830122--3/10/2006--PICO_HOLDINGS_INC

related topics

{stock, price, share}

{regulation, change, law}

{acquisition, growth, future}

{stock, price, operating}

{loan, real, estate}

{condition, economic, financial}

{tax, income, asset}

{cost, operation, labor}

{loss, insurance, financial}

{operation, international, foreign}

{personnel, key, retain}

{cost, regulation, environmental}

{operation, natural, condition}

{gas, price, oil}

{financial, litigation, operation}

If we do not successfully locate, select and manage investments and acquisitions, or if our investments or acquisitions otherwise fail or decline in value, our financial condition could suffer. Failure to successfully manage newly acquired companies could adversely affect our business. Our acquisitions may not achieve expected rates of return, and we may not realize the value of the funds we invest. We may make investments and acquisitions that may yield low or negative returns for an extended period of time, which could temporarily or permanently depress our return on shareholders equity. We may not be able to sell our investments when it is advantageous to do so and we may have to sell these investments at a discount. Our acquisitions of and investments in foreign companies subject us to additional market and liquidity risks which could affect the value of our stock. Variances in physical availability of water, along with environmental and legal restrictions and legal impediments, could impact profitability from our water rights. Our future water revenues are uncertain and depend on a number of factors, which may make our revenue streams and profitability volatile. Our water activities may become concentrated in a limited number of assets, making our growth and profitability vulnerable to fluctuations in local economies and governmental regulations. Our water sales may meet with political opposition in certain locations, thereby limiting our growth in these areas. The market values of our real estate and water assets are linked to external growth factors. If we underestimate the amount of insurance claims, our financial condition could be materially misstated and our financial condition could suffer. State regulators could require changes to our capitalization and/or to the operations of our insurance subsidiaries, and/or place them into rehabilitation or liquidation. If we are required to register as an investment company, then we will be subject to a significant regulatory burden. We are directly impacted by international affairs, which directly exposes us to the adverse effects of any foreign economic or governmental instability. Because our operations are diverse, analysts and investors may not be able to evaluate us adequately, which may negatively influence our share price. Fluctuations in the market price of our common stock may affect your ability to sell your shares. We may not be able to retain key management personnel we need to succeed, which could adversely affect our ability to make sound investment decisions. We use estimates and assumptions in preparing financial statements in accordance with accounting principles generally accepted in the United States of America. Repurchases of our common stock could have a negative effect on our cash flows and our stock price. Repurchases of our common stock could have a negative effect on our cash flows and our stock price. Future changes in financial accounting standards may cause adverse unexpected revenue fluctuations and affect our reported results of operations. Compliance with changing regulation of corporate governance and public disclosure may result in additional expenses. Absence of dividends could reduce our attractiveness to investors. We may need additional capital in the future to fund the growth of our business, and financing may not be available. Litigation may harm our business or otherwise distract our management. THE FOREGOING FACTORS, INDIVIDUALLY OR IN AGGREGATE, COULD MATERIALLY ADVERSELY AFFECT OUR OPERATING RESULTS AND CASH FLOWS AND FINANCIAL CONDITION AND COULD MAKE COMPARISON OF HISTORIC OPERATING RESULTS AND CASH FLOWS AND BALANCES DIFFICULT OR NOT MEANINGFUL.

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830122--3/10/2006--PICO_HOLDINGS_INC_/NEW