Florida Builder St. Joe Back At 2009 Low (14.51), Fairholme's Co-Manager Resigns (JOE)

It's been a long year for St. Joe Corp (JOE:NYSE), which is majority owned by Bruce Berkowitz's Fairholme Capital Management (Fairholme Fund). I just read that Berkowitz's co-manager, Charles Fernandez, resigned on October 17, 2011. So far, the gang of JOE short sellers, led by Greenlight's David Einhorn and T2's Whitney Tilson, have won the battle against Bruce Berkowitz (publicly). When looking at JOE's chart, the stock is now back at the March 2009 low ($14.51).

As of June 30, 2011, Fairholme Capital Management owned 28% of the company, and as of 9/14, the fund is now permitted to acquire 50%. Berkowitz has said repeatedly that he'd buy more shares if the price moved lower. We'll see if JOE hits $7-10 per share. I haven't seen an update from Einhorn or Tilson in a while. Here's a 5-year chart of JOE showing the retest (via StockCharts).

More articles:

Shakeup at the Fairholme Fund - WSJ
Fairholme big looking for new home after surprise exit - Investment News
Fairholme Fund loses half its value and its co-manager - Fortune Magazine

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