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StJoe (JOE) Shocks-takes charge, exits Florida bldg.

GaltsGulchBeach Comber
10,300 views
Here, in the company's words below - "sharpening focus on value creation" . They also would not indicate how many layoffs are coming right away, but number is believed to be substantial.

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17:06 JOE St. Joe Company to Exit Florida Homebuilding as It Sharpens Focus on Value Creation (47.92 +0.03)

Co announced that it intends to exit Florida homebuilding as the company sharpens its focus on strategies expected to maximize the value of its core land holdings. The move will result in a workforce reduction and is made possible by JOE's expanding relationships with local, regional and national homebuilders. In connection with this plan, JOE expects to take a charge to earnings of approximately $10.7 million. This charge consists of approximately $2.3 million for one-time, cash termination benefits to employees and approximately $8.4 million of non-cash charges related to the write-off of capitalized homebuilding costs at several communities. Approximately $9.0 million of these charges will be recognized in the third quarter of 2006.

Replies

55
Buckhead RickBeach Lover
#52
A real estate company (particulary one that has exited un profitable business') is perfect for a private equity group, they do not have to worry about qtly earnings and can focus on the longer term which is what real estate is all about.
SHELLY avatar
SHELLYSoWal Insider
#53
For the record....took my profits today in my housing stocks. After the huge run up in housing stocks in the last 6 weeks, I decided to book my profits. Averaged 15%-20% on the individual trades. They ran up too far too fast. Still holding my buy write in JOE until late October. If the stocks come back down I will consider doing it again.

Congrats! Was wondering when you'd pull the trigger on those.

Something really odd is going on in that sector...:shock: There's certainly lots of money going to be made and lost over this, but I prefer "gambling" only when it comes with free drinks and cheezy lounge acts :cool:

And then there's this:St JOE Spokesman Denies Sale

Edited

Bob avatar
BobSoWal Insider
#54
Kurt, You need a new forum. SoWal daytraders!!
Paula avatar
PaulaBeach Fanatic
#55
There's an article on St Joe and the airport in this mornings Wall Street Journal.
goofer avatar
gooferBeach Fanatic
#56
Shelley,
Thank you for your gracious comment. I saw last nite that Cramer now thinks housing stocks have bottomed. He is a momentum player and does not like to be early.

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