JCP - 1) 4 dollars in cash - 14$ book value. 2) ACHMAN knows REITS as he also has GGP (General Growth PROP) making up 14% of his portfolio now JC Penney at 8%---- al lot of land 3) Ackman said he has "complete confidence" in Ron Johnson,
4, Pershing Square had 39,075,771 shares, or a 17.87% stake, in J.C. Penney, according to Bloomberg data citing a 13F regulatory filing.
5) expects some progress on sales in the second half -JCPenney has officially changed its mind and will be bringing back all the sales it had assumed customers didn’t want.
6) opening of 10 new shops
7) back-to school-season in August along with approximately 50% new product in the stores.
8) REIT like entity plan draws attention-----ISI Group said the retailer could turn its top 300 stores into a real estate investment trust-like entity that would sublet space to other brands.
------- 44% being fried….
9) In fact, JCP’s balance sheet is equipped to handle even a large decline in sales for several reasons.
10)more than $800 million of cash at the last quarterly report, $1.5 billion of undrawn revolver capacity, and more than $600 million of non-core assets that it can sell.
11) generate approximately one billion of operating cash flow in 2012 which will be sufficient to fund its $800 million in capital expenditures for new shop development and other needs
12) The return could be huge for investors. 2013 should generate large cash flows and profits for shareholders. We look forward to the continued transformation
13) A REIT could be valued at about $40 a share, with the remaining J.C. Penney business worth about $6 a share,
14) new MODEL- The new entity could operate under a separate name while the retailer’s remaining 800 stores could continue under the J.C. Penney brand using a “traditional discount-driven department store model,” Saad wrote.
15) Saad listed Ugg, H&M and Calvin Klein among brands and merchants that could be willing to lease space. ISI doesn’t have a rating or price target for J.C. Penney’s shares.
16) new utilization of space could turn the company and new ideas could use the shorts as fuel back up