Pick for 2003:
Marty Whitman (who I respect greatly on a personal basis) & Louis Navellier are optimistic on TRC. This stock has gone nowhere for 15-years, and things really are turning quickly -- due to a change in management and the energy crisis.
A quick look at the assets will indicate that the value of this company is a minimum of $100 per share. This assumes a value of approximately $8,500 per acre: (assuming 170,000 acres, of the 270,000 company owned acres, can be classified as developable).
A fair market analysis of the company indicates the true value of this firm. Although I am projecting 2-years to maximize value (Marty continues to scoop up shares & this is one of Louis's top-five holdings), the value is easy to calculate.
Anybody else follow this company? I have an extensive holding of corporate documents, valuations of nearby properties, and media articles.
Marty Whitman (5/15/01) on TRC:
sageonline.com
Question: Do you still consider Tejon Ranch safe and cheap in the mid-$20s?
Yes. It's especially safe and cheap if the management will be able to get to the property reasonably priced electric power from a captive or semi-captive source. Management is working on this.
Question: Do you consider American Express Company [AXP] to be attractive at the current price?
I don't really know it. Our current investments in common stocks are earnings common stocks and wealth creation common stocks. Among earnings common stocks our criteria for buying are that the shares should be available at well under 10 times peak earnings, provided we think the next peak will be a lot better than the present peak. In wealth creation common stocks, we are buying issues at at least 30 percent discounts from readily ascertainable net asset values (NAVs). Neither American Express common nor any large cap market leaders I've looked at meet our criteria for either earnings, common stocks or wealth creation common stocks.
Louis Navellier (6/8/01) on TRC:
sageonline.com
Question: What are your five most timely stocks in here for aggressive investors?
"...I like Calpine Corporation [CPN] [and] Tejon Ranch Co. . I also like Abercrombie & Fitch Co. [ANF], Hot Topic, Inc. [HOTT] and finally, Forest Laboratories, Inc. [FRX]..." |
