A Historical Day
positive thesis shift for $ALCO
Hello,
Today marks a historical day for Alico. After a century of citrus operations, growing oranges is no more. As subscribers are aware, I initiated a position in $ALCO in July of last year and increased it to my second-largest holding just last month.
The stock rose over 20% at market open due to a strategic update.
Valuing Alico based on its citrus P&L is no longer viable, as it is transitioning to a diversified agriculture company and plans to monetize 25% of its 53,000 acres of Florida land for residential and commercial RE development.
Funny enough, this is exactly what I anticipated in July, when stating that, “No more than a quarter of Alico’s acreage, including Corkscrew, is likely to be rezoned at some point.”
Here’s the full update along with my comments on this significant strategic shift: