Comments on: Consolidated Tomoka(CTO)- Hidden Value In Long Lived Assets http://www.inelegantinvestor.com/2006/08/29/consolidated-tomokacto-hidden-value-in-long-lived-assets/ Something of Value Sat, 06 Mar 2010 19:49:51 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Value Investing News http://www.inelegantinvestor.com/2006/08/29/consolidated-tomokacto-hidden-value-in-long-lived-assets/comment-page-1/#comment-48 Value Investing News Wed, 11 Oct 2006 23:35:43 +0000 http://www.inelegantinvestor.com/2006/08/29/consolidated-tomokacto-hidden-value-in-long-lived-assets/#comment-48 <strong>Consolidated Tomoka - Hidden Value In Long Lived Assets...</strong> The Inelegant Investor examined the true asset value of the land on the books of Consolidated Tomoka (CTO). The properties look really interesting but I don’t think I would want to own property in Florida right now. ... Consolidated Tomoka – Hidden Value In Long Lived Assets…

The Inelegant Investor examined the true asset value of the land on the books of Consolidated Tomoka (CTO). The properties look really interesting but I don’t think I would want to own property in Florida right now.
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]]> By: R Jeffrey Bellet http://www.inelegantinvestor.com/2006/08/29/consolidated-tomokacto-hidden-value-in-long-lived-assets/comment-page-1/#comment-5 R Jeffrey Bellet Wed, 13 Sep 2006 17:33:47 +0000 http://www.inelegantinvestor.com/2006/08/29/consolidated-tomokacto-hidden-value-in-long-lived-assets/#comment-5 I have owned shares for 6 years and enjoyed the rise in share price. I have sold only a few shares for diversification. No doubt the luster is off Florida real estate, but no one can deny that land values will rise again. The question is when and how fast. Crystal balls aside, if we extrapolate their land values from selling prices received in deals of the last few years, we can create a range of possible values. If we assess a low selling price of $10,000, then the remaining 12,000 acres are worth $120 million. If we use a recent sale price for land sold for a hospital of $162,000 then the remaining acreage potentially is worth $2 billion. I think both extremes are silly to contemplate, but considering they have other assets and that current market value is $360 million a tripling within a decade is not hard to envision. There is little threat from corporate governance or product obsolescence here. There are no single share owners that have anything close to a controlling interest and a hedge fund is quickly buying up shares in recent weeks. This is a value investor dream, rising long term values in hard assets and a potential for a large transaction at almost anytime. I have owned shares for 6 years and enjoyed the rise in share price. I have sold only a few shares for diversification. No doubt the luster is off Florida real estate, but no one can deny that land values will rise again. The question is when and how fast. Crystal balls aside, if we extrapolate their land values from selling prices received in deals of the last few years, we can create a range of possible values. If we assess a low selling price of $10,000, then the remaining 12,000 acres are worth $120 million. If we use a recent sale price for land sold for a hospital of $162,000 then the remaining acreage potentially is worth $2 billion. I think both extremes are silly to contemplate, but considering they have other assets and that current market value is $360 million a tripling within a decade is not hard to envision.

There is little threat from corporate governance or product obsolescence here. There are no single share owners that have anything close to a controlling interest and a hedge fund is quickly buying up shares in recent weeks. This is a value investor dream, rising long term values in hard assets and a potential for a large transaction at almost anytime.

]]> By: Inelegant Investor » Festival of Stocks #1 http://www.inelegantinvestor.com/2006/08/29/consolidated-tomokacto-hidden-value-in-long-lived-assets/comment-page-1/#comment-4 Inelegant Investor » Festival of Stocks #1 Mon, 11 Sep 2006 17:45:51 +0000 http://www.inelegantinvestor.com/2006/08/29/consolidated-tomokacto-hidden-value-in-long-lived-assets/#comment-4 [...] George at Fat Pitch Financials has begun a blog carnival called Festival Of Stocks. The first edition is currently up and our post on Consolidated Tomoka has been selected as Editor’s Choice. There is much other worthwhile reading featured, and all are encouraged to visit. [...] [...] George at Fat Pitch Financials has begun a blog carnival called Festival Of Stocks. The first edition is currently up and our post on Consolidated Tomoka has been selected as Editor’s Choice. There is much other worthwhile reading featured, and all are encouraged to visit. [...]

]]> By: Festival of Stocks #1 - Fat Pitch Financials http://www.inelegantinvestor.com/2006/08/29/consolidated-tomokacto-hidden-value-in-long-lived-assets/comment-page-1/#comment-3 Festival of Stocks #1 - Fat Pitch Financials Mon, 11 Sep 2006 10:33:38 +0000 http://www.inelegantinvestor.com/2006/08/29/consolidated-tomokacto-hidden-value-in-long-lived-assets/#comment-3 [...] Consolidated Tomoka(CTO)- Hidden Value In Long Lived Assets by Inelegant Investor * Editor’s Favorite * The Inelegant Investor examined the true asset value of the land on the books of Consolidated Tomoka (CTO). The properties look really interesting but I don’t think I would want to own property in Florida right now. Stance: Neutral Stocks: CTO,BKFG.PK [...] [...] Consolidated Tomoka(CTO)- Hidden Value In Long Lived Assets by Inelegant Investor * Editor’s Favorite * The Inelegant Investor examined the true asset value of the land on the books of Consolidated Tomoka (CTO). The properties look really interesting but I don’t think I would want to own property in Florida right now. Stance: Neutral Stocks: CTO,BKFG.PK [...]

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