This company began to hit the skids in serious fashion the moment Bill Ackman and Ron Johnson entered the picture. It has been in a tailspin ever since. These two buffoons left the company in shambles. People who have lost a lot of money on this stock simply did not care to see the obvious signs...massive cash burn, alienation of the customer base, quarter after quarter of disappointing numbers, borrowing on an epic scale to keep the company in operating capital, debt servicing costs, failures of Joe Fresh, Martha Stewart, Home Furnishings, etc.
The signs were all there...all you had to do was look. Instead, some people chose to listen to the semi-literate pumpers and/or follow the lead of "smarter people", such as Ackman, Ross, Soros. All losers on this puppy.
There is no substitute for doing your own homework, folks. Time to turn off the oven...this turkey is done!
JCP will have to cut to the bone...close stores, layoff people and find a way to build a decent internet presence. They will have fewer big box stores but may possibly be able to build a successful internet sales stream. Ullman didn't cut deep enough or soon enough. It may be too late for any of this to happen.
A sharp reduction in costs would cause a sharp increase in the stock.
I find what the company now has to do to be quite obvious. With sharp cutbacks, the changes made in 2013 will be conserved and help to power the recovery. Nothing Ullman has done has been wrong. But the actual results speak volumes on what the next step should be.