In the last few months, numerous billionaire investors have
clearly divided on the fate of iconic department store J.C. Penney
Co. Inc. (
). Joining six other billionaires selling out, Guru
sold out his embattled position of over 39 million shares.
Meanwhile, three more gurus made new buys in the second quarter of
2013, and four gurus made call options. In August, two guru
stakeholders upped their shares significantly, and in the first
week of September,
made a splash buying 11,428,450 JCP shares.
Encouraged by his company's back-to-school sales, Myron E. (Mike)
Ullman III, chief executive officer of J.C. Penney, said last
month, "Since I returned to J.C. Penney four months ago, we have
moved quickly to stabilize our business - both financially and
operationally - and we have made meaningful progress in important
areas of the business. There are no quick fixes to correct the
errors of the past. That said, we have identified the challenges,
put solid plans in place to address them and have experienced and
capable people in key roles to do so."
J. C. Penney Company Inc. reported financial results for its fiscal
second quarter ended August 3, 2013: Net sales of $2.66 billion
compared to $3.02 billion in the fiscal second quarter of 2012.
Comparable store sales declined 11.9% in the quarter. Comparable
store sales for the quarter improved sequentially by 470 basis
points when compared to the first quarter of fiscal 2013. Gross
margin was 29.6% of sales, compared to 33.2% in the same period
last year. During the quarter, the company enhanced its liquidity
by entering into a $2.25 billion senior secured term loan facility.
The company also paid $355 million to complete a cash tender offer
and consent solicitation with respect to substantially all of its
outstanding debentures due 2023. This resulted in reducing earnings
per share by $0.52, according to a company press release.
Here's a summary of the recent prolific trading by billionaire
J.C. Penney Co. Inc. (
Down 53% over 12 months, J.C. Penney Co. Inc. has a market cap of
$3.03 billion; its shares were traded at around $13.54 with a P/B
ratio of 1.30.
Guru Action: As of August 27, 2013,
sold out his position after a long battle. In five quarters of
losses, he averaged a loss of 53% on 39,075,771 shares bought at an
average price of $28.90.
GuruFocus coverage on Ackman
Selling out his JCP holding, Bill Ackman joins Tom Russo, Chase
Coleman, Hotchkis & Wiley, Dodge & Cox, Whitney Tilson and
Ruane Cunniff, all of whom sold out as of June 30, 2013.
As of June 30, 2013, Steven Cohen, George Soros, Whitney Tilson and
Louis Moore Bacon made call options on their JCP holdings.
In the second quarter of 2013, new buyers included Chuck Royce,
George Soros and Richard Perry.
In August, two gurus added to their positions:
With 9.1% of shares outstanding or 20,060830 current shares, Larry
Robbins increased his position by 137.9%, as of August 22, 2013. He
has averaged a loss of 37% on 9,554,297 shares bought at an average
price of $21.76. Selling 1,122,418 shares at an average price of
$16.83, he has averaged a loss of 18% over four quarters of
New buyer in the second quarter, Richard Perry upped his stake by
58.33% as of August 30, 2013. He now holds 8.63% of shares
outstanding or 19,000,000 shares.
Most recently, Kyle Bass made a new buy of JCP as of Sept. 3, 2013,
buying 11,428,450 shares at around $12.72 per share. The current
share price is $13.74. This buy impacts the Bass portfolio by
Track historical share pricing, revenue and net income:
Citing the value of customer loyalty, JCP's CEO Mike Ullman said,
"Moving forward, we're focusing our efforts on regaining customer
loyalty by offering trusted brands, award winning service and
affordability that families can depend on. We are encouraged by our
early performance this Back to School season, which reflects
customers' growing confidence in the brands and styles we offer.
Our associates across the country are working tirelessly to serve
our customers and I am proud of their efforts."
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