Sahm Adrangi is the founder and chief information officer at Kerrisdale Capital Management LLC., and he has been exposing companies whose stocks are overvalued for quite some time. Kerrisdale, under his guidance, is research-driven company that is business to present the facts related to potential investment possibilities that the general public may not be aware of. The industries that Sahm Adrangi and Kerrisdale focus on the most are the mining, biotech, and telecommunications industries. Adrangi works very hard to get the information that is needed to give a more accurate picture of how any company is doing, and he gained a lot of notoriety when he exposed fraudulent companies in China.
Just a few months ago, Sahm Adrangi put together a compelling argument to short the St. Joe Company. He stated that while the company’s $1 billion valuation looked good theoretically, it was unrealistic and full of holes. He believes the company is worth at least 40% less than it is valued at currently, and a lot of the reason he believes this is related to a large tract of land the company owns that is supposed to be developed into something special. This particular project hasn’t seen any improvement for a decade or so, and the land that is supposedly going to be developed into a prime retirement community, where people are lining up to get in, is swampy, desolate, and not located near the beaches that draw in many retirees.
Sahm Adrangi has pointed out that the St. Joe Company hasn’t filed for any permits and no public hearings have occurred. The best land in the area has already been developed by the St. Joe Company near the beach and Highway 30A, and on top of this, Fairholme Fund, which owns $410 million of the stock of the St. Joe Company is set to sell close to half of it off. There is also plenty of conflict of interest issues within the St. Joe Company as two Fairholme Fund directors sit on its board of directors. The final straw that will most likely break the camel’s back is the fact that this new supposed development is what the company is pointing to as the thing that will raise their value, and it hasn’t happened for nearly 10 years, as it is.