Maui Land and Pineapple’s Big Day (MLP)

Without a doubt MLP has been one of the most boring additions to our portfolio in recent years, and if you know anything about the companies we own and research, that says a great deal.

But, MLP, which owns 28,200 acres of land in Hawaii, which includes a master planned community, 9 miles of beachfront and a pineapple operation, was up 11 percent today on volume of 63000 shares, which believe it or not is five times normal volume. The catalyst for this move was the company’s sale of land it formerly leased to the Ritz Carlton Kapalua, for $25 million in cash, and 21.43 percent ownership interest in the hotel. The cash part of the deal is significant, representing 10% of MLP’s current market cap, or more than $3.00 per share. As near as we can tell, the Ritz Carlton property covers about 50 acres, so we are assuming the cash part of the sale values the land at $500,000 per acre, plus the value of the hotel stake.

This potentially good news for MLP prompted your Cheap Stocks editor, on the hunt for a family vacation, to check out rates at the Kapalua Ritz. Sorry, Cheap Stocks editor wife and children, $785 to $942 a night is a bit rich. Maybe next year.

*The author has a position in this stock. This is neither a recommendation to buy or sell this security. All information provided believed to be reliable and presented for information purposes only.