Buffetteer Posted February 7, 2011 Share Posted February 7, 2011 Anyone know why. Is it simply because B. Berkowitz will probably become the new chairman of the board? That's the only news I could dig up on the company this morning. Link to comment Share on other sites More sharing options...
BargainValueHunter Posted February 7, 2011 Share Posted February 7, 2011 Slightly more info: http://www.cnbc.com/id/41449101 A source close to the situation tells CNBC Berkowitz, whose mutual fund Fairholme Capital Management LLC, owns 29.7% of the company, is proposing to remove the company's chairman Hugh Durden and three other directors. Under Fairholme's proposal, Berkowitz, would become chairman and Charles Fernandez, President of Fairholme would become vice chairman of the board. Both men are current directors and plan to decline all compensation, including the reimbursement of expenses, until the company breaks even. The source said Fairholme plans to achieve this within six months by cutting $60 million dollars in expenses at St. Joe. In addition Fairholme plans to hire a financial advisor to explore possible bolt on acquisitions and/or joint ventures for commercial and residential real estate development. A person close to the situation also said a deal to lease 41,000 acres of timberland is close to being signed and will generate between $80 million to $100 million for St. Joe over a twenty year period. Much of the money from the deal will be paid up front, providing needed cash for acquisitions and joint ventures. Link to comment Share on other sites More sharing options...
Buffetteer Posted February 7, 2011 Author Share Posted February 7, 2011 Thanks BVH. I'm sure all the shorts rushing to cover doesn't hurt the price either. Link to comment Share on other sites More sharing options...
BargainValueHunter Posted February 7, 2011 Share Posted February 7, 2011 I listen when Einhorn speaks but he can come across pretty arrogant during his presentations. Conversely, Bruce comes across as a bit dodgy and unsure of specifics during his interviews. There is something about a not very polished long beating a slick short (at least as they look in the media) that makes me smile. :) Link to comment Share on other sites More sharing options...
Guest Bronco Posted February 7, 2011 Share Posted February 7, 2011 At different points in his life, many would consider Buffett a straight up dork. Also, humble and quirky. So if BB shares these traits, I wouldn't be scared. BB makes money, pure and simple. I don't own any of his fund or Joe, but I can see the guy tries to make money for his shareholders. Another smart investor who keeps a lot of cash. Hmmmm.... Link to comment Share on other sites More sharing options...
TorontoRaptorsFan Posted February 7, 2011 Share Posted February 7, 2011 The only reason why he has a lot of cash is because of lot of cash is being poured into the fund by investors. And in many cases Berkowitz can only spread the money around to so many positions because in some cases he runs into issues such as the amount of shares he's entitled to purchase. Link to comment Share on other sites More sharing options...
Buffetteer Posted February 7, 2011 Author Share Posted February 7, 2011 Definitely see a lot of similarities between BB & WB. both long term value investors who eat their own cooking. They share the same risks as their shareholders and charge reasonable fees. Big fan of both, but I'm long on Joe and other BB investments, so I may be a little biased :) Link to comment Share on other sites More sharing options...
Guest Bronco Posted February 7, 2011 Share Posted February 7, 2011 Toronto Fan (you must be the one) - are you sure that is the ONLY reason. Because he mentions others (see CNBC). Unless, of course, you are implying he is liar. Link to comment Share on other sites More sharing options...
TorontoRaptorsFan Posted February 7, 2011 Share Posted February 7, 2011 Look at how rapidly the AUM has scaled up over the years. There's so much money coming in he can only spend it in so many ways. Link to comment Share on other sites More sharing options...
txlaw Posted February 8, 2011 Share Posted February 8, 2011 Toronto Fan (you must be the one) Haha, nice. ;D The only reason why he has a lot of cash is because of lot of cash is being poured into the fund by investors. And in many cases Berkowitz can only spread the money around to so many positions because in some cases he runs into issues such as the amount of shares he's entitled to purchase. He's gonna be able to find ways to deploy that cash. Fairholme Fund has a distressed debt component to it, and there are certainly companies out there that need to be recapitalized. Link to comment Share on other sites More sharing options...
QLEAP Posted February 8, 2011 Share Posted February 8, 2011 And Bruce hits back at Einhorn on St.Joe .. http://www.scribd.com/doc/48356839/St-Joe Link to comment Share on other sites More sharing options...
txlaw Posted February 9, 2011 Share Posted February 9, 2011 St. Joe just announced that it is exploring "financial and strategic alternatives": The St. Joe Company (NYSE:JOE) today announced that its Board of Directors has unanimously decided to explore financial and strategic alternatives to enhance shareholder value. The Board intends to consider the full range of available options including a revised business plan, operating partnerships, joint ventures, strategic alliances, asset sales, strategic acquisitions and a merger or sale of the Company. The Board of Directors has retained Morgan Stanley & Co. Incorporated to assist it in the evaluation of these alternatives. The Company noted that there can be no assurance that the exploration of strategic alternatives will result in any transaction. Britt Greene, St. Joe's President and CEO, said, "We have engaged Morgan Stanley to undertake a comprehensive and thorough review of all available alternatives, and our Board and management are committed to taking the appropriate and necessary actions to enhance value for St. Joe shareholders." http://ir.joe.com/releasedetail.cfm?ReleaseID=548596 Link to comment Share on other sites More sharing options...
