St. Joe: An Investment in Florida

12/06/2002 12:00 am EST

Focus:

Richard Young

Editor, Young's Intelligence Report

"The rotten 2000 to 2002 stock market environment has finally dropped stock prices more toward the middle range of valuations," notes Dick Young, editor of Intelligence Report. "There is no way you want to be viewing stocks as cheap yet, but the stage of wicked overvaluation has moderated." Not surprisingly, the analyst continues to focus on conservative, value oriented stocks. One of his favorites is a play on Florida real estate.

"I’m seeing a huge wave of second-home buying here in Naples, where we’ve opened our new office. The West Coast of Florida looks well positioned. Especially fertile territory is the still-early-in-the-game North West Coast. Florida offers low taxes (no income tax) and great weather. It is also one of the fastest growing states in the nation. We look for more aging baby boomers to move to Florida than to any other state in the nation.

"St. Joe Co. (JOE NYSE) owns a significant portion of the remaining beachfront property in Florida. Six nice projects will fuel earnings progress next year. We are enthusiastic about Victoria Park, SouthWood, St. John’s Golf & Country Club, James Island, WaterSound, and WaterColor. The company’s great WaterColor Inn is drawing gangs of folk down to Seagrove Beach to check out what St. Joe has going on. The trend for baby boomers to migrate south will continue well into the next decade. St. Joe Co. has what this crowd is looking for in spades. I would make this stock a core building block in your investment portfolio and would add to your position regularly through the years."

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