Sahm Adrangi and Kerrisdale Capital claim that St. Joe Company (NYSE: JOE) is stuck in the swamp according to its recent report. St. Joe is a real estate development organization that has its central office near Panama City Beach on Florida. The company is valued at $1 billion which Adrangi claims it is too high of a valuation. Kerrisdale capital came up with a 28-page comprehensive report about St. Joe. In the report, Adrangi argues that the company is real value is 40% less the current stated amount. He gave many reasons behind his significantly low value of St. Joe stating that the company has overvalued land holdings. Moreover, Adrangi claims that the company has issues with its largest shareholder as well as stalled commercial development in the location.
St. Joe’s main agenda was to develop a planned ideal place for commercial business including a place for retirees in the Panama City Beach area. The company used a lot of money to purchase a big piece of land and has started developing and monetizing its beach properties. However, there are some of the places on the piece of land that has remained isolated with nothing going on and are not anywhere close to the beach.
According to the report that Sahm Adrangi produced, it shows that there has been minimal progress on the project since it began in the last ten years. He claims that the project that St. Joe had planned is highly publicized and the efforts required to change the organization into its current value are entirely unrealistic.
In addition to this, Sahm Adrangi believes that the company is overvalued because its major shareholder, the Fairholme Fund might have to liquidate some of its shares of the company based on the new SEC rules. According to Adrangi, only few trading days remaining in 2018 and those will not allow Fairholme to sell its shares without affecting St. Joe share price.
There has not been much commercial development around the area of St. Joe and the few brick and mortar stores around are shutting down at a high rate. Sahm Adrangi is the Founder and CIO of Kerrisdale capital.
The Pen State graduate that landed an internship program through sheer hustle and networking at the Merril Lynch’s credit desk in New York City. He then spends an additional three years at the Merrill while trading credit on the bond desk due to his “clickability” as well as hard work. At Longacre; the $3 billion hedge fund, Sahm Adrangi parlayed his experience into a credit trading role. By the way, hi time at Longacre partly overlapped with Sahm, who is the present founder of Kerrisdale Capital Management.
He published a short piece recently titled: NothernDynacity; The Pebble deposit Isn’t Commercial Viable, which moved the marketing during the 14th February. Thanks to the article which many liked. SahmA drangi worked at the credit team for Paulson and Co; the individual who made around 6$ billion shorting mortgages after he left Longacre. In the following three years, Sahm was a credit PM at Bowrey Investment, LLC.
As a result of the high cost of living in the New York City, the hours and the belief that things were now different given the massive asset outflows in the industry, Sahm made a life decision to quit Wall Street in June 2015. The seed Capital he had built at the Wall Street helped him generate lots of income from the proper securities that lead him to love investing. A closer interaction with Adrangi reveals that he is the right person and cherishes making investments. In fact, he has made a lamp some amount of money in his PA.
The Kerrisdale Capital Management mainly shares research on a wide range of industries and corporations. In recent years Adrangi shifted the focus of the firm onto a variety of specific segments in which Kerrisdale Capital Management has created its expertise. A critical area of focus is biotechnology sector as well as the Kerrisdale published research on development stage corporations such as Zafgen, Unilife, Pulse Biosciences, Bavarian Nordic, Sage Therapeutics among others.
A different segment of focus is the mining sector. Adrangi called into question the mining prospects in addition to the market valuations of Northern Dynasty Minerals, and First Majestic Silver just to mention a few.