St. Joe Company Short
Greenlight Capital Shorts St. Joe Company, Shares Plummet
Shares of St. Joe closed down nearly 10% after his comments, in which he said the company is "way, way overvalued." Einhorn, who runs hedge fund Greenlight Capital, is famous for his bearish stance on Lehman Bros. a few months before the investment banked collapsed, triggering the most severe troubles of the financial crisis.
Shares of St. Joe closed at $22.16, down 9.7%, in regular trading, and were down another 0.7% after hours.
Einhorn said the company is facing a number of challenges that will hurt its share price. Among his concerns: Lots are being sold below cost, there are a number of vacant sites in its portfolio of properties, and it has taken only minimal write-downs.
St. Joe said in a statement it "has a virtually debt-free balance sheet and owns approximately 577,000 acres of land concentrated primarily in northwest Florida, famous for its miles of sugar white sand beaches. These land holdings include over 400,000 acres within 15 miles of the Gulf of Mexico and approximately 300,000 acres within 40 miles of the new Northwest Florida Beaches International Airport. We continue to focus on the execution of our strategic plan in order to maximize the value of our assets." Source