Didn't Kmart have a bunch of value in it's real estate? Didn't they go into bankruptcy, wipe out shareholder value then come out and use that value to buy Sears just a year or two later? Common Stock holders get screwed all the time out of the underlying value in their companies. JCP needs to turn it's retail operations around and make money selling goods or the shareholders will eventually be sol.
Did you mean .30 cents on the dollar? much more like it. Question, Who is going to buy all that real estate in malls who isn't there already with a similar box size. Dream on my friend, dream on.
Just JCP real state worth around 30$ pps
Let's play with your numbers for a bit - - - forget any value of the stores, inventory or anything else - let's focus just on the real estate - -
Owned and ground leased properties have an appraised value of 3.3 billion with 1.7 billion dark value.
There are appx 225 million shares of JCPenney stock
The value per share would be appx 14.50 with a dark value of appx 7.50 per share -
The GS loan against the real estate is 2.25 Billion which would be 10 dollars per share lien against 14.50 which would leave a real estate value of 4.50 cents and a "dark value" of (-)2.50 cents per share
I pulled my figures from JCPenney appraisals - - - - - - - That's how I came up with my figures - how did you come up with yours - - ?
FYI...Real estate secured by the bond holders, common shares get squat.
FYI... bond holders are "unsecured" - they still come before common for any residual value after GS loan - - - info source - 8-K dated May 14, 2013
You are full of it. An appraisal valued the real estate at $4.06 billion, which is $17 a share, but $1.75 billion backs the Goldman loan, leaving $9.50 a share. That's assuming there would be buyers out there.
"FACTS?" I don't think you would know a fact if it bit your butt!
Sentiment: Strong Sell
you partly correct, they will be the first in line, just the same if you reduced their share its from around 30$ to 22$ at most.
Not that I predict anything like that to happen, as I JCP is much better then target and it won't stayed oversold for long.