Time to Short JOE Stock

[coondog]

Coondog is correct. Everything else is just noise. You have to make profits. Trading land for cash is not profit. And increasing the book (accounting) values of the land is also not an operating profit. You have to make and sell something, or sell a service. The way I see it, JOE really isn't a going business concern; it is rather a sophisticated divestment structure.



wow.

JOE downgraded by Raymond James this morning.

 

[coondog]

Joe down 7% at the open on Friday, and closed off 5.3%. Fairholme, the largest equity owner in Joe at over 20%, also has over 20% ownership in Sears, which has lost $1.5B ytd, and has 7 months of cash left. Fairholme is apparently considering a $400mm loan to Sears, with Joe potentially contributing $100mm. http://www.bloomberg.com/news/2014-...imes-loan-from-lampert-corporate-finance.html. Trading volume was nearly 300% of the daily average, and short interest appears to be at an all time high.

Way off message for a land development company, with a continued streak of declining operating revenues and operating profits to start lending to severly distressed retail companies.