Shares in St. Joe, the Florida real estate company made famous by David Einhorn’s short, are tumbling today down over 3% on the news that the company is being investigated by the SEC.
The SEC’s investigation of St. Joe centres on the company’s real estate portfolio, notably how it impairs those investments (slide 41), according to MarketWatch.
David Einhorn, in his presentation to the Value Investors Conference in September, claimed that St. Joe was not marking the value of its real estate investments to market and, therefore, misleading investors.
Some don’t think the SEC are going to find anything on JOE. Einhorn, with his hefty short position, likely hopes otherwise.
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