Sahm Adrangi is the 32-year old founder of Kerrisdale Capital. Adrangi has been very active on various issues affecting the global financial industry. One of the issues he has commented on is about The St. Joe Company. It is a real estate company located near Panama Beach in Florida. The company is said to be worth $1 billion, but Adrangi has a different perspective about that. He thinks that valuation is too high. According to Adrangi, the company is worth 40 percent less what is being valued currently. In a 28-page detailed report prepared by Kerrisdale, he shows why he believes the company is overvalued. Some of the areas that he cites as the cause of the overvaluation include overvalued land holdings, stalled commercial development, and issues with the largest shareholders of the firm.
The plan that was conceived by St. Joe’s was to create a housing plan for retirees and commercial hoses near Panama Beach. The company went on and bought a huge tract of land which they are now developing properties. However, although they bought a large piece of land, most of it remains a desolate swampland that is not yet reclaimed.
For the past ten years, Sahm Adrangi notes that there has been no significant development that has taken place, the projects have stalled and there seem to be no signs of resuscitating the project. He adds that the amount of investment that should be done in order to make St. Joe’s worth the valuation it is being given is simply unrealistic.
About Sahm Adrangi
The sentiments that Sahm Adrangi holds on this company do not originate from any interests that he has at St. Joe’s. His report is simply a report based on facts as he sees them. He has no short investment in this company and has no plans of holding any.
Sahm Adrangi has cultivated a good name in the financial sector by making investments which have yielded huge returns. In 2011, he made a mark when he short some Chinese companies, which just like St. Joe’s were giving the wrong impression about their valuation.