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Source of my information is largely public record - your question caused me to relook at EDGAR and I noticed that the most recent 14A had be sanitized such that Brackpool's brushes with bankruptcy had been removed. You would find these references in the 1993-5 proxies.
Note in the same proxy the guy is paid $1 million/year salary plus bonus plus perks plus stock options. Talk to the guy and see if you think he merits it. Look at the 10K and 10Q's and see if the salary is earned.
A lot of the other stuff is from hard digging - local newspapers, talking to people who work for Cadiz - officers, board members, lawyers; people who work for RailCycle; attendance at hearings about the railcycle project, talking to MWD, talking to water agencies, etc.
An easy way to value them prior to their buy of SunWorld was to look up comparative properties to price their 34,000 acres in Cadiz. Check out Catellus, they have huge holdings in the desert that is comparable railroad property. Comps don't begin to support their stated valuations.
Their Cadiz holdings have underlying water, but not as much as they state. They are now talking of a conjunctive use project which makes some sense. Unfortunately there are the issues of getting the water in and out, EIR's, and adjudication of the basin.
Their Homer-Piute stuff is likely a crock of guano.
Cadiz folks are not water people. They are Ag people, not very successful Ag people. They brought in the water side when it became apparent that the Ag stuff would fail.
My suggestion would be that if you are looking for hidden value, fish in another pond. How to find that pond? Try reading Peter Lynch or Ben Graham. Value Line is great. For all else, it's hard work. The net makes it relatively easy.
Skipard? Frankly I don't care. There's lots more here that you don't want to know. It has heavy "institutional" support from europe, so that shorting it is silly. I'm just giving you my opinion. Individuals will need to do their own investigation. |
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