Mired in Swamp
On April 24th, Sahm Adrangi issued another warning to investors, urging them to reconsider the current market valuation of one particular Floridian land development company, currently valued at around $1 billion. Adrangi’s Kerrisdale Capital, a private investment firm known for its critical reports on companies that it is shorting, released a negative report on The St. Joe Company (NYSE: JOE), a real-estate company specializing in retail centers, residential communities, mixed-use, and industrial projects.
Challenging the company’s promise to transform 400k square feet of wasteland swamps into a destination for retirees, Sahm Adrangi points to lack of any kind of observable progress desired by investors in the last 15 years. The firm asserts that they have found minimal activity that would indicate significant progress in the form of land reclamation or construction. In their full report, subtitled “Mired in Swamp,” Sahm Adrangi argues that the location in question is too remote to possibly make good on St. Joe’s promise to develop in a timely manner.
The Fairholme Fund
Furthermore, the forced liquidation and imminent demise of St. Joe’s largest investor does not bode well at all for shareholders. Bruce Berkowitz’s Fairholme Fund, is a company whose holdings in St. Joe were greatly affected by the SEC’s newly instituted rules regarding illiquid holdings. In short, the new rules, put in place earlier in the year, limit holdings to 15% of the company’s net assets. Sahm Adrangi estimates Fairholme to have over 27% of its shares in St. Joe alone. Therefore, the new SEC regulation will cause an inevitable drop in St. Joe’s total invested capital, and negatively affect the company’s already troubled promise to investors.
Kerrisdale’s full report can be found here.
Sahm Adrangi founded Kerrisdale Capital in 2009 as a leader in the soft activism investment strategy, assuming that much of a stock’s valuation rests in that company’s ability (or inability) to satisfy clients/investors in ways that are honest and relatively transparent.
Adam Milstein is an entrepreneur, a philanthropist, a real estate investor, serves Hager Pacific Properties as a managing investor and is an author on JNS. His most recent article focused on anti-Semitism. He spoke of the three sources as being the radical left, the radical right and the radical Muslim movements. The current tactics and ideas are causing a wave of racism, bigotry and hate. Adam Milstein spoke of the alliance between the radical leftists and the radical Muslims. He wrote about this group trampling human rights and minorities, executing gays, abhorring feminism and stoning women. He believes these allies have put aside their differences in favor of their common hatred for pluralistic nationalism, the Western influence, anti Semitism and freedom of speech.
The JNS article written by Adam Milstein discussed the warped view of the radical left. He stated Israel is targeted by Muslims and blames the Jews for every problem suffered in the Middle East. Linda Sarsour is an organizer for the Women’s March. She is a feminist leader despite the fact she admires the Sharia law. She praises the way Saudi Arabia treats women and is one of the left’s role models. The Tufts University’s leftist students declared Israel was a white supremacist state. The anti Semitism among the college leftists was exposed. The same rhetoric was used as by the Muslim groups. Adam Milstein revealed one of the writers of the guide declared this was not anti-Semitism because the author was Jewish.
The Chicago Dyke March expelled three individuals because their pride flags had a Star of David. The SlutWalk Chicago derided and condemned Zionists attempting to participate. Adam Milstein exposed all of this on JNS. Walkers have been encouraged to attend speeches by Palestinian terrorists who have killed Jewish students. The Jewish population of Iran saw the anti-Semitism and hatred of the West of the radical leftists during the Iranian revolution. They emigrated to Israel and the United States. Adam Milstein has written powerful articles on JDS. He has spoken of Islamic nationalists, Adolf Hitler, the Nazi influence and anti-Semitism. He believes these views are a threat to not only the Jews in America but all over the world.