St. Joe organization is facing more problems as Sahm Adrangi of Kerrisdale Capital’s report claims. According to the report, the organization has a lot of shortcomings that may force it to sell itself soon. The company will be discussing conference call. Those who will have time and listen to the discussion; they will be able to learn more about the current situation with St. Joe. The biggest shareholder of St. Joe which has almost a third of the shares Fairholme Fund, is facing some challenges too and is likely to withdraw some of its shares from the company.
The Fund has to abide by the new rules set by SEC, and this is going to make things even worse for St. Joe. Fairholme has been making bad decisions in terms of stock choices for the last few years, and this has made its assets to decline to the lowest levels. Because of this, the fund has to withdraw its position from St. Joe by almost half, something that is going to hurt the other shareholders of the company. This indicates that St. Joe will be treading on shaky ground even if all other operations of the company were running smoothly.
That is not all that St. Joe is facing currently. The organization has its valuation exaggerated. The value of the company is up to a figure that nobody can believe. The organization purchased some desolate land near Panama City Beach with plans to transform the areas. These plans were made more than ten years ago, and so far nothing has taken place in the property. As the shareholders watch and wait to see the actions of St. Joe, they are yet to be shocked because it seems like St. Joe will not be able to develop the land as promised even if it takes a lifetime.
Sahm Adrangi is the founder and CIO of Kerrisdale Capital Management LLC. The company was established in 2009 and specializes in long-term value investments. Sahm Adrangi is famous when it comes to investment banking. Sahm Adrangi is also a frequent speaker at several conferences such as the Activist Investor Conference, the Distressed Debt Investing Conference and others.