St Joe stock plunges over 20% in two days

[coondog]

The St. Joe Co.?s stock plunged Thursday for a second straight day after a well-known short seller announced he is betting against the stock.

David Einhorn, president of hedge fund Greenlight Capital Inc., told an investor conference in New York Wednesday that he is shorting St. Joe?s stock because he thinks the company?s land holdings are overvalued, and it will have to write off a large portion of its investments in the properties.

According to a Wall Street Journal story, Einhorn said Wednesday that St. Joe?s stock is worth $7 to $10 a share, compared with its recent trading price in the $20s.

?The best properties have been sold, many lots were sold to speculators during the boom and when the boom ended, business essentially stopped,? Einhorn said, according to Bloomberg News.
?Many developments are ghost towns and little value remains,? he said.

Most of Jacksonville-based St. Joe?s land holdings are in the Florida Panhandle but one community Einhorn spotlighted was St. Joe?s RiverTown development in St. Johns County, where development has stopped because of the housing market crash. He called RiverTown a ?moonscape,? Bloomberg reported.

 

[Matt J]

Now's the time to buy!

 

[SHELLY]

Now's the time to buy!

.....they're not making any more moonscapes.

.

 

[Em]

For the stock to drop 20% because one guy is shorting it, doesn't mean much about the real company. Fear pushes the market and speed traders are reported to make up something like 80% of the trades on Wall St, which is more scary than anything than JOE holds. Computer programs buying and selling, in and out within seconds, just to make a decimal on millions, surely must not do much good for anyone.

 

[zip3]

I am not surprised.

 

[coondog]

For a complete copy of the presentation, see the following link.

http://seekingalpha.com/article/229944-greenlight-capital-s-david-einhorn-makes-the-short-case-for-st-joe-s

 

[sadie1]

murray it dropped because einhorn is the guy who sniffed out the problems and lehman and carries big weight.also st joe really makes little money now and there whole worth is there 580k acres of land.

 

[SHELLY]

For the stock to drop 20% because one guy is shorting it, doesn't mean much about the real company. Fear pushes the market and speed traders are reported to make up something like 80% of the trades on Wall St, which is more scary than anything than JOE holds. Computer programs buying and selling, in and out within seconds, just to make a decimal on millions, surely must not do much good for anyone.

There was more to the drop in JOE than program buying and selling.

Einhorn made an honest, fact-filled presentation that backed up his thesis on why JOE's stock price is way overvalued. Simply put, JOE is pulling numbers out its ass and putting them on their balance sheet to make the company appear valuable in order to string along its gullible creditors and shareholders.

In his 139-slide presentation, Einhorn proved that Emperor JOE is stark arse naked.

 

[Matt J]

Jeez SHELLY, shouldn't you be doing your web classes by now, there are BAR exams right around the corner.

 

[SHELLY]

Jeez SHELLY, shouldn't you be doing your web classes by now, there are BAR exams right around the corner.

The bar around the corner is open till 2:30am--I've got plenty of time.

/