Sahm Adrangi
April 24, 2018
Chief Investment Officer, Kerrisdale Capital

The St. Joe Company (JOE): Mired in Swamp

  • St. Joe’s land holdings are overhyped and worth a fraction of the company’s market valuation, under even the most aggressive development assumptions
  • St. Joe’s largest shareholder, the Fairholme Fund, is subject to new SEC liquidity rules that will require it to meaningfully reduce its stake, raising risk of forced selling
  • Optimism over St. Joe’s capital budget is misplaced. Despite years of delay, the Bay-Walton Sector Plan remains stalled and recurring revenue from commercial development is immaterial

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