On Farmland Partners

By now most everyone has read the expose on Seeking Alpha on Farmland Partners (NYSE:FPI).

We have disliked the company since they came public back in 2014.  What we have most disliked about the company was the pricing of the shares (over valued) and the carnival barker like management team–in particular Paul Pittman.

Whether the accusations on Seeking Alpha are true or not is for others to worry about as we have no dog in this fight.

We had pondered purchases of the FPI-B preferreds if it reached a current yield of 7% or so, but that is now no longer a possibility.  The only move we see here is a quick flip of the common or preferred for those that are nimble and don’t mind the risk.  In these types of situations the initial reaction is almost always overdone.


7 thoughts on “On Farmland Partners”

  1. I sold 200 of my FPI-B today at 22.14. Made almost $800 at the casino buying this 2 days ago. Im still trapped with 100 more shares bought the next morning premarket at $19.59 as I bought with unsettled funds and cant sell until Monday. They will get the heave ho come Monday.

    1. Sold the rest of my FPI-B today at 22.36. Im probably done rooting around in that thing and take my near 20% profits for a 3 day hold and run.

      1. Good for you Grid–probably would have done the same if I had the time to fool around with a flip, but my schedule has precluded much investment work (or speculative purchases).

  2. Regarding the pfd, Richard L has commented in his chat room that it gets a gold star for the strangest (and not in a good way) covenants so buyer beware. He referenced page S 48 if my memory is correct.

    1. Yes Amy–I believe I read that at one time. Thanks for the reference. While I think the current dust up is overblown I won’t be having anything to do with Paul Pittman.

  3. TIm – I have 80 shares at a cost of about $24.80. While I will continue to hold my small holding, I’m not buying any more shares at the current pricing level. At best, it is a trade with the preferred shares – but I certainly would not touch the common shares.

    1. kaptain–I think you will be ok as this situation may be well overblown. I see the preferred has come blowing back pretty good.

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