Friday, April 28, 2017 8:51:12 AM
The land is near a small town, Snowflake, Arizona. The population is less than 10,000 people. The big problem is that there does not seem to be much business in the area. While they have some kind of residential development approved, I can't see any large amount of construction since how many more house does one need for a town of less than 10,000 people?
One of the big employers was a paper mill, which also was a major customer for the short haul rail line, but that got bought by a Canadian company and then closed a few years later.
I think what the company needs is for there to be a demand for the land they own. While the rail helps, it is less than 10% of the market cap, so while the rail can add to profit, it can't really drive the stock price. (One way to correct the problem of the rail line profit being overshadowed by the size of the rest of the company could be to spin it off into its own company with its own common stock trading on the public markets.)
I think what would get the company moving on all fronts would be if the price of paper rises, and the paper mill reopens; otherwise one would need to wait for something else in the area to create a demand for more rail service and more residential housing.
Louis J. Desy Jr.
Coinllectibles' Subsidiary, Grand Town Development Limited, Acquires Rare Song Dynasty Ceramics Worth Over USD28million • COSG • Apr 18, 2024 8:03 AM
ILUS Provides Form 10-K Filing Update • ILUS • Apr 17, 2024 9:54 AM
Glucotrack Announces Expansion of Its Continuous Glucose Monitoring Technology to Epidural Glucose Monitoring • GCTK • Apr 17, 2024 8:00 AM
Maybacks Global Entertainment To Fire Up 24 New Stations in Louisiana • AHRO • Apr 16, 2024 1:30 PM
Cannabix Technologies Begins Certification of Contactless Alcohol Breathalyzer, Re-Brands product series to Breath Logix • BLOZF • Apr 16, 2024 8:52 AM
Kona Gold Beverages, Inc. Acquires Surge Distribution LLC from Loud Beverage Group, Inc. (LBEV) • KGKG • Apr 16, 2024 8:30 AM