Sahm Adrangi knows bad investments and he has made a fortune short-selling them in his career at Kerrisdale Capital Management. Kerrisdale Capital and Sahm Adrangi are known by investors all around the world for the research that they publish concerning companies with bad business practices. When the Chief Executive Officer of Kerrisdale decides the company that he wants to short, he does it based on the fact that he does not think that they are giving an accurate representation of themselves to the public and investors.
One of the most recent businesses to get a negative review from the private investment company is the St. Joe Company. The Florida land developer has been making plans to construct a retirement district in central Florida that supposedly will include homes and many businesses catered to the community. While St. Joe Company has monetized beachfront property that was very desirable in Florida before, the land in question that their investors have placed high hopes on is inland. But it’s not just inland according to Sahm Adrangi, it’s isolated and desolate in the middle of swampland. It is not a feasible plan for St. Joe to be able to develop the land as they are promising their investors, there just is not any way to justify the $1 billion valuation that the St. Joe Company has given themselves.
Followup to my last tweet —
— Sahm Adrangi (@SahmAdrangi) May 16, 2018
The plans for this community have been being talked about for more than 10 years and so far they have nothing to show for it. Their investors have been hoping for any news about the development that may lead to an eventual return on their investment, but it doesn’t appear that will happen anytime soon or at all. On top of the land developing issues, new SEC requirements will force one of the main investors into selling about half of their shares of St. Joe’s. When this event happens, Sahm Adrangi believes that it will lead to their stock price swiftly falling by around 40%.