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time will increase values...this depression wont last forever...
there website is good info.
http://www.joe.com/The-Gold-Standard-In-Green-Land-Conservation
LOL thinking out loud in round numbers...
1.75 billion market cap
560,000 acres owned
$3,125 per acre
7 cents a square foot...
Yep as I have said before I have driven over a lot of that part of Florida and it is great.....hell the pine trees have to be worth a fortune....
As a past Governor on the Board of Governors of the Farm and Land Institute (now the Urban Land Institute) I would love to look at the topo maps and aerial photos of what they do own.
Wonder what that over half million arces of land is worth...
all that part of florida needs is people...its a beautiful part of the state,just not as busy as others...berkowitz made a good choice for an upscale retreat with an airport.
remember when everyone said HILTON HEAD wouldnt sell either 30 years ago....berk even has a deep water port for cruise lines...i wonder if thats why the ceo of carnival is on the board...
long, broad with a vision ?
In the late 1950's and early 60's in the eastern Arkansas river delta land there were untold thousands of acres of flooded woodland and swamps. A man my father knew bought up as much of that land as he could for 25 to 50 bucks an acre as everyone figured he had lost his marbles. He was a wealthy man and owned almost 20,000 acres of swamps at his death in 1976.
In the early 80's I brokered sales (for his son) of nearly 15,000 acres in many partials for an average price of close to 1,200 bucks an acre.
Who would buy a swamp?...those swamps turned out to be some of the best duck hunting camps in the U.S......wealthy sports men all over this country now own them and there price if you could buy one is astronomical even in these times of depressed real estate.
Let us not count out swamp land just yet.
My SA article on buying puts on JOE after getting stopped out of my short earlier this year: http://seekingalpha.com/a/5thr
The St. Joe Company (NYSE: JOE ) : The company's stock price declined from $28.89 to $21.85 in 2010, a price return of -24.37%. By contrast, the stock has gained 13.14% in 2011. Over the last month, shares shorted declined from 23.03M to 19.84M, a change that is equivalent to 3.95% of the company's total float of 80.83M shares.
i suppose the author of that post is SHORT or a friend of EINHORN...for everything bad that is said there are articles to match it that PRAISE BERKOWITZ and his efforts...
reminder....miami was once swampland as is all of florida....
Why This Stock's Price Should Be Slashed in Half
Marc Lichtenfeld
Senior Analyst
It's no secret that I'm a fan of activist investors.
But don't be misguided by the term "activist." These aren't patchouli-smelling long-haireds singing "Kumbaya" in Golden Gate Park - that's hardly the image that comes to mind when you think of noted activist investor, Carl Icahn.
An activist investor is one who owns 5% or more of a company and demands changes from management. Those demands often include...
Selling the company.
Declaring a special dividend.
Firing an incompetent CEO.
Replacing members of the board of directors.
Basically, any initiative that will enhance shareholder value.
What's more, activists are usually successful and help drive the share price of the company in question higher. In fact, professors at New York University published a study in the Journal of Finance, which concluded that stocks with activist investors outperform the broader market by 21.6% per year.
That level of outperformance is why I launched The Activist Trader.
And right now, there's a big story involving an activist investor...
A Hollow Victory
Bruce Berkowitz of Fairholme Capital owns nearly 30% of St. Joe Company (NYSE: JOE).
He and a colleague recently joined the real estate firm's board of directors, then promptly resigned after other board members resisted his efforts to make changes to the company.
Score one for St. Joe, right?
Wrong. A short time later, Berkowitz pushed out the CEO and rejoined the board as Chairman.
Like all activist investors, he doggedly pursued his goal in order to enhance shareholder value. And while I support most activists' efforts in this regard, I think he's wasting his time with St. Joe, as there's little value to enhance.
I first wrote about St. Joe in 2006 when the stock was at $60. At the time, I argued that its land was grossly overvalued, properties weren't selling and the stock would fall.
Today, it's down by more than 50%. And you know what? The price should get cut in half again. Why?
Swampland and Dreams
For nearly a century - up until 1997 - St. Joe was a paper company. Then it became a land developer. It's now the biggest landowner in Florida. And here's where it gets a bit sneaky...
In the mid 2000s, St. Joe revalued much of its land to reflect its value if those areas were developed, rather than forestland. But there's a big reason why the land can't be developed: It's deep in the swamps, miles from any "civilization."
St. Joe was literally trying to sell swampland in Florida.
It's tough enough to sell property on the beach in the "Redneck Riviera," also known as northwest Florida these days. But it's darn-near impossible to sell it if it's in the woods where "we've got critters, we've got heat, we've got humidity," a St. Joe executive once told The New York Times.
Even where St. Joe has built luxury homes, the prime spots on and near the beach were built and sold long ago, leaving the company with a lot of less-desirable land, unsold homes and communities, some of which are referred to as ghost towns.
That reflects the wider trend in Florida, where real estate sales are very difficult to come by these days. In four out of five developments, less than a quarter of the home sites have been sold. And many of the ones that did sell have been foreclosed, which will keep a low ceiling on prices.
So it's no surprise to see St. Joe hemorrhaging money...
The Money Pit
In 2009, St. Joe lost $209 million from operations and another $51 million in 2010, as its real estate sales were slashed in half. The reason for the lower loss was a smaller impairment charge, due to write-offs of lost land value.
Based on land sale prices over the past few years, St. Joe's half a million acres are worth between about $600 million to $1 billion. But a more realistic assessment of its property values will likely lead to further write-offs, as Florida land prices continue to slide.
The losses are expected to continue for several years, too. Even Berkowitz agrees that St. Joe's current business model wastes shareholders' money.
So what has St. Joe's management pinned its hopes on?
