Advertisement
Advertisement
U.S. markets closed
Advertisement
Advertisement
Advertisement
Advertisement

Corts Trust for J.C. Penney Debentures (COTRP)

Other OTC - Other OTC Delayed Price. Currency in USD
Add to watchlist
0.00050.0000 (0.00%)
At close: 12:39PM EST
Advertisement
Sign in to post a message.
  • B
    Bobwhite
    @barrie. still creeping upward every day.
  • B
    Bobwhite
    ex-dividend date is Feb. 27th, record date 28th and pay date is March 1st. FYI
  • W
    William FP
    How will this fare tomorrow and over the next couple weeks?
  • D
    David
    I feel like I'm already full on these shares, but it still comes back to a binary bet. If JCP goes BK, there's no good price for these shares. If it doesn't, then the upside absolutely outweighs the downside.
  • a
    alwaysfocusontheresponse
    What is dividend and the nature of the business????????
  • C
    Charles M
    It is not a good sign that two consecutive quarters of SSS for JCP fell -5.7% Q3, and -5.4% Q4.
    Closing stores is a prerequisite to selling Real Estate that allows for Capital Gains to soften larger than expected losses.
    And indications are that these REsales are going to be an on-going occurrence for the year; perhaps every quarter there will be an announcement and a capital gain to cover excessive losses.

    Inventory is sold at -5% below of JCP's actual costs, and that continues for at least 6 more months.

    The current expected rise of JCP share price from the middle of Dec of middle of January is typical for retail sector,
    and typically retail is down and flat for the following 6 months until the next Q4.
    It's an opportunity that shorts will take advantage as JCP approaches $1.50, $2.00 and $2.50. But what propels JCP past $1.59 ?
  • D
    David
    Am I correct that the next dividend is due Sept 1st?
  • B
    Bobwhite
    the way to play this is buy on dips long before ex-dividend date. Makes your yield higher. Watch price approaching ex-dividend date and sell T a good profit as price will drop upon dividend
  • B
    Barrie
    It is not a good sign that two consecutive quarters of SSS for JCP fell -5.7% Q3, and -5.4% Q4.
    Closing stores is a prerequisite to selling Real Estate that allows for Capital Gains to soften larger than expected losses.
    And indications are that these RE sales are going to be an on-going occurrence for the year; perhaps every quarter there will be an announcement and a capital gain to cover excessive losses.

    Inventory is sold at -5% below of JCP's actual costs, and that continues for at least 6 more months per management..

    The current expected rise of JCP share price from the middle of Dec of middle of January is typical for retail sector, and typically retail is down and flat for the following 6 months until the next Q4.
    It's an opportunity that shorts will take advantage as JCP approaches $1.50, $2.00 and $2.50.
    But what propels JCP past $1.59 ?

    JCP reported SSS -3.7% on a 'shifted basis'. In tax shelters the IRS, the IRS disallows claimed losses or to increase gains.
    If this is a creative accounting approach that CFO Fung is attempting to hide historic losses in JCP, or to artificially increase gains and profits, there is a high possibility it will be disallowed by the IRS.

    The effect now is to increase share price; when disallowed the share price may not fall. The IRS ruling will be in next year's annual report with adjustments to this years earnings. Not doing this 'shifted basis' would cause the stock to fall drastically.

    It's a 'tell' that earnings are going to be disappointing; those bidding up a stock now will be more than disappointed later.

    .
  • B
    Barrie
    .x@lou, It is a Trust (CORTS) that pays $1.91 in dividends semi-annually. The COR Trust only owns KCP bonds with maturities in 2097 (hundred year bonds). Although the bonds pay INTEREST to the Trust, when the Trust pays you, it is considered a dividend from JCP to you. JCP common shares pays no div; KTP div is 22% based on share price $8.37 (now) 22.66% rate.

