I don't know if you've looked at Alico, Inc. The market cap is worth less than all their farmland. There are two potential catalysts: a recovery in orange production (which has had its troubles in recent years) and a focus on selling some land. If orange production doesn't pick up, they are considering the possibility of gradually selling off all the land.
I couldn't foresee Alico makes an announcement that they were going to focus solely on the sale of farmland. They announced that liquidation should eventually be around $60 per share (I personally expected around $50). Unfortunately, it's no longer worth investing in shares unless you want less volatility and a relatively "safe" hurdle rate.
They can't sell all their land in a year. I think it's going to take them at least 5 years, if not more.
I always said Bitcoin is either going to zero or up forever against fiat, it's getting pretty hard for anyone to make a credible argument that's it's going to zero at this point.......
Thanks. Do you think there is a long-term risk in the Permian Basin related to water production, where some surfaces have been elevated a few inches and others sunken? It seems to be due to the water production being reinjected into formations that weren't before, leading to an accelerated amount of earthquakes, water contamination, and potentially stricter regulatory actions. At some point, the earthquakes should become so frequent and strong that they will take their toll on older rigs.
We are currently learning about the affects of produced water injection. Something will probably need to be done. The greater risk we see is Texas changing regulations more than damage to old wells. But if regulations to change, aka lower maximum pressures allowed, our companies will likely benefit from higher energy and water prices.
Great update on these companies. One caveat regarding the other companies owned by Five Point and CEO, Waterbridge and Powered Land, (if I understand the relationships correctly) is that there is potential for incentives to structure deals such that Landbridge gets a little less in a contract if the new Data Center agrees to use Waterbridge and/or Powered Land to supply their construction and water needs. Since the CEO owns so much of Landbridge, this may not be a problem, but I always have problems with these types of relationships. It would be different if Landbridge shareholders owned Waterbridge and Powered Land as fully owned subsidiaries. Does anyone else think this is a worthy concern?
Great update. Question is how do you guys handle the K-1 for NRP? Seems they file in multiple states and really don’t want my CPA bill to rise exponentially. Thanks.
I do not know the deep lore of the Meshabi Trust litigation debacle, but I am not inclined to trust a management team which allowed such a dysfunctional situation to develop and fester.
I don't know if you've looked at Alico, Inc. The market cap is worth less than all their farmland. There are two potential catalysts: a recovery in orange production (which has had its troubles in recent years) and a focus on selling some land. If orange production doesn't pick up, they are considering the possibility of gradually selling off all the land.
Looked into it. Didn’t do a deep dive because it didn’t seem to meet our hurdle rate aka better than NRP/LB/TPL.
Nice call Tristan.
I couldn't foresee Alico makes an announcement that they were going to focus solely on the sale of farmland. They announced that liquidation should eventually be around $60 per share (I personally expected around $50). Unfortunately, it's no longer worth investing in shares unless you want less volatility and a relatively "safe" hurdle rate.
They can't sell all their land in a year. I think it's going to take them at least 5 years, if not more.
Tend to agree.
I always said Bitcoin is either going to zero or up forever against fiat, it's getting pretty hard for anyone to make a credible argument that's it's going to zero at this point.......
We’d tend to agree. Though anything can happen.
Thanks. Do you think there is a long-term risk in the Permian Basin related to water production, where some surfaces have been elevated a few inches and others sunken? It seems to be due to the water production being reinjected into formations that weren't before, leading to an accelerated amount of earthquakes, water contamination, and potentially stricter regulatory actions. At some point, the earthquakes should become so frequent and strong that they will take their toll on older rigs.
We are currently learning about the affects of produced water injection. Something will probably need to be done. The greater risk we see is Texas changing regulations more than damage to old wells. But if regulations to change, aka lower maximum pressures allowed, our companies will likely benefit from higher energy and water prices.
Time for more FRMO haha.
Never a bad time for that money-making machine.
LB lock-up ended on 25 December.
Thanks for the article and a Happy New Year..
Thanks Tom.
Great update on these companies. One caveat regarding the other companies owned by Five Point and CEO, Waterbridge and Powered Land, (if I understand the relationships correctly) is that there is potential for incentives to structure deals such that Landbridge gets a little less in a contract if the new Data Center agrees to use Waterbridge and/or Powered Land to supply their construction and water needs. Since the CEO owns so much of Landbridge, this may not be a problem, but I always have problems with these types of relationships. It would be different if Landbridge shareholders owned Waterbridge and Powered Land as fully owned subsidiaries. Does anyone else think this is a worthy concern?
Great update. Question is how do you guys handle the K-1 for NRP? Seems they file in multiple states and really don’t want my CPA bill to rise exponentially. Thanks.
We haven’t found it too difficult. But each individual’s case is different. Sorry, we don’t go into tax details.
thank you. Just curious on the state filings? Have you had to do any? Understand completely the non tax advise; just curious on your experience.
Nice update on each company, thanks.
🫡
I do not know the deep lore of the Meshabi Trust litigation debacle, but I am not inclined to trust a management team which allowed such a dysfunctional situation to develop and fester.
Mesabi has no management team.
Joy to read
Thank you, Michalis. Glad you enjoyed it!
Thanks for the update, guys! Happy New Year!
Happy New Year, Maksim!
Good morning - thanks for all of your thoughts and insights. Do you have any updated thoughts on LB since the Gotham City report? Thanks