Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

PICO Requires Patience, But Should Pay

Some stocks demand a little more of their owners, and PICO Holdings (NASDAQ:PICO) is one of them. PICO is essentially a holding company where management seeks out undervalued assets, buys them (whole in or in part), and looks to build shareholder value by harvesting cash flow from those assets and/or selling them at a later date.

What makes PICO more challenging than the average stock is that there virtually no analyst coverage and the company's three very different primary businesses (water development, real estate, and oilseed crushing) are not the easiest to value. Although the company's per-share book value performance hasn't been all that impressive in recent years, valuing this stock solely on book value can be a...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details