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Ackman Down $100 Million On JCP Today: Who Else Is Getting Blowtorched On The JCP Cremation?

Tyler Durden's picture




 

Remember when Whitney Tilson praised every drop in the price of JC Penney stock as a gift from heaven, give or take? Well the gods really are generous to the Sharpe ratio 0.000 asset manager of over a hundred million in stock call equivalents, all of which are now deeply underwater. Because if Tilson liked JCP at $27 one short month ago, he must absolutely love it at $21 where it is today after collapsing over 10% overnight. After yesterday's announcement of the departure of the company's president, the stock is getting blowtorched and is now down to 2 year lows. Someone else who better be doubling down is retail "genius" Bill Ackman who is down $100 million on the stock today alone, and will need to seriously defend his these or, well, else. Who else is getting pulverized? See below.

 

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Tue, 06/19/2012 - 10:03 | 2539234 Conman
Conman's picture

Why didn't they build some Genius bars inside JCP. Or sell some iPants or iShoes.

OT: Got my Dow 13K hat ready again. weeeeee

Tue, 06/19/2012 - 10:10 | 2539249 junkyardjack
junkyardjack's picture

Those iPants need a keyboard in them so you can connect a tablet to it.  Revolutionary, I'll take 4,000....

New path of technology:

1) Take something that works well as is - Keyboard

2) Figure out how to break it - Make it out of cloth and flat so it is difficult to type on

3) Profit! or bankrupcy whichever comes first...

Tue, 06/19/2012 - 10:12 | 2539275 Buckaroo Banzai
Buckaroo Banzai's picture

<-- Last time in JCPenny was >5 years ago.

<-- Last time in JCPenny was <5 years ago.

Tue, 06/19/2012 - 10:18 | 2539296 fourchan
fourchan's picture

anyone who has set foot in a jcp knows its shortly going bankrupt.

Tue, 06/19/2012 - 10:33 | 2539349 Jay Gould Esq.
Jay Gould Esq.'s picture

Fidelity Investments always seems to find its way into the top five on these lists... 

There have also been several long-time Fido managers who have been "replaced" ( read: sacked ) in recent months; I, for one, do not believe in coincidence.

Tue, 06/19/2012 - 12:29 | 2539787 Bananamerican
Bananamerican's picture

"anyone who has set foot in a jcp knows its shortly going bankrupt."

I wouldn't know...I shop at Sears (Doh)

also, judging by the shrinking stock and staffing, Target seems to be getting a little JC around the edges these days...The Chinadigm...breaking down...the shit is, impossibly, getting shittier...the employees/shoppers faces of a piece...crushed, spent; as models beem lustily down from vivid posters in "low-thread-count-american-retro-chic-style" (remember amerika? you used to be so cool!)

Tue, 06/19/2012 - 13:19 | 2540008 John_Coltrane
John_Coltrane's picture

Yep, that's my thesis so its always nice to see see the rest of the market is starting to understand this.  Have been shorting and rolling JCP puts since back in April when it was just over $40.  Nice 462% profits today on my Aug 34 strikes, (originally, May 38 strikes) which I rolled down to 25, maintaining duration on bankrupcy thesis.

Other ones I'm short which are going to zero:  TSLA, FSLR, GRPN, ANR, and ZNGA, so its not too late to buy some puts on these losers, fellow ZH cynics.  Oh, and SHLD and RSH too, but might take a little longer on this one, I'm betting Sept duration should be sufficient to see maximum profits.  I bet a lot of people thought FSLR was a bargin at $30 too.  Bought my first puts on this one at $120 and have been rocking & rolling them ever since!  CdTe is as toxic as FSLR which makes films of it.

What do they all have in common:  Bad business model = bad investment.  QED

Tue, 06/19/2012 - 10:34 | 2539357 Saro
Saro's picture

I actually shopped there not too long ago just to check out their new pricing scheme.

When I brought my purchase to the counter, however, I discovered it had been mispriced on the rack.

You had one fucking job, JcP! Just one!

Tue, 06/19/2012 - 11:33 | 2539613 icanhasbailout
icanhasbailout's picture

and they all come with a UBD* port in the back

 

 

 

 

*universal banker dick

Tue, 06/19/2012 - 10:05 | 2539241 GeneMarchbanks
GeneMarchbanks's picture

The Morg. Excellent.

Tue, 06/19/2012 - 10:14 | 2539283 greyghost
greyghost's picture

jcp employee stock ownership plan down 36.5 million today. how much did the thief president walk away with??????? all we need now is the bain boys to move in padlock the doors and fire sale everything....clothes, fixtures, real estate and the cycle will be complete. get romney on the phone now!!!!!!! top 1% walk with millions....workers walk with a pink slip of paper.

