Little Help on Reading 13-D, Please (re. St. Joe)

[Buffetteer]

Hi all,

 

I know there are a lot of people in this forum more knowledgeable than me when it comes to reading company filings.

 

What I see from reading the 13-D filing (link listed below) is that Fairholme purchased over 100,000 shares of JOE yesterday just after the stock tanked 10%.

 

Is this correct? Please let me know if I am missing something. Checking the stock this morning, it seems like it's still getting an 8% haircut, despite the Fairholme purchase. To me this looks like Bruce Berkowitz's answer to Einhorn's presentation at the Value Investor Congress.

 

 

http://www.sec.gov/Archives/edgar/data/745308/000091957410005860/d1138270_13-d.htm

 

 

Thanks for any help.

[gfp]

At first glance it looks like they added 58k shares since their last filing.  They own ~29% and can only own up to 30% with the present standstill agreement, I believe.  So they are limited in the additional purchases they can make if Berkowitz is unswayed by Einhorn's presentation.

[Buffetteer]

Thanks for your response gfp.

 

I was looking at Exhibit B near the bottom of file. It lists two purchases on 10/13/2010. One for 35,600 shares @ $22.01 and one for 100,000 shares @ $22.21.

 

Am I right in thinking that he added to his position yesterday? Judging by the continued slide of the stock, I may be wrong.

[cayale]

Yes, you are right.

[Buffetteer]

Thank cayale. I'm very surprised that the stock continues to slide after this vote of confidence by Berkowitz. Just finished listening to Einhorn's presentation and going through his slideshows. He gives a very persuasive argument against JOE, but it is one sided and he does have an interest in the stock going down. We'll see who is right, my money is on Bruce.

 

Here's the link:

 

http://www.marketfolly.com/

 

[Guest]

Thank cayale. I'm very surprised that the stock continues to slide after this vote of confidence by Berkowitz. Just finished listening to Einhorn's presentation and going through his slideshows. He gives a very persuasive argument against JOE, but it is one sided and he does have an interest in the stock going down. We'll see who is right, my money is on Bruce.

 

Here's the link:

 

http://www.marketfolly.com/

 

 

http://www.deepcapture.com/fairfax-and-just-the-facts-maam/

 

what do you guys think of this? Was Greelight/Einhorn in on the FFH shorting?

 

[turar]

I'm looking at 13D and don't get it. Bruce was selling small amounts of JOE at $24-26 range just a month ago. Now he's buying larger amount at $22 range.

 

Were the sales for some specific reason not having to do with the value of JOE? Or were the purchases simply an "answer" to Einhorn?

[ExpectedValue]

JOE has always reminded me of TRC and a few other land companies that certain investors adore. They are great if it turns out the land is actually worth something but until then you are often left with negative cash flows and no identifiable catalysts to really test your thesis.