Cramer's Risky Water Stock

Cramer on tonight’s MAD MONEY on CNBC said he got stumped on a question about water holdings when he was at UT in Texas.  He has a stock now called Pico Holdings (PICO-NASDAQ) that could be a winner.  He said he will not endorse it though because it is very small and very thin.  They hold water rights in Arizona.

This one actually holds other investments as well that has rallied 300% in the last few years.  Its water resource and storage unit is the main one that resells water and they are not a regulated water utility; it finished a 35-mile water pipeline last year; it holds real estate and insurance as well.  It priced a secondary at $37.50 earlier in the month and he thinks it can go higher, but because it is so small Cramer says it is very risky and it is only followed by 1 analyst.  Cramer thinks it could be a sleeping giant or it could stay dormant for years and years, so he reminds about the risk.

PICO traded up 3% to almost $45.00 after closing up 2% at $43.61.

Jon C. Ogg
March 22, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.