Top 5 Stock Picks of Dan Kozlowski’s Plaisance Capital

1. Pure Cycle Corporation (NASDAQ:PCYO)

Plaisance Capital’s Stake Value: $54,572,000 

Percentage of Plaisance Capital’s 13F Portfolio: 27.18%

Number of Hedge Fund Investors: 10

Pure Cycle Corporation (NASDAQ:PCYO) is a diversified innovative organization involved in land and water development along with oil and gas mineral interest across the state of Colorado. The US housing sector is undergoing a boom as millennials are looking for starter homes and Colorado happens to be one of the key states in this regard. The company is currently leading the master planning of the Sky Ranch community, where it is offering commercial, residential, light industrial lots and retail spaces along the I-70 corridor in Colorado.

Dan Kozlowski’s Plaisance Capital has a stake of $54.57 million in the company.

Maran Capital Management mentioned Pure Cycle Corporation (NASDAQ:PCYO) in its Q2 2021 investor letter. Here’s what the investment management firm said:

“Pure Cycle owns approximately 5,000 single-family housing lot equivalents and a water utility backed by meaningful water rights in the Denver metro area.

I attended Pure Cycle’s investor day last week. It was great to see the progress the company has made at its Sky Ranch community (see photo below). I continue to believe that PCYO has $10+ per share of real estate value and $10+ per share of water value, and that each are being actively monetized (the land at $100k+/lot, and the water via $30k+ tap fees, each of which are appreciating rapidly). I believe the market is still missing a number of critical components of the PCYO story, including:

• A respected nonprofit intends to spend $50mm to build a charter school in PCYO’s community, which should dramatically increase the value of PCYO’s remaining lots;
• value uplift as PCYO starts to develop commercial acreage;
• optionality on additional water sales to the energy industry;
• numerous off-balance-sheet hidden assets, including the rights to a large reservoir; and
• additional capital-allocation-driven upside, including value-accretive land purchases.”

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