Consolidated Tomaka (NYSEMKT:CTO) a Florida raw land company has been making all the right moves and it hasn't helped the bottom line one bit. They have been getting permitting completed for future development. They have brought on new consultants to manage their timber and hay operation. The firm has been diversifying their rental real estate portfolio. A new contractor has been brought in to manage their money losing golf operations.
None of this has made any impact on the bottom line and it is doubtful that it will during the remainder of the year. CTO is likely to be a crappy investment for at least the same time period.
That doesn't mean that CTO is a crappy investment. When the Florida real estate market begins to turn CTO is going to have made all of the right moves by positioning themselves for the future.
If Florida real estate is dead for good an investment in CTO is wasted money. If you believe like I do, that retirees are still likely to flock to Florida in future years, CTO is going to return to their wildly profitable ways.
The writer is long CTO (and extremely patient)
Disclosure: I am long CTO.