This Day On The Street
Continue to site
ADVERTISEMENT
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

PICO: Poor Man's Berkshire Hathaway Rebounding

PICO has been a name with seemingly much to offer deep value investors over the years. It has a compelling array of assets including land, water and a securities portfolio, but the company has been unable to deliver any semblance of consistency.

PICO has also been very difficult for investors to understand. Earnings and revenue have been lumpy at best. There's never been much stability because the only time the company posted a positive bottom line has been due to asset sales. Management has instead focused on growing book value as its measure of success, which is a foreign concept to many investors, at least as a way to measure success.


Unfortunately, book value per share has been falling the past three years, from $27.84 at year end 2009 to the current $20.80. Relative to the current stock price, that still puts the price to book ratio at just 1.12. But if the company's measure of success is in decline, already confused investors are unlikely to want to own it.

However, PICO has been making some changes these past few years. It's been selling off some businesses and entering new ones, including one that might ultimately deliver a source of consistent revenue and earnings.

PICO Price / Book Value Chart PICO Price / Book Value data by YCharts

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
PICO $18.60 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs