This farm was put on the market yesterday for $250m. It might be of interest to SHV. My quick assessment: - water rights are worth around $125m at current prices. - this means the land, at $125m, is very significantly overpriced ($20,000/Ha!). - the permanent water rights is enough to sustain about 2,000 - 2,500Ha of mature almonds. I think it might be risky for SHV to apply their normal water strategy in this region (1/3 own, 1/3 long term lease, 1/3 spot market). - it’s in a different water scheme (Goulburn) to all of SHV’s existing portfolio, which diversifies risk. - something smells fishy. If it’s got potential to grow almonds then it doesn’t make sense for goFarm to sell it. They are further advanced with their other almond developments that are now reaching production status. Surely sell one of those to fund development of this site. They claim their strength is consolidation and development of assets - they are only half way.
SHV Price at posting:
$5.60 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)