Canaccord Genuity on St. Joe Co. (JOE): Shake Up
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Price: $21.11 +3.03%
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
1 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Canaccord Genuity on St. Joe Co. (NYSE: JOE): Shake up.
Canaccord analyst said, "Shares of St. Joe Co. slid as new Chairman Bruce Berkowitz dismissed rumours that the company would be taken private and a recent Barron’s article speculated that sales troubles will continue for Florida’s largest land owner. Berkowitz, whose Fairholme Capital holds approximately 30% of St. Joe’s shares, became chairman of the company last week after a battling with the board for several weeks and threatening a proxy fight. Initially, many thought Berkowitz or another party would take the company private as he eliminated the poison pill that was in place; however Berkowitz does not be believe it would be “in the national interest” to do so and referred to the land owned by the company as a “national treasure.” Upon Berkowitz becoming chairman, three other Fairholme picks were named to the board, while four existing members, including CEO Britt Green, left. The company plans to announce a new CEO before its May 17 shareholder meeting. But will the recent management shakeup be enough? According to an article in Barron’s, the change in management does not eliminate the company’s core problem – a weak Florida real estate market. Home prices in key markets such as Miami, Fort Myers and Tampa have fallen 40% from their highest points and retirees are beginning to move to Georgia and North or South Carolina. One analyst points out that the company’s “land assets are not that spectacular” and that “there seems to be very little buyer interest in their properties” St. Joe is also seeking unspecified damages relating to the Gulf oil spill; however neither Berkowitz or the company were available for further comment."
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Canaccord analyst said, "Shares of St. Joe Co. slid as new Chairman Bruce Berkowitz dismissed rumours that the company would be taken private and a recent Barron’s article speculated that sales troubles will continue for Florida’s largest land owner. Berkowitz, whose Fairholme Capital holds approximately 30% of St. Joe’s shares, became chairman of the company last week after a battling with the board for several weeks and threatening a proxy fight. Initially, many thought Berkowitz or another party would take the company private as he eliminated the poison pill that was in place; however Berkowitz does not be believe it would be “in the national interest” to do so and referred to the land owned by the company as a “national treasure.” Upon Berkowitz becoming chairman, three other Fairholme picks were named to the board, while four existing members, including CEO Britt Green, left. The company plans to announce a new CEO before its May 17 shareholder meeting. But will the recent management shakeup be enough? According to an article in Barron’s, the change in management does not eliminate the company’s core problem – a weak Florida real estate market. Home prices in key markets such as Miami, Fort Myers and Tampa have fallen 40% from their highest points and retirees are beginning to move to Georgia and North or South Carolina. One analyst points out that the company’s “land assets are not that spectacular” and that “there seems to be very little buyer interest in their properties” St. Joe is also seeking unspecified damages relating to the Gulf oil spill; however neither Berkowitz or the company were available for further comment."
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Analyst CommentsRelated Entities
Barron's, Fairholme Capital Management, Bruce Berkowitz
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