And Some Bad News For David Einhorn...
The St. Joe Company has just announced it has engaged Morgan Stanley to pursue "strategic alternatives to enhance shareholder value." Of course, since every bank has a bankruptcy advisory team as well, there is a very off chance this could be good news for the Greenlighter. However judging by the 10k $32.88 print in AH, we are leaning toward the former. As we warned back in October when Einhorn was recirculating his noted short thesis for the second time after a 3 year hiatus (which everyone somehow had forgotten), there is a very high probability that the short thesis, which was merely a regurgitation of the original one, could end up crashing and burning. To all who followed Einhorn into what, with 27 million shares short, is about to become a massive short covering squeeze inferno (not to say that Greenlight has not had its share of good ideas over the year), our condolences.
From the just issued press release:
WATERSOUND, Fla.--(BUSINESS WIRE)--
The St. Joe Company (NYSE:JOE - News) today announced that its Board of
Directors has unanimously decided to explore financial and strategic
alternatives to enhance shareholder value.
The Board intends to consider the full range of available options
including a revised business plan, operating partnerships, joint
ventures, strategic alliances, asset sales, strategic acquisitions and a
merger or sale of the Company. The Board of Directors has retained
Morgan Stanley & Co. Incorporated to assist it in the evaluation of
these alternatives. The Company noted that there can be no assurance
that the exploration of strategic alternatives will result in any
Britt Greene, St. Joe's President and CEO, said, “We have engaged Morgan
Stanley to undertake a comprehensive and thorough review of all
available alternatives, and our Board and management are committed to
taking the appropriate and necessary actions to enhance value for St.