Think Equity’s Woodburn Weighs in on Pico Holdings – Maintains BUY Rating and $47 Price Target
Source: http://feedproxy.google.com/~r/smallcappulse/feed/~3/fXlCSonn6b4/Posted on Wednesday, August 12th, 2009 | In Market Commentary, Small & Micro Cap
August 11, 2009 ndash; Analyst Comments ndash; Think Equityrsquo;s David Woodburn said PICOrsquo;s Q2 press release and 10-Q provide several examples of both sides of its value investment efforts: new investments in water and real estate; and monetizations of UCP real estate assets (at greater than 46% IRR) and continued sale of Nevada land. He maintains a BUY rating on the stock and a $47 price target.nbsp;nbsp;
Key Takeawaysnbsp;
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Improvement in equity markets has helped drive $0.65 increase in book value to $24.93 per share
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; In last several months PICOrsquo;s UCP subsidiary acquired 194 finished and 267 unfinished lots, in addition to 1,400 entitled residential lost in Monterey County,nbsp; that it intends to own by foreclosing on a defaulted note
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; The sale of 32 finished lost generated a gain of $543K and strong IRRs
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; The company announced its first water development project in New Mexico with the goal to develop up to 1,500 afa of water
middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; Maintains BUY rating and $47 price target which is 1.9x PICOrsquo;s June 30 book value
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Analyst, David Woodburn;, Market Commentary, Monterey County, Nevada, New Mexico, Pico Holdings, Real Estate, real estate assets, Small & Micro Cap, small cap pulse, USD
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