The Deep Value Week – 2025/21
Major Property Sell, Insider Transactions and a Terminated Agreement
Market: 3
Companies mentioned:
· Alico (ALCO) - Terminates Orange Purchase Agreement with Tropicana
· Avalon (AWX) – Nalluri Buys More
· Unifi (UFI) - Sells Madison Facility for $45 Million, Reduces Debt and Improves Cost Efficiency
· Manitowoc (MTW) - EVP Disposes Shares to Cover Tax Withholding on RSUs
· Clearwater Paper (CLW) - SVP Commercial Resigns, Effective June 13
“Graham’s Geiger counter”
Benjamin Graham suggested that one way to measure the valuation of the overall market was to assess the number of net-nets available. When many such opportunities exist, it indicates a cheap market overall, while their absence suggests that the market is expensive. Today’s net-nets, however, are not the same as Graham’s net-nets. Many are un-investable being Chinese RTO’s, loss-making biopharma’s etc. But we do think it is interesting to follow this number over time, and what percentage of total listed stocks qualify as a “naked” net-net without any type of quality adjustments to make them investable. Below is a net-net screen from Stockopedia.
Alico (ALCO) - Terminates Orange Purchase Agreement with Tropicana
P/TB 0.98 D4│ Stock 60D: 7%│ URL
On May 23, 2025, Alico, Inc. filed an 8-K announcing it has mutually terminated its Orange Purchase Agreement with Tropicana Manufacturing Company, Inc., originally signed on April 11, 2024. The agreement, covering citrus crop purchases, will be fully settled by July 15, 2025, with both parties agreeing to fulfill all obligations for the 2024/2025 crop year. The termination is effective immediately and includes mutual release clauses, waiving any future claims related to the contract.
Avalon (AWX) – Nalluri Buys More
P/TB 0.27 D2│ Stock 60D: -16%│ URL
Nalluri has been very active in the market, purchasing more shares.
Unifi (UFI) - Sells Madison Facility for $45 Million, Reduces Debt and Improves Cost Efficiency
P/TB 0.39 D1│ Stock 60D: 4%│ URL
On May 21, 2025, Unifi, Inc. (NYSE: UFI), a global leader in sustainable yarns and makers of REPREVE®, announced the completed sale of its Madison, NC manufacturing facility for $45 million. Of the net proceeds, $25 million was applied to reduce the term loan and $18.3 million to reduce outstanding revolving loans, cutting total debt principal by approximately $43.3 million. The transaction includes potential future payments of up to $18 million over four years, contingent on energy supply milestones. This strategic move is expected to yield over $20 million in annualized operating cost savings by consolidating operations and exiting yarn manufacturing at the Madison site. The transaction also included amendments to Unifi’s credit agreement to support the sale and manage the debt repayments.
Manitowoc (MTW) - EVP Disposes Shares to Cover Tax Withholding on RSUs
P/TB 0.81 D1│ Stock 60D: 6%│ URL
On May 20, 2025, Jennifer L. Peterson, Executive Vice President, General Counsel & Secretary of Manitowoc Co Inc. (NYSE: MTW), reported the disposal of 1,286 shares of common stock at $11.45 per share. The shares were withheld to satisfy tax obligations related to previously granted restricted stock units (RSUs). Following the transaction, Peterson directly owns 78,534 shares of common stock. She also holds 3,473 stock options from past grants (1,721 at $32.98 expiring 2028, and 1,752 at $18.40 expiring 2029). No open market sales or purchases occurred in this filing.
Clearwater Paper (CLW) - SVP Commercial Resigns, Effective June 13
P/TB 0.60 D1│ Stock 60D: 16%│ URL
Clearwater Paper Corporation (NYSE: CLW) disclosed in a Form 8-K filed on May 21, 2025, that Michael Urlick, Senior Vice President, Commercial, has notified the company of his intention to resign. The resignation, to pursue a new opportunity, will be effective as of the close of business on June 13, 2025. No successor or transitional arrangements were disclosed in the filing.
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On Alico, the termination of that agreement will probably hurt on the revenue side. There was a citrus shortage last year, but they were probably getting squeezed by Pepsi.
If memory serves, Nalluri has been buying AWX stock for a long time. I think it goes back to at least the 1990’s.
There are class A and class B shares. The chairman Ron Klingle (hope I have that right), owns the B shares, which have all the voting power.
Tiny Tim’s daughter used to work for this company. Perhaps, she still does.
The RE is probably worth a lot more that what is one the books. The waste company just about breaks even or loses money.
They apparently own some property the contains shale oil, but the state or local authorities are blocking them from going any further.
The last time the stock had a big move was during the Game Stop saga, but it was brief.
If golfing becomes super popular again or someone wants the course then maybe something happens. The Chairman also is in his latter 70’s.
It could be a cheap lottery ticket, but my guess for now it will just tip toe through the tulips as it has for a long time.