Disclosures

Cadiz Inc

We, Mike Crawford and Sarkis Sherbetchyan , certify that this report reflects our personal beliefs about this company and that no portion of our compensation was, is or will be directly or indirectly related to the specific recommendations or views discussed in this report.

Disclosure

  • B. Riley & Co., LLC does and seeks to do business with companies covered in its research reports.
  • A portion of this analyst’s compensation is based on the sales, trading and investment banking activities of B. Riley & Co., LLC.
  • B. Riley & Co., LLC makes a market in the securities of the company covered in this report.
  • This analyst, or a member of this analyst's household who is financially dependent on this analyst or vice versa, holds a long bond position in the security covered in this report.
  • This company currently is, or within the past 12 months was, a client of B. Riley & Co., LLC. The services provided were Investment Banking Services.
  • B. Riley & Co., LLC, or any of its affiliates, has received compensation for investment banking services from this company in the past 12 months.
  • B. Riley & Co., LLC, or any of its affiliates, has managed or co-managed a public offering of securities for this company in the past 12 months.
Disclosure Chart

Ratings Distribution as of May 23, 2017
Rating Number of Companies Percent of Total Number of Companies with
Investment Banking Relationships
Percent of Total
Buy 157 69.8% 21 9.3%
Neutral 67 29.8% 1 0.4%
Sell 1 0.4% 0 0.0%
Total 225 100% 22 9.8%

Explanation of B. Riley & Co. LLC's Rating System

  • Buy: We generally expect "Buy" rated stocks to materially outperform both the S&P 500 and Russell 2000 as well as other stocks in their sector. Further, we believe that the potential reward relative to the potential risk is particularly attractive.
  • Neutral: We generally believe "Neutral" rated stocks will perform roughly in line with the S&P 500 and Russell 2000 over the intermediate and long term.
  • Sell: We generally expect "Sell" rated stocks to materially underperform both the S&P 500 and Russell 2000 as well as other stocks in their sector. Further, we believe that the potential reward relative to the potential risk is particularly unattractive.

Risks and Considerations

Additional Risks and Considerations

    • Debt – The company’s debt is secured by substantially all of its assets. Should the company fail to make timely payments on its debt, or otherwise fail to comply with its debt agreements, debtholders may foreclose on the company’s assets.

    • Financing Needs – The company will require financing until its asset development has begun to produce revenues and operating profits. If the company is unable to obtain financing to successfully develop its land and water resources, the company may be unable to continue as a going concern.

    • Financial Results – The company’s land and water development activities have not generated material operating results and continue to incur net losses. The company’s agricultural operations have generated de minimis revenues.

    • Growth Plan – There are many factors that may impact the company’s ability to achieve its stated growth objectives.

    • Loss of Key Personnel – In our opinion, the current management team will be instrumental in executing the company’s growth strategy. The resignation of a key member of management would have a negative impact on the company.

    • Regulatory – The development of the company’s land and water resources assets are subject to local, state, and federal government approvals and permits – which could be denied by the government, or may compete against other government interests and/or objectives. Further, third parties may challenge proposed plans and/or approvals, which could cause delays and increase the costs of the company’s development efforts, or could prohibit development entirely.

    • Weather – The aquifer system underlying the company’s property is naturally recharged by precipitation (both rain and snow). Thus, the availability of water supplies could differ from year-to-year due to natural hydrological variability.

    • Refer to the company's SEC filings, particularly its 10-K filing, for a discussion of additional risks.