Tue, 06/19/2012 - 10:42 | 2539389 FeralSerf
FeralSerf's picture

And the taxpayers walk with another big bill for UI and PBGC with fewer taxpayers to share the costs with.  Romney then magnanimously gives some of the loot to the Mormon Church (they call that "charitable") and voila -- no taxes for "Mittens".  They call this capitalism.  I call it grand theft.

They lie, they cheat, they steal and they kill.

Tue, 06/19/2012 - 13:21 | 2540020 blindfaith
blindfaith's picture

They are doing it for "god".  That ain't easy when the target " HE said" keeps moving, but the good part is the sheep can't read.

Tue, 06/19/2012 - 10:08 | 2539250 HelluvaEngineer
HelluvaEngineer's picture

Too bad every stock can't be CMG.

Tue, 06/19/2012 - 10:23 | 2539321 CPL
CPL's picture

Considering they bought Zellers a year ago and made some agreements to bring JCP to Canada to hock cheap chinese crap ...I wonder how that project is going now?

Tue, 06/19/2012 - 11:32 | 2539608 misnomer
misnomer's picture

that was Target that bought Zellers, but w/e, same shit, different pile.

Tue, 06/19/2012 - 10:08 | 2539252 HD
HD's picture

It's not down at two year lows...its just at the "everyday" low price!

Tue, 06/19/2012 - 10:09 | 2539255 michigan independant
michigan independant's picture

Tranche that artery bagholder

Tue, 06/19/2012 - 10:18 | 2539256 Cognitive Dissonance
Cognitive Dissonance's picture

I love the smell of financial napalm in the morning.

http://www.youtube.com/watch?v=vRp7tYWnJJs

It smells like..............victory. Some day this war's Ponzi's gonna end.

Tue, 06/19/2012 - 10:51 | 2539411 Tippoo Sultan
Tippoo Sultan's picture

It will exhaust itself eventually, CD, but for now...

"That's Charlie's beach !"

Tue, 06/19/2012 - 10:10 | 2539263 SHEEPFUKKER
SHEEPFUKKER's picture

Surely it's just a hedge for a corresponding position somewhere else on their books. 

Tue, 06/19/2012 - 10:46 | 2539404 FeralSerf
FeralSerf's picture

Yep -- probably a Texas hedge.  JPM does them too.

http://dictionary.reference.com/browse/texas+hedge

Tue, 06/19/2012 - 10:11 | 2539265 midgetrannyporn
midgetrannyporn's picture

inFidelity near the top again. they suck ass and not in a good way.

Tue, 06/19/2012 - 10:16 | 2539289 slewie the pi-rat
slewie the pi-rat's picture

i hear that!

LMFA0!

Tue, 06/19/2012 - 10:34 | 2539360 bigwavedave
bigwavedave's picture

they are always near the top due to their shear size and indexation requirements. dont take it as a stock pick. same for state street and barcap

Tue, 06/19/2012 - 11:02 | 2539432 midgetrannyporn
midgetrannyporn's picture

Disagree. It is a stock pick the same way AAPL is a stock pick. Index funds alone don't amass 15M shares. JCP was in every fund they have.

Tue, 06/19/2012 - 10:18 | 2539299 duo
duo's picture

JCP caters to the middle class which is disappearing!.   Dollar General on one end and Nordstrom on the other end will survive.  Any retailer that rakes in EBT will survive, also, like WMT.  Targets that don't sell food will be history soon.

Tue, 06/19/2012 - 10:21 | 2539309 RobotTrader
RobotTrader's picture

That Ackman guy has 9 lives.

 

He reminds me of that pompous, self-righteous, well groomed guy in high school who always got straight A's.

Ackman has that "halo" around him, stupid investors will keep following his ideas no matter how many mistakes he makes.

Every time he appears on CNBC, he always sounds so certain, so correct, and that royal snobbiness he displays always appeals to the Bessemer Trust crowd.

Tue, 06/19/2012 - 10:55 | 2539428 Stoploss
Stoploss's picture

Everything Bill Ackman touches, turns to shit... There is a trail for all to see, this is no different.

So humorous to watch fiat thrown down the shithole by the master of all that is fucked up in man.

And they keep coming back for more, with some other hapless fool's 401K contribution LOL!!

Tue, 06/19/2012 - 10:21 | 2539310 Blue Horshoe Lo...
Blue Horshoe Loves Annacott Steel's picture

If they wanted to see how poor an investment in JCP was, go to one of their crappy stores.  These fund managers sit in fancy offices - go to talk to the people on the street that actually shop in the stores.  JCP's an upscale Sears.  They all sell the same crap from China.

