Friday Feb 23, 2012
JC Penny recorded a loss as it ramps up for Ron Johnson's re make of its stores. Johnson was hired from Apple and promises big changes. But Fitch downgraded JCP debt to junk as a result of losses and well more debt. JCP is selling at a much higher multiple than Kohls. Here is the story at Forbes.
Meanwhile Lampert will shed 1200 small Sears SHLDppliance stores. This will spin those traditional 'catalog' stores off in a separate offering aimed to raise cash. My take? Lampert is selling the small stores because no one will buy the big ones. I suspect the small stores, independently operated are a better bet than the large ones. They mainly sell toos and applicances, the bedrock of the old Sears. Lampert has tried to run a retail chaine like a hedge fund. He has gone thru numerous managers and CFOs. Buying back the stock does decrease shares outstanding but it fails to get anyone in the store.
Target is making money.
Fuller Brush filed for Chaper 11 BK.
I suggested becoming an expert on an industry, retail would be a good one to focus on.
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