Texas Pacific Land Corporation (TPL)

[couldbebetter]

Interesting situation with TPL's price. Historically,
the PE ratio stays over 15. TPL certainly stayed above
that for all of 2018 assuming 2018 EPS is around $26.

Now, what will 2019's EPS be? Anyone out there care to hazard
a guess? Will 1st qtr EPS get a boost from a $100 million sale
of land? If part of a 1031 exchange will that result in a tax-
free gain? If it does that would be $12.90 added to the more
normal earnings. That could result in TPL's 2019 being $35.

If the $35 turns out to be accurate a PE of 15 would be a price
of $525. My point in all of this is should the stock price trade
at under $525, it may be trading at a historic low PE ... if TPL
really does earn $35. I'm not making predictions, I'm just
thinking out loud about various scenarios and what they would
look like. Looks like low %400's may be solid support for TPL
going forward. ( I just find it amazing how that PE of 15 always
seems to hold!)