St. Joe Co. - Joe

While operations continue to deteriorate, the company is currently focused on maintaining liquidity and cutting expenses. In addition, St. Joe Co. (JOE - Analyst Report) has repaid most of its long-term debt and has sufficient cash reserves to get through the residential real estate slump.

However, there are no signs that the housing situation will get better in the next 6 months and the worst could be yet to come.

Near-term, we would stay away from companies with exposure to the residential building business. While we think the company could be a good long-term investment, we maintain our near-term Sell recommendation.