Lockstep Investing

St. Joe Stock Getting Ahead of Itself?

I agree with Gaucho. It is hard to value a company at such a high cap when it is like a bond that only pays principal at a 10 year maturity. Land sales will be distressed income stream for at least two years. Maybe the online auction results will sober up the expectations for the company in the short term.

The key thing with this stock is that it was published in Fortune and Forbes as "contrarian" play on real estate with the "1/10 of Florida land" story. Stock pitches in major publication are always a good pumping mechanism for a small cap. But I don't think the little guys want to wait around for all of the bad news that will come over the next couple of years to see the upside.

Have any of you been to the auction site to look at the land? I think it is worth it to get a perspective. Looks like a lot of capital investment is required and liquidity for such projects is not abounding these days.

As you can guess, I am short JOE.