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Tilson stated, “We are short St. Joe. It’s our largest short position,” and, “We think David Einhorn’s thesis is correct and the stock is worth a half to a third its current price.”
As you may remember David Einhorn made headlines last year with his negative thesis on St. Joe and his criticism of St. Joe’s largest investor, Bruce Berkowitz.
Tilson stated that he did additional research and has found even more reasons to be bearish.
”If you go visit these developments many of them are literally ghost towns. Information we’re presenting shows the sale prices of lots and homes are being done at 10 or 20% of the peak valuation. St. Joe hasn’t taken any impairment on these assets and we think they’re going to have to.”
Tilson also discusses his long position in the Howard Hughes Corp. (HHC).
Below is the full document in scribd:
Whitney Tilson Presentation on St. Joe
Disclosure: No position
About the author:
I am VP of Business Development for Sum Zero (http://sumzero.com), the largest community of buy-side analysts; consisting of over 5,900 hf and mf analysts, and over 3,600 extensive investment write-ups. I have prior experience in a value based pe firm focused on PIPE transactions in micro-caps, and at a value based research firm, which focused on smid caps. In my personal portfolio I have outperformed the market by a cumulative ~48% since 3/2008 (inception date). I can be contacted at jacob(at)sumzero.com for sumzero related inquires. My website is http://www.valuewalk.com/ Visit Jacob Wolinsky's Website
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