Mr. Sahm Adrangi is the founder of Kerrisdale Capital Management, an investment management company that focusses on the long-term value of investments, and its current CEO. The Bachelor of Arts in Economic Degree holder from the reputable Yale University has had long-term experience in investment analysis and management. Sahm Adrangi has worked in many top-shelf organizations where he continued to impact with his expertise positively. The renowned investment manager has issued lots of reports negative and positive alike on various companies that has sparked controversial sentiments.
Mr. Sahm Adrangi through his company, Kerrisdale Capital Management, recently issued a negative report on the St. Joe Company. In his statement, Mr. Sahm Adrangi questions the credibility of the billion dollars Florida real estate development company. He claims that this company that is hopeful about the transformation of a desolate area near Panama into an exciting destination is not likely to follow the protocol that will validate its current valuation. He goes on to point out that the bulk of the company’s land holdings are in total contrast to the beachfront land that the company continually advertise. He believes that in reality, there has been very little progress on this project ever since its proposal decades ago.
Mr. Sahm Adrangi states that this company is facing the risk and un-assurance of a forced selling following the Impending demise of their most significant shareholder, Fairholme Funds. A list of prolonged consecutive poor stock selection has led to the plummeting of Fairholme’s assets to less than ten percent from their peak. This unfortunate turn of events would directly translate, under the new rule, to the cutting of their funding in St. Joe Company by almost a half. It is based on these arguments that Kerrisdale believes the shares value of St. Joe Company to be about forty percent less than the current value. Finally, it is the staunch belief of Kerrisdale Capital Management that no amount of development assumptions would work to improve the stock valuation of St. Joe. In a short while, these stock projections will be realized beginning with its forced selling by their most significant shareholder.