Today, Sahm Adrangi is the Chief Investment Officer of Kerrisdale Capital, but it was in 2011 that he burst onto the investment scene by shorting several prominent Chinese companies, while also exposing their fraudulent practices. In a recent report, Sahm Adrangi and Kerrisdale Capital set their sites on St. Joe Company, which was recently given a valuation of $1 billion. In Sahm Adrangi’s report, he cites much of the land owned by St. Joe Company, as “over-valued and over-hyped,” as the majority of the land is separated from the prime real estate locations of the Panama Beach area. According to Sahm Adrangi’s assessment, St. Joe Company is 40 percent less valuable than what is being publicly projected. While this possibility presents a major blow to the shareholders of St. Joe Company, a number of new issues regarding their primary shareholder, Fairholme Fund, as well as the longstanding stagnation regarding commercial development, complicate the whole of the problem exponentially.
St. Joe Company was recently given this high valuation due to the potential of their plan to commercialize the Panama Beach area, building a new retiree destination. The major is issues lies in the fact that, much of the land to be commercialized by St. Joe Company, is swampland located in remote areas. These areas are not likely to be commercialized in the near future, and much of St. Joe Company’s prime real estate, has already been used.
Fairholme Fund currently owns 22.7 million shares of St. Joe Company stock, making them the largest shareholder. New regulations implemented by the Securities and Exchange Commission will require that 10 million of Fairholme Fund’s St. Joe Company shares, be liquidated. According to Sahm Adrangi, this liquidation process would need to be completed by December 1, 2018, but with the number of trading days left on the calendar, this would be a virtual impossibility without affecting the share price of St. Joe Company. The role of Bruce Berkowitz also presents a major problem for St. Joe Company, being that he is both, the fund manager of Fairholme Fund, and the chairman of the board at St. Joe Company.
There is some fascinating economic news pouring out of the twitter account of Shervin Pishevar. The capitalist knows the economy. He was an early investor in Uber which has seen incredible success and he founded Sherpa Capital.
But Shervin Pishevar has been in hiding of late. Enemies that he has picked up along the way are attempting to harm his image. They have flung sexual harassment accusations at him which has made it difficult for the capitalist to run his own company. He resigned his post at Sherpa Capital because he doesn’t want his enemies to harm his company while they try to defame his image. He’s been silent ever since.
You can certainly tell that he misses his work. His tweet storm centers around the economy, the stock market, technology, investments and more. It seems the messages revolve around everything he would be talking about at Sherpa Capital. Instead, he has the Twitter-verse as a captive audience.
One of the most fascinating messages that came out of the 21-tweet storm concerns infrastructure. It’s long been a promise of President Trump to invest money into infrastructure. That has not happened. Instead, American infrastructure has been left to rot and decay. But Shervin Pishevar thinks the American people should start thinking about the long term.
His tweets point to technology innovated by Elon Musk. Shervin Pishevar believes that the American people should invest in something called a hyperloop. This type of transportation essentially uses the same technology that keeps a table hockey puck afloat. But the air pressure can be used to send a train to another city at an unbelievable speed. Engineers believe that they can get a train from Los Angeles to San Fransisco in less than 30 minutes. That’s quicker than a flight from LAX to SFO.
This forward thinking concerning infrastructure is the only way forward. Shervin Pishevar believes that the country needs to stop stalling, living in the past or looking back. Rather, he says the country needs to embrace the technologies of the future, and we need to stop deriding those who innovate these ideas.