(GuruFocus, May 12, 2009) Investment Guru Bruce Berkowitz added to his position in The St. Joe Company (JOE, Financial). GuruFocus Data shows he added 40.76% to his position in the real estate company, bringing his total holding to almost 22 million shares or 23.8%. The trading date was April 30, 2009 and the purchase price was $24.88. The investment in St. Joe Company represents 8.4% of Bruce Berkowitz’s total equity investment of $7.13 billion.
St. Joe Company is one of the Southeast's largest real estate operating companies. The company is one of the few real estate operating companies to have assembled the range of real estate financial marketing and regulatory expertise to take a large-scale approach to real estate development and services. The St. Joe Company has a market cap of $2.34 billion; its shares were traded at around $25.34 with and P/S ratio of 8.9. The St. Joe Company had an annual average earning growth of 5.4% over the past 10 years.
Bruce Berkowitz commented on the investment in St. Joe Company in the February 11, 2009 conference call:
The informational arbitrage that Bruce Berkowitz talked about here is the airport that the US government is putting in the center of the land that St. Joe Company own. The airport is the latest major airport that US government ever built after Denver airport and is scheduled to open in 2010. To Bruce Berkowitz, the fund the government put in the airport, is as good as any free cash flow.
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St. Joe Company is one of the Southeast's largest real estate operating companies. The company is one of the few real estate operating companies to have assembled the range of real estate financial marketing and regulatory expertise to take a large-scale approach to real estate development and services. The St. Joe Company has a market cap of $2.34 billion; its shares were traded at around $25.34 with and P/S ratio of 8.9. The St. Joe Company had an annual average earning growth of 5.4% over the past 10 years.
Bruce Berkowitz commented on the investment in St. Joe Company in the February 11, 2009 conference call:
Berkowitz: Other areas where the free cash flow is hard to see would be a company like St. Joe. We Just recently file again on St. Joe, and are probably their largest owner. And there’s a company that isn’t generating free cash, but wich has almost 600,000 acres of land in Florida selling, basically, for swamp land prices. But I think we do also have some insights or a type of informational arbitrage that the public or Mr. Market doesn’t have in all three. Time will tell, though. Whether or not we have the correct insights…
The informational arbitrage that Bruce Berkowitz talked about here is the airport that the US government is putting in the center of the land that St. Joe Company own. The airport is the latest major airport that US government ever built after Denver airport and is scheduled to open in 2010. To Bruce Berkowitz, the fund the government put in the airport, is as good as any free cash flow.
Click here to see other real-time trades of Bruce Berkowitz. The real-time trading information is for Premium Member only, click here to sign up or upgrade, 7-Day Free Trial available .
