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Insiders Are Buying Consolidated-Tomoka Land
Posted by: maarnio (IP Logged)
Date: August 30, 2013 10:34AM

Consolidated-Tomoka Land (CTO) saw intensive insider buying in March 2012 when the stock was trading below $30. The stock ran to $42.46 in July this year or 51.5% above the low made in March 2012.


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Intensive insider buying can be defined by the following three criteria:
  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increase their holdings by more than 10%.
Consolidated-Tomoka Land is a Florida-based publicly traded real estate company, which owns a portfolio of income properties in diversified markets in the United States, as well as over 10,000 acres of land in the Daytona Beach, Fla., area. Consolidated-Tomoka saw intensive insider buying again in August this year. This was the first time since March 2012 that the stock saw intensive insider buying.

Insider Buying During the Last 30 Days
  • Jeffry Fuqua purchased 1,000 shares on Aug. 19 and currently holds 6,000 shares or 0.1% of the company. Jeffry Fuqua serves as a director of the company. Jeffry Fuqua increased his holdings by 20% in August.
  • William Olivari purchased 300 shares on Aug. 19 and currently holds 2,000 shares or less than 0.1% of the company. William Olivari serves as a director of the company. William Olivari increased his holdings by 17.6% in August.
  • Thomas Warlow purchased 200 shares on Aug. 13 and currently holds 1,700 shares or less than 0.1% of the company. Thomas Warlow serves as a director of the company. Thomas Warlow increased his holdings by 13.3% in August.
Financials

Consolidated-Tomoka reported the second-quarter financial results on July 24 with the following highlights:

Revenue$5.0 million
Net income$0.3 million
Cash$1.3 million
Debt$44.4 million

The company has seen revenue growth during the last three years.


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Competition


The real estate business, generally, is highly competitive and fragmented.

As of Dec. 31, 2012, Consolidated-Tomoka's thirty-one income properties were located in seven states with 17 properties located in Florida, five properties located in California and four properties located in Georgia. Consolidated-Tomoka's real estate operations primarily comprised of its land holdings and its subsurface interests, with substantially all of its land holdings located in Daytona Beach, Volusia County, Fla.

Consolidated-Tomoka competes with many developers and land owners of varying sizes ranging from local to national level businesses to complete land transactions. The potential parties interested in Consolidated-Tomoka's land holdings are primarily residential and commercial developers and commercial businesses and competition for these transactions is based on, among other things, price, location, land use or optionality of land use.

Consolidated-Tomoka's golf operations consist of a single property located in Daytona Beach, Fla., with two 18-hole championship golf courses, practice facility, and clubhouse facilities including a restaurant and bar operation. The primary competition for Consolidated-Tomoka's golf operations comes from other private and public golf operations in the local market.

Conclusion

There have been three different insiders buying Consolidated-Tomoka and there have not been any insiders selling Consolidated-Tomoka during the last 30 days. All three of these insiders increased their holdings by more than 10%. Consolidated-Tomoka has an insider ownership of 1.10%.

Consolidated-Tomoka has a book value of $19.82 per share and the stock has a dividend yield of 0.17%. The stock is currently trading right at its 200-day moving average, which could be a good entry point for the stock.


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Disclosure:
I have no position in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.


Stocks Discussed: CTO,
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