Does St. Joe Company (JOE) has Strong Growth Prospects?

Praetorian Capital, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined by -0.30% net of fees. The fund delivered -2.87% net returns for the first three quarters of 2022. Many of the fund’s portfolio positions declined in the quarter. For more information on the fund’s top picks in 2022, please check its top five holdings.

Praetorian Capital discussed stocks like The St. Joe Company (NYSE:JOE) in the Q3 2022 investor letter. Based in Panama City Beach, Florida, The St. Joe Company (NYSE:JOE) is a real estate development and asset management company. On November 1, 2022, The St. Joe Company (NYSE:JOE) stock closed at $36.22 per share. One-month return of The St. Joe Company (NYSE:JOE) was 10.76% and its shares lost 23.12% of their value over the last 52 weeks. The St. Joe Company (NYSE:JOE) has a market capitalization of $2.113 billion.

Praetorian Capital made the following comment about The St. Joe Company (NYSE:JOE) in its Q3 2022 investor letter:

“The St. Joe Company (NYSE:JOE) owns approximately 175,000 acres in the Florida Panhandle. It has been widely known that 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 the full text)

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The St. Joe Company (NYSE:JOE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held The St. Joe Company (NYSE:JOE) at the end of the second quarter which was 14 in the previous quarter.

We discussed The St. Joe Company (NYSE:JOE) in another article and shared Fairholme Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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