Leslie Norton writes about Penn National Gaming (PENN). The Company will split on 11/1 into a REIT and an operating Company that will be the lessee. Shareholders will receive 1.35 shares of the REIT (GLPI) and a dividend of $3.33. The parts could be worth more than the current price of $55. Figure the operating company is worth 8x estimated cash flow, or $15.60 per share. And the REIT could be valued at 13.8x estimated cash flow. or $54. Combined, that is abut $70 per share with growth prospects in the future.

PICO Holdings (PICO) sells at $21.12, just above book value of $19.97. BV might be understated given low cost land purchases in the past. Mathew Martinek of Reinhart Partners values PICO at $35. (A Low-Priced Water Play by David Englander).

OTHER

Tulane University has a stock research program for MBA students that produces the “Burkenroad Reports”, that researches small, under-followed companies in the southeast. They have a good track record.