Chasing Value Where It Doesn't Exist
A strategy that never works... lawsuits.
The company is suing Halliburton (NYSE: HAL), Transocean (NYSE: RIG) and others responsible for the Gulf oil spill, while at the same time advertising that its beaches are beautiful and weren't harmed by the disaster.
Berkowitz said he's considering dropping the lawsuits.
David Einhorn, a vocal critic of St. Joe and a fund manager who is short the stock, said that at today's prices "it costs more to turn raw land into a finished lot than the lot is worth... and it's not even close." He added that the company should be sold, but that it's worth significantly less than the current share price.
Now if the name David Einhorn sounds familiar, he's the one who told Wall Street that Lehman Brothers was going to fail, although few people listened to him at the time.
I actually support Berkowitz's efforts to extract value for shareholders who've seen the stock steadily decline for the past six years. I believe he's doing shareholders a service by getting rid of ineffective management, reining in costs and perhaps changing the business model.
But with a rebound in Florida land values years away, there's just not much value in St. Joe to squeeze out.
Look for St. Joe to continue trading lower throughout the year.
Good investing,
Marc Lichtenfeld
oh boy....how long till 40
JOE Announces New Board of Directors (2/28/11)
St. Joe CEO to Resign, Company to Begin Search for New CEO
Fourth Quarter and Full Year 2010 Results Conference Call Cancelled
WATERSOUND, Fla.--(BUSINESS WIRE)--The St. Joe Company (NYSE: JOE) today announced that it has reached an understanding with its largest shareholder, The Fairholme Fund (FAIRX), a series of Fairholme Funds, Inc., on certain corporate governance matters.
“Britt has been instrumental in the growth and development of St. Joe over the past thirteen years. We are grateful for his many valuable contributions to the Company and wish him the best in his future endeavors.”
.Britt Greene has resigned from the Company’s Board of Directors, effective immediately, and he will step down from the positions of President and CEO later this week. St. Joe will commence a search process and expects to engage an executive search firm to identify potential candidates to serve as CEO on a permanent basis.
Hugh Durden, Chairman of the St. Joe Board of Directors, said, “Britt has been instrumental in the growth and development of St. Joe over the past thirteen years. We are grateful for his many valuable contributions to the Company and wish him the best in his future endeavors.”
Recognizing the desire of St. Joe shareholders for the Company to pursue a different course, Michael L. Ainslie, John S. Lord and Walter L. Revell have also agreed to resign from the St. Joe Board of Directors later this week.
St. Joe will add four new directors previously proposed by Fairholme. The St. Joe Board of Directors will consist of Bruce R. Berkowitz, Governor Charles J. Crist, Charles M. Fernandez, Howard S. Frank, Hugh M. Durden, Thomas A. Fanning, and Delores M. Kesler. St. Joe also expects to engage an executive search firm to assist in identifying at least one additional independent director.
Mr. Durden added, “St. Joe is committed to acting in the best interests of shareholders, and in light of the feedback the Board of Directors has received, we are taking steps to change the Company’s governance and leadership. We look forward to working with the new members of the Board to build shareholder value and advance St. Joe’s leadership position in the Northwest Florida real estate market.”
In connection with the governance and leadership changes announced today, Fairholme has indicated that it will not be soliciting written consents or proxies to effect further changes to the St. Joe Board.
The Company also announced today that it will not hold its previously scheduled conference call regarding its fourth quarter and full year 2010 earnings on Tuesday, March 1, 2011.
BIOGRAPHIES
Bruce R. Berkowitz is the Founder, Managing Member and Chief Investment Officer of Fairholme Capital Management, L.L.C., and President and a Director of Fairholme Funds, Inc. Mr. Berkowitz has served as a Director of Fairholme Funds, Inc. since 1999. He has also served as a Director of White Mountains Insurance Group, Ltd., AmeriCredit Corporation and TAL.
Governor Charles J. Crist is the 44th Governor of the State of Florida and served as Governor from 2007 to 2011. Governor Crist previously served as Attorney General of Florida from 2003 to 2007 and Education Commissioner of Florida from 2001 to 2003. Governor Crist also served as a Senator in the Florida Senate. Governor Crist, a member of the Florida Counsel of 100, is currently an attorney with the law firm of Morgan & Morgan and a Distinguished Professorial Lecturer at Stetson University College of Law.
Charles M. Fernandez is the President of Fairholme Capital Management, L.L.C. and Vice President and a Director of Fairholme Funds, Inc. Mr. Fernandez is also a member of the Board of Directors of Miami Children’s Hospital Foundation. Mr. Fernandez was a Director of Lakeview Health Systems, LLC, a privately held healthcare company specializing in rehabilitation until October 2009 and served as President until 2007. Mr. Fernandez was also the Chief Executive Officer of Big City Radio, Inc. and held various positions with IVAX Corporation until 2003, serving most recently as a Director and Chairman of the Audit Committee of the Board of Directors.
Howard S. Frank is the Chief Operating Officer and Vice Chairman of the Board of Directors of Carnival Corporation & plc, the largest cruise vacation group in the world, and is responsible for directing corporate-wide business development strategies. Mr. Frank joined Carnival Corporation as Senior Vice President – Finance and Chief Financial Officer in July 1989 and has served as the company’s Vice Chairman and Chief Operating Officer since January 1998. Mr. Frank is a past Chairman and current Vice Chairman of the Board of Trustees for the New World Symphony and currently serves as Independent Director on the board of directors of Fairholme Funds, Inc.
Hugh M. Durden has served as Chairman of the Board of the Company since August 2008, and he served as Lead Director from 2003 to 2008. He has also served as Chairman of The Alfred I. duPont Testamentary Trust since January 2005. From 1972 until 2000, he was an executive with Wachovia Corporation, serving as President of Wachovia Corporate Services from 1994 to 2000. He is a director of The Nemours Foundation, Chairman of the EARTH University Investment Committee and a director of Web.com Group, Inc., a website design and internet services company.
Thomas A. Fanning is the Chairman of the Board, President and Chief Executive Officer of Southern Company. Mr. Fanning has worked for Southern Company for 29 years and was most recently Chief Operating Officer until August 2010, previously serving as its Executive Vice President and Chief Financial Officer from 2003 through 2007. Mr. Fanning also serves as a trustee of the Southern Center for International Studies and as a member of The Georgia Institute of Technology Alexander Tharpe Athletic Board and Management College Board. Mr. Fanning has current executive experience in a large, complex organization operating in a highly regulated industry. Especially important are the extensive skills he has acquired in the areas of financial reporting and risk assessment and oversight.
Delores M. Kesler has served as Chairman of ATS Services, Inc., a human resource solutions company, and Chairman and Chief Executive Officer of Adium, LLC, a capital investment company, since 1997. Ms. Kesler is also a founder of Accustaff, Inc. (now MPS Group, Inc.), a strategic staffing, consulting and outsourcing company, and served as its Chairman and Chief Executive Officer from 1978 until her retirement in 1997. Ms. Kesler currently serves as the
Chairman of the Board of PSS World Medical, Inc., a distributor of medical products.
About St. Joe
The St. Joe Company, a publicly held company currently based in WaterSound, is one of Florida's largest real estate development companies and Northwest Florida's largest private landowner. St. Joe is primarily engaged in real estate development and sales, with significant interests in timber. More information about the Company can be found on its website at www.joe.com.
http://www.businesswire.com/news/home/20110228006152/en/St.-Joe-Company-Announces-Board-Directors
KBW is out with its report today on St. Joe's Company (NYSE: JOE), maintaining Outperform.
In a note to clients, KBW writes, "JOE is scheduled now to report Q4 earnings after the close Tuesday, March 1st. The focus will be less on EPS number, which is expected to be negative, but more on strategic initiatives, the recent Board changes, and public dialogue with Fairholme (JOE's largest investor). Record date for shareholder vote is March 18th. Maintain Outperform."
Read more: http://www.benzinga.com/analyst-ratings/analyst-color/11/02/890176/kbw-maintains-outperform-on-st-joe-company-joe#ixzz1FGglT100
WaterSound, FL — February 16, 2011 — The St. Joe Company (NYSE: JOE) today issued the following statement in response to Fairholme Funds, Inc.’s (NASDAQ: FAIRX) announcement that it is seeking to remove all of the members of the Company’s Board of Directors and to replace them with Fairholme nominees:
“St. Joe adamantly opposes Fairholme’s efforts to obtain control of the Company without paying a control premium to all other shareholders. If Fairholme and its President, Bruce Berkowitz, want to take control of St. Joe, they should make an offer to all shareholders to buy it.
Since the Fairholme representatives on the St. Joe Board voted to approve the decision to explore financial and strategic alternatives, we believe that Fairholme should support that process by participating in it, rather than seeking to obtain control of the Company through a costly and disruptive proxy contest.
To date, Fairholme has not submitted for consideration any alternative business plan to enhance value for all St. Joe shareholders. If Fairholme and Mr. Berkowitz have an alternative business plan or strategic initiative that they believe to be in the best interests of all of St. Joe shareholders, they should propose it for consideration as part of the Company’s process for reviewing all strategic alternatives.”
Fairholme responded:
Item 1: On February 16, 2011, Fairholme Funds, Inc., on behalf of its series The Fairholme Fund, issued the following material to members of the media:
Andy Dietderich, principal outside counsel to Fairholme Funds, said “The Company did not read Fairholme’s release. A take-over? How can you take over a company by asking the other shareholders to choose directors? That’s the opposite of a take-over. Fairholme Funds has absolutely no intention of taking over anything. We are giving the company back to all its shareholders. It’s a dividend of governance.”
Charlie Fernandez said through a representative: “The St. Joe board is picking and choosing from what Bruce and I said on the board. If the board really wants to lift confidentiality restrictions relating to their board meetings, Bruce and I would be delighted and will give the public a full report of what we learned.”
“In the meantime, Bruce and I can’t talk about what happened at the St. Joe board. We are bound by confidentiality. All I can say is that it does not take six weeks to know a board is so entrenched it can’t do the right thing.”
Bruce Berkowitz said through a representative: “I met Charlie Crist for the first time two weeks ago. He is completely independent of Fairholme and has not provided any services to Fairholme or St. Joe. He is simply a great director. We are looking to our shareholders to propose five more. We want St. Joe to have a fantastic Board, with a full majority independent of management or Fairholme.”
“This is not about strategic alternatives. This is about who is running the company. The board is hiding behind a false sale process. The business plan is broke. No one will buy it until it is fixed. I’m surprised Morgan Stanley is playing along. The only purpose of this exercise is to entrench the board. Is Morgan Stanley not collecting fees for that? No counterparty will take this board or management seriously. They have no mandate and must go.”
“What really concerns me is that the desperate board might do something stupid with the shareholders’ company. There are actions that they could take to harm the business that do not require shareholder approval.”
“We support the analysis of strategic alternatives, but only after the business plan is fixed and the company is in the hands of its shareholders.”
“The worst thing is that the board is spending shareholder money to protect itself from shareholders. It’s unconscionable. Directors should think for shareholders, not themselves.”
