This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple Should Think About Ron Johnson

NEW YORK ( TheStreet) -- Former J.C. Penney (JCP - Get Report) CEO Ron Johnson is looking for work after having been ousted at the retailer due to poor performance, horrendous sales figures, a slumping stock price, and a consumer that may or may not come back. What better place to return to glory than the place that made him famous: Apple (AAPL - Get Report).

Johnson was relieved of his duties Monday evening, as shares slumped some 50% at J.C. Penney since he took over. Johnson's plan was to turn the Plano, Texas-based retailer into a mall-within-a-mall concept, taking unused square footage and setting up specialty shops, breaking the traditional department store model.

This was a grand and ambitious plan from the start. Johnson, however, confused, and in some cases, alienated, J.C. Penney's core customer by taking away coupon's and muddling the company's message. The company's most recent earnings report demonstrates that, with revenue declining 30% year over year. The share price year-to-date says even more, with the stock declining 19.5%, compared to a near 10% gain in the S&P 500.

If Apple Hires Ron Johnson, I'll Buy a PC

Despite concerns about his plan and a seemingly never ending falling share price, Johnson is still an intelligent retailer, having helped design the Apple Stores you see today, and shaping Target (TGT - Get Report) before that. Apple CEO Tim Cook is looking for a new head of Apple Retail, now that John Browett has been relieved of his duties. Cook admitted that Browett was a mistake, and since October he has been actively looking for a candidate to lead Apple's retail stores.

Johnson worked with then-CEO Steve Jobs to create Apple's stores, which Cook has said in the past is the key to Apple's success. Jobs is no longer there, and the shine is off Johnson, so this would be a different situation than building from the ground up. An appointment of Johnson by Cook could even become a lightning rod for Apple, which has received its fair share of criticism in recent months. From concerns over product innovation, to a slumping stock price (sound familiar J.C. Penney investors?), Apple has been left in the dust in the minds of certain investors.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $122.37 -0.50%
GOOG $632.59 0.10%
JCP $8.26 -0.36%
TGT $81.93 0.11%
FB $95.21 -1.84%

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,108.63 +0.06 0.00%
NASDAQ 5,128.7850 +17.0520 0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs