J.C. Penney Company, Inc. NYSE: JCP

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#1
This retailer has some big names (e.g. George soros) vested at higher prices

This company stocks are highly shorted because of cash burn and poor confidence in management.

Recent reports of profitability and high short covering last two days.

Perhaps a time to go long?


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#2
J.C. Penney outlook lifted at S&P
Monday, March 3, 4:42 PM ET | JCP
Affirming its CCC+ rating on J.C. Penney (JCP), S&P lifts its outlook on the company from negative to stable. "The outlook revision reflects our view that performance has begun to stabilize ... However, in our view, the capital structure is unsustainable, but the company does not have any meaningful maturities over the next 12 months."
The stable outlook reflects S&P's view that liquidity will be "adequate" over the next year and sources of cash will exceed use by at least 1.2x.
Shares +1.5% AH following a 9.3% rise in the regular session.
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#3
(01-03-2014, 11:42 AM)orangetea Wrote: This retailer has some big names (e.g. George soros) vested at higher prices

This company stocks are highly shorted because of cash burn and poor confidence in management.

Recent reports of profitability and high short covering last two days.

Perhaps a time to go long?

The big names invested but other big names, notably Pershing, investee heavily, lost a lot and then cut losses. The attraction of JC Penney was a retail bounce on the back of a recovering economy plus large real estate holdings that , in theory, would put a floor to the value even if retailing didn't perform. It is a tough industry as investors in their competitor (Target) have also discovered.
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#4
GreedandFear Wrote:The big names invested but other big names, notably Pershing, investee heavily, lost a lot and then cut losses. The attraction of JC Penney was a retail bounce on the back of a recovering economy plus large real estate holdings that , in theory, would put a floor to the value even if retailing didn't perform. It is a tough industry as investors in their competitor (Target) have also discovered.

Bill Ackman brought Ron Johnson (from aapl) in... Yep, JCP bled even more than the previous CEO (who is today's CEO) Mike Ullman.

And on Nov 11, 2013 Ullman brought 112,000 shares of JCP at $8.95 a share, according to an SEC filling. I think its a sign of confidence and ownership that he did that.

Yes it fell below $5, but now that it reported a slight profit, we should see a great short squeeze.

And i think Ullman has reinstated some familiar retail coupons, and stuff that previous customers are drawn to. He can't do a worst job compared to Johnson who was reported to be out of touch with the customers. Afterall it was Ackman who hired Johnson and fired Johnson and brought back the former CEO.

Its a tough biz, but i am looking at least $9 or $10 after the upgrade by S&P.

$10 will be a psychological resistance for now.
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#5
From Bloomberg, 8 Mar, 2014 6:47:53
Ron Johnson, the former J.C. Penney (JCP) Co. chief executive officer who was ousted last year after a controversial attempt to modernize the retail chain, didn’t receive severance when he left the company.
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#6
JC Penney upgraded from a neutral to a buy.
Citi raised the retailer’s price target up from $8.42 to $11, a level the stock hasn’t seen since September 2013.

“We’re upgrading JCP to buy based on our conviction that JCP can continue to deliver positive comp store sales in-line with fiscal 2014 guidance,” Chen writes in the report.

“We believe this can happen as JCP fixes home, focuses on restocking basics & private branded product, and edits out inappropriate merchandise.”
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