This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Small Agriculture Names You Should Know

Stock quotes in this article: LMNR, CVGW

NEW YORK ( TheStreet) -- As a value investor, I've been long fascinated by agriculture names, primarily the smaller ones. Some of these companies have long histories, and came to the public markets fairly late in the game.

In some cases, when they did go public, it was not because they desired to be in the spotlight, or wanted to raise capital, but more as a means to create an exit strategy for owners. Sometimes this meant an initial listing on the "pink sheets" where information is typically scarce, and trading is thin.

Limoneira (LMNR), which dates back to 1893, (LMNR) is a great example. This relatively unknown company, which left the pink sheets to list on NASDAQ in 2010, happens to be the largest avocado grower in the U.S., as well as one of the largest lemon growers. Limoneira is also a real estate development company, and owned 188 residential units in Santa Paula, Calif., and 1,873 properties in various stages of planning and development in San Luis Obispo, Santa Barbara, and Ventura at the end of last year.

On the agriculture side, Limoneira owns about 5,800 acres of California farmland; including 1,766 used to grow lemons, 1,254 for avocados, and 1,062 for oranges. Total agricultural acreage is the equivalent of 9 square miles of land. A sweetener is the fact that the company also owns water rights associated with the land.

If there's anything compelling about Limoneira, it's the assets, not operating results. The company currently trades for 68 times earnings, and 37 times 2013 consensus estimates. From a revenue perspective, the first nine months of 2012 have been good, up 22.6% over the same period last year, and we'll see if that trend continues.

If you happen to like avocados, then you might also be interested in Calavo Growers (CVGW), a company that has close ties to Limoneira. Calavo, founded in 1924 but did not go public until 2001, markets and distributes avocados and associated products.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs