JOE: A tale of 2 developments | joe, tale, watersound - News - The News Herald
To respected Wall Street analyst David Einhorn, the value of St. Joe Co.?s land holdings is best illustrated as a tale of two developments. ?Management loves to show investors WaterColor, but WaterColor is 90 percent developed and 80 percent sold,? said Einhorn, a hedge fund manager for Greenlight Capital Inc. who runs a $4.02 billion portfolio, during an Oct. 13 presentation to the Value Investing Congress.
But a few miles down scenic Walton County 30A resides another St. Joe Co. residential development with a different sales record. In the presentation, titled ?Field of Schemes: If you build it, they won?t come,? Einhorn described the Towns of WaterSound ? WaterSound Beach, WaterSound West Beach and WaterSound ? as ghost towns and more representative of what?s being purchased when an investor buys St. Joe stock.
WaterSound only has interior lots left, many of which are on the north side of U.S. 98 where there is little demand, Einhorn wrote.
?The best stuff has sold,? Einhorn wrote. ?Many developments are ghost towns and little value remains.?
Einhorn?s presentations have drawn a lot of attention ? from investors, journalists, and now, the Securities and Exchange Commission (SEC).