Limoneira Is More Than Just Lemons

Off-the radar agribusiness name Limoneira (LMNR) , which is included in the basket of other off-the-beaten-path agriculture and land-related companies in my portfolio, has taken some steps over the years that the others have not.

Back in 2010, when the company was 117 years old, it left the confines of the pink sheets to list on the Nasdaq. That is as an atypical move, especially since the advent of Sarbanes-Oxley in 2002, which prompted some small companies to move to the pink sheets in order to avoid the regulatory costs associated with those regulations.

Admittedly, Limoneira made the move to list because the number of its registered shareholders had breached the limit to be a non-reporting company. Some companies that delist themselves have gotten creative in order to reduce their number of shareholders below that threshold. Perhaps the most effective way is to undergo a reverse stock split that would leave some shareholders with fractional shares that the companies then would purchase for cash.

In LMNR's case, prior to listing, the company underwent a 10-for-1 (forward) stock split in order to provide more liquidity and make its share price, which was in the $200 range prior to the split, more palatable to prospective shareholders.

While Limoneira may be better known in the market than it was prior to 2010, it has remained on the fringe. I've been pleased to see greater effort from LMNR to grow investor awareness, which is highlighted by a presentation made earlier this week at the 29th annual ROTH conference.

If you liked this article you might like

Come, Ride the Value Stocks Roller Coaster With Me

Orange You Glad to Learn More About Limoneira?

2 Farm Names That Could Bear Fruit for the Patient Seed Planter

Sowing Farmland Investment Seeds Requires Patience for Payoff