There may not be a compelling reason to buy this stock, but here are two good reasons.
Last year Mart Whitman (Third Ave Value Fund), purchased and talked up Tejon Ranch with the same argument here is using here for owning ALEX. A short time later the market seemed to "discover" the company, and the price went from 16 to 45 (now at 24). I believe a similar occurance could happen here - although the asian contagion may be able to subdue it somewhat
Second, this company seems like an excellant place to "park" money, while waiting for some of the excess in the market place to dissipate
Anybody ever looked at Maui Land & Pineapple (MAUI)? I don't know a lot about it, but I do know that they 1) grow pineapples, which is not exactly wildly profitable, and 2) own a lot of land on Maui. The company currently owns about 28,000 acres, about 22,000 of which is in West Maui. About 6,000 acres are used by the company's operations, and about 8,000 are part of a forest reserve. That leaves about 13 - 14,000 acres of land in Maui which appears to be non-producing. I know that of this land, about 9 miles is waterfront, with about 3,300 feet along sandy beaches. I am by no means an expert on real estate. Does anyone have any idea how much this excess land is worth?