Yesterday, on Fast Money Halftime report, they covered the "pop" in JCP. Pete Najarian, who a few weeks ago would end every show with "I'm short JC Penney, this thing could go to 0!!!", could only look down at his desk with a sheepish look as they covered the pop. One of the other traders, said no one should short this stock, any change in foot traffic reported, and JCP could take off like a rocket. Pete got wiped on this one. Isn't it amazing how Myron Ullman, Steve Sadove (SAKs), experience retailers, who told everyone this thing was turning around, got absolutely NO CREDIT. But, all the junior writers who were just cut and pasting the same JCP disaster prediction story were believed. Just shows what a bull s**t market this is, along with the analysts and the media.
Long since $.49/share, and sold 2/3 of my position around $3, holding last 1/3 as core. However, I've got so many other stocks running hot, and SIRI s starting to feel like a CD, cash, etc. I'll probably sell some long $4.50 calls, just to take in some cash. John Malone, Liberty's supreme financial engineer....I don't think he gives a hoot.
Mario Gabelli has a piece of the JCP shorts, and will be going for more tomorrow......just like Carl Icahn and the boys screwed Ackman on Herbalife.
So, when I was in JCP before and after the holidays, all those 18-25 year old young men that I saw in the men's department were a mirage? Same goes for the women's department, lots of people under 40, and, they weren't just buying the stuff on sale. It's over for the shorts, they say stuff they can't substantiate, none of them have been in the stores, etc. I'll give them credit, it's been a bear feeding frenzy, and if they are short, the squeeze is going to hurt. Remember Best Buy, Hewlett Packard all driven to the low double digits in stock price, now in the 20s. It cna happen faster than you think.
All the "know it all" junior writers at Motley Fool will up all night trying to figure out how to save face or come up with a "what's wrong with this story" story. After all, they took a couple of courses in accounting, and read a quick brief on retail management,. How could they be wrong?!! How could they know better than the JC Penney's CEO, or the ex-CEO of Saks who's on the board? I mean how could all these experience guys on JC Penney's board know more than the foolish kids at Motley!!! Remember what I told you about Motley, sell Sirius at $1, $2, $3, then buy, buy, buy!!! They don't know s*****t
This is typical pattern for Taser after reporting, good or bad. Here's some advice. I'm very long on Taser since $8/sh; however, I sell long calls. Before earnings, I got $2/sh premiums for September $24 calls. I received $3.50/sh for July $19 calls. I can buy those back on the pullback. So, when this happens, I can withstand it having all that cash in my pocket.
Notice lately....MF saying what does Mario Gabelli see in JCP? Are Vangaurd, Blackrock, and others possibly smarter than the junior writers at MF who've never fun a damn thing in their lives except their word processers. And this morning, is JCP a screaming buy? Oh....now they may not go bankrupt, not without risk, but you could get rich, etc, etc. This is what they do, run with the bear herd, get everyone to sell, than oops...we were wrong.....it's a screaming buy!!
Blackrock filing this morning in my Schwab acct indicates they still hold 8%. Expected a reduction with this big selloff. I mean could they possibly know something that the retail business geniuses at Motley Fool don't know?
Long, but this time I sold 30% of my holdings in the $1.75 range. I've learned my lesson, don't wait until the earnings conference. $.01 loss again.......no matter what the revenue, and no one cares about the backlog. If they did, they woudn't sell off the stock. I thought this was once an investment, now I see it's just a trade!! I'll take a $2.50 buyout.....actually, make that $2/sh!!
For the gleeful shorts here, take note at the charred fate of hedgefund guru David Einhorn this morning as Coke took a 10% stake in Green Mtn Coffee. Einhorn had a huge short position backed by a 110 page slide analysis detailing the shortcomings of the company. This is one of the smartest guys around, absolutely dead certain that he was right, and this morning Green Mtn jumped $25/share. Now, that's the mother of all squeezes. There could be a surprise at anytime with JCP, private equity, Buffett, etc. Enjoy yourselves while the gloating lasts, until the crying starts.
yesterday, at 3.32 pm Mountain Time, just after a meeting with the J C Penney board, raised his right leg slightly, and passed gas. A detailed story is forthcoming from the editorial staff at Motley Fool.
First, acknowledging the 30% drop caused by the Johnson/Ackman debacle team, which is repeated ad nauseum with any bit of good news from JCP, don't you think at some point (like now) that is already in the stock? A drop in stock price from $40 to $6, and that's still not enough? When a whale convinces himself that the bottom is in, or the stock price contains all the historical bad news, they will swoop in and take a big position.
As I said before, Buffet did this when GE reached $5/sh. Same thing from the media and shorts occured at that time, they never have enough, GE was going out of business for them. But, the shorts will keep shouting fire in the theatre long after the Fire Dept. arrived an put it out.
Shorts are living on borrowed time. What's going to happen one morning when a George Soros announces he's taking a bigger position, a Buffet extends one of his unique dealsdash/share deals as he did with GE when went below $5/share back in 2009, etc. Remember the media then, CNBC talking about GE going out of business, etc, etc. This huge short/float position is going to lead to the biggest squeeze in a very long time. I would cover right here.
Well....the shorts have all managed corporations, along with all those media junior writers churning endless articles out, with their degrees in Journalism, General Business, etc. none of whom have managed anything or anybody. But, they are all experts in not only what JC Penney should do, but pontificate endlessly on how any corporation should run their business.
I bought at $5/sh, and I've received 2 call premiums totalling $3/sh, both of which expired below the strike price. So, my cost basis is now $2/sh, or I made $4500 in cash, and still own the stock. Like you, I've been long, but 3% dividend isn't much with a falling or neutral stock as Ford has been So, I sell a $16 call, get another premium, and it gets called away. I've made $14/sh x 1500 on the stock, plus another premium. Don't fall blindly in love with anything, especially a stock
I have no problem with Lafley; however, this leadership change from McDonald to Lafley was caused by pressure created by activist, Bill Ackman. This guy is a one man wrecking ball for compapnies, forcing himself onto boards. He ruined JC Penney by taking a 5% position, throwing out the old CEO, bringing in Ron Johnson of Apple's stores who confused what could be one with premium technical product with things like clothing, which are almost a commodity. Ackman also tried to ruin Herbalife, and got his head handed to him by Carl Ichan and othe long Herbalife whales. I never thought that I would see a P&G CEO personally humiliated, and whether he was doing a good job or not, succumbing to that pressure nd resigning. Activist shareholders can be a blessing and a curse.....for P&G and JC Penney, Ackman was the latter..
I have to laugh at how Motley has found religion with Sirius with the latest one, "Why I'm loyal to Sirius XM". They wrote sell the stock and doubtful articles for years until this thing got over $3/share. Oops....guess they were wrong, so they're switching sides now. They are nothing but a printing press, trying to get clicks, and sell Motley services. They always run with the herd...nothing unique.
I own about 1500 shares of Ford since $5/share. I'm amazed at the endless postive articles on the company there most be a legion of writers talking about record profits, yada, yada, but the stock just tops at $17, and is now under $15. Besides dividends, I sell long out of the money calls to take in some premiumsm at least $1/share.. Last month, as they do nearly every few months, the call options just expire with the stock price under the strike...I keep the premium and the stock. It seems it's the only way to make money with this stock