And he is now trying to dump his entire 39.1 million share stake through a secondary offering via prospectus at a HUGE loss, and some folks here think that's a GOOD sign? That's too funny.
Related: J.C. Penney posts big loss, but CEO upbeat
Ackman hasn't been happy with interim CEO and Penney veteran Mike Ullman either, and was pushing to replace him sooner rather than later. But the board continued to support Ullman, forcing Ackman to step aside.
Following his departure, Ackman reached an agreement with the company that allows him to register to sell shares of J.C. Penney in up to four separate blocks.
Experts worry what Ackman's sale will signal to the market, given that Ackman has "been privy to all sorts of information for a long time" and is willing to take a loss on his investment now out of "fear of losing more money," said Brian Sozzi, chief equities strategist at Belus Capital Advisors.
Ackman disclosed his stake in J.C. Penney back in early October 2010. Shares have since lost around 50% of their value since then. To top of page
I came to check when I saw the article. I too can not believe anyone could think that is a good move for retail longs.
Better get this off of your margin accounts... ASAFP! lol
Definitely yes. Would expect his stake to be picked up easily by other institutional investors like Soros or Kyle Bass who just recently joined the party. Another wild card would be Carl Icahn as he would love to expose Ackman once again. If Icahn indeed buys parts of Ackman's stake tonight the stock would be up double digits tomorrow easily.
That said the offering removes a major overhang for the shares so I would expect this one to price at $13 or $12.50 at least and the stock to turn positive soon after that.
If Icahn buys in the stock will trade up to $16 or even higher
The one thing that Ackman loves above all else is MONEY. If he thought there was ANY chance of him being made whole on his investment, which I believe is the $19 - $20 range. He would just sit tight. The fact that he is wasting no time in bailing out speaks volumes about how he, and all the financial people who work for him, feel about JCP's prospects.
It's because he got his chance with RJ and lost. He even been kicked out of the board. And you still think you has chance to fight???? wake up..... For him to sold out maybe bad for short term but it is definitely a good thing for long term. Wall street major players are getting in lately, you think they don't expect Ackman will sell out???
Actually, if you believe in jcp for the long run, than yes its a very good thing and decent buy and hold.....after the melt down in share price.
Ackerman is a cancer. remove the tumor and the body can start healing.
That's why 95% of retail investors are loose money. You have to think as "different". Are you going to pickup long shares when HPQ, HLF, BBY, NFLX had nothing but bad news.... for you, more likely short them. Hope this answer your question. GLTA
Count me as one of those, I can't stand his smug self-serving statements that he spews as if he actually knows better than everyone else the businesses he gets involved in. He bought in based on his superior intellect at much higher prices so should we pay attention to his sell at much lower prices or his original thinking? Or perhaps ignore him completely as he pouts that he didn't get his way with management. Fire him! Hire him! No fire him! Now hire him! His credibility is taking a beating, wish I had gotten a good piece of him on Herbalife but that train left the station. The man needs the cash is basically why he is selling, go check his situation net-net on all his deals.
While I'm no fan of his and had ridden HLF in the mid-$30's the guy has MONSTER winners as well. He has some stake in a Canadian railroad for a few hundred million and its worth BILLIONS. He also turned a stake in General Growth Properties(GGP) from $50M into $2 BILLION. He may be the biggest douche on Wall St. but the guy still has quite the fire power at his hedge fund, one of the largest.