$LMNR - Teton remains bullish

Limoneria Co. is a Santa Paula, California based grower, packer, and distributor of citrus fruit and avocados. It also owns a significant portfolio of agricultural real estate and water rights in California, Arizona, and South America, much of which was acquired decades ago and valued substantially below current market prices on the company’s balance sheet. 

In recent years, Limoneira has made an effort to transition to an ‘asset lighter’ operating model by monetizing undervalued properties, and has divested more than $150 million of assets. Despite these actions, in December 2023, management and the board publicized their belief that an ongoing disconnect exists between the company’s public market value and its intrinsic value, and hired an investment bank to explore the potential for strategic transactions. This strategic review may serve as a catalyst to narrow Limoneira’s current discount to Private Market Value
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