Aaron Edelheit of Mindset Capital presented his in-depth investment theses on Cousins Properties (NYSE: CUZ) and Scheid Vineyards (OTC: SVIN) at Best Ideas 2018.
Cousins has quietly transformed into a high-quality office REIT focused on Sunbelt markets such as Atlanta, Austin, Charlotte, Phoenix, and Tampa. Investors are not giving the company credit for this transformation taken in the last six years. NAV is $11-12 per share. The company could see a boost if Amazon picks Atlanta or Austin for its new headquarters, as Cousins generates nearly 40% of NOI from Atlanta and 20% from Austin. There are few ways to publicly play Amazon’s announcement, upon which Cousins could be worth up to $17 per share.
Scheid Vineyards is an unknown, illiquid microcap that trades at an estimated 65+% discount to NAV per share. The company owns and leases ~4,000 acres of prime Monterey County, California vineyards and also owns a state-of-the-art winery worth $75 million. The company, after years of not filing with the SEC and not reporting to investors, has started to send out quarterly financial statements. NAV could be as high as $244 per share, compared to the recent share price of ~$75 per share. The illiquidity notwithstanding, investors receive a sizable discount to quality assets.
About the instructor:
Aaron M. Edelheit is the CEO and Founder of Mindset Capital, a private investment firm. In his previous role as CEO of The American Home, Aaron founded and managed a company that owned 2,500 single family rental homes and was sold in April 2015 to a publicly traded REIT. Prior to The American Home, Aaron founded and ran Sabre Value Management, a money management firm from 1998-2011, averaging 11% annualized returns over that time period. Aaron has been featured and quoted in the Wall Street Journal, New York Times, Bloomberg, and CNBC among others. Aaron currently serves on the board of the Moishe House Foundation and is a member of Social Venture Partners in Santa Barbara working on homelessness. Previously he served on the board of the Global Village Project, a non-profit school for refugee girls in Atlanta, Georgia. Past volunteer work also includes being a Big Brother a Mentor and volunteering at Children’s Healthcare of Atlanta.
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