jryu tumblr
-
Bill Ackman Picks JC Penney As His Favorite Stock at Ira Sohn Conference Had time to finally get to this. The deck is coherent but it won’t be easy. Here’s the timeline of the last several months.
- J.C. Penney to Revise Pricing Methods and Limit Promotions - This article from Jan 2012 lays out the new CEO’s (former Apple retail guru) strategy. Get rid of coupons, re-invent JCP’s positioning.
- JCPenney Execs Admit They Didn’t Realize How Much Customers Were Into Coupons- Misses Q1 earnings. Management underestimated the impact of eliminating coupons to business.
- Bill Ackman’s Annual Pick at Ira Sohn Conference is J.C Penney- Presentation from late May On His Favorite Investment. He factors in some early pain but I think he’s too optimistic about how quickly the business will turnaround. However, he says there’s a lot to fix on the expense side of the business, which provides a nice backstop for his bet.
