seekingalpha.com has a article about AMREP titled “Amrep’s Rio Rancho Dream May Turn Out To Be A Desert Mirage“. Everyone who lives in Rio Rancho should know about AMREP (especially if they live in one of their shitty houses). Overall the article indicates that the company’s media business is on the decline and it’s not well understood how much it’s real estate is worth.
It is currently a company that engages mainly in the business of subscription fulfillment services, newsstand distribution services and product packaging and fulfillment services as well as a bit of staffing businesses. We will call these businesses collectively as Media services and they make up pretty much all of the company’s business activities on a regular basis. The second aspect of the stock’s value is its large ownership of land in the city of Rio Rancho, New Mexico.
In the 1960s, AXR purchased the massive plot of land in Rio Rancho and it was mass marketed to people all over the world as a retirement home or an investment property. The 1960s ads marketed them as wonderful investments at a mere $10/month attracted investors worldwide and particularly from New York. AXR then sold thousands of plots to different investors without considering the future development possibilities of Rio Rancho. Thus, Rio Rancho is now left with the legacy of this antiquated platting method where any meaningful area for development has already been developed and most of the land left has been divided in ownership due to AXR’s own past plot sales.
Be sure to check out their website, which is as shitty as their houses.