Companies have a lot of incentives to be transparent to its clients, but they’re also tempted to do malicious acts just to get more investors to trust them. They could exacerbate their products’ positive points and mute the extenuating reasons that could jeopardize the reputation of their product. This is part of the game of investment trading, and it’s something that makes the whole economic system work. Fortunately, we still have investment firm officers like Sahm Adrangi who give negative reports and tell us about the products and assets for what they are. Right now, the negative report he gives for St. Joe company is a valuable information that investors should heed.
The PRNewswire report last Apr 24, 2018 indicated that Sahm Adrangi’s position on the value of St. Joe Company is on a negative. He argued that the land holdings under the operations of St. Joe Company could just be a result of media hype or paid advertisements that want to stir up attention for the company’s market prices. Even using most aggressive assumptions, Sahm Adrangi thinks it’s unlikely for St. Joe Company to meet the asset value it promises. It may even be said that St. Joe Company could still have a lower value because of the new SEC Liquidity Rules that the company is beholden to. It must abide by the restrictions and regulations. St. Joe Company has to file the right papers to get its licenses up and running. Without doing so, they risk delegitimizing their assets and even lowering the trust that clients could have over its products.
Sahm Adrangi also argued that there’s a lot of misplaced trust, assessment and confidence given to the firm. The promise of St. Joe Company to transform a desolate land into what it claims to soon be an ominous landscape of real estate developments is too good to be true. There’s a lot of variables that can delimit the promise given to St. Joe, according to the full report conducted by Kerrisale Capital Management, LLC, a long-term value investment firm founded by Sahm Adrangi himself.