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Are the stars finally aligning for J.C. Penney (JCP)? Emboldened with a decent result out of its...

Are the stars finally aligning for J.C. Penney (JCP)? Emboldened with a decent result out of its legal squabble with Macy's and a report that it will show a year-over-year increase in sales for April, the retailer also has heavyweights George Soros and Bill Ackman entrenched as backers. What to watch: Though the sales numbers will improve as they run up against exceedingly soft comps, what CEO Mike Ullman decides to do with the company's real estate portfolio could be the key to solving the JCP riddle. JCP +7.2% premarket.
Comments (10)
  • Chris DeMuth Jr.
    , contributor
    Comments (4040) | Send Message
     
    Ullman is simply an interim CEO while they get through the crisis phase of this turnaround. It will be interesting to see how it looks after sale come back for a few quarters.
    26 Apr 2013, 07:30 AM Reply Like
  • GioTrader13
    , contributor
    Comments (52) | Send Message
     
    Watch the "Smart" shorts run today. With 56 million shs short and an additional 8% of outstanding shares just taken out of the lending pool by Soros, covering has just gotten a lot more expensive.
    26 Apr 2013, 07:41 AM Reply Like
  • SMRoss8
    , contributor
    Comments (25) | Send Message
     
    It will be expecting a great deal of Mr. Ullman that he unravel the fundamentals mess he has inherited in less than a year. Massive pipeline disruptions, data integrity contamination, consequent impact and disaffection of supply base, half done shop rollouts, management layoff impact and low staff morale and most importantly loss of customer goodwill all have to be fixed. The effect will have been cumulative and offsets may come from soft prior quarters but only if they have touched bottom. Changes to product need to be secured before they can confirm pricing and in turn confirm marketing. His first 60 days will be critical to salvage Christmas.
    26 Apr 2013, 07:49 AM Reply Like
  • retailgirl
    , contributor
    Comments (123) | Send Message
     
    You hit the nail on the head.
    26 Apr 2013, 09:34 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8157) | Send Message
     
    I remember when people started talking about JCP being on its death bed the stock price was ~$30.

     

    So if they can just get comps back up to "death bed" levels you've got yourself a double.

     

    The options on this one are quite juicy...

     

    For example:

     

    The JAN15 $13 calls are going for $6. Spread off the risk and you may have yourself a new houseboat in a few years!
    26 Apr 2013, 08:30 AM Reply Like
  • bebopr
    , contributor
    Comments (357) | Send Message
     
    Job # 1: Meaningful sales gains, sufficient to generate meaningful profit.

     

    All else is job # 2......and far behind job # 1.
    26 Apr 2013, 09:57 AM Reply Like
  • LibertyCampaign
    , contributor
    Comments (506) | Send Message
     
    I don't trust Soros politically...so why wouldn't I think his investment isn't riddled with a scheme? I was ready to buy JCP stock but now I am thinking against it.
    26 Apr 2013, 10:03 AM Reply Like
  • Swisser999
    , contributor
    Comments (66) | Send Message
     
    If Soros is investing in JCP, then I never will. I will never invest alongside the Soros New World Order machine. Give me my physical gold and silver and I like my current reality just fine.
    26 Apr 2013, 10:04 AM Reply Like
  • LibertyCampaign
    , contributor
    Comments (506) | Send Message
     
    I guess there are other that feel this way because if he was trusted then the stock would have jumped in opening trading, and it has not. JCP opened at $16.13, and is now at $16.26. I think some are seeing this opportunity to make a quick profit and run.
    26 Apr 2013, 10:12 AM Reply Like
  • djiddish98
    , contributor
    Comments (9) | Send Message
     
    It would have been a lot more helpful to the company to offer an equity infusion for the same stake in the company rather than buying on the open market.

     

    Not sure if anyone else is going to step up to the plate to actually give JCP money rather than make a bet on their existing shares.
    26 Apr 2013, 12:15 PM Reply Like
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