If the real estate market is not in any type of a recovery, why is it that it appears St. Joe is on a bit of a rebound?
Source: Google Finance
Source: Google Finance
Because they are being bought by Disney. I heard this a few weeks ago and figured if it was true the stock would be on the rise. I looked at the ticker and didn't see any change so I dismissed it as rumor. It may well be but think about it.
If they tried to acquire any large amount of land like they did secretly in Orlando 40 or so years ago people would know and prices would go through the roof.
What a coup for Disney. For the price of a relatively cheap stock they get tens of thousands of acres dirt cheap on which to build a park and housing, at the beach, next to a new international airport, a port for cruises, close to midwestern and southern drive-in markets, etc....
It is supposed to be announced in October.
Or it could be because they are advertising on this site.
A little off topic, buy maybe one of you business guys can clear this up for me. When a company wants to acquire a company, typically they pay a premium over the current stock price (Microsoft's attempt to buy Yahoo for example). Why wouldn't the company just buy as much stock as possible at current prices before making their bid? I understand the price of the stock would go up with a large purchase like that, but you'd still be able to acquire a substantial amount for lower than your ultimate purchase price (or so it would seem to me).
If the real estate market is not in any type of a recovery, why is it that it appears St. Joe is on a bit of a rebound?
Source: Google Finance
A little off topic, buy maybe one of you business guys can clear this up for me. When a company wants to acquire a company, typically they pay a premium over the current stock price (Microsoft's attempt to buy Yahoo for example). Why wouldn't the company just buy as much stock as possible at current prices before making their bid? I understand the price of the stock would go up with a large purchase like that, but you'd still be able to acquire a substantial amount for lower than your ultimate purchase price (or so it would seem to me).
Where have you been?
There was a crash on Wall Street last week, a bank called Lehman Brothers went bust, another called Merrill Lynch was sold for a song, and the Treasury Secretary announced a $700 billion bail out funded by the US taxpayer (God bless you one and all!)
This caused stocks linked to finance and real estate (the base cause of the crash was billion dollar losses on toxic derivatives comprised of sub prime real estate loans) to bounce big. There was your rebound.
Down again today as the ramifications and consequences of this scarcely believable bail out are sinking in and the market waits to see what Congress will do next.