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Avatar Holdings Inc. (AVTR) Business Derives Extraordinary Value from Realty Assets

Investors will understand poor business performance in 2007 by Real Estate Operations Industry stocks. This company has suffered an especially steep decline. It earned less than $22 million last year against nearly $175 million in 2006. The management has admitted that full recovery is unlikely during 2008. The small capital stock has been below $48 against a 52-week high of over $84. Discerning investors with long term horizons will recognize that the inherent value of the stock. There are three sound reasons to support this stock.

The company owns more than 30 thousand acres of prime land in Florida and Arizona. This includes residential areas, commercial zones, and pristine eco-systems. The long term values of these assets make the present stock price appear to be a bargain.

The second strength of the company relates to its comprehensive approach to neighborhood development. It has a number of localities designed for people over the age of 55. The demand for such specialized dwelling units is bound to rise with the increase in retired people from all over the country. Florida will prove to be an especially popular destination for senior citizens.

The holistic approach to property development of this company includes the construction of roads and title insurance services. These additions result in geometric appreciation of land and construction developed by the company.

The third reason for investors to consider owning and holding this stock is the conservative approach of the management. It has sold some of the fixed assets owned by the company in order to reduce debt. This strategy will help the stock ride out the economic slow-down even as the company continues to develop prime sites in anticipation of inevitable improvement in demand for quality and developed realty.

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