All rights reserved. Penney experience what I should have done is short the entire sector. That would have been a smart move. You, like me , and many others were wrong about our assessment of the department store industry.
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All rights reserved. Penney experience what I should have done is short the entire sector. That would have been a smart move. You, like me , and many others were wrong about our assessment of the department store industry. Activist investors are supposed to be change agents, those prickly people who force CEOs and their boards to be uncomfortable. If done well activist investing can be transformative for those companies on the receiving end of said activism. The 64 slides were meant to persuade investors that the turnaround CEO Ron Johnson was executing would deliver significant results down the road.
Many things stand out from that presentation in that Ackman and anyone else hopeful of a better future for JCPenney might have viewed differently. NYSE: M. CEO Ron Johnson assembled a group of executives at JCPenney whose resumes were filled with all kinds of accomplishments at successful companies, some of them even retail. Including Johnson, you had four top executives who were brought in from Apple Inc. After all, what was trendier then Apple? You could still ask that same question today.
Retail in , square foot boxes is all about merchandising, presentation and pricing. I, along with Ackman, missed the fact that what JCPenney really needed were two people: a great merchant and a solid real estate expert. Together, they could have sliced and diced the stores into a more profitable footprint. It harkens back to my childhood watching the original Miracle on 34th Street and thinking how cool it would have been to be Mr.
I wonder if Marvin Ellison felt that way about the movie? Yes, in hindsight, it would have been a great short. As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. Premium Services Newsletters. Sign out. About Us Our Analysts. Compare Brokers. More from InvestorPlace. Sponsored Headlines. Subscriber Sign in. Sign in. Having trouble logging in?
Here's Bill Ackman's Huge Presentation On His Favorite Investment Right Now
Last week we posted up notes from the Ira Sohn Conference including a summary of the Pershing Square founder's talk on J. He also highlights that the dividend cut has caused forced selling by yield investors. Embedded below is Bill Ackman's slideshow presentation on J. Penney from the Ira Sohn Conference: You can download a. Be sure to check out the rest of the notes from the Ira Sohn Conference where tons of big-name hedge fund managers presented.
Ackman Was Wrong: J C Penney Company Inc Stock Always Was a Short
Bill Ackman still loves JC Penney. But investors are nervous that too many consumers are walking out without spending too much. Hedge fund manager Bill Ackman has been in the news a lot this week for his attack against nutritional supplement company Herbalife HLF , which Ackman is shorting because he believes it is a pyramid scheme. But one of Ackman's other prominent investments is tanking
Should Ackman short JCPenney instead?