If you missed Shervin Pishevar’s Twitter marathon, here are the highlights. Topics he tweeted on range from space travel to the fall of America’s empires. He took over 20 hours and 50 tweets to express his areas of concerns and some praise was sprinkled about too.
Bitcoin and virtual currency sparked a tweet. Shervin Pishevar mentioned how startups could choose digital money as a way to finance their business idea. Traditionally venture capitalists were sought out and angel investors. New companies do not have to be attached to the dollar or any other traditional hard money. This gives them the freedom to become “stateless.” Virtual financing will become one of the strongest apps.
Pishevar predicts mega-funds will collapse in the coming economic climate. He expressed issues with Volatility Indices along with Managed Future Funds.
Other tweets referred to the spreading of inflation. The US markets are not separate from international trade. Shervin Pishevar believes we have been exporting our inflation and infecting other countries with it. This is not something new, but Pishevar states the US has been doing it for years. With the current political climate, the conditions are not soon to be corrected.
Other giants of the US and world market that will take a hit are Amazon, Google, and Mircosoft. Shervin Pishevar thinks their practice of scooping up little and innovative startups before they become competition will soon takes its toll on the economy. A sound economic structure has competition from new business. The gigantic companies have enormous buying power, but they may need to think of new tactics to handle innovation.
A highlighted programs was SpaceX, which is one of Elon Musk’s companies. Shervin Pishevar called space companies inspiring. Another company that won his Twitter praise was Virgin Hyperloop, which Pishevar was a co-founder of.
After all the tweets, predictions, and opinions the Twitter rampage ended. Shervin Pishevar has called out many winners in the past, such as Dollar Shave Club and Slack, so who is to say which one of his latest tweets will become reality.
In support of the short position taken by Kerrisdale with regards to St. Joe’s ambitious real estate plans, the investment company has issued a negative statement on the realtor. The report comes amid St. Joe Company’s surge in popularity that has seen the stock price quadruple. These developments have ignited optimism in the face of developers and led them into believing that the company might be heading in the right direction. Kerrisdale, however, casts serious doubt on St. Joe’s operations as well as the sustainability of the company’s business module.
The red flags
Kerrisdale goes ahead to highlight some serious investment pitfalls that every investor should carefully interrogate before committing their capital to the company. For instance, Kerrisdale points out to the fact that one of Quinstreet’s biggest investor, Fairholme Funds with a 30 percent stake in the company, might end up slicing this stake by half. The majority shareholder was recently forced to adhere to SEC liquidity rules thereby exposing the rest of St. Joe investors to the uncertainty of forced selling. Kerrisdale believes that the move might see the company’s stock price fall by more than 40 percent.
Additionally, QuinStreet has made little effort to prove its capability to enforce its master real estate plans. Channel checks by Kerrisdale point to the fact that the investor has made no significant efforts in enforcing their St. Joe land development proposals initiated close to a decade ago. Investors should, therefore, prepare to wait for returns.
The delays experienced with the development of the interior lands by the company cast a big shadow of doubt on the achievability of their now ambitious Panama City beach plans. Investors should note that a huge chunk of the Panama City Beach property lies in desolate and swampy areas. Its monetization is also based on an overly ambitious and its realization would only be feasible if the investment company sold more units every year for the next five decades in the district that were absorbed by the larger Panama market in 2017.
About Sahm Adrangi of Kerrisdale
Sahm Adrangi is the founder and Chief Investment Officer of Kerrisdale capital, a New York-based private investment firm. He is Yale University Graduate with a bachelor’s in economics. Before starting Kerrisdale, Sahm Adrangi worked as a manager at Longacre Fund Management as well as a bankruptcy restructuring specialist at Chanin Capital Partners.
Sahm Adrangi is known for being vocal about fraudulent companies. He uses his extensive knowledge to short them. However, just like he did with St Joe’s company, Sahm Adrangi does not just make up stories or claims of suspicious activities. Instead, he takes time to research widely before he can shortlist a company. He also publishes the information at Kerrisdale capital so the public can get access to it.