Doug Kass fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- How the term winner can depend on the vantage point.
- How J.C. Penney is doing.
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Here are some value added contributions on our site today:
Speaking of retail, as I do at length in my opener, there is a lot of interest in J.C. Penney (JCP) based on frequent discussion in our Comments Section.
After the close of trading Monday, J.C. Penney announced the abrupt departure of its CFO. Needless to say, the quick exit of a CFO is usually a worrisome development; it is almost never a good thing.
The move surprised the Street.
JCP always has been far above the pack on investor relations and I think it is significant that an earnings change was not made concurrent to the CFO announcement. But, that is the only positive I can find.
It should be noted that a major credit agreement was inked in late June. The stock traded off only slightly on Monday, but with a market cap of less than $1.3 billion that is hardly a cause for cheer.
Hopefully, further details will be forthcoming.
The bond and credit markets probably will be helpful in providing trading clues on JCP. Given the interest expressed, I certainly will be mining them.
From my perch (I took my relatively small loss earlier in the year at higher prices), the disruptions in retail delay the investment case (read: deleveraging) for the company. That said, the $4 price is an option on survivability of the retailer.