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.
The fields of consumer technology and finance have merged together in recent years to yield companies like Lending Club Corporation and Social Finance Inc., lending companies that provide loans to consumers primarily in the United States, though such competitors in the “fintech” industry are active throughout most countries on planet Earth.
GreenSky LLC and its subsidiary organization GreenSky Credit are partnered with fourteen banks throughout the United States among the likes of SunTrust Bank and Regions Financial Corporation. Rather than taking on debt itself in the name of raising capital to send directly to its clients, GreenSky Credit hooks up clients around the contiguous 48 states, Hawaii, and Alaska by sending them directly to financiers’ doorsteps.
Those banks then direct the responsibility of customers to pay to roughly 12,000 merchants across the nation. Loans have been made to a total of 1.8 million customers since GreenSky Credit was created 12 years ago that together total to a whopping $12 billion in financing.
Rather than using its website, physical locations, or phone calls to direct financing to clients who largely need such money to fund entrepreneurial causes like doctors’ offices and add-ons or remodelings of homes, GreenSky LLC uses its mobile app to link clients with financiers. While applicants first have to be approved to receive such loans based on information from credit reports, past lenders, and reviews found across the World Wide Web, they can simply use the mobile app to seek financing for their wants and needs after the initial approval process is complete.
The company was founded by Mr. David Zalik in 2006; Zalik still works for GreenSky Credit as its chief executive officer today. CEO and founder Zalik became a billionaire after just a few years were spent with the company. Once Greensky released its initial public offering to the world, just a few months went by before Zalik was upgraded from the ranks of a not-so-measly millionaire to those of a billionaire.
GreenSky LLCmakes roughly 12 percent of each loan’s value upon the completion of financing arrangements – the revenue is practically the firm’s only means of earnings.