Howard Huges (HHC)

They've had their third CEO in the past 18 months. They own communities in Las Vegas and Houston. It's cheap, trading at a wide discount to NAV. It's easily worth $120, twice as much as current prices.They now own office buildings in Houston which is tough to value, but HHC owns single-family lots in places like Houston. It's not a value trap, but you need to wait to see if the value crystallizes in the next few years. There are more defensive companies with better near-term growth.

(A Top Pick Jul 31/19, Down 8%) Should be at $175. It's a corporation, not a REIT, so not in REIT indices. Pays no dividend. They're completely self-funded with their own money. Outstanding world-class assets. They just announced a strategic review. Rumours of a sale inflated the stock, but the company didn't sell after all. So, investors dumped the stock. It has since recovered 80%.

(A Top Pick Jul 31/19, Down 18%) A large entity that still owns the Howard Huges lands in Las Vegas. In June an announcement was made that a strategic review of the stock was being made. The stock jumped up sharply afterwards. Since then they have not found a buyer, but have found ways to save $50 million a year. This was not enough for the speculative buyers and the stock has fallen since. Some of the best real estate assets on the planet, he thinks. He will continue to hold it. Yield 0%

Their earnings forecast for the next year has fallen off a cliff. It can fall as low as $76. He doesn't like the look of this.

This is a core holding for him. The value of the real estate holdings alone are $200 per share. It is a hard company to value as half the company is recurring revenue and half is land sales. He is not sure how price reconnects with value – perhaps a matter of time.