I’m not sure there is any way that the current Board can honestly think they are going to win this one. I just can’t believe Blackrock, T Rowe and Janus are going to side with them. If Berkowitz gets only two of the three he will have enough votes to elect his slate.
no problem for Fairholme to get a loan done.i dont care who ends up with the company as long as the price goes up
Loan would have to be refinanced.
One thing at a time.
i was out yesterday....good news ...tyty
Standstill Agreement was terminated on 01/12/11
The Standstill Agreement was scheduled to expire on April 6, 2012. On January 12, 2011, the Company agreed with Fairholme to accelerate the expiration of the Standstill Agreement. As a result, the Standstill Agreement will expire and be terminated, effective immediately. The Board, with directors Bruce R. Berkowitz and Charles M. Fernandez not voting, unanimously approved the termination of the Standstill Agreement.
http://sec.gov/Archives/edgar/data/745308/000129993311000129/htm_40371.htm
http://sec.gov/Archives/edgar/data/745308/000129993311000129/exhibit2.htm
Credit Agreement limits Fairholme to 30 percent.
SECTION 2.01. Amendment to Section 1.01. The definition of “Change in Control” set forth in Section 1.01 of the Credit Agreement is amended and restated to read in its entirety as follows:
“Change in Control” means the occurrence after the Closing Date of any of the following: (i) any Person or two or more Persons acting in concert shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934) of 25% or more of the outstanding shares of the Voting Stock of the Borrower; or (ii) as of any date a majority of the board of directors of the Borrower consists of individuals who were not either (A) directors of the Borrower as of the corresponding date of the previous year, (B) selected or nominated to become directors by the board of directors of the Borrower of which a majority of such board consisted of individuals described in clause (A), or (C) selected or nominated to become directors by the board of directors of the Borrower of which a majority of such board consisted of individuals described in clause (A) and individuals described in clause (B). Notwithstanding the foregoing, Fairholme Funds, Inc., a Maryland corporation, Fairholme Capital Management, L.L.C., a Delaware limited liability company, and each of their respective Affiliates and officers and directors (collectively, “Fairholme”) may collectively acquire beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934) of up to 30% in the aggregate of the outstanding shares of the Voting Stock of the Borrower. For the purposes of share calculations for Fairholme within this definition, shares shall not constitute “Voting Stock” unless such shares are accorded voting rights in accordance with the laws of the jurisdiction of Borrower’s incorporation.
http://sec.gov/Archives/edgar/data/745308/000129993311000129/exhibit1.htm
"Personally, I think it would be wiser for Berkowitz to buy every available share on the open market first (within legal limits)"
Besides the resolution to not acquire any more than 30% of the company, the board also introduced a poison pill that essentially makes acquiring more shares a terrible mistake for Fairholme. They'll have to replace the current board before anything close to a takeover happens.
What do you think the odds that one of the other large funds will vote along with Fairholme for the 30% to call the meeting or the 51% to oust them?
JOE Comments on Fairholme Announcement (2/16/11)
WATERSOUND, Fla.--(BUSINESS WIRE)--The St. Joe Company (NYSE: JOE) today issued the following statement in response to Fairholme Funds, Inc.’s (NASDAQ: FAIRX) announcement that it is seeking to remove all of the members of the Company’s Board of Directors and to replace them with Fairholme nominees:
“St. Joe adamantly opposes Fairholme’s efforts to obtain control of the Company without paying a control premium to all other shareholders. If Fairholme and its President, Bruce Berkowitz, want to take control of St. Joe, they should make an offer to all shareholders to buy it.”
Since the Fairholme representatives on the St. Joe Board voted to approve the decision to explore financial and strategic alternatives, we believe that Fairholme should support that process by participating in it, rather than seeking to obtain control of the Company through a costly and disruptive proxy contest.
To date, Fairholme has not submitted for consideration any alternative business plan to enhance value for all St. Joe shareholders. If Fairholme and Mr. Berkowitz have an alternative business plan or strategic initiative that they believe to be in the best interests of all of St. Joe shareholders, they should propose it for consideration as part of the Company’s process for reviewing all strategic alternatives.”
Morgan Stanley & Co. Incorporated is serving as financial advisor and Latham & Watkins LLP is serving as legal advisor to the Company.
http://www.businesswire.com/news/home/20110216006657/en/St.-Joe-Company-Comments-Fairholme-Announcement
Impressed. Go get them Bruce.
Fairholme Fund Starts Shareholder Process to Replace Existing Board of St. Joe (2/16/11)
MIAMI, Feb. 16, 2011 /PRNewswire/ -- The Fairholme Fund (Nasdaq: FAIRX) said today that it has filed a Schedule 13-D with the Securities and Exchange Commission containing the following letter to St. Joe (NYSE: JOE) shareholders:
Fellow Shareholders:
The Fairholme Fund is starting a shareholder process to replace the existing board of St. Joe. This was not a decision made lightly. We are not activists. We always try to support the boards, management and shareholders of our portfolio companies. We like when everyone wins. When we saw problems at St. Joe, we tried to make constructive changes within the board structure. We ultimately came to the conclusion that this was not possible.
We believe in the following fundamental concepts:
•St. Joe belongs to its shareholders, not its board or management
•St. Joe management plans must reflect business reality
•St. Joe management must stop selling cheap to fund wasteful spending
•St. Joe management must be open, transparent and accountable
•St. Joe management must feel the pain and joy of their constituents
•St. Joe directors must lead by example
Who should be on the St. Joe board? It is your company as much as The Fairholme Fund's roughly 500,000 shareholders. Let's all decide.
