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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (22928)	12/31/2005 9:26:55 PM
From: Carl Worth	Read Replies (2) \| Respond to of 78719

My most favored homebuilder continues to be SPF, though I haven't owned it for many months. I look to buy shares again when the sector isn't under so much siege, not sure when that will occur. I'd be a buyer at 30 bucks, but not sure it will dip that far. Like MDC that you mentioned the other day, SPF's estimates have not dropped at all, other than a small dip in Q4 due to regulatory delays, and I like the way they run their business, attempting to avoid selling to speculators, and keeping their qualification process conservative. I have dropped by various properties in this area at different times, and always found the salespeople to be well versed in this strategy, which (IMHO) goes a long way toward improving the success of the overall company. As for TUX, I think it's a low risk play on increasing land values, but since I did know that it is basically run by WNMLA, I hadn't bought shares separately. I certainly don't see a major problem with owning both though, as TUX stands decently on its own, with the asset of undeveloped land, and turning a small profit each year. Could be one of those that goes nowhere for a long time, then doubles overnight if they sell the land.

To: Paul Senior who wrote (22928)	1/18/2006 1:48:55 PM
From: Spekulatius	Respond to of 78719

Followed you into ALCO - the FLA farming/real estate company. I found some interestinbg tidbits regarding the value of ALCO land in thei annual report. It seems that some smaller sales were done at a valuation of about 20k/ acre. They also secured a huge credit line of 170M$ with 7680 acres in collateral only (P51, 22k/acre). Now ALCO owns about 136k acres which means that at a EV of 300M$, an acre is valued at about 2k. now i do realize that some of ALCO's land holding may be worth substantially less but this still seems to be like a good margin of safety. I am in for a few shares. alicoinc.com