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J. C. Penney Company, Inc. Message Board

  • swervin4130 swervin4130 Aug 14, 2013 8:55 PM Flag

    Shorting More - Ackman planted the Post story

    The last time this post reporter broke news he reported the credit facilitator was cutting off the vendors and the stock tanks. The next day Ackman attacks Ullman. Ackman then SAID he was talking to the people providing credit to the vendors in the second letter.

    Now Ackman is stuck. Can't sell and the stock is on the verge of a major plunge. So he calls his little puppy boy at the Post and tells him same store sales are up in the first two weeks of August. He's trying to keep this propped up going into earnings. When they report they lost $1.2 Billion this quarter, and they will, Ullman has said so much himself, this stock will get hammered. Ackman's hope is if he can get it to $14 going in, then the hammering leaves it above $10. Then he can get out.

    Believe it of you want but I'm going to take this opportunity to short the snot out of this. Ackman is going to dump 18% of this company after August 20th. What do I have to worry about? Sales are up? What a joke. Macy's just missed and guided lower and suddenly, after nine quarters of losing money, including a whopping
    $1.2 billion in this quarter, JCP magically becomes profitable in the two week period that happens to coincide with Ackman needing to prop the stock up so he can sell?

    Fools if you believe that. Ackman's tantrum was the truth.

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    • Well said! My sentiments exactly. Ackman desperately needs to keep the stock price up, so he can sell his stake on the heels of the Q2 earnings report. There are always some fools that simply cannot see the obvious. Well, they will get slaughtered when the selling commences.

      Sentiment: Sell

    • Very well said and honest about position. If the numbers are good, why would Ackman asked for improvement at the first time, and second time? If the numbers are good, why would Ulman avoid showing the statement to Ackman? He would be throwing the positive statement at Ackman's face. Last but not least, if the numbers are good, why would Ackman panic and must do something? Remember he wants JCP to do well so he makes money.

      By the way, why can't Ackman sell his share before earning? He is no longer a board member. Thought he was selling the shares to Soro today...

    • I couldn't have said it better myself.

      Sentiment: Strong Sell

    • The article didn't say the co. was making money. It said SSS were, after 2 weeks, trending positive and the bounce was too early to say it was sustained. Q3 is dependent on early august. Analysts are already factoring in a slight increase in SSS anyway. That better have come in august. It's a positive sounding article confirming jcp is on track to lose money in q3.

    • As Ullman has already foreshadowed the pitiful results for the quarter to be reported, why would you expect a plunge when the report comes out?

      It's going to be all about forward looking statements.

      • 1 Reply to fly_on_the_wall_st
      • Because they lost MORE money than forecasted. In fact, they lost MORE money than they did all of last year. Ullman hit the marketing/advertising switch. Even my GF was like, "What's up with the million JCP commercials on every channel?"

        He spent a fortune trying to get it out of the tailspin. But then you go into the stores and all the merchandise was discounted so heavily, there was no way to make money.

        I think it's possible JCP pulls out of this but they will need to raise cash and dilute, close stores and restructure. Even if they have a decent holiday season, it's right back to losing money Q1 2014. They have an infrastructure that requires $17 Billion in revenue to break even. The business doesn't support that, anymore. Ullman tried to avoid making tough decisions by advertising his way out of the mess. That was the path he chose and we're about to find out it came up woefully short. Until they start closing stores and raise enough cash to put creditors at ease, I'm short this stock.

    • very well stated

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