Wayne C. Oops. Looks like I took profits too soon in ALCO. Perhaps you've read the positive write-up in latest issue of Barron's which caused (imo) the very nice pop in ALCO stock (18 to 24) this morning. The article mentioned an investor who recently wrote to Barron's telling them of an ancient Barron's article (-g-, written in early 1980's) which described ALCO's very undervalued land values. Funny, but I do remember that 1980's article. A Florida stockbroker/investor I believe named Robert Lily, who liked Fla. land plays, was the prime interviewee then who provided a sum-of-parts valuation, if I recall correctly.
As the current issue of Barron's points out, ALCO's been a tough one to hold for seeing intrinsic value realized. That is, for seeing the corporation take steps to monetize and realize the land values.
Although, occasionally over the years there've been a couple of run ups in the stock with subsequent retracement. I never bought nor sold until I established my position after it was announced a couple of years ago that Warren Buffett had a position in a similar (imo) Florida land company. And I'm still holding that one.
Congratulations to your broker, others who've recommended the stock. I haven't an opinion on what long time investors should do. On the one hand, some real estate is being sold and going to be reflected in the earnings. Maybe more will be sold. The patient long time holders could see this as justification and encouragement to hold. OTOH, the stock has always dropped back from its spikes (and Barron's inspired spikes can be temporary). So I'd be betting that now would be a good time to sell some shares. bwdik.
Paul Senior |
