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PICO Holdings, Inc. (PICO) Message Board

  • pacific_cruiser@ymail.com pacific_cruiser Sep 22, 2010 9:07 PM Flag

    Canola Oil Plant

    Where do these guys find these projects? Checked it out, looks like a solid winner. Firm growing domestic market and China is importing. Better than soy. Pico still looks like a solid long term play. Can't wait to see what is next.

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    • pacific_cruiser@ymail.com pacific_cruiser Oct 6, 2010 11:46 AM Flag

      Interesting.

      This investment indicates to me that management is involved in researching and implementing innovative strategies, like stepping up to the ongoing revenue issue that has been a millstone around Pico stock for years. This segment of the Ag sector has been,and appears to continue to be, solid.

      Again, still, this looks like a solid opportunity. Sure hope I am correct, I am in pretty big and may go bigger.

      Distressed assets can be extremely profitable however they are distressed for a reason. Sometimes unlocking the asset's potential is more difficult than anticipated.

      BTW, China is running out of "good" land. Canola requires fertile land in cool climate. Lots of articles on that recently. Many are concerned that this may make them more aggressive; What is Chinese for "Lebensraum?"

    • For the time being they may be large importers...doubt that will continue indefinitely. Good luck to you. For me this is a red flag...jump the shark...time to bail. Risk vs. reward is not there anymore IMO.

    • A couple of guys in laJolla CA think they know about processing rape seed. This fiasco should be interesting. Rape seed is named for the effect on the land on which it is raised. Farmers hate it. It takes every nutrient out of the soil.

      PICO is a mess. They can't figure out where to go. Water is now the weak link so off they run into farming. Why didn't they pursue the housing land market? Plenty for sale and at lower prices than they just paid. Cold feet?

      The chance of your making money in this grab bag is nil.

      • 1 Reply to rcsam
      • trroger@ymail.com trroger Sep 29, 2010 11:04 AM Flag

        I called on this. Carefully researched, employed experts and carefully selected a partner to go forward, good location selected, canola acreage growing esp. in Canada. Looks good to me. I still have full confidence in Hart and Langley (who I am told has returned). Pico is an investor not an operator as previous posting indicates. In my opinion Pico should not put all investment in assets related to housing market. May be a long time coming back, if ever. People keep right on eating however.

    • Horrible idea to build this plant. What are these guys doing? They are supposed to be buying distressed assets or assets on the cheap. Where is the margin of safety here? $160M to build a brand new canola oil plant are you kidding me? How many substitutes are there for canola oil? Probably too many to count. Just ask the guys that built ethanol plants that never produced a drop of fuel. This must be a joke. Huge cap. ex. like this is very scary. Again, this is not their bread and butter. Maybe if they bought a plant for like $40M that can go into production today but this is very unlike them. They are reaching for yield...SCARY!!!!!!!!!!! I would not own this here.

      • 2 Replies to DaBreeze21
      • Glad to see Pico pull its thumb out of its butt and do something with the bank account. Many segments of the Ag business are well kept secrets. DaBreeze ought to buy gold like every other dork and then ride it down with the like minded.

      • dauntless6@ymail.com dauntless6 Sep 28, 2010 2:13 PM Flag

        At last a bit of activity on this message board. One thing that has always bothered me about this stock is the lack of ongoing revenue/income and I think it tends to depress price. The building industry must recover a bit to unlock value in the water and land investments. Who knows when that will happen. This clever investment in oilseed, especially canola which has huge and growing demand, is a money pump. It will thrive in the medium term no matter what the economic conditions. Come 2012 this is going to look like a very, very smart investment. May be snapped up by a major producer before even in production. Doubt any profitable ongoing enterprise is available at a good price. In reply, I welcome the fact that these guys are not sitting on their hands. I was beginning to wonder.

    • Someone shelled out 661K on an uptick at the end of trading on Friday. hmm

 
PICO
21.87-0.19(-0.86%)10:26 AMEDT

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