JCP (Update)

JC Penney Co Inc

Consumer


Presented:03/20/2015
Price:$7.70
Cap:$2.35B
Current Price:$0.13
Cap:$0.04B

Presented

Date03/20/2015
Price$7.70
Market Cap$2.35B
Ent Value$6.45B
P/E RatioN/A
Book Value$6.28
Div YieldN/A
Shares O/S304.90M
Ave Daily Vol13,700,000
Short Int30.24%

Current

Price$0.13
Market Cap$0.04B
J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., sells merchandise through department stores in the United States. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings, as well as provides various services, including styling salon, optical, portrait photography, and custom decorating. As of February 26, 2015, it operated approximately 1,060 stores. The company also sells its products through its Website, jcp.com. J. C. Penney Company, Inc. was founded in 1902 and is based in Plano, Texas.

Please note, this is an update to Short – J. C. Penney Company, Inc. (JCP) presented on 9/10/2014 which is also an update to Short – J. C. Penney Company, Inc. (JCP) originally presented on 3/3/2014.

Publicly traded companies mentioned herein: J. C. Penney Company (JCP), Macy’s (M), Kohl’s (KSS) and Home Depot (HD).

Highlights

Currently trading at around 20 times EBITDA, the presenter continues to be short shares of JC Penney. In her opinion, JCP is highly unlikely to do better than the department store average over the next couple of years. The company has already cut expenses to the bone, and it is likely to lose online share. Even assuming 3.5% comp growth this year, 100 bps of gross margin improvement and a $100 million reduction in SG&A, the presenter calculates negative EPS next year, or minus $1.50 per share. The stock could ultimately trade as low as $3 per share.

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