Tue, 06/19/2012 - 10:22 | 2539314 slaughterer
slaughterer's picture

Bill is selling his AAPL to buy more JCP today.  

Tue, 06/19/2012 - 10:23 | 2539319 slaughterer
slaughterer's picture

Time to pull the plug on JCP and sell the bits and pieces to Eddie Bauer.  

Tue, 06/19/2012 - 10:38 | 2539372 hedgehog9999
hedgehog9999's picture

They are toast and they deserve it!!! a dropping employment picture and an increasing number of foodstamps people not to mention the trend to low cost stores etc has sealed ther fate.

Average incomes on an inflation adjusted basis for the middle class which is ther main market have actuall stayed flat or gone down in the last 10 years, so they'll buy cheap stuff bloated JCP is not known for.............

Tue, 06/19/2012 - 10:48 | 2539403 El Oregonian
El Oregonian's picture

Happy "(two)Father's Day" and "(two)Mother's Day" JC Pennys. Your NEW target audience (.015% of the population) at the expense of the 78% traditional family values customers who, in protest, will take their business elsewhere and you will now not be able to drag your mis-guided policy and adverising department out of your financial death-spiral. Please have the janitors do a nice job cleaning and buttoning up once your stores are shuttered.

Tue, 06/19/2012 - 10:54 | 2539425 zrussell
zrussell's picture

Absolutely!  The onemillionmoms and other orgs have teeth. They (JPM) don't exist for us any more. Hope other retailers get the message and quit listening to the deceiving MSM and bending to pressure from these "groups".

Tue, 06/19/2012 - 10:48 | 2539408 BlueStreet
BlueStreet's picture

Eddie is somewhere licking his chops this morning thinking 'opportunity.'

 

 

Tue, 06/19/2012 - 11:09 | 2539476 otto skorzeny
otto skorzeny's picture

MyGopher-what a joke- there is one by us and I have never seen 1 car in the parking lot. More of  Eddie the Yid's brilliance. At least the State of Illin' gave Sears Holdings a huge tax break right before they axed a bunch of employees

Tue, 06/19/2012 - 11:08 | 2539472 Milstar
Milstar's picture

I agree the CEO's concept sounded great, turn JCP into the Walmart (everyday low prices) and get rid of the BS sales that aren't really sales because they have such a silly original price.  Every week I go in Kohls to see this BS done.  I guess sheeple really do believe that kind of desceptive marketing and makes them feel good buying a tee shirt for 20.00 marked down from 40.00.

Tue, 06/19/2012 - 12:00 | 2539739 cornflakesdisease
cornflakesdisease's picture

Ah yes, Billy Ackerman.  I remember how he lost his shirt on his Target-O-rama strip down of their real estate.  I made a good bit on that one taking the other side of the bet.

It's beautiful because Ackerman has lost his client a really really lot of money in the last decade.

Tue, 06/19/2012 - 13:13 | 2539946 jmc8888
jmc8888's picture

Wardrobes have a range.  Most people buy what they want for X price, and then fill the rest up with cheaper shit.  JCP is one of those places for the latter.  There is a market for this sector, but they are competing with many others. They sell some cheap clothes made by the hard working indigenous people of, somewhere.  $15 cargo shorts.  $12 on special.  $7-12 novelty and trendy shirts.  $6 plain (or almost plain) shirts.

One could say that is part of the solution.  Or if that is below costing, then part of the problem.   If that is above cost, then they really need to get the word out somehow.  They got some really cheap clothes, and the selection ain't bad.  At least for men's stuff. 

They should have advertised better.  Like 'Our regular price is 30 percent less than X'.  Then the idiots geared by percent off can see that and you are speaking their language.  Though this is something that is going against the wind, and naturally would take longer to rub off since EVERYBODY does it the other way.  They really needed to pound the pavement and expand their advertising medium beyond just the Sunday newspaper ad.   This is the sort of change that needs a deep pentrating campaign to change.  If the plan is to change so radically, because this pricing scheme is (even if it isn't to normal minded people) so radical, the justification to increased advertising cost should of been there. 

I agree with most/all the themes of where we are in relation to import retailers (obviously) but somehow I think JCP could have been doing better if it was run by people who weren't incompetent.   When everything breaks down, well all bets are off on any store.   Given the situation they're in, everyone knows they're on the short list of destruction.

Glass-Steagall

Tue, 06/19/2012 - 14:25 | 2540275 Jon Bong Jovi
Jon Bong Jovi's picture

JCP can't compete on the apparel front anymore. All the Forever 21's, Uniqlo's, Zara's, H&M's beat them on the fashion front. JCP is irrelevant as a retailer. The only value left is their real estate.

 

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