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J.C. Penney (JCP +3.5%) CEO Ron Johnson "deserves criticism", according to Bill Ackman, who has...

J.C. Penney (JCP +3.5%) CEO Ron Johnson "deserves criticism", according to Bill Ackman, who has been an outspoken fan of the embattled CEO until now. Ackman's Pershing Square Capital has lost ~$500M on paper from its investment in JCP thus far. Although the retailer's execution has been "something close to a disaster," Reuters says Ackman wore socks purchased from J.C. Penney as he criticized the company.
Comments (14)
  • Bill Ackman = Bill Miller

     

    The flame burns bright then burns out quick.
    5 Apr 2013, 02:09 PM Reply Like
  • You made conclusion too quickly. Wait to the end of this year.

     

    Meanwhile, I am going to JCP to buy something - show my support as well.
    5 Apr 2013, 02:15 PM Reply Like
  • jocks for jokers....
    5 Apr 2013, 02:35 PM Reply Like
  • Joker: I am also throwing in TGT and HLF.

     

    Ackman is very, very smart but his ego and hubris has destroyed his objectivity.
    5 Apr 2013, 06:51 PM Reply Like
  • Although I no longer have JCP stock, I don't want to see it go under. While raising our family of 6 children, we bought everything we could from JCP - even food and gas at Treasure Island. If we couldn't find what we needed at JCP, we didn't buy it.
    5 Apr 2013, 02:47 PM Reply Like
  • It's going to take a lot more than Mr. Ackman buying a pair of socks from what used to be my favorite store to turn this around.
    SERIOUS QUESTION from someone who is not a retail whiz:
    If the idea of the specialty stores within JC Penney is to make a much higher dollar/square foot of gross store space (say double) which would approach or equal dollar volume pre-Johnson, given the much wider aisles (permanently dedicated vacant space) throughout the new stores, don't those stores have to make virtually three times as much per square foot as the figures for those portions of the stores which are the "old format" to actually show a more profitable pre-Johnson gross???
    Even Mr. Johnson isn't claiming numbers that come remotely close to exceeding pre-Johnson numbers.
    5 Apr 2013, 03:51 PM Reply Like
  • Also from the Reuters article on Herbalife:

     

    "Taking a short position and going public with it is a pretty serious business," Ackman said. "Did I think a group of hedge fund managers would take the other side of the trade and try to orchestrate a short squeeze? No, I didn't think that," Ackman said.

     

    What planet is Ackman living on? I would never let this guy manage my money. He has absolutely no street sense.
    5 Apr 2013, 08:36 PM Reply Like
  • JCP is worth more as real astate than as a store.
    5 Apr 2013, 09:46 PM Reply Like
  • Maybe if they lower the prices of the senior labels back to reality, and stop focusing on designer labels, maybe they will survive. Everyone knows what they use to pay for apparel at JCPenney, and today's prices are outrageous. Stop trying to copy Macy's, you are in a league of your own. Promote your own image instead of hiding behind others.
    6 Apr 2013, 01:52 AM Reply Like
  • The Board of Directors is tasked with setting the direction of a company. Then the BOD tasks the CEO to initiate the BOD plan.

     

    Who bought his way on to the BOD? Ackman!
    Who wasted $900mm in cash on a useless stock buyback? Ackman!
    Who hired Johnson and gave him over $100mm in pay and stock? Ackman!
    Who told Johnson do whatever he want? Ackman!

     

    And no Ackman is criticizing Johnson? Yeah right! Everyone knows who the real culprit of this whole Disaster is ... ACKMAN!
    6 Apr 2013, 12:27 PM Reply Like
  • Ackman/Johnson probably watched the Hudsucker Proxy, and thought it would work in real life. Although bringing back hoola-hoops would work better than his plan to offer high-end fashion that nobody likes, for a faux discount price.
    7 Apr 2013, 04:34 PM Reply Like
  • Silly and won't fool anyone, but Ackmann trying to avoid accountabiity and evade the taint of failure. Board and exec team will be jointly responsible for the failure (or success) of JCP's transformation. In fact, Ackmann has as much or MORE responsibility than Johnson, since he handpicked Johnson, and more than likely crafted strategy with Johnson. I'm sure he and the board signed off on the big bang approach. Sounds like typical hedge fund investor whining.

     

    Ackmann should just shut up and stay the course, or change strategy and change execs. Starting to remind me of George Steinbrenner RIP..
    7 Apr 2013, 11:50 PM Reply Like
  • From what I have read Ackman sold some of his stock when it was much higher. I think now would be the time to invest before he dumps his money back in. I believe Ackman's strategy was not to make JCP successful but to badly damage the stock to buy in at a record low. It is flat-lining at $14 today, and I saw two small jumps. I think it might have a decent up trend tomorrow. I somehow predicted that RJ's removal would create a very short panic of uncertainty, but the stock will benefit from this position, and the results today make me believe that with merely a moderately positive press release the stock will continue to go up.
    10 Apr 2013, 05:50 PM Reply Like
  • The media has spun these comments to what amounts to Yellow Journalism. I attended the event & was 2 rows from the stage where the dialogue took place. Mr. Ackmann commented on JCP and it's CEO, but the comments were in no way was as "finger pointing" as the media has reported. He spoke about the obvious, i.e. a CEO bears responsibility, but to add fuel to this fire by stretching the inferences and perhaps adding unecessary tension between an investor, his shareholders and the co's CEO whom he recruited is in my opinion damaging. The words spoken and the intent of his comments were not as malicious as the media has portrayed. Shame on Reuters for twisting Ackmann's words, wonder if he'll accept your next invite to speak?
    8 Apr 2013, 02:54 PM Reply Like
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