Cadiz, Inc. (NASDAQ:CDZI)

CAPS Rating: 1 out of 5

The Company is engaged in the acquisition and development of land and groundwater resources in the United States.

CDZI News and Commentary

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All Players

19 Outperform
86 Underperform
 

All-Star Players

2 Outperform
34 Underperform
 

Wall Street

1 Outperform
0 Underperform
 

Top CDZI Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

EnigmaDude (60.76)
Submitted August 20, 2014

The drought in California has opened the door for this company to proceed and it looks like they will finally be able to capitalize on their long-term plan to provide water from the Mojave desert to the LA basin. Still a risky venture but the reward… More

TSIF (99.97)
Submitted November 09, 2016

Might be some hidden news, but this one jumps several times a year on no news/speculation/forcing sort covering...Blows through $20M a year on sub half a mil revenue.$6M in cash.Net negative book value of $70M.Target. Sub $7.20

CDZI VS S&P 500 (SPY)

Recent Community Commentary

Read the most recent pitches from players about CDZI.

Recs

0
Member Avatar jed71 (99.85) Submitted: 10/16/2017 2:07:23 PM : Underperform Start Price: $12.75 CDZI Score: +0.23

I don’t understand what Apollo Management sees in this firm. I guess they are looking at the security they have, including some liens against ~34,000 acres of land. But as common equity shareholder, it begs the question, if all of the assets are being secured by a $60MM senior secured debt, what is really left for the shareholder?

“On May 25, 2017, the Company entered into a new$60million credit agreement with funds affiliated with Apollo Global Management, LLC("Apollo") that replaced and refinanced the Company's then existing $45million senior secured mortgage debt ("Prior Senior Secured Debt”) and provided $15million of new senior debt to fund immediate construction related expenditures ("New Senior Secured Debt"). The Company's New Senior Secured Debt and its convertible notes contain representations, warranties and covenants that are typical for agreements of this type, including restrictions that would limit the Company's ability to incur additional indebtedness, incur liens, pay dividends or make restricted payments, dispose of assets, make investments and merge or consolidate with another person. However, while there are affirmative covenants, there are no financial maintenance covenants and no restrictions on the Company's ability to issue additional common stock to fund future working capital needs. The debt covenants associated with the New Senior Secured Debt were negotiated by the parties with a view towards the Company's operating and financial condition as it existed at the time the agreements were executed. At June 30, 2017, the Company was in compliance with its debt covenants.”

The company has been around for a long time,it looks like all the way back into the 1990’s. And I have down thumbed it a few times before on Caps. I have been watching this recent run higher waiting for a slight pullback on the chart to prevent me from having a massive loss at the expense of the Momo traders, who seem to relish in pushing this little stock around. That’s not to say I won’t lose points here, but I have hopefully mitigated that loss somewhat by missing a good chunk of the run up.

As TSIF mentions, financials are horrible. They have about $100K a quarter in revenue, and are burning about $3-5MM per quarter in cash. This next statement was kind of funny:

“The Company's cash resources, provide the Company with sufficient funds to meet its working capital needs fora period beyond one year from this quarterly report issuance date. The Company may meet working capital requirements beyond this period through a variety of means, including construction financing, equity or debt placements, through the sale or other disposition of assets or reductions in operating costs. Equity placements may be made using our existing shelf registration. Equity placements, if made, would be undertaken only to the extent necessary, so as to minimize the dilutive effect of any such placements upon the Company's existing stockholders.”

Stating “only to the extent necessary” is a very bold statement, and printing it in the 10-Q is very bold. Especially from a company with two prior reverse splits in its history, a company that produces very little revenue and a firm that has negative equity of nearly ($71MM) on its balance sheet. I’d be very careful putting any real money here – this seems like a very good down thumb at this price.

Recs

0
Member Avatar constructive (99.97) Submitted: 1/11/2017 1:06:04 PM : Underperform Start Price: $10.18 CDZI Score: -9.62

They effectively sold their best land at a discount to their creditor to avoid default.

The BLM is dead-set against their water project. The recently created Mojave Trails National Monument was set up specifically to prevent draining the desert aquifer. Even if they get regulatory approval in the next administration, they lack the capability to finance and develop the project.

http://seekingalpha.com/article/3790416-cadiz-sells-farm-still-peddling-hope

Recs

1
Member Avatar TSIF (99.97) Submitted: 11/9/2016 11:54:14 AM : Underperform Start Price: $8.13 CDZI Score: -37.53

Might be some hidden news, but this one jumps several times a year on no news/speculation/forcing sort covering...

Blows through $20M a year on sub half a mil revenue.
$6M in cash.
Net negative book value of $70M.

Target. Sub $7.20

Leaderboard

Find the members with the highest scoring picks in CDZI.

Score Leader

Hendrickson71

Hendrickson71 (< 20) Score: +235.18

The Score Leader is the player with the highest score across all their picks in CDZI.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
Hendrickson71 < 20 10/20/2015 Outperform NS $3.53 +261.19% +26.01% +235.18 1 Comment
qubit15 < 20 1/21/2009 Underperform NS $9.09 +40.26% +219.63% +179.36 0 Comment
1or5stars 99.64 6/8/2009 Underperform 3W $13.28 -3.99% +175.34% +179.33 0 Comment
LivePlayLove1 < 20 11/17/2008 Underperform 1Y $10.25 +24.39% +202.84% +178.45 0 Comment
vulturecapitol < 20 1/12/2009 Underperform 1Y $10.92 +16.76% +192.93% +176.17 0 Comment
IdiotFoolSavant < 20 6/22/2009 Underperform NS $10.88 +17.19% +186.06% +168.88 1 Comment
avatre < 20 6/15/2009 Underperform 5Y $12.00 +6.25% +174.97% +168.72 0 Comment
Forrest47 < 20 6/23/2009 Underperform 3M $10.04 +26.99% +187.17% +160.17 0 Comment
ValueNAV 45.55 9/9/2008 Underperform 3Y $19.35 -34.11% +107.62% +141.72 0 Comment
brgr1 < 20 8/27/2008 Underperform 5Y $18.35 -30.52% +106.54% +137.06 0 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Player Name Player
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score End Date Commentary
TrackEveillard 96.05 3/31/2008 Outperform NS $15.38 -17.10% +103.11% -120.21 1 Comment

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