St. Joe Poised To Go Higher (JOE)

Shares of The St. Joe Company (NYSE: JOE) are skyrocketing this morning, gaining almost 11% on back of the news that Bruce Berkowitz wants to replace the company CEO and make himself the Chairman of the Board.

Berkowitz is trying to induce a massive short squeeze in the company, which has been previously discussed. As of January 14, the last day from which information is available, the Florida-based real estate developer had a 16.3 short-to-cover ratio. Compound this ratio by Berkowitz's (and his mutual fund Fairholme Capital's) refusal to lend shares to shortsellers, and today's massive upside move is not surprising.

There is still potential for shares to move higher here, as the shorts will have to cover their shares and suffer the losses, as Berkowitz continues to make moves to benefit shareholders.

He talked extensively about the company at the Harbor Investment Conference, as it relates to the "battle" he and David Einhorn are having over the company.

At the Value Investing Congress back in October, Einhorn said he was short the name, and said it was probably worth $7-$10 per share. This battle has been played out in the media since then.

Disclosure: no position in names mentioned