Milwaukee Investor Gives Christiana a Healthy Boost
Sheldon Lubar isn’t well known in Southern California--he’s never been to San Diego--but the Milwaukee businessman’s name has proved strong enough to drive Christiana Co.’s stock up by 50% during the past month.
Industry analysts credit that surge to Lubar’s January acquisition of 690,400 shares--or 24%--of Christiana’s common shares at $6.375. Two weeks ago, Christiana shares rose 50% to 7 5/8, although the stock last Friday dropped to 7 1/8.
“We have nothing exotic planned (for Christiana) at this point,” Lubar said during a telephone interview last Friday. “We think there are possibilities at Christiana, that it will develop into a good, solid company.”
That transformation likely will take “a good long time,” Lubar said. “There’s nothing magic here.”
A bit of magic wouldn’t hurt the company that last Tuesday reported a $1.1 million net loss on revenues that rose 56% to $13 million for the second quarter ended Dec. 31. Christiana reported a $1.2 million net loss on revenues that rose 61% to $21.9 million for the first half.
Christiana President Raymond Logan linked the losses to “expenses incurred in the final sellout of (two) condominium projects . . . and the lack of any improvement in the real estate market in Houston.”
Christiana has spent the past year reducing its overhead, selling off extraneous assets in at attempt to improve its cash flow.
“I’d expect (Christiana) to continue on that course,” Lubar said last week. “My approach is a patient one, because I don’t think things of worth and value are built overnight.”
Lubar said his Milwaukee investment group in the past has acquired interests in diverse companies and helped them to grow. The group has acquired interests in three tanneries, a business that sells malt to breweries, a hydraulics company and a drilling business.
Lubar also has been involved in both state and federal government enterprises.
He continues to manage a venture capital fund for the State of Wisconsin and was appointed to positions in the federal Department of Housing and Urban Development and the U.S. Small Business Administration during the Nixon and Ford administrations.
Lubar first learned of San Diego-based Christiana years ago when it was a Wilmington, Del.-based company owned largely by the Fenton family. Lubar also knows Joseph Antonow, a Chicago attorney who serves as chairman of the Christiana board.
Lubar’s Fund 87 investment group acquired 245,000 shares of Christiana stock from Western Federal S&L;, a Dallas-based thrift, and an additional 445,000 shares that had been authorized but not issued by Christiana’s board.
