St Joe - Even a better buy today? скачать в хорошем качестве

St Joe - Even a better buy today?

Why I Believe St. Joe Is a Multibagger Despite Recent Challenges | St. Joe Investment Update St. Joe has faced some turbulence recently, especially with the departure of Bruce Berkowitz, which caused the stock to drop significantly. Despite this setback, I still believe St. Joe is a multi-bagger opportunity. Here’s why: St. Joe owns a vast amount of land in Florida’s Panhandle at a very low cost basis. They’re steadily converting this land into recurring revenue by: • Selling lots to developers • Building amenities for the communities The business fundamentals are strong, and the soft housing market hasn’t impacted them as much, particularly because many buyers in their communities are paying in cash, making them less sensitive to interest rates. Here’s a breakdown of St. Joe’s key revenue segments: 1. Recurring Revenue: • Hospitality: Revenue from this segment has grown 33% year-over-year, with $157 million earned in the first nine months of 2024. The company is on track to surpass $200 million in revenue for the year, thanks to new hotels being built on their land. • Leasing: St. Joe is leasing out amenities like self-storage and senior living spaces, with $15.6 million earned in Q3 and a projected $60 million in annual revenue. Leasing is strong, with 96% of available space rented out. 2. Real Estate: • Revenue from real estate dropped in 2024 to about $100 million (from $150 million in 2023), but this is due to product mix and sale timing. Despite that, there’s still significant value in the land they control, and sales are strong in several communities. • The company has over 22,000 homesites in planning and development, with a projected revenue of close to $2 billion, which translates to over $1 billion in profit if all goes as expected. 3. Land Ownership: • St. Joe owns 168,000 acres, and they only plan to develop 2% of that land. If land values continue to rise, investors are effectively getting the other 98% for free—an opportunity for significant upside. 4. Bruce Berkowitz’s Departure: • While Berkowitz’s exit from the company has spooked some investors, it’s important to remember he had been selling shares for a while. His departure may open the door for more upside, as he won’t be limiting the stock’s momentum anymore. 5. Dividends vs. Buybacks: • Some investors argue the company should stop paying dividends and focus on buybacks. However, I believe St. Joe’s value creation through land development is more compelling. Reinvesting dividends has allowed me to slowly increase my position, taking advantage of any dips in the stock price. In conclusion, despite the short-term concerns, St. Joe’s long-term growth potential remains strong. The company’s ability to create value from its land holdings and generate recurring revenue puts it in a great position to outperform in the future. Watch my original video for a deeper dive into why I think St. Joe is a multi-bagger stock! Let me know if you’d like any tweaks or if you’d prefer to adjust the tone or focus.