Seeking Alpha

J.C. Penney keeps plugging away

  • Shares of J.C. Penney (JCP +3.9%) are poking out another gain with a note from JPMorgan adding some support to the bull case.
  • Though the investment firm concedes sentiment remains very negative on the beat-up retailer, it sees upside in H2 as liquidity concerns are eased and management changes are unveiled at the Fall Analyst Day.
  • JCP hasn't traded with a double-digit share price since last November.
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Comments (9)
  • jdw55sb
    , contributor
    Comments (40) | Send Message
     
    JCP probably will beat analysts estimates on Thursday which will strengthen its upside. They have been cautious about their rebuilding. Their stores are refreshed and cleaner. They have been bringing back their old customer base. I am long JCP
    12 May 2014, 01:05 PM Reply Like
  • Fast Lane
    , contributor
    Comments (673) | Send Message
     
    Piper Jaffray analyst Neely Tamming reiterated an Overweight rating and $11 price target on J. C. Penney (NYSE: JCP) ahead of Q1 results slated for Thursday, May 15 after the market close.

     

    "In our upgrading JCP shares earlier this year we held, and continue to hold, a few, but critical, beliefs as to what we see as
    JCP’s opportunity to improve their sales and margins, and ultimately, their cash flow over time," Tamming said.
    12 May 2014, 01:48 PM Reply Like
  • butters03
    , contributor
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    Just curious.. does Reg FD exist anymore? How does anyone know that there are going to be management changes unveiled at the Fall Analyst Day? Wake up SEC!
    12 May 2014, 01:50 PM Reply Like
  • Fast Lane
    , contributor
    Comments (673) | Send Message
     
    Perhaps there is a leak that Roger Farah from Ralph Lauren is discussing the opportunity, M. Ullman was a temporary until a permanent CEO could be found.
    12 May 2014, 02:07 PM Reply Like
  • butters03
    , contributor
    Comments (105) | Send Message
     
    There seems to be lots of leaks.. Given the volatility and somewhat binary nature of the valuation..I would say anything coming from jcp management to investors (1x1s for example) qualifies as material and should be filed in an 8k. So if the rest of us aren't getting information from management at the same time as the big boys, i'd say information has been misappropriated (both positive and negative info). Given that Jcp is trying to save money, the safest path is probably to cease all communication with investors until the earnings calls (b/c it's costly to file 8ks). Again, I have no idea if their IR is taking 1x1s with investors (or if they are visiting investors onsite), but if they are they should be filing subsequent 8ks to reveal what was discussed....
    12 May 2014, 02:16 PM Reply Like
  • Elephant Analytics
    , contributor
    Comments (1076) | Send Message
     
    I think the management changes are just speculation right now. The JPMorgan note came out of a bull-bear debate, of which the possibility of fall management changes were listed as a potential catalyst by the bull side.
    12 May 2014, 02:28 PM Reply Like
  • butters03
    , contributor
    Comments (105) | Send Message
     
    EA: I hope you're correct on that. If this information was disclosed by anyone inside JCP to an investor..that's pretty black & white as not appropriate.

     

    "Though the investment firm concedes sentiment remains very negative on the beat-up retailer, it sees upside in H2 as liquidity concerns are eased and management changes ARE unveiled at the Fall Analyst Day."

     

    maybe the author here should have put the word "potential" in front of "management changes" and that the word "are" be replaced by "could be" ...otherwise, the above statement sounds very matter of fact (you could be correct EA, and I'm willing to acknowledge it could be a mistaken context)
    12 May 2014, 02:35 PM Reply Like
  • Elephant Analytics
    , contributor
    Comments (1076) | Send Message
     
    @butters,

     

    I read a Barron's article that gave some more detail earlier. Doesn't exactly clarify things, but since it mentions things like weak margins (bears) and strong margin improvement (bulls), I'm interpreting it as two sides tossing out thoughts.

     

    http://on.barrons.com/...
    12 May 2014, 03:31 PM Reply Like
  • Fast Lane
    , contributor
    Comments (673) | Send Message
     
    EA,
    WSJ article May 10, 2014
    A highly sought-after executive, Mr. Farah was often mentioned as a candidate for other top jobs. With his departure from Ralph Lauren after 14 years, his name will certainly circulate for openings at companies such as J.C. Penney Co. JCP +5.00% and Target Corp., both of which are looking for CEOs—though it's unclear whether he has any interest in another full-time job.
    Farah is 61.
    12 May 2014, 03:38 PM Reply Like
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