    The notional value ($25 price at IPO and redeemable at $25), but div rate is based on current market price,

    Some people will BUY KTP after dividend record date (and after sh price fall $0.92), and then sell a few days before record date to avoid taxation of dividend earnings, and record Capital Gains instead.

    Hope this helps you
    March 8,2019
    KTP @$ 8.14, $1.91 dividend; 23.464% rate of return
    Less
  • T
    Terry
    Might be worth something after chapter 11 - just not much.
    Neutral
  • A
    Anonymous
    this seems to be wrongly priced- based on the bond price of $31 KTP should be trading at $7.75 as it is just a holding vehicle for the bonds
  • D
    David
    I have invested in several companies that were predicted to go BK. None did. These shares are unbelievably cheap.
  • B
    Barrie
    It would be easy for any $1 stock to jump 80 cents to $1.25 at any time as speculation, and with any hint of some positive statement from management even with a dour report, or on No News because of Shorts hedging their positions a bit (Call Options or buying a portions of their short shares back). Last year JCP was under $3.70 and moved to $4.80 and then collapse below $4 again within a few days. It continued down to 92 cents for the next 10 months. That's where we are today ....
  • B
    Barrie
    Around Earnings Release, $2.25 - $2.50 could easily be the high for the year. BUT $2.00 is too tough to break easily, so it pauses a few time to go higher. I didn't think much of $1.40, so I sold Options and Bought KTP prior to dividends. I suspect JCP drops from here for the next few weeks, but then another 'spike' starting 3 weeks before ER Feb 28/March 2nd

    Nobody knows the future share price; I go with the flow and act when given a 'spike' greater than the ATR for a couple days.
  • B
    Barrie
    Clearance items that reduced 'inventory' estimate by $225MM was at -20% below the cost to JCP. A very expensive effort to 'boost' FREE CASH FLOW to positive' that is a big time cost to profits. Also the one time SYNCHRONY pre-payment advance this year and anticipated Real Estate asset sales of closed 45 stores this year is the ONLY WAY for Positive Free Cash Flow.

    Those inventory clearance sales will continue ALL THIS YEAR. That means repeated SSS -5.00% every quarter and an earnings LOSS that may equal this ER reported Loss of estimated -$1.05. Two years in a row of -$1 LOSS.

    Sales per sq ft may rise to $130 which is still the LOWEST of department stores.

    Still LONGS are happy that $2 to $2.25 per share is possible this year. That's from Cowen & Co. An 'analyst' writes an article in Forbes, and those who have no confidence in 'analysts' praise him. With LONGS so gullible there will be lots of Short sales in JCP at this years high price
  • Y
    Yahoo Finance Insights
    KTP is down 5.58% to 5.25
  • d
    davids
    New pink sheet symbol COTRP. Could be very interesting. Should be treated as $500 million 7.65% 2097 bond. It's only asset is $100 million face value of those bonds.
  • T
    Terry
    Form 8K 15APR2020 J. C. Penney Company, Inc. and J. C. Penney Corporation, Inc. (together, the “Company”) have elected not to make the approximately $12 million interest payment (the “Interest Payment”) due and payable on April 15, 2020 with respect to their 6.375% Senior Notes due 2036 (the “2036 Senior Notes”) on the due date. Under the indenture governing the 2036 Senior Notes, the Company has a 30-day grace period to make the Interest Payment before such non-payment constitutes an “event of default” with respect to the 2036 Senior Notes. The Company has elected to enter into the 30-day grace period with respect to the Interest Payment in order to evaluate certain strategic alternatives, none of which have been implemented at this time.
    Bearish
  • C
    Charles M
    JCP reported SSS -3.7% on a 'shifted basis'. In tax shelters the IRS, the IRS disallows claimed losses or to increase gains.
    If this is a creative accounting approach that CFP Fung is attempting to hide historic losses in JCP or to artificially increase gains and profits, there is a high possibility it will be disallowed by the IRS.

    The effect now is to increase share price; when disallowed the share price may fall farther then the current rise allowed.
Advertisement
Advertisement