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J. C. Penney Company, Inc. Message Board

  • daillybread123 daillybread123 Mar 18, 2013 3:08 PM Flag

    REIT only after bankruptcy

    This co. has only one strength and a whole lot of weaknesses.

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    • 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, Store in a store works in Walmart
      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, Penney could theoretically transform those top 300 locations into a premium real-estate investment trust under a new name and sublet the space to brands and other retailers that would be interested in paying a below-market rate of $40 per square foot, generating about $1.2 billion of rental income and resulting in $10.8 billion in enterprise value, or $40 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) the new utilization of space could turn the company direction and the new ideas could use the shorts as fuel back up 17) dire situation fo shorts- no shares left as institutions own 100% - they must drive t

 
JCP
8.65-0.01(-0.12%)Jul 22 4:01 PMEDT

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