Lady with the $1 article did it.
Even Ackman musta shook his head reading the hilarious logic used by dollar-lady - and gone LONG.
and Yahoo finance headline story - "Is Apple plotting against your old iPhone".
I wake up this morning and there's no emergency alert from analyst .
I like to see something like this every mornin:
"jc penney burn rate high, botched strategy, blah blah, alienated customers, more blah, intense competition macy target, some more blah, need financial restructuring, blah, blah AND fiddy cents price target. Ahem"
This type of news article is very informative and deep insight
crooks at GS certainly are capable of doing Zero Hedge thinking.
At the least GS maybe looking at making money both ways - BK or recovery.
I don't have much respect for Zero Hedge. More wrong than right. Way more.
Based on my theory - I entered initial position at $8. I had planned my next position at $7 - if it got there. Well - it did. But now I have changed my mind.
My belief is - it is one person driving the stock down. Ackman.
The day ackman stormed out of JCP board room - mad at Ullman - he sold at $13 something - that was purchased at $23 something. Clearly he was looking at shorting from that point - all the way to the ground. Ultimate redemption. Kill the company. Get your money back. And then some.
Well Ackman is almost half way there - and only took a few weeks.
If Ullman was not a stubborn, run of the mill, and generally incapable executive - I would have fought Ackman's crazy crusade.
There is only one thing that gives a short seller sleepless night. A buy out.
It happens in an instant - and stock makes a quantum jump. Shorts are totally helpless.
Selfish Ullman has taken that fear away from the shorts by executing a very sweet poison pill for himself and his fellow dim wits. No one else is interested in JCP until JCP management itself seeks buyer interest - which they are not.
Short will have upper hand - until company reports positive numbers. There's a 15-20% chance of that. Longshot.
I heard from my deli clerk at the supermarket that she thinks Blackberry will buy AAPL. She will let me know when she has more info.
Lady in Produce section knows more about blackberries, apples and other fruits. She'll give it t'ya
$7-$8 range. My pick: $7.84.
I'm long at $8. Will add more at lower prices. Not short term trading. Can hold for 2+ years.
I expect this 2 be a 3 bagger for me (just like SVU earlier this year)
Cisco, SAP, Intel, Samsung lookin to buy BBRY - and even Google ????
ORCL will trump them all.
They get most value out of this sky-wire connection to their $100B database.
I had a buy set at $8.57.
I see that it missed by a whisker.
Also read GS claim that most, if not all, of the 84 million allocation was taken off their hands the very first day. Will know soon if this is true.
The possibility of BK is low.
The possibility of stock going lower - before eventual recovery - is high.
The possibility of JCP being back in 20s in 3 years - is high
I say this for one simple reason. Selling clothes, fashion and perfume is not some kinda convoluted hi-tech operation where even one weak link can collapse everything. This is largely discretionary retail.
The only problem with JCP is poor CEOs. Three in a row. Ullman, Johnson and Ullman-II.
I have a strong feeling someone has a vested interest in taking this lower before the ride back up. Replacing a non-functional CEO is not hard.
I thought about this too - short answer GS bought most if not all of it (& its close friends)
GS has $2.2B loan into JCP. I believe GS itself funded most of today's $900M secondary. Maybe brought in a few friends. Now GS controls the company.
I believe GS may have approached Ullman last week. And got a "No".
Conveniently, GS' research dept advises clients to by insurance (CDS) against possible JCP BK ! The scared would definitely give GS more money for protection !
Side benefit of making the research note public: Run on JCP stock ! And panic.
Ullman stayed steadfast until yesterday morning. GS pulled the rug under him by reaching out to the board directly. And hence the surprise evening announcement.
GS's shorting desk is probably making money right now.
GS's CDS dept is selling insurance and makin money.
Make no mistake - in the long run - after the above two are accomplished - GS will return this stock in the mid 20s.
Guys - running a dept store with solid brand recognition is not rocket science. Even mediocre management can turn a profit. You can do it. I can do it.
Having a succession of 3 bozos (Ullman, Johnson, Ullman) for CEOs was a "GIFT" that GS seized.
Ullman may not be smart - but he's not that dumb either. Me thinks he's gettin jerked around by GS - and obviously is the guy being thrown under the bus.
I'll buy JCP next week. This is the same story playin out as SVU a few months ago. SVU board was filled with BK posts and stock teetering down under $2. Long story short - look at SVU today. I made a 3 bagger.
JCP will be a 3 bagger also - wait for the bottom.
Which is why I am baffled. One of them many Smart guy buys 1 to 2 Million shares at $9.65 - and watches this go down to $8.88 right away. Smart guy could have waited a day or two or more to buy lower.
I'll tell you what's happenin
yeah that johnson guy was an idiot. Not impressed with ullman either. Especially the poison pill he quickly put in place to secure mgmt career (in the name of long term turnaround).
I hope he is looking for a real CEO