Ackman is OUT!!! Now JCP can get back to the business of selling. Oh buy the way - buy low!!! It would not suprise me if Buffett was buying all of Ackman's stake in JCP. Remember, someone or some entity is buying all those 39 million shares from Ackman. I can remember in the not so distant past when Best Buy was in the mid $12 dollar range and every analyst out there hated it. It was getting blasted on CNBC almost every day just like the news around JCP recently. This is not to say JCP WILL survive - others have surely gone under as well, but I'm betting it recovers. Incidentally, have you seen any of their remodeled stores lately, they look every bit the quality of a Dillards or Neman Marcus store, but at half the price, very nice.
Best Buy has only one competitor....Amazon. JCP has to compete against Target, Walmart, Sears, Macy's, and at least 4 other retailers selling the same merchandise. I think JCP will go single digits, and trade in a narrow range until a buyout happens, which I believe will be JCP's ultimate fate.
Argos: "We believe that the company can earn approximately $3.75 per
share in five years. Based on a terminal P/E estimate of 12, the
shares would be worth approximately $45 in five years. Using a
discount rate of 12%, the shares would be worth approximately