41 on: July 13, 2015, 08:18:30 PM »

SI

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Re: PICO Holdings (PICO)
« Reply #42 on: July 13, 2015, 09:01:15 PM »
Good to see the $85mn of debt gone. Watching them lose another $11mn last quarter in Northstar/Canola and then seeing them need the debt waiver 2 weeks ago it seemed that a take-under was 'certain'; the bear case of not being able to shut it down, further equity contributions potentially being required, with no end insight was tortuous for the long struggling longs - just look at that shareholder list which looks like a funeral small cap value(and it felt that way at the annual meeting earlier this week) in active mgmt.

With all that said as backdrop, I think the mkt should respond fairly positively to tonight's announcement.

With the balance sheet cleaned up post this transaction, a small buyback likely to ensue, a stock with a pro-forma book value over $17 and mkt quotation under $14, no debt(UCP has debt at the subsidiary level against its assets), a simpler story with the upped focus on just 2 related and geographically adjacent assets - it seems like equity investors may finally get a reprieve.

Mgmt now has the oppty to turn their attention to solving for mr. mkt in UCP before the Vidler asset story starts to see some sales yardsticks.


SI

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Re: PICO Holdings (PICO)
« Reply #43 on: July 24, 2015, 09:41:14 AM »
This looks more interesting this week than when they did the deal

So what has gone on in the stock that has you looking:
(1)   We are seeing natural resource sellers(maybe even margin calls?!?)
(2)   index sellers as weight was reduced in the Russell within the past month
(3)   3 activists have filed(great write-up of the asset by mutual fund river road from late March in a link here: http://www.valuewalk.com/2015/04/pico-holdings-activism/)
(4)   and what I have termed the small cap asset-value funeral which I think has unearthed a decent price oppty as their shareholders are getting redeemed

which I juxtapose with positive fundamentals:

(1)   After a recent divestiture, there is no cash burn other than small corporate staff and no debt. 
(2)   Builder Mkts intact, where I think we get a transaction as comps trade 1.15x(small caps) and 1.8x BV(large caps). Its homebuilder is 57% controlled by Pico so it has a massive illiquidity discount.
(3)   Water Mkts that I think have the potential for dynamic upside
(4)   With water in mkts where development outlook is firm
a.   The scale daunting with AMZN, Drowns, Tesla, 15 Japanese Battery developers, Apple, Google, etc
(5)   Mgmt under pressure increases likelihood of water / builder transaction
(6)   An expensive mkt....

KinAlberta

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Re: PICO Holdings (PICO)
« Reply #44 on: August 10, 2015, 09:46:35 AM »
Barrons has a PICO write-up out.

SI

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Re: PICO Holdings (PICO)
« Reply #45 on: August 10, 2015, 12:10:23 PM »
It is the activist filing Friday after the close that is sustaining this move.

Evolveus

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Re: PICO Holdings (PICO)
« Reply #46 on: May 11, 2016, 03:35:04 PM »
River Road Asset Management flips back to 13D status:

http://edgar.sec.gov/Archives/edgar/data/830122/000090901216000510/t307946.txt

SouthernYankee

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Re: PICO Holdings (PICO)
« Reply #47 on: December 27, 2017, 02:14:19 PM »
A $5 dividend was given out in November. I was wondering if anyone had any details about it.

Thanks.