Author Topic: BWEL - J.G. Boswell  (Read 27088 times)

Spekulatius

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Re: BWEL - J.G. Boswell
« Reply #20 on: November 25, 2018, 06:02:39 AM »
That pension remains underfunded but got sharply better this year given rates, the partial move to defined contribution which sits alongside the 100mn they generated in cash flow from operations this year.

With the stock under book value, a book value which features land/water in California from 90+ years ago and the company turning on the buyback - it makes the market opinion quite strange.

Does anyone know any company, preferable in California, that had monetized water rights successfully? My own assessment is that the water rights are worthless. I could well be wrong here, but I think they are attached to land ownership and canít be separated out.
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SI

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Re: BWEL - J.G. Boswell
« Reply #21 on: November 25, 2018, 06:39:29 AM »
Paramount is one large example that has often been a buyer and seller. But I think you are approaching the water rights in a different manner than I would. The water rights off the Kings & Kern River, in the ground and on state allocation are more the competitely advantaged ability to access the worlds most productive farmland adjacent to large swaths of population with year round weather in a wildly scaled(275k acres in total)  manner.

Spekulatius

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Re: BWEL - J.G. Boswell
« Reply #22 on: November 27, 2018, 07:33:07 AM »
Can anyone forward me the latest annual report? If so, please PM me.
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oddballstocks

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Re: BWEL - J.G. Boswell
« Reply #23 on: November 27, 2018, 07:42:17 AM »
Water rights... Consider me a water right skeptic. Not that they have the rights, they clearly do, but the longevity and lasting value.

I think of water rights as having value as long as someone more politically significant doesn't come along.  If LA needed more water I am pretty certain that the state would confiscate them with little recourse.  Now Boswell could sue back, but a suit like this would take decades to litigate rights from 100+ years ago, and would be expensive.

This is an unpopular view, but for me the water rights allow the company to grow and generate the return they have. To count them beyond the ag is double counting in my view.

I just don't see a scenario where someone buys these rights at a market price. Rather I can see value disappearing through political action.
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Spekulatius

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Re: BWEL - J.G. Boswell
« Reply #24 on: December 12, 2018, 03:25:34 PM »
I am sceptical about water rights as well. for me, the water rights are attached  to the land, as the land would be worthless without water.
Below is a link to a story about Reznick, another land baron in CA.Boswell is mentioned too, but more in passing. The article does give a good idea about the struggle with water, as well as some deals that did occur. Boswell also had a real estate project in the foothills that was cancelled, presumably also because they could not secure the water rights at price that made this economical.

https://story.californiasunday.com/resnick-a-kingdom-from-dust

On the topic of BWEL, I found it interesting that BWEL generates half their profits from a 46% owned cotton seed JV business (the remainder is owned by DWDP, which is going to spin of their AG business). This seed business (Phytogen) seems to be a leader in cotton seed and appears to be highly profitable. The earnings are up considerable YOY from 2016 to 2017 and I don’t know if 2017 was an outlier or 2016. However, it is clear that the business ought to be quite valuable. I am also sure that DWDP would look e to own this completely and maybe after the spinoff they make an offer that BWEL can’t resist. I bought quite a few shares of BWEL during the recent liquidation dump of a few thousand shares. With a book value of $600/ share, owning lands that was purchased decades ago, I figure I got more than I paid for. It might be dead money, but I don’t think I will lose money here.
« Last Edit: December 13, 2018, 10:21:50 AM by Spekulatius »
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Gregmal

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Re: BWEL - J.G. Boswell
« Reply #25 on: December 12, 2018, 03:47:37 PM »
If you're into water rights, check out PCYO...

mjm

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Re: BWEL - J.G. Boswell
« Reply #26 on: December 12, 2018, 04:11:30 PM »
article in WSJ few days ago on harvard buying up valley property was quite interesting. they evidently think the wine industry can be profitable. they searched for areas with best ground water. know bwel land more west and would think unsuitable for vineyards, but i am not knowledgeable on CA geography

also the site http://www.auscott.com.au/  gives nice overview of their australian cotton organization.

thanks for fine posts on this company

Tim Eriksen

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Re: BWEL - J.G. Boswell
« Reply #27 on: December 12, 2018, 05:01:15 PM »
article in WSJ few days ago on harvard buying up valley property was quite interesting. they evidently think the wine industry can be profitable. they searched for areas with best ground water. know bwel land more west and would think unsuitable for vineyards, but i am not knowledgeable on CA geography

also the site http://www.auscott.com.au/  gives nice overview of their australian cotton organization.

thanks for fine posts on this company

BWEL land is to the east not west of the land Harvard purchased.  Lots of table grapes grown around BWEL property.  Wine grapes are usually closer to the coast (Napa, Monterey, SLO, Temecula, etc.).  Only Central Valley area I am aware of is around Lodi, which is probably 200 miles north of BWEL property. 

My recollection is that BWEL water rights were primarily based on owning land near rivers flowing down from Sierra Nevadas.     

mjm

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Re: BWEL - J.G. Boswell
« Reply #28 on: March 15, 2019, 02:11:49 PM »
up over 10% today.  who knows why, but read I think tomatoes from Mexico were getting hit with tariff or tariff suspension.  do not know if BWEL even grows tomatoes though

Spekulatius

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Re: BWEL - J.G. Boswell
« Reply #29 on: March 15, 2019, 03:45:04 PM »
up over 10% today.  who knows why, but read I think tomatoes from Mexico were getting hit with tariff or tariff suspension.  do not know if BWEL even grows tomatoes though

I think they mainly grow cotton and nuts. I am not aware of any tomatoes, and iven if they would, I doubts itís going to be worth 10% of the stock price. Speaking of the stock price, that liquidation sale last fall was quite an opportunity. I bought in size, but in retrospect, it wasnít enough. I still own shares, but sold some at $625. If only my other microcap clunkers would do so well.
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