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JOE up 10% today


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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.

 

 

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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....

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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  :)

 

 

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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.

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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. 

 

 

 

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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

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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!

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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.

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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.

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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. ???

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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."

 

 

 

 

 

 

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