Should You Invest in St. Joe (JOE)’s Stock?

Praetorian Capital Fund, an investment management company, released its second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund declined by 15.69% net of fees in the second quarter and it returned -2.58% net of fees at the end of the first half of the year. In the quarter, the majority of the fund’s portfolio declined. For more information on the fund’s top picks in 2022, please check its top five holdings.

In the letter, Praetorian Capital Fund mentioned The St. Joe Company (NYSE:JOE). The St. Joe Company is a real estate company based in Panama City Beach, Florida. The stock of The St. Joe Company (NYSE:JOE) closed at $42.08 per share on August 11, 2022. One-month return of The St. Joe Company (NYSE:JOE) rose to 6.34% and its shares lost 6.30% of their value over the last 52 weeks. The St. Joe Company (NYSE:JOE) has a market capitalization of $2.479 billion.

Here’s what Praetorian Capital Fund said about The St. Joe Company (NYSE:JOE) in its Q2 2022 investor letter:

“JOE owns approximately 175,000 acres in the Florida Panhandle. It has been widely known that The St. Joe Company (NYSE:JOE)  traded for a tiny fraction of its liquidation value for years, but without a catalyst, it was always perceived to be “dead money.”

Over the past few years, the population of the Panhandle has hit a critical mass where the Panhandle now has a center of gravity that is attracting people who want to live in one of the prettiest places in the country, with zero state income taxes and few of the problems of large cities.

The oddity of the current disdain for so-called “value investments” is that many of them are growing quite fast. I believe that JOE will grow revenue at 30% to 50% each year for the foreseeable future, with earnings growing at a much faster clip. Meanwhile, I believe the shares trade at a single-digit multiple on Adjusted Funds from Operations (AFFO) looking out to 2024, while substantial asset value is tossed in for free…” (Click here to read more)

Photo by Tony Yeung on Unsplash

The St. Joe Company (NYSE:JOE) is not on the list of  30 Most Popular Stocks Among Hedge Funds. As per our database, The St. Joe Company (NYSE:JOE) was held by 14 hedge fund portfolios at the end of the first quarter, which was 13 in the previous quarter.

We discussed The St. Joe Company (NYSE:JOE) in another article and shared Praetorian Capital’s views about the company in the previous quarter. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.

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