The St. Joe Company: Free Land and a Growing Business

👋🏻 The last time I wrote you was about Sable Offshore (SOC), and now that we’re up 60% and oil is starting to flow I can refocus on value traps that trade like homebuilders. Jokes aside (am I joking?), it’s good to be back.

A Week on From Memorial Day: Thank you to all of those who served and/or knew someone who died while serving the U.S. Armed Forces.

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Name / Ticker: The St. Joe Company (NYSE: JOE)

Investment Type: Long Term Hold / Deep-Value

Today’s Price: $44.71

Price Target: $90+

What’s the Story? 

I’ve tried to find a reason not to buy shares of St. Joe. You could argue it’s a classic land bank trap (167,000 acres). You could argue the land is worthless, as Kerrisdale did in a short report back in 2018. The P/E is sky high (technically). You could look at the stock price over the last 20 years and think “Yikes”. But after studying St. Joe off and on the past 4 months, I can no longer ignore how cheap it is. It’s free land, a growing business and a hedge all rolled into one.