Remember when one after another JCPenney executive lined up earlier today, mostly using that damage control TV outlet known as CNBC, to promise that JCP does not, repeat not, need emergency public equity funding?
Here is CNBC explaining the news... that no capital is needed...
Well, guess what. They lied. Is this criminal? Surely the SEC will get involved immediately.
- J. C. PENNEY ANNOUNCES PROPOSED PUBLIC OFFERING OF COMMON STOC
- J. C. PENNEY COMMENCED PUBLIC OFFERING OF 84 MILLION SHARES
And the punchline:
- JC PENNEY TO OFFER SHARES VIA GOLDMAN SACHS
Yep: the same firm that just killed JCP two days ago [7], is now diluting the stock some more.
[8]
Oh and yes. Remember what we pointed out on Tuesday [7]:
Before we get into the nuances of the report (which for those who have read our extensive coverage on the name will be nothing new), here are some of the more amusing, and confusing, aspects of the Disclosure section:
- Goldman Sachs beneficially owned 1% or more of common equity (excluding positions managed by affiliates and business units not required to be aggregated under US securities law) as of the month end preceding this report: J.C. Penney Company
- Goldman Sachs expects to receive or intends to seek compensation for investment banking services in the next 3 months: J.C. Penney Company
We now know just what services.
From the press release:
J. C. Penney Company, Inc. (NYSE: JCP) (the “Company”) announced today that it has commenced an underwritten public offering of 84.0 million shares of its common stock. The Company intends to use the net proceeds from the offering for general corporate purposes.
The Company intends to grant the underwriters a 30-day option to purchase up to an additional 12.6 million shares of common stock. The Company’s common stock is listed on the New York Stock Exchange under the symbol “JCP.”
So add 96.6 million shares to the existing 220.6 million shares outstanding and you get 44% dilution.
Adding insult to monkeyhammering, JCP just lost its Controller.
J.C. Penney Co Inc (JCP) said on Thursday that Mark Sweeney has left the company after serving as senior vice president and controller for just over a year, and that it has named Dennis Miller, who was controller before Sweeney, as its interim principal accounting officer.
The department store operator, which is under pressure to improve its business quickly, did not say why Sweeney left Penney on September 20. He was appointed controller on September 5, 2012.
Miller, 60, currently oversees Penney's shared services center in Salt Lake City and was Penney's senior vice president and controller from June 3, 2008 until September 5, 2012.
Luckily, worthless companies do not need a controller.
Finally, for everyone who still doesn't get it, here it is again from April:
JCP endgame: look at Linens 'n Things circa late 2007
— zerohedge (@zerohedge) April 15, 2013 [9]