Today we begin a director search in which every shareholder of St. Joe has the opportunity to be heard. We have retained the executive search firm of Spencer Stuart to oversee a process in which all shareholders can suggest director candidates, and in a few days will be establishing a web site, takebackjoe.com, to help facilitate the process. Spencer Stuart will review shareholder suggestions and make a recommendation to us for the best board of directors that reflects shareholder views. Charlie and I have submitted our own names and agreed to serve without compensation. In addition, we have proposed Governor Charlie Crist and Howard Frank, Vice Chair and COO of Carnival Corp, one of the world's largest vacation companies. We anticipate filling the remaining spots on either a seven- or nine-member board with names proposed by our fellow shareholders and Spencer Stuart.
Under Florida law, a majority can act by written consent to remove the existing board and elect a new one without a shareholder meeting. However, because of roadblocks set up by St. Joe directors just last week – which require us to name director nominees at the commencement of the removal process – we have decided to act to replace the existing board with the four nominees named above while the shareholder-driven search process working with Spencer Stuart is underway. If we win, these four new directors will add the individuals chosen through Spencer Stuart. This two step process is necessary to prevent the incumbent board and management from burning more of your money in order to protect their positions.
We will not seek to recover any of the cost of Spencer Stuart or the solicitation from St. Joe. We are not looking to spend a dime of the company's money. This is a matter of principle for us, and our return will be reflected in a more valuable St. Joe.
More information will be published when available. While a written consent will be the simplest way to change the board, it may become appropriate to hold a special meeting of shareholders. Of course, Joe's current directors can immediately step down and appoint our slate in order to save us all much time and expense.
Please visit the website when it is up in a few days and let Spencer Stuart know your views about director candidates. We will issue a news release when the site is active.
We've lost enough. Let's take back Joe.
Fairholme Funds, Inc., on behalf of its series The Fairholme Fund
/s/ Bruce Berkowitz
Bruce Berkowitz
President
JOE Issues Statement Regarding Resignation of Fairholme Representatives from Board (2/14/11)
“Fairholme’s statements and actions surrounding the resignation of its representatives from the Board of The St. Joe Company, after having served for only six weeks and while the St. Joe Governance and Nominating Committee was reviewing their proposed nominees, are not in the best interest of all St. Joe shareholders. While on the Board, Fairholme’s representatives had advised the Company that they substantially agreed with the business plan and approved the exploration of strategic alternatives.
The St. Joe Board has always been committed to strong corporate governance, to protecting shareholders' interests and to creating superior results for the long-term. On February 8, 2011 we announced that our Board has retained Morgan Stanley & Co. Incorporated to serve as financial advisor as we explore a wide range of options to enhance shareholder value. While there can be no assurance that any changes or transaction will result from this process, we believe it is an important step for the Company."
Silence may be golden.
A lower market price allows an acquirer to ultimately pay less in the long run.
Years ago, I watched Harold Simmons once fail to extend a tender offer. The price dropped. He just went in and bought the shares at market while people were dumping.
theres more to come here with this issue
I grew up in the RE industry but have gotten to where I like being able to liquidate or buy a position without having to mess with escrow and just using a keyboard.
I know that area and have been all around it and it's beautiful country with great pine trees....
Fee Simple RE in the right areas is still the best way for wealth preservation...as long as one can pay the taxes.
i live in florida and the saint joe company has been around forever...sorta like one of those to big to fail companies...i think it will be 40 before its 20.real estate is at historic lows..ANY pop there she goes up.
i like pine trees ,there sellable
I hit a board and dont keep up enough with the stocks some times....nice run here from Dec low....
I will still run with my last statement that FL and NV will be the last big markets to get out of this RE mess.....
more to come here...big fight
You guys been hitting CNBC Squawk Box the last couple of days...
Good Board of Dir stuff going on and a proxy fight that did not work....
up 3 bucks after hours....
JOE to Consider Financial and Strategic Alternatives (2/08/11)
WATERSOUND, Fla.--(BUSINESS WIRE)--The St. Joe Company (NYSE:JOE) today announced that its Board of Directors has unanimously decided to explore financial and strategic alternatives to enhance shareholder value.
“We have engaged Morgan Stanley to undertake a comprehensive and thorough review of all available alternatives, and our Board and management are committed to taking the appropriate and necessary actions to enhance value for St. Joe shareholders.”
The Board intends to consider the full range of available options including a revised business plan, operating partnerships, joint ventures, strategic alliances, asset sales, strategic acquisitions and a merger or sale of the Company. The Board of Directors has retained Morgan Stanley & Co. Incorporated to assist it in the evaluation of these alternatives. The Company noted that there can be no assurance that the exploration of strategic alternatives will result in any transaction.
Britt Greene, St. Joe's President and CEO, said, “We have engaged Morgan Stanley to undertake a comprehensive and thorough review of all available alternatives, and our Board and management are committed to taking the appropriate and necessary actions to enhance value for St. Joe shareholders.”
http://www.businesswire.com/news/home/20110208007619/en/St.-Joe-Company-Financial-Strategic-Alternatives
i aint sellin....yet, maybe 70 bucks
The St. Joe Saga Continues: Will Berkowitz or Einhorn Win? (2/07/11)
By Avi Salzman
Back in October, we had a front row seat to a full-on shellacking by famed activist investor David Einhorn at the Value Investing Congress. Einhorn, famous for his prescient call to short Lehman Brothers, took on Florida real estate company St. Joe (JOE), claiming the company was trading at nearly three times its intrinsic worth. He showed pictures of half-built weed-infested properties in some of the company’s heralded developments that were still being carried at inflated values on its balance sheet. Even as Einhorn spoke, shares of the company plummeted 10% and kept dropping the next day. Last month, the SEC said it was investigating the company.
Another Einhorn take-down, right? Not so fast.
