"..it will gain market share quickly in this environment."
There's that Chinese proverb about opportunities in crises....which an adept management team will seize.
It's not binary.
For JCP, it's all about incremental improvements--the sum of many, many incremental improvements. There's simply no denying that the post-Johnson management team has posted significant improvements over the past 2 years.
As reported by the WSJ today.
Another bit of tailwind for JCP's home furnishing/appliance segment.
Consumer spending is actually quite strong--it all comes down to merchandising strategy at the retailer level.
"Very accurate statement. It will make the short term cash look better, but in the long run those monthly payments will exceed the revenue generated by the sale. It would be even greater if it were a double or triple net lease as opposed to a straight square footage lease. A benefit would be converting the equity to current cash is that it gives you an extended time period for your plans to come to fruition. Guess it depends if you're looking at the short or long term benefits.
As plain as daylight, except to tnqechek.
"As a short, don't you worry about waking up one morning and finding out that they sold their power plants to a California Utility and the stock is up 50%"
You've sized up the situation neatly--there are catalysts.
It's no secret that CRC will divest non-strategic assets--striking the right deal is only a matter of time.
Most of us understand you. tnqechek likes to argue, but seem to consistently miss the big picture.
I'm also a VZ Wireless customer--and advised them of their sins on the landline side.
You're correct, actions have consequences.
Corrupt/incompetent practices is no durable business plan, as the Old GM demonstrated with its 2009 Chp 11 experience.
Sadly, these are just single examples of a larger, disturbing trend in this nation that's played out over the past few decades---the breakdown of civility, integrity and commitment---as has been made glaringly obvious by the current presidential election cycle.
Yes, I do read SA and also post in the mb. But, no, I don't contribute any articles nor do anything sinister as you insinuate. I'm not a paid poster, just a private investor sharing viewpoints, and my "research" is for personal consumption--nothing more.
Yes, I know all this.
But, not that I wish to pick a bone, CPLP would not have difficulty refinancing and, therefore, wouldn't need to amortize its existing credit balance were HMM not an issue. So, HMM is not an marginal issue, at least from a creditor's point of view.
No question that VZ acted dishonorably--I hope that they end up paying a steep settlement to FTR.
Still, as a new FTR customer, my only contact and recourse is with FTR. It's impossible to over look its spectacular lapse in due diligence on this particular acquisition from VZ--it's not their first rodeo, and after the stumbles and pitfalls of the first one years ago you'd think that they've learned and arranged for all sorts of contingencies with VZ on this acquisition until the point of fully successful conversion.
Nice of you to think about macro factors, but you fall prey to faulty extrapolation.
No question that the retail sector is undergoing profound changes, with huge impacts to brick/mortar segment; but, b/m isn't going to zero/extinction, there will be winners and losers---here, we part company. JCP is clearly rowing against the current---in both tactics & results.
We've seen plenty of Q1 aberrations over the past few years in the sector and/or general economy--weather related, China, etc.--that were subsequently revised and/or reversed in subsequent periods.
It's important to sort through the generalizations and find those companies that are clearly rowing against the tide--e.g., JCP.
"The department-store chain has tumbled over the last couple of months, but its comeback is still on track."
This neatly sums up JCP---its operating and share performances are quite different.
Though the stock's high volatility is frustrating for long term investors, management is on the right track and largely delivering on its promises for the past 8+ quarters and clearly rowing against the tide. This rodeo is nothing new--the shares will recover sharply higher.
"CPLP's counter-party risk as to HMM is marginal compared to those other entities that you mention."
Not sure why about this----what was the reason for the 60% cut to distributions?
There's a bit of truth to what you wrote. There's no denying that sector wide/company specific issues have heavily pressured profits and shareprice.
However, when there are concurrently positive operating factors/metrics, reverse split can be very successful---the obvious short term result being that institutional investors can now take positions in companies with improving prospects and undervalued shares.
Interesting turn of sentiment, sage--didn't you post that there were only 2 inconvenienced customers?
Yes, VZ is complicit in this latest screw up. Still, I can't help but think of that old saying: "Fool me once, shame on you. Fool me twice, shame on me."
You beat me to this post.
There will be very significant landline defections as outraged customers jump ship--I've already seen it in my neighborhood of new homes--and which means that FTR will have overpaid, again, for this latest acquisition.
The subject line of this message thread is the title of a SeekingAlpha article published just today----just for sage. Google the title.
I called FTR customer service again this afternoon, and asked for another credit adjustment for my May bill (did the same in April)---50% off.
Sage can continue to deny reality and whistle dixie, but FTR WILL take a financial hit from the latest VZ acquisition and which will flow through to its shareprice/shareholders (that's you, sage). And, credit adjustment is just the first/immediate impact---look for line attrition in the coming months as hoping mad customers abandon ship.
Stunning that FTR continues to stumble after the first VZ landline acquisition years ago--it didn't learn much from that fiasco.
--former FTR shareholder.
"OK....so now we are up to two inconvienced customers."
This "sage" character is unbelieveable--head stuck in the sand (or, perhaps, a smelly orifice)
SeekingAlpha just published a report of outages in 3 states because of major stumbles in transition. Look for it, sage.