Cadiz Inc. (NASDAQ: CDZI)
Cadiz Inc. (CDZI) a land and water resource development company announced that they have entered into a lease agreement with Water Asset Management (WAM). Under the terms of the lease agreement, WAM will make a one time payment of $12 million to Cadiz for a 99 year term lease of property in San Bernardino County, California. “Both companies also agreed that Cadiz can negotiate exclusively with WAM another future lease of 7,500 acres for a proposed price of $43 million.” (Insider Monkey) The stock has been a hedge fund darling as more than 15% of the company’s outstanding stock is owned by major hedge funds.
CDZI Technical Analysis
CDZI opened up trading Wednesday at $4.16 and as of late afternoon was up over 27%, trading at $5.30 on heavy volume. This spike up can be attributed to the announcement of the lease agreement with WAM. Taking a look at the daily chart, we can see that back on October 2nd CDZI stock was trading at $7.90. Two weeks later on October 13th it was trading at its 52 week low price of $2.71, a 66% decrease in price. Since that big drop CDZI stock price has stayed below $4.50 until this spike up on Wednesday afternoon. It will be interesting to see if $4.50 can now be a support level for a continued move up. CDZI has a low float of 14.48 million shares and is trading almost 5 times the normal daily trading volume. CDZI has a 52 week high price of $11.70, meaning there is still a lot of room for growth for this move up. I would like to see the $4.50 price level hold and buy on any dips if this move up continues.
Cadiz Inc. Profile
Cadiz Inc., incorporated on April 27, 1992, is a land and water resource development company with 45,000 acres of land in three areas of eastern San Bernardino County, California. The Company is engaged in agricultural operations on its properties in the Cadiz/Fenner valley and development of the water resources underlying that site. The agricultural operations include vineyards, citrus orchards and seasonal vegetables. The Company owns approximately 34,000 acres of land and the subsurface strata, inclusive of the unsaturated soils and appurtenant water rights in the Cadiz and Fenner valleys of eastern San Bernardino County (the Cadiz/Fenner property). The aquifer system underlying this property is naturally recharged by precipitation (both rain and snow) within a watershed of approximately 1,300 square miles. The Company’s water development efforts are primarily focused on the Cadiz Valley Water Conservation, Recovery and Storage Project. The project is designed to supply, capture and conserve billions of gallons of renewable native groundwater being lost annually to evaporation from the aquifer system underlying the Company’s Cadiz/Fenner property. The project is aimed to provide a reliable water supply to water users in Southern California. Reuters