DARK HORSE HEDGE – Lovin’ Every Minute of it, JOE
By Scott Brown at Sabrient, and Ilene at Phil’s Stock World
Touch that dial – Turn me on
Start me like a motor, make me run
Lovin’ every minute of it
Lovin’ every minute of itTurn that dial all the way
Shoot me like a rocket into space
Lovin’ every minute of it
In DHH related news, St. Joe (JOE), which we recommended shorting on July 1, 2010 at $23.74 has been “rocketed into space,” in the downward direction. Good news for shorts is coming out of an investor conference where David Einhorn is speaking about JOE. Perhaps the most telling quote from the conference is Einhorn’s conclusion: "The best parcels of land were sold during the boom, and what’s left is worth probably $7 to $10 per share. Management can’t sell the company because the stock is too expensive. It would have to be a take-under.”
The main reason we added Joe as a short at the time was “As St. Joe’s is a major land owner and property developer in Northwest Florida, about 70% of St. Joe’s properties are within 15 miles of the ‘now imperiled coastline.’ It doesn’t matter that they purchased 577,000 acres at a low price. The bottom line is that contractors have already found tar balls on St. Joe’s beaches and nobody wants that kind of beachfront property.” JOE is -9.66% since Einhorn began his investor conference and at DHH we are “Lovin every minute of it.”
Source: Value Investing Congress: Einhorn Skewers JOE; Florida Real Estate Boondoggle
chart by freestockcharts.com