Parsad Posted February 9, 2011 Share Posted February 9, 2011 Wouldn't it have been cheaper to just put Berkowitz on the board? Would he not have been able to generate more shareholder value than Morgan Stanley? What a joke! Why do CEO's do this? Is it because they don't have enough things to blow the company's money on? Cheers! Link to comment Share on other sites More sharing options...
Buffetteer Posted February 9, 2011 Author Share Posted February 9, 2011 Not often you see a company down almost 5% on takeover talks...what a roller coaster! Link to comment Share on other sites More sharing options...
enoch01 Posted February 9, 2011 Share Posted February 9, 2011 Not often you see a company down almost 5% on takeover talks...what a roller coaster! So is anybody interested at this price? I haven't looked at it, don't have an idea of the value, but there's potential catalysts here. Link to comment Share on other sites More sharing options...
Myth465 Posted February 9, 2011 Share Posted February 9, 2011 Not often you see a company down almost 5% on takeover talks...what a roller coaster! So is anybody interested at this price? I haven't looked at it, don't have an idea of the value, but there's potential catalysts here. Still looks like dead money to me. Link to comment Share on other sites More sharing options...
BargainValueHunter Posted February 11, 2011 Share Posted February 11, 2011 http://www.bloomberg.com/news/2011-02-10/berkowitz-proposes-naming-former-florida-governor-crist-to-st-joe-board.html?cmpid=yhoo Bruce Berkowitz of Fairholme Capital Management LLC, St. Joe Co.’s largest shareholder, is seeking to put former Florida Governor Charlie Crist on the real estate developer’s board. Crist was named as an alternative candidate to Rodney Barreto, chairman of Florida’s Fish and Wildlife Conservation Commission, according to a regulatory filing today. Barreto may not be considered an independent director because he has provided services to St. Joe., Berkowitz said. Crist “is well-known to all of you,” Berkowitz said in an e-mail to the board that was included in the filing. The former governor, 54, led Florida from 2007 until January. Link to comment Share on other sites More sharing options...
biaggio Posted February 14, 2011 Share Posted February 14, 2011 Berkowitz +Fernandez step down from board this am according CNBC...not a good sign? Probably did not agree with hiring investment banker +/- other plans other board members may have? Link to comment Share on other sites More sharing options...
Guest Posted February 14, 2011 Share Posted February 14, 2011 http://dealbook.nytimes.com/2011/02/14/fairholmes-berkowitz-resigns-from-st-joes-board/ Pretty crazy. Link to comment Share on other sites More sharing options...
Myth465 Posted February 14, 2011 Share Posted February 14, 2011 http://dealbook.nytimes.com/2011/02/14/fairholmes-berkowitz-resigns-from-st-joes-board/ Pretty crazy. Still looks like dead money to me. Though we have a catalyst. I have no dog in this fight, but have a big tube of popcorn. Never seen Berkowitz mad. Should be interesting. Link to comment Share on other sites More sharing options...
twacowfca Posted February 14, 2011 Share Posted February 14, 2011 Berkowitz +Fernandez step down from board this am according CNBC...not a good sign? Probably did not agree with hiring investment banker +/- other plans other board members may have? Or perhaps there is merit to the assertion that their assets are not properly valued in today's market. A most uncomfortable situation for a board member. Food for thought. ??? Link to comment Share on other sites More sharing options...
Buffetteer Posted February 14, 2011 Author Share Posted February 14, 2011 There may now be a proxy fight for the company. I am long on JOE, but man, this thing is becoming a real mess. http://www.cnbc.com/id/41579053?__source=yahoo|headline|quote|text|&par=yahoo Link to comment Share on other sites More sharing options...
Buffetteer Posted February 15, 2011 Author Share Posted February 15, 2011 In case anyone is interested in reading a JOE company letter sent to its employees this morning: http://www.sec.gov/Archives/edgar/data/745308/000129993311000494/exhibit1.htm Link to comment Share on other sites More sharing options...
Buffetteer Posted February 15, 2011 Author Share Posted February 15, 2011 This is from a news report on a local Panama City NBC affiliate. It is in regards to a possible hostile takeover bid by BB: "Although Fairholme holds only 29% of St. Joe's stock, insiders believe Berkowtiz can convince financial investors T. Rowe Price and Janus to pledge their 24% holdings to support him, giving Berkowitz majority control. Berkowitz hinted at the possibility Monday, telling Bloomberg News "It was clear to us we weren't going to be able to achieve anything further as directors. The only way we can be effective is as shareholders." Link to comment Share on other sites More sharing options...
Myth465 Posted February 15, 2011 Share Posted February 15, 2011 In a take over bid wasnt he stronger with 2 board seats? Link to comment Share on other sites More sharing options...
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