For Sahm Adrangi, predicting failing businesses is a not a new concept to him. The Chief Executive Officer of the private investment firm Kerrisdale Capital has made quite a name for himself by short-selling companies that were on the verge of collapse. This has managed to make the savvy investor a lot of money over the course of his career. When Sahm Adrangi shorted a number of countries that were trading in the United States but based in China, he gained a lot of attention throughout the investment world. Despite his young age, he managed to research and bring to attention companies that were defrauding their customers and their investors.
One of his latest short-selling endeavors is the land developing company known as St. Joe. Located in Florida, they have been making plans to develop a large, swampy area located in the central area of the state. These plans have been around since at least a decade ago and there has been little way in development since then. Sahm Adrangi does not believe that their plans to turn a tract of desolate swampland into a thriving community built around retirees is ever going to happen as they are saying it is.
Followup to my last tweet —
— Sahm Adrangi (@SahmAdrangi) May 16, 2018
Their investors have been waiting for a return for years and Sahm Adrangi does not believe it is ever going to happen. While the St. Joe Company has been pushing back deadline after deadline, not much has happened in the way of filing permits. St. Joe has a current valuation of just around a billion dollars. Sahm Adrangi does not believe that this is anywhere near accurate because to achieve these numbers they would have to sales records for the next fifty years that were higher than the rest of the country. It just does not appear that St. Joe’s planned community will ever reach the potential that investors were told that it had.
With SEC compliance evaluations coming up it really does not look good for their investors. One of their largest shareholders is most likely going to be forced to sell half of their shares of St. Joe’s.