NEW YORK (TheStreet) -- J.C. Penney (JCP) shareholders have had a volatile 2013. Unfortunately, it might not be over anytime soon. Breaking down the current outlook is TheStreet's Lindsey Bell and The Deal's Paula Schaap.
The drama continues: Activist investor Bill Ackman, founder and CEO of Pershing Square, sent two letters to the board of directors last week that went public.
Schaap says Ackman's "temper tantrum" is very unlike him, as he is usually very measured in his approach. She adds that his actions are becoming more like Carl Icahn's, another hedge fund manager.
While Ackman was successful when he first took a position in J.C. Penney, which has now ballooned to 18% of the stock, he is currently underwater.Under his persuasion, Mike Ullman was removed as CEO and Ron Johnson of Apple (AAPL) replaced him. After that, however, the move proved unsuccessful, as Ullman later replaced Johnson in early 2013. Bell added that Johnson isn't a true retailer, despite his success with Apple's own retail stores. For a department store like Penney's, a true retailer needs to be at the helm. Ullman is known for solid balance sheet management and having great relationships with suppliers, which allowed the stock to rally upon his return. There have been talks of Allen Questrom, the former CEO of J.C. Penney, or Ken Hicks, the current CEO of Foot Locker (FL), becoming the new CEO for J.C. Penney. The stock made new 52-week lows on Friday.
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