Shares have rebounded over the past month, so much so that they now trade above their price the day before Einhorn’s talk. And today, CNBC reported that Bruce Berkowitz of Fairholme Capital Management is launching a bid to restructure St. Joe’s board and install himself as chairman. Berkowitz, who owns 29.7% of the company, already won himself and an associate seats on the board in December.
Berkowitz also plans to hire an adviser to explore bolt-on acquisitions and joint ventures, CNBC reported. The company is close to a deal to lease timberland to finance its deal-making.
CNBC said the board had been advised of Berkowitz’s plans. The company did not immediately respond to our request for comment. We’ll let you know if they do. (Update: A spokesman for the company said St. Joe does not have any comment. “They have a company policy that they do not comment on rumors and speculation,” the spokesman said.)
To be sure, the stock is mostly up on rumors about M&A and Berkowitz. St. Joe’s land may still be wildly overvalued, and the company would have to convince any suitors or partners that the Florida real estate market is a decent place to invest, or that the land St. Joe owns is worth what the company says it’s worth. But investors are willing to make that bet, at least for today.
Shares were up 7.2% at $29.02 on Monday morning.
http://blogs.barrons.com/stockstowatchtoday/2011/02/07/the-st-joe-saga-continues-will-berkowitz-or-einhorn-win/
Berkowitz throws the gauntlet in the battle over St. Joe (2/07/11)
Posted by Scott Cendrowski, reporter
February 7, 2011 12:38 pm
Bruce Berkowitz is proposing to become chairman of the Florida developer. That could spell trouble for short seller David Einhorn.
A St. Joe real estate development
Last week, the investor Bruce Berkowitz of Fairholme Capital was onstage at Columbia University's annual Investment Management Conference in New York when he got a question about St. Joe Company (JOE), one of the most debated stocks among certain moneyed circles. Ever since noted short seller David Einhorn publicly bashed the small Florida real estate developer last fall, the press and financial blogosphere have gleefully pitted Berkowitz, St. Joe's largest shareholder, against Einhorn in a battle of super investors.
So it didn't take long before someone in the Columbia audience asked Berkowitz if Einhorn might be wrong. "I don't have a lot to disagree with David about," Berkowitz answered, saying he was a long-term shareholder and since joining the St. Joe board earlier this year, he's been doing everything he can to boost St. Joe's value. The moderator quipped, "Assuming you guys have any real power on the board."
If he didn't before, Berkowitz may be about to get a lot more. According to a CNBC.com report that was confirmed today by Berkowitz, the fund manager is proposing to overhaul St. Joe's board. It's the latest in a string of moves to reverse three years of losses at the sleepy Florida company.
Berkowitz would become chairman of St. Joe under his proposal. His partner Charles Fernandez would assume the vice chairman role. In addition, Fairholme recruited Howard Frank, COO of Carnival Corporation (CCL), and Florida Fish and Wildlife Conservation Commission Chairman Rodney Barreto to join the board. Berkowitz expects to discuss the proposal tomorrow at St. Joe's scheduled board meeting. A St. Joe spokesman did not immediately return a call Monday.
Berkowitz and Fernandez have been planning changes for weeks and said the St. Joe board had been notified before the news leaked Sunday. The report sent St. Joe shares soaring Monday, up as much as 11% to $30.
The proposed shakeup raises the question, what's in St. Joe's future? It's got 576,000 acres of land in Florida's panhandle, a large chunk of which is located within 15 miles of the coast, but it's bled money for the last three years after residential developments stalled during the housing bust. Its balance sheet is debt-free, but the company isn't generating cash or profits. Berkowitz has said it's "just sort of dead in the water."
Among the possibilities, Berkowitz says: "Outsourcing the entire operations of the company, merging with another company, being acquired by another company. Acquiring another company."
The "possibilities are vast. But before you can do any of this, the first thing you have to do is stop the bleeding," he says.
Berkowitz declined to answer specific questions about St. Joe's future projects, citing his role as a director. However, he's said in the past that outside developers could help rework St. Joe land. And he's still bullish on the stock. He bought St. Joe shares valuing its land between $3,000 and $4,000 an acre. He thinks some of its beachfront properties will fetch $1 million an acre.
Interestingly, Berkowitz and Fernandez won't accept compensation for their work on St. Joe's board, nor will they accept reimbursement for flying from Miami to St. Joe's west Florida headquarters, until the company is profitable.
Coming up short
As investors cheered the news, those selling St. Joe stock short took a hit. Einhorn, known for his deep research and patience after successfully betting against Allied Capital and Lehman Brothers, among others, in Greenlight Capital's 15-year history, is fighting some heavy hitters in St. Joe.
Berkowitz's $22 billion Fairholme Capital owns nearly 30% of the company, and six other institutional investors, including BlackRock (BLK) and T. Rowe Price (TROW), control nearly 40% of its shares. If the board rejects Berkowitz's proposal to become chairman tomorrow, it's a safe bet that the proposal would go to a shareholder vote. And with Berkowitz's investment track record and reputation, it's also likely that other large St. Joe shareholders would side with his proposal.
Another strike against Einhorn: When he gave his 139-slide presentation on St. Joe in October, arguing that its stock should trade between $7 to $10 instead of $25, Berkowitz was restricted by a standstill agreement he signed with the company. It prevented him from adding to his stake, or from voting Fairholme's full share position in certain situations, including proposals to sell the company.
Just to show how serious Berkowitz is about St. Joe, which is a relatively small position in Fairholme's $22 billion portfolio, take a look at the slideshow below. In October he sent a photographer to tour St. Joe's properties after Einhorn's speech featured several unsightly photos of St. Joe developments. Even though Berkowitz had toured the properties before, he wanted to see what St. Joe's residential properties looked like compared to Einhorn's photos. See for yourself. (And to be clear: all the slides and commentary were compiled by the photographer, not Berkowitz.) Einhorn did not respond to a request for comment.
