JCP: The Ackman Short

We have long considered investor Bill Ackman’s investment in JCPenney (JCP) a bad trade to say the least. Going against Ackman and shorting JCP is a trade worth considering, but not at these levels. Currently, JCP is the only retailer that has a Sentiment Score below 10 (on a scale of 100). This extremely bearish sentiment is all the more reason why you shouldn’t short JCP when it’s in the teens - it’s a bullish signal.  But those who want to get long JCP are really putting their faith in CEO Ron Johnson flawlessly executing on his 2013 game plan. That’s a Hail Mary if we ever saw one. 

 

 

JCP: The Ackman Short - JCP1

 

 

The complete transformation of JCP stores is going to take some time and in turn, the company will likely miss near-term targets in favor of long-term results that work. Make no mistake about it: Johnson is in this for the long haul, especially with his stock warrants being worthless while the stock is below $29 a share. While it seems easy to short JCP, you won’t want to do it with the stock trading in the high-teens unless you're making 'the bankruptcy call'. That might come to fruition, but not in 2013. 

 

JCP: The Ackman Short - JCP3


Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more

A 'Toxic Cocktail' Brewing for A Best Idea Short

The first quarter earnings pre-announcement today is not the end of the story for Mednax (MD). Rising labor costs and slowing volume is a toxic cocktail...

read more

Energy Stocks: Time to Buy? Here's What You Need to Know

If you're heavily-invested in Energy stocks it's been a heck of a year. Energy is the worst-performing sector in the S&P 500 year-to-date and value investors are now hunting for bargains in the oil patch. Before you buy, here's what you need to know.

read more

McCullough: ‘My 1-Minute Summary of My Institutional Meetings in NYC Yesterday’

What are even some of the smartest investors in the world missing right now?

read more

Cartoon of the Day: Political Portfolio Positioning

Leave your politics out of your portfolio.

read more