“How A Tiny Company That The SEC Forced To Go Public Could Hand You $50,000”

Sifting through the Sovereign Society teaser for an Ag pick

By Travis Johnson, Stock Gumshoe, January 3, 2011

Here’s how this latest teaser ad begins:

“On April 30, 2011, at a small gathering near Los Angeles… this little Agribusiness will make an announcement that could catapult its stock from $28 to over $150 in the coming months…

“On May 27th, 2010, a private California-based company quietly went public.

“Not because it wanted to or because it needed to raise capital, but because of an obscure SEC regulation.

“You see, when a private company has 500 shareholders or more it must begin to publicly file its financial statements with the SEC. Once a company crosses that threshold, it makes little sense for it not to go public.

“Now here’s the thing, because this tiny Agribusiness went public simply to remain SEC compliant – it went virtually unnoticed.”

So it’s a bit of a familiar theme — undervalued assets because they’re carried on the books at their purchase price from 100 years ago, valuable water and land rights, and a company that’s flying under Wall Street’s radar and hasn’t been “noticed” yet early in its life as a public firm.

And the pitch is not for just a regular ‘ol newsletter from the Sovereign Society folks, it’s for their “lifetime” basket — you pay a huge sum up front ($8,000 in this case), and get access to a whole bunch of their newsletters for life … the letter that’s spurring interest here is the one they tease most actively, a new letter that they’re calling Global Growth Strategist and that will launch soon (or maybe just launched), with this special report about an undervalued agribusiness stock.

But, in case you don’t happen to have eight thousand smackers lying around — or don’t feel like parting with it at the moment — perhaps we could just identify the super-secret stock they’re teasing. Sound good? Excellent, first we’ll need a few more clues:

We get a few specifics about the company in this bit of the pitch:

“For 117 years, this tiny Agribusiness has acquired some of the most valuable real estate in America.

“It owns 7,300 acres of land just north of Los Angeles. The company has had much of this land on its books for more than 100 years. Meaning it’s valued at just a few dollars per acre – a miniscule fraction of the land’s value today.

“Indeed, similar orchards in Santa Paula, California, where the company has much of its operations, now fetch between $35,000 and $80,000 an acre.

“That means its land alone could be worth as much as $580 million.

“But it owns more than just the land…

“It also owns ‘adjudicated’ water rights. This means it can sell the water rights it owns… and in arid California, water rights are liquid gold.”

And we hear third-hand that someone at PICO holdings (PICO — a publicly traded company that holds some Nevada water rights) told Jeff Opdyke, who edits this particular newsletter being teased, that he thinks that this teased company’s water rights in California could be worth close to $500 million.

Which is part of why we’re told that a