The news might be heating up. St. Joe's board is meeting tomorrow, and with the news leaking out that Berkowitz wants to replace almost half them, emotions could fly. Another reason to keep up with one of the hottest stocks around.
http://finance.fortune.cnn.com/2011/02/07/berkowitz-throws-the-gauntlet-in-the-battle-over-st-joe/
ok fairholme...do your stuff today...take tex right on up
Yeah, I'm aware of that.
I'm 1-and-1 on JOE now, but I'm going for 2-and-1: http://shortscreen.com/message-board/261-going-for-2-1-on-joe-st-joe-co-joe
Brookfield Asset Boosts General Growth Stake to 38% (1/19/11)
By KRIS HUDSON And DAWN WOTAPKA
Investment adviser Fairholme Funds Inc. agreed to sell its minority stake in mall owner General Growth Properties Inc. to Brookfield Asset Management Inc. for $1.7 billion, boosting Brookfield's stake in the mall owner to 38% and likely providing Fairholme more cash for a separate acquisition.
Fairholme and Brookfield were among the five investors that last year provided $7 billion to recapitalize General Growth, enabling the owner of 185 U.S. malls to emerge from bankruptcy protection. In selling its stake, Fairholme made a profit of $578 million.
Fairholme earlier had made a profit of roughly $400 million when $2 billion of General Growth bonds it bought at a discount were paid in full. Including the value of the 41 million warrants Fairholme will keep to buy General Growth stock at $10.25 a share, the firm has made a total profit of roughly $1.4 billion from its investment in the mall company.
The stock sale to Brookfield brings Fairholme $804 million in cash and $907 million in Brookfield stock, amounting to a stake of roughly 4.8% in the Canadian investor. The new cash boosts Fairholme's stockpile to $4 billion, leading some analysts to speculate that Fairholme will make a run at an acquisition, likely that of big Florida land owner St. Joe Co.
Fairholme, with $22 billion in assets under management, already holds a 29% stake in St. Joe. In December, St. Joe named Fairholme founder Bruce Berkowitz and President Charles Fernandez to its board. Last week, St. Joe waived the 30% cap it had put on Fairholme's ownership stake in a previous standstill agreement.
Messrs. Berkowitz and Fernandez on Tuesday described the sale of the General Growth stake as a "great transaction" done with "partners and friends" at Brookfield. Moreover, Mr. Berkowitz hasn't hid his interest in owning more of St. Joe.
"Under the right circumstances, Fairholme would be happy to own the entire company," he said Tuesday. "St. Joe is a fabulous company. It's going to have a very bright long-term future."
St. Joe, one of Florida's largest landowners, has been hurt by the housing downturn, which damped its plans to develop land close to beaches along Florida's panhandle.
Last fall, the company's stock sank after Greenlight Capital Inc.'s David Einhorn said he was betting against it. In a presentation, he criticized the values associated with the company's landholdings as being too high.
St. Joe maintains its impairment practices are sound. This month, it disclosed an informal Securities and Exchange Commission inquiry into its impairment practices and said it is cooperating. St. Joe declined to comment Tuesday.
In 4 p.m. New York Stock Exchange composite trading Tuesday, St. Joe's shares rose $1.54, or 6.1%, to $26.80. General Growth's stock fell 26 cents, or 1.7%, to $14.84, also on the NYSE.
Brookfield's 38% stake in General Growth is close to the 45% limit established in the recapitalization pact. Brookfield "doesn't foresee any further purchases" of General Growth shares, a spokesman said Tuesday.
Even so, some analysts noted investors' concern that, at a 38% stake, Brookfield now effectively controls General Growth, putting smaller shareholders at a disadvantage. A Brookfield spokesman said Brookfield wants the same as other shareholders.
"We value our partners in GGP," Brookfield's Andrew Willis said. "We have a governance structure in place that we think should give everybody comfort. We're all aligned as long-term investors in GGP."
Write to Kris Hudson at kris.hudson@wsj.com and Dawn Wotapka at dawn.wotapka@dowjones.com
http://online.wsj.com/article/SB10001424052748703954004576089810038018064.html
Fairholme Capital Management, LLC controls 28.92 percent (1/12/11)
Fairholme may be deemed to be the beneficial owner of 26,788,120 Shares (28.92%) of the Issuer, the Fund may be deemed to be the beneficial owner of 23,136,502 Shares (24.98%) of the Issuer and Bruce R. Berkowitz may be deemed to be the beneficial owner of 26,788,120 Shares (28.92%) of the Issuer, based upon the 92,624,703 Shares outstanding as of October 28, 2010, according to the Issuer.
http://sec.gov/Archives/edgar/data/745308/000091957411000130/d1162516_13d-a.htm
Bruce Berkowitz and Charles M. Fernandez elected directors (12/16/10)
WaterSound, FL — December 16, 2010 — The St. Joe Company (NYSE: JOE) today announced that Bruce R. Berkowitz and Charles M. Fernandez have been elected to the Company’s Board of Directors, effective as of January 1, 2011. The Board will then be comprised of nine members, eight of whom are independent. Messrs. Berkowitz and Fernandez are the Managing Member and President, respectively, of Fairholme Capital Management, L.L.C.
“We are delighted to add Bruce and Charles to St. Joe’s Board of Directors,” said Hugh M. Durden, Chairman of the Board of Directors. “Bruce and Charles, both of whom bring strong experience and valuable strategic insight to our team, have a deep understanding of our business and its inherent long-term potential. These attributes, coupled with their capital markets expertise, will be immensely valuable to St. Joe going forward. We look forward to their meaningful contributions to the Company.”
