The news I am seeing from people about back to school is great. It shows that people still shop there and they are not dead. The biggest "problem" with JCP is that the middle class is a dying breed because of what the gov't and society takes from us... nickeled and dimed everywhere. I digress, this is not even a big problem because by marketing to different demographics it's can easily be fixed... this gets to the meat, the marketing is atrocious. All these stupid marketing people out there think they know what they are doing but don't actually listen to the customers (that's exactly what Johnson didn't do, listen). Instead they are spending way to much on the wrong things and losing money. . . Fortunately, this too can easily be fixed, cut back on marketing budget, finish your project with store rennovations and THEN advertise, why advertise and spend all this money when the employees don't even know what the marketing plan is??? Or that a lot of stores are still under construction???
That being said, what everyone on this board fails to notice is that dumb Ackerman just gave away insider information if you actually read his letter. He said May/June were fantastic months and did better than expected (yet earnings aren't until this friday) wink wink. So while you fools argue, im buying because we just go free insider information that was made available to the public. AND the stock is at 40% discount from just a few weeks ago. (it was at 18, now 13). I believe once this information gets exposed and people realize that the company is making a recovery and all this bickering is just noise the stock will soar, maybe even get back to 20-25 by Christmas.
He most certainly did not say "May/June were fantastic months and did better than expected". What he had to say about May and June was:
"I am also very concerned about the budgeting process. We received three different financial projections - a new one at each of the last three board meetings - each one projecting worse results than the previous one. Most disconcerting was Mike's disavowal of the first two projections when he explained at the last meeting that those were not "his numbers." I find this particularly troubling because these projections were presented by Mike himself to the board in May and in June so it is hard for me to understand why he should not have ownership for May and June's projections. Now Centerview is running a new set of numbers."
So three projections were given at different points in time. The first was in May and was better than the projection in June which was made after data from May was known. The second was in June. The third was in July and was made after data from May and June was known. It was worse than the one in June which was worse than the one in May.
Ackman could be blowing smoke but if you are reading what he said to mean "May/June were fantastic months and did better than expected," chances are you're going to be disappointed in nine days. I'm not sure what you think is going to be released about earnings on Friday.
"appeared" is past tense. It means that the new projections reversed what appeared to be a recovery. And there is no getting around Ullman saying $1.5 billion left after this qtr. That means they lost a billion in one quarter, as much as they did all last year. The company is hemorrhaging money which is why Akman is flipping out and ruining his career right before our eyes.
Cramer is right. He should shut up and sell, take the loss and move on.