The St. Joe Company found itself in the spotlight after a negative report was issued to it by Sahm Adrangi of Kerrisdale Capital. St. Joe was not on the good books of Sahm in its pursuits in real estate.
With a budget of 1 billion dollars, the St. Joe Company was set to develop a piece of land on the beach. Sahm Adrangi however, does not feel confident that they will achieve this fit considering that the St. Joe Company is behind on building department inquiries and seeking for the right permits.
The most visible struggle of the construction company is the difficulties it faces in converting the beachfront land into legal tender. St. Joe has been at the monetization game for ten years now, something that hurts investors, who Sahm believes that they are getting the short end of the bargain.
Followup to my last tweet —
— Sahm Adrangi (@SahmAdrangi) May 16, 2018
St. Joe in a Hole Difficult to Climb out Of
The construction company has woes that seem to be adding by the day. Fairholme Funds may be one of the investors that form the backbone of St. Joe, but it seems to be going under, and it may drag St. Joe through the mud as well. Sahm Adrangi deeply believes that St. Joe is at a crossroads and may be forced to sell out to a more profitable company. Sahm’s company, Kerrisdale Capital, will, however, be grinning all the way to the bank if St. Joe sells out because it will benefit from the falling share prices.
Sahm is an investment guru who has a history as a bankruptcy officer, buy-out financings, debt grading and investment analyzing. It is no surprise therefore that when he says a company is going down, it eventually does. His negative reports on the financial situations of companies are often on the mark because he draws from his pool of expertise.
Currently, he is the Chief Investment Officer at Kerrisdale Capital Management. Mr. Sahm is the person to look for if need of good investment advice. He provides invaluable insights to investors and has been doing so for over a decade now a factor that gives enough reason for investors to take in the insights he brings to the table.