Trading in Limoneira is rarely exciting but the shares are showing some life for the year to date and are up more than 40%. Part of that has to do with a recent land acquisition and expansion spree in which the company has been engaged. In July, the company entered into a long-term lease with water resource company Cadiz ( CDZI) to plant up to 1,280 acres of lemons on some of that company's land. In September, Limoneira also completed the acquisition of Associated Citrus Packers, which included a total of 1,300 acres of land with 950 acres of lemon orchards. On Monday, the company announced the purchase of 760 acres of agricultural land, including 400 acres of lemon orchards and 360 acres of cattle grazing land in Tulare County, Calif., for $8.75 million.
Limoneira does certainly not appear to be cheap at 56 times trailing earnings and 57 times the 2014 consensus earnings estimate, but this is not your typical company. It is an asset play, but one that may begin to show better earnings if recent acquisitions bear fruit (pun intended). At the time of publication the author was long LMNR. Follow @JonMHellerCFA This article was written by an independent contributor, separate from TheStreet's regular news coverage.