The St. Joe Company Gets Negative Report from Sahm Adrangi amid Forced Sale Worries

According to one of the reports by Sahm Adrangi, the St. Joe Company might be experiencing significant woes. This report highlights various shortcomings of this firm that might leave it on the verge of a forced sale in the future. To this end, major stakeholders on this firm are set to hold a conference that will probably pave the way forward for this firm. Some of the most anticipated hearings entail the take of the Fairholme fund, as they are the largest shareholders in this company.

However, this is on the realm of getting ugly for the Fairholme fund following some of the regulations that have been established by the SEC. Following years of downward scenarios in the St. Joe Company operations, their assets have significantly reduced by more than 90%. In turn, this firm is planning to cut the position that they hold by nearly a half. Although this move could have a positive implication overall, it still poses some of the greatest challenges to other affiliates in the firm. With such uncertainty, t is easy to tell that the acquisition process for this firm is based on shaky grounds.

The St. Joe Company – Underdeveloped Land

The St. Joe Company is a Florida real estate firm estimated at the cost of nearly $1 billion. They have grand dreams of transforming one of the most significant spaces near Panama beach city into established commercial as well as residential areas. This empty and open space accounts for more than 177k acres occupied by desolates and swamps.

Following the availability of such large space, St. Joe Company is making some lofty assumptions that Sahm Adrangi feels that they are wrong and off the base. This firm has sold the better part of their investors on a long-term agreement that spans for more than 50 years. This plan is aimed at turning the unutilized land into a fascinating business and retiree space. However, Sahm Adrangi is not sure whether this will have any significant influence bearing in mind that there has no considerable progress in the same plan for the last two decades.

http://www.valuewalk.com/2017/11/sahm-adrangi-kerrisdale-capital-luxoft/

https://www.kerrisdalecap.com/firm/sahm-adrangi/

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