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Stock Market & Financial Investment News

News Breaks
January 28, 2014
08:37 EDTJCPJ.C. Penney amends stockholder rights plan to protect tax benefits
J. C. Penney announced that its board of directors has acted to protect the company's valuable net operating loss carryforwards, or NOLs, by amending and extending the company's existing stockholder rights plan. The company has over $2B in NOLs, which can be used in certain circumstances to offset future taxable income and reduce federal income tax liability. The company's ability to use its NOLs would be substantially limited if an "ownership change" under Section 382 of the Internal Revenue Code were to occur. Ownership changes under Section 382 generally relate to the cumulative change in ownership among stockholders with an ownership interest of 5% or more over a rolling three year period. The amended rights plan was adopted by the Board to reduce the likelihood of an "ownership change" occurring. The amendments to the company's rights plan include extending the plan's expiration date from August 20, 2014 to January 26, 2017, and lowering the beneficial ownership threshold for a person or group to become an "acquiring person" under the plan from 10% to 4.9%. Under the amended rights plan, if any person or group acquires 4.9% or more of the outstanding shares of common stock of the company without the approval of the Board of Directors, there would be a triggering event causing significant dilution in the ownership interest of such person or group. However, existing stockholders who currently own 4.9% or more of the outstanding shares of common stock will trigger a dilutive event only if they acquire additional shares, subject to specified exceptions. The purpose of the amended rights plan is to protect stockholder value by preserving the company's ability to fully use its NOLs and the amended rights plan is similar to plans adopted by other public companies with significant net operating losses, J.C. Penney said.
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October 8, 2014
12:25 EDTJCPOn The Fly: Midday Wrap
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12:04 EDTJCPJ.C. Penney now sees Q3 SSS in low single digit range
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12:04 EDTJCPJ.C. Penney announces growth initiatves for 2015-2017
At its 2014 analyst meeting in New York City today, J. C. Penney Company presented its plans for restoring sustainable profitable growth at the Company over the next three years."JCPenney is in a far stronger position today than it was when we began our turnaround effort 18 months ago. While we recognize that there's more work to be done in a highly competitive retail environment, I couldn't be more encouraged by the significant progress our teams have made in such a short amount of time," said Myron E. Ullman, III, CEO. "I am confident that the initiatives we are putting in place will fuel new growth and earn greater customer loyalty as we pursue our vision to become the preferred shopping choice for Middle America." The Company is focused on attracting a new and younger customer by investing in popular in-store attractions that can only be found at JCPenney. To that end, the Company announced the expansion of its highly successful partnership with Sephora, as the companies have agreed to open additional Sephora inside JCPenney locations through 2017, entering new and smaller markets as the first major beauty destination in town. The Company also provided financial performance goals that include achieving $1.2 billion in EBITDA in 2017. This reflects expectations for top line improvements associated with incremental growth potential, as well as continued market share gains in its underlying business, which represents a $3.5B sales opportunity. Of that amount, the Company conservatively expects to realize approximately $2B in incremental sales over the next three years, resulting in mid-single digit sales growth during that period.
11:41 EDTJCPJ.C. Penney says store base count 'roughly' where it needs to be
Says evaluating stores to see if EBITDA accretive. Says "disciplined" regarding promotions. Says won't risk margin over promotions. Says Apple (AAPL), Samsung (SSNLF), Amazon (AMZN) taking "chunk" out of consumer spending. Sees returning to 37%-39% gross margins over time.
11:10 EDTJCPOptions with increasing implied volatility
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11:10 EDTJCPJ.C. Penney says succession planning remains 'top priority'
Sees SG&A dollars "roughly flat" over next three years. Sees CapEx averaging $250M-$300M per year.
11:06 EDTJCPJ.C. Penney says expects to be free cash flow positive in FY14
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11:05 EDTJCPJ.C. Penney falls 6%, halted for circuit-breaker after providing guidance
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11:03 EDTJCPJ.C. Penney now sees Q3 SSS up low single digits vs. previous guidance
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11:01 EDTJCPJ.C. Penney says has seen slow down in sales in September
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11:00 EDTJCPJ.C. Penney reaffirms all FY guidance metrics
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10:59 EDTJCPJ.C. Penney sees $14.5B in total sales by 2017
CFO Ed Record says focused on restoring profitability. Says since 4Q13, has had three straight quarters of sales growth. Sees opportunities to improve SG&A and gross margin. Sees $3.5B sales growth opportunity over next three years: Sees continued share growth a $1M opportunity over three years, center core a $1M opportunity, home store a $750M opportunity, omnichannel a $800M opportunity. Sees $1.2B EBITDA growth opportunity over next three years. Sees sales growth in mid single digits through 2017. Free cash flow over next three years "at least" $600M. Comments made at J.C. Penney's Analyst Day.
10:33 EDTJCPJ.C. Penney says seeing "significant" shift to mobile
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10:25 EDTJCPJ.C. Penney says home is $750M growth opportunity
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09:20 EDTJCPJ.C. Penney says will expand Disney stops in stores to 680 from 500
09:20 EDTJCPJ.C. Penney CEOsays will open more Sephora shops in store
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09:20 EDTJCPOn The Fly: Pre-market Movers
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08:18 EDTJCPJ.C. Penney CEO Ullman says customers remain cautious
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October 7, 2014
13:04 EDTJCPJ.C. Penney to host analyst day
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10:13 EDTJCPJ.C. Penney volatility increases into company hosted analyst day
J.C. Penney October weekly call option implied volatility is at 118, October is at 72, November is at 57, January is at 55, February is at 53; compared to its 26-week average of 54 according to Track Data suggesting large near term price movement into a company hosted analyst day event on October 8.
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