Bruce Berkowitz On St. Joe's Investigation, Says Buying Back Shares If Price Moves Lower

Bruce Berkowitz (Fairholme Fund)
Bruce Berkowitz, manager of the Fairholme Fund (FAIRX), spoke with Bloomberg's Eric Schatzker yesterday on St. Joe Co.'s SEC filing that named him and Fairholme in a formal investigation. View the SEC filing on my previous post. He said "there is not a lot new here, except for I was named and Fairholme was named in the discussion, strictly in regards to our 13D position.” Berkowitz said he wants to buy more shares if the price moves lower. His fund already owns 30% of the company. I embedded the Bloomberg video after the jump. Below are a few quotes from the interview.
"It was my decision as the Chairman of St. Joe to put that 8K out, because we have a buyback program in place. We have a desire for the shareholders to benefit. And if the stock is going to be pushed down for whatever reason, by whatever articles that have been out there for the past three years, I want the company to preserve its ability to buy back shares on the open market… To preserve that ability, the public must know everything and the shareholders must know everything." 
$JOE symmetrical triangle! - FreeStockCharts
"The main reason again is, is for whatever reason the price of St. Joe goes down, I want St. Joe to have the ability to buy back shares for the benefit of our shareholders."
By the way, JOE put options were active yesterday in pretty decent size. Someone might be protecting downside risk after this. Or is Berkowitz selling puts?

3065 December $15 puts traded with 398 open (hat tip @optionsizzle); 1529 September $16 puts traded with 187 open; 468 September $15 puts traded with 216 open; 1746 July $19 puts traded with 919 open; 689 July $18 puts traded with 246 open, and 327 July $17 puts traded with 31 open. I uploaded the July, September and December JOE Option chains on Flickr (via Google Finance). The chart above shows that JOE is trading in a multi-year symmetrical triangle and getting closer to judgment day. Click the chart for a larger view.

If you didn't know already, there is a hedge fund/mutual fund war going on with St. Joe shares. These are previous posts (holdings could be outdated).

*Einhorn's Presentation On Why He's Short St. Joe Vs. Bruce Berkowitz Who Owns 30% ($JOE) (12/18/2010)
*St. Joe: BlackRock, Fidelity Magellan Own a Huge Chunk of Shares (4/20/2011)
*St. Joe is Whitney Tilson's Largest Short Position, Berkowitz Wants $JOE As Largest Position (May 24, 2011)

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