Mr. Berkowitz said, “St. Joe has uniquely valuable assets and some of the most attractive, concentrated and well-managed real estate in the U.S. The value is in its development expertise, communities, infrastructure, entitlements, master plans, timberlands and most importantly the Company’s long-term vision. I am confident that St. Joe is well-positioned to succeed and look forward to working with management and the Board to deliver long-term value to all shareholders.”
Mr. Fernandez said, “With its enviable balance sheet and restructured operations, St. Joe is well positioned to maximize the value of its properties and assets. I look forward to joining the Board and contributing to the effort.”
Mr. Berkowitz is the Managing Member of Fairholme Capital Management. He is also the President and a Director of Fairholme Funds, Inc. and has been the lead manager of the Fairholme portfolio management team since its inception. Mr. Fernandez is the President of Fairholme Capital Management and is the Vice President and a Director of Fairholme Funds, Inc. He has served as a member of the Fairholme portfolio management team since January 2008.
Investment research firm Morningstar recently recognized Mr. Berkowitz as the U.S. stock manager of the decade. Client assets managed by Mr. Berkowitz at Fairholme Capital Management are currently valued at approximately $20 billion. Advisory clients of Fairholme Capital Management hold approximately 29% of the outstanding common stock of St. Joe.
http://sec.gov/Archives/edgar/data/745308/000095012310114270/b83787exv99w1.htm
JOE, Lenders amend Credit Agreement (1/12/11)
JOE has a credit agreement with Branch Banking and Trust Company and Deutsche Bank for a $125 million revolving credit facility . On 1/12/11, as a result of its decision to terminate the Standstill Agreement, the Company entered into a Sixth Amendment to the Credit Agreement for the purpose of deleting references to the Standstill Agreement in the definition of Change in Control and deleting the covenant that requires the Company to keep the Standstill Agreement in full force and effect.
The Sixth Amendment retains the provision that prohibits Fairholme Funds, Inc., Fairholme Capital Management, L.L.C., and each of their respective Affiliates and officers and directors from collectively acquiring beneficial ownership of more than 30% in the aggregate of the outstanding shares of the Company’s voting stock, but clarifies that the provision does not apply to non-voting shares acquired in excess of 30%.
http://sec.gov/Archives/edgar/data/745308/000129993311000129/htm_40371.htm
BlackRock Inc owns 12.59 percent or 11,668,299 shares (1/10/11)
http://sec.gov/Archives/edgar/data/745308/000108636411000222/thestjoecomp123110.txt
This up from 6.82 percent or 6,298,274 shares last year.
http://sec.gov/Archives/edgar/data/745308/000108636410008622/thestjoecomp123109.txt
Yeah, I know Bruce bought more.
That could just be pride f*cking with him though.
Berkowitz is talking... with the wallet.
It appears he purchased 135,600 shares on 10/13/10.
Fairholme Capital Management, LLC now controls 29 percent. Various investment vehicles managed by FCM controls 26,891,820. Filing switched from Schedule 13G status to Schedule 13D.
http://sec.gov/Archives/edgar/data/745308/000091957410005860/d1138270_13-d.htm
Einhorn's presentation was just brutal.
And there's been no convincing rebuttal from management or from Berkowitz. I closed out my puts today, but I might consider shorting the stock on a dead cat bounce.
Out today for a 39% gain.
If I'd had longer-dated options, I would have loved to hold them longer: http://shortscreen.com/message-board/232-david-einhorn-moves-the-market-st-joe-co-joe
Probably shouldn't fight Einhorn even at this level. My guess is that this tests 20 in the next week or so. Kaminsky had some rough comments too, but this could be one of those stocks that has no edge.
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The St. Joe Company was incorporated in 1936 by executors of the Alfred I. duPont Trust. Today, it's now one of the largest real estate companies operating in Florida. JOE owns 586,000 acres concentrated in Northwest Florida. The land was acquired decades ago and has a very low cost basis. About 406,00 acres are within 15 miles of the Gulf Of Mexico.
JOE is engaged in town, resort, commercial and industrial development and land sales. JOE also has significant interests in timber. JOE creates shareholder value by moving our low-basis land holdings to higher and better uses through a planning, entitlement and development process that creates a pipeline of real estate products for a wide variety of uses.
One such project involves the relocation of the Panama City-Bay County International Airport. The new airport is being built on a 4,000-acre site in western Bay County that the company donated to the Panama City/Bay County Airport and Industrial District. Construction of the airport began in late 2007 and almost half of the site infrastructure work, including 75 percent of the primary runway, is now complete. Funding for the budgeted construction costs of the airport has been obtained. The Airport Authority continues to project a May 2010 opening date for the new airport. The new airport is located West Bay, one of the largest planned mixed-use developments in the United States. JOE owns all of the land in West Bay surrounding the airport (approximately 71,000 acres, including approximately 41,000 acres dedicated to preservation). The West Bay land has entitlements for over four million square feet of commercial and industrial space and over 5,800 residential units.
On April 6, 2009 JOE entered into an standsill agreement with Fairholme Funds, Inc. and Fairholme Capital Management, L.L.C. permitting Fairholme, the largest shareholder, to acquire beneficial ownership of up to 30% of outstanding common stock if Fairholme acquires 20% or more within two years. The company expects Fairholme will acquire their additional shares through open-market transactions. As a result , the control share acquisition provisions of the Florida Business Corporation Act, which generally provide that shares acquired in excess of 20% will not possess any voting rights, will not apply. The boards's approval ceases to apply if Fairholme’s ownership of the Company’s outstanding common stock drops below 20% for a continuous six month period. Fairholme owned 21,979,614 shares or 23.8 percent of JOE common stock.
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