NEW YORK (TheStreet) -- The drama continues to play out between hedge fund manager Bill Ackman and J.C. Penney (JCP). TheStreet's Jim Cramer and Debra Borchardt examine how Ackman is affecting the stock price.
All of the board changes that Ackman is calling for is beginning to get ridiculous. Cramer added that the fundamentals for the company are deteriorating rapidly, as sales continue cascading lower.
He added that same-store sales growth is the key statistic to watch and that "very rarely is anyone able to turn around a dramatic slide like Penney's."
Howard Schultz, CEO of Starbucks (SBUX), told Cramer that Ackman was demonstrating a lack of decency and humanity.Cramer went on to say that he felt bad for the 100,000 employees at J.C. Penney's, who are all being affected by a guy trying to make his quarter. Retail is hard, because when customers leave, they generally do not come back. While Penney's alienated its customers, they found shopping at other retailers like Macy's (M) and Target (TGT). It will be difficult to lure them back. Cramer concluded that Ackman should simply take his loss on the position and move on.
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