Sahm Adrangi Says St. Joe is Overvalued
When it comes to investing, Sahm Adrangi has a knack for investing in bad companies and making a fortune from it. Short-selling is a risky process, but when done properly by investment professionals like Sahm Adrangi, it can really pay off and it has greatly for his company Kerrisdale Capital Management. In recent years, they have pointed out the inconsistencies and shortcomings of several different companies whose stocks did eventually crash when their practices came out in the open. In some cases, the businesses ended up facing legal troubles for their dishonest ways of practicing business.
St. Joe Co. is one of the newest subjects of Sahm Adrangi’s financial research. The company came under his radar when he noticed that their $1 billion valuations just didn’t make sense. The land developer located in Florida was promising big things in the works for a large area of land in land-locked central Florida. The proposed master plan retirement community was supposed to be a destination for the elderly complete with businesses that will cater to their needs and homes. The location is also isolated from most of the amenities that Florida is so famous for, and it’s been in development for over 10 years with almost no progress being made in that time.
Followup to my last tweet —
— Sahm Adrangi (@SahmAdrangi) May 16, 2018
When Kerrisdale and Sahm Adrangi researched the actions being taken with the city like permits and other inquiries of that nature, it was found that basically nothing was happening. Even if the development was on schedule and didn’t have deadlines that were constantly being pushed back, their goals are rather lofty. Their large valuations are assuming that the community would be the most popular in the United States. This doesn’t just seem unlikely to Sahm Adrangi, it seems next to impossible as there are many different factors that would make this very difficult to achieve beyond the desolate swampland being built on. Sahm Adrangi believes that the company has been overhyped to investors and isn’t worth nearly as much as they are insisting.