The outlook for the St. Joe Company doesn’t look good among reports from Sahm Adrangi’s Kerrisdale Capital. The company may be facing a large amount of forced selling from their shareholders due to problems within St. Joe’s and the business that have invested in them. Among these businesses, Sahm Adrangi discussed the problems facing their main shareholder, the Fairholme Fund.
The Fairholme Fund owns approximately 1/3 of St. Joe’s, but with new regulations from the Securities and Exchange Commission, that is sure to change soon. Like St. Joe, the Fairholme Fun used to be quite an impressive company until poor decisions and market conditions affected their portfolio. Since their peak, Fairholme’s assets have dropped by upwards of 90%. This leaves them in a position where they will be forced to liquidate a considerable portion of their assets to avoid repercussions from the SEC. It’s expected that they will be cutting their shares in St. Joe by around half in order to meet the new regulations.
Even if this was the only potential problem that St. Joe was facing, they would still be facing a questionable future according to Sahm Adrangi. Around a decade ago, St. Joe purchased land near Panama Beach with plans to develop it into an impressive community designed for retirees including housing and businesses. Unfortunately, unlike their other successful communities, the property that they purchased is rather desolate and mired by swampland. While St. Joe may be telling their investors that progress and a return on their investment is coming, the research by Kerrisdale Capital and Sahm Adrangi shows that no concrete actions have been taken to develop the land. At the time of their research, no building permits had even been applied for.
Sahm Adrangi has presented evidence to show that their $1 billion valuation is severely overhyped and has little or no chance of reaching the promises that they sold to their investors. Kerrisdale believes that the actual value of the company is significantly less by around 40%. It is because of all of this that Kerrisdale has chosen to take a short position on St. Joe.
Shervin Pishevar is an Iranian immigrant who came to the United States some 30 years ago. After the country’s former president Ayatollah Khomeini placed a warrant out for the arrest of Pishevar for providing Iranian residents without formal citizenship status instructions for leaving the war-torn dictatorship. Shervin Pishevar knew he had to flee his homeland of Iran – he was born in the Middle-Eastern country and spent the entirety of his childhood there, but he knew he couldn’t risk being executed by the former dictator of Iran because he wouldn’t face punishment for doing something positive for society – which he went through with in the early 1990s.
After Shervin Pishevar safely landed in the United States – the land of opportunity people recognized as such regardless of their nationality – he found a job as a cab driver. His family safely traveled to the land of opportunity to shortly thereafter see Shervin enroll in one of the nation’s – not just the nation’s, but the entire world’s – finest four-year colleges’ molecular biology programs.
That school was none other than the University of California, Berkeley. Although he originally wanted to become a physician, Shervin Pishevar quickly changed his mindset and founded WebOS, a tech company, in 1997. Since then, Pishevar – once named “Bill Gates’ worst nightmare” – has founded a handful of companies on his own, co-founded a couple of other businesses, served on the board of directors at several civic-minded organizations found across the globe, and even reeled in two prestigious awards recognized around planet Earth – the Outstanding American by Choice award in 2012 to which he was elected to receive by the United States federal government, as well as 2016’s Ellis Island Medal of Honor.
Shervin Pishevar said Bitcoin would drop in price just to rebound – it happened. He also claimed that the NYSE would drop in value by thousands of points, which – again – did happen.
In the February tweet storm where he made the aforementioned guesses, he also included that the bond market would soon collapse, which started to happen just a few months ago.