4. Pure Cycle Corporation (NASDAQ:PCYO)
Number of Billionaire Investors: 3
Recycled polypropylene (PP) company Pure Cycle Corporation (NASDAQ:PCYO) ranks fourth in our list of the best hyper-growth stocks to buy according to hedge funds.
Earlier this month, Pure Cycle Corporation (NASDAQ:PCYO) posted fiscal first quarter results. GAAP EPS in the period came in at $0.09. Revenue in the quarter jumped 302% year over year to $5.39 million.
A total of three billionaires tracked by Insider Monkey had stakes in Pure Cycle Corporation (NASDAQ:PCYO). Billionaires Israel Englander and Ken Griffin were among the notable shareholders of Pure Cycle Corporation (NASDAQ:PCYO).
Pure Cycle Corporation (NASDAQ:PCYO) talked about important business updates during its fiscal Q4 earnings call in November:
Currently, we’ve got about a little over 720 lots that have been either delivered homes on or homes under construction on. And so that’s about 14% of the total capacity at Sky Ranch. When you take a look at adding everything into Phase 2, which is going to be how we deliver [Phase II A/B] (ph), A is 100% complete, you saw that illustration earlier. B is about 30%. C is just getting started at around 9% and then B. So you look at that with all of Phase 2, that would roughly add about 25% — 27%. So about a-quarter of the total capacity at Sky Ranch. And when you translate what we’re making there to the balance of the residential and the commercial portfolios, that’s where you get that roughly looking at about $580 million at current rates today.
So a lot of pedal left on Sky Ranch, and we continue to be aggressive on continuing to deliver those on a just-in-time basis. So our homebuilder partners really continue to enhance their margins on that without taking these large inventories. So it gives you a bit of feel for how our land side is. And then where we look to be and where we’re going on our single-family rentals. If you take a look at that and we’ll peg a market at 200 units. And right now, we’ve got just 14 units. So we’re about seven into those. And that 200 units is still less than 10% of the overall capacity of the residential units at Sky Ranch. And so we think that’s a very conservative number to add to the portfolio. There’s room for us to be expanding beyond the 200 units.
But this gives you kind of an illustration of where that looks to be with Phases 1 and 2A and then really all of 2B, 2C and 2D with that other 55 units. So that would again carry us up to about 27% of the overall portfolio. And then still have plenty of pedal left on that to generate annual revenues in excess of $6 million, somewhere close to $7 million. And then it’s going to be about a $100 million portfolio when you take a look at a couple of hundred units on an average sale price at that $0.5 million,
Read the entire earnings call transcript here
