Ann-
Thanks. I had NOT heard about FLA split, so that was news to me. I am probably going to purchase some FLA for my IRA PDQ! Not because of the split, but because I think SJP will make another run at FLA, and it is a good company regardless.
SJP owns 54% of FLA. FLA is an excellent RR, well run as well as well positioned to serve a critical market (Jax-Miami). SJP is a real estate play. They are largest private landowner in Florida and are just starting to unlock the value of their acreage by developing it. But FLA is also a real estate play, because in addition to a good RR, they have gobs of valuable real estate. Which is why SJP would like to own FLA outright, so they could unlock those assets too.
And others, like N-S perhaps, might buy the RR from SJP (this is pure speculation) once SJP bought the rest of FLA. Last year SJP made an offer for FLA but withdrew it when the street jacked the price up thinking they'd pay more.
I think SJP is an outstanding long term play. And if you believe SJP will make another run at FLA, then FLA may be an even better way to get into SJP. That's my thinking. But it may not unfold that way, so I may split my investment between FLA and SJP. Either one looks like a winner on its own.
For more (and better) discussion on this subject, see James Clarke's postings on the "Value Investing" thread here at S.I. (or do a search on "SJP"). Also see www.fool.com board on SJP.
Good Investing,
Wright |
