Category Archives: Investment

Sahm Adrangi Aims at St. Joe Company

In 2011, the Chief Investment Officer of Kerrisdale Capital, Sahm Adrangi, made a name for himself when he successfully shorted a number of Chinese companies, exposing several of them for fraudulent practices. Recently, Sahm Adrangi and Kerrisdale Capital aimed their sights on St. Joe Company, whose valuation was is currently listed at $1 billion. According to the report, remote and undeveloped swampland have rendered much of St. Joe Company’s assets as “over-valued and over-hyped.” Upon assessing the true value of St. Joe Company’s holdings, Sahm Adrangi’s evaluation revealed that it considerably less than what is being publicly advertised – 40 percent less to be exact. The gross misjudgment regarding St. Joe Company’s valuation, is also exacerbated by the fact that they are experiencing issues with their largest shareholder, who may be forced to liquidate a large portion of their stock, as well as the fact that commercial development has been stalled for the better part of the last decade.

The reason for St. Joe Company’s high valuation, is due to their plan regarding the building of a retiree destination, as well as a commercial business center in the Panama Beach area. The problem lies in the fact that the majority of their land is not near the highly sought-after beach area, being that this property has already been commercialized. Much of what’s left consists of land that is far less desirable.

Today, Fairholme Fund is the largest shareholder of St. Joe Company, with 22.7 million shares, but recent changes regarding the Securities and Exchange Commission will require that 10 million of those shares are liquidated in order to remain in compliance. Being that these shares would need to be liquidated by December 1, 2018, Sahm Adrangi says that there are not enough trading days left to accomplish this feat without affecting the share price of St. Joe Company adversely. The role of Bruce Berkowitz, who acts as the chairman of the board at St. Joe Company, as well as the fund manager for Fairholme Fund, also presents a conflict of interest that may require him and two additional fund directors to step down. This will also play a negative role in the share price.

https://www.benzinga.com/topic/sahm-adrangi

According to Shervin Pishevar, the Financial Market Will Continue to Fall Unless the Government Prints Money to Pay Debts

Shervin Pishevar is that type of investor who can be said to be making critical decisions about his investments, and he gains from what he does. For example, he invested in Uber and Airbnb and is currently enjoying the fruits of his investments as his wealth has grown significantly. Concerning forecasting, he once highlighted that Facebook would soon be suffering from an identity crisis which is currently happening as we speak. The company has not been able to protect the data adequately, and this is raising eyebrows.

In a recent take on 21-hour social platform exploration, Shervin Pishevar seems to be offering some insight about the market and what will be happening in the future. Investors have been reading and trying to figure out whatever he says or writes because he seems to have some insight about the market which explains why individuals should listen to him. According to the Uber investor, the financial market and the bitcoin technology will continue to fall and its time investors get to familiarize themselves with the fall before making any investment decision.

Shervin Pishevar thinks that the financial market will fall by almost 6,000 points while the digital currency is likely to fall to 2k upon which it will start to appreciate. That is a dangerous trend that investors should know, especially concerning the digital currency industry. In the financial sector, the Investment company founder highlights that the market will fall due to increased government debts and the underemployment facing the country. The issue of increased deficits, either from local borrowing or by borrowing from international lending institutions will hurt the economy.

Shervin Pishevar is of the opinion that the government is not able to pay the debts because the market is not generating enough to cover for the increased government spending and the poor state if the financial meaning that there is no money to pay for the debts that the government has been borrowing. The only feasible solution is for the government to print money and boost consumption in the country while at the same time using the printed money to pay for the increased wage bill and recurrent expenditure.

https://www.caa.com/caaspeakers/shervin-pishevar