Bruce Berkowitz was on CNBC recently discussing his thoughts about AIG, which is accounts for 12% of his Fairholme fund. He does not come on the video until about 1:45 seconds into the video.
He thinks the company has a stronger balance sheet now, and is cheap with its franchise name still intact, despite the Government bailout of the company. He thinks that people look too much at the liabilities and not the assets, this is true with all AIG, Bank of America (BAC), and Citi (C). Berkowitz is not scared of the Government selling its stack and possibly driving the price of the stock down.
Bruce stated that he has $5 billion cash in his $22 billion dollar fund, which he says he is looking to deploy in other stocks.
Bruce Berkowitz also discussed St. Joe, which David Einhorn (who is short the stock) has not publicly discussed. When asked about impairments that Einhorn suggested St. Joe must take on some of their land holdings; Berkowitz answered he would love to take the beaches for the price that they are valued at.
He notes that some property of Joe was bought in the 1930s and is worth substantially more today. He also noted that traffic in the airport parking lot is "quadrupling."
Berkowitz stated that he read David Einhorn's report and he thinks its good, says he disagreed, but did not get into specifics. He said his goal is to create shareholder value and not get into a public debate. When pressed on the issue, Berkowitz stated that the he looks at the company and views the big picture of valuable land in Florida, population growth, low tax free state, a new airport.
Berkowitz was asked with shouldn't the company go private, to which he answered he did not know. However, he stated that he has to have the interests of the shareholders of St. Joe, since he believes the stock is worth more and it would not be fair to go private.
Berkowitz thinks there is a lot that can be done at St. Joe.
Disclosure: No holdings in any funds or stocks mentioned in this article.
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He thinks the company has a stronger balance sheet now, and is cheap with its franchise name still intact, despite the Government bailout of the company. He thinks that people look too much at the liabilities and not the assets, this is true with all AIG, Bank of America (BAC), and Citi (C). Berkowitz is not scared of the Government selling its stack and possibly driving the price of the stock down.
Bruce stated that he has $5 billion cash in his $22 billion dollar fund, which he says he is looking to deploy in other stocks.
Bruce Berkowitz also discussed St. Joe, which David Einhorn (who is short the stock) has not publicly discussed. When asked about impairments that Einhorn suggested St. Joe must take on some of their land holdings; Berkowitz answered he would love to take the beaches for the price that they are valued at.
He notes that some property of Joe was bought in the 1930s and is worth substantially more today. He also noted that traffic in the airport parking lot is "quadrupling."
Berkowitz stated that he read David Einhorn's report and he thinks its good, says he disagreed, but did not get into specifics. He said his goal is to create shareholder value and not get into a public debate. When pressed on the issue, Berkowitz stated that the he looks at the company and views the big picture of valuable land in Florida, population growth, low tax free state, a new airport.
Berkowitz was asked with shouldn't the company go private, to which he answered he did not know. However, he stated that he has to have the interests of the shareholders of St. Joe, since he believes the stock is worth more and it would not be fair to go private.
Berkowitz thinks there is a lot that can be done at St. Joe.
Disclosure: No holdings in any funds or stocks mentioned in this article.
http://www.valuewalk.com/
Also check out:
