Investor Beat: J.C. Penney's big move

Shares of the retailer plunge after the company fires its CEO.

By Motley Fool Investor Beat Apr 9, 2013 5:16PM
Shares of J.C. Penney (JCP) fell more than 12% on Tuesday.   On Monday,  the retailer announced CEO Ron Johnson would be replaced by former CEO Myron E. "Mike" Ullman III.  Johnson gets the axe after only 17 months in the top spot.  Why was the former Apple retail guru unable to turn J.C. Penney around?  Was Johnson dealt a bad hand or did he just play it poorly? What can Ulman do to reverse the retailer's fortunes?  In our lead story for Tuesday's Investor Beat, our analysts discuss the future of J.C. Penney.
 
Shares of Level 3 Communications (LVLT) rise after Deutsche Bank initiates coverage with a buy rating.  Trading in Herbalife (HLF) is halted after the company’s auditor resigns.  Cliffs Natural Resources (CLF) gains ground on the news that inflation in China is slowing.  And Starwood Property Trust (STWD) declines after the real estate company announces a secondary stock offering.   Our analysts discuss some of the day's big movers and shakers.
 
And in our final segment,  our analysts explain why they're watching Family Dollar (FDO) and CarMax (KMX).

9Comments
Apr 9, 2013 5:54PM
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I would shop there again if they brought back St Johns bay for women. What they replaced it with is cheaply made trash.

They pissed off their core customers and they need to suck up to them now.

Apr 9, 2013 5:52PM
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Price, quality, service, choose any two was the old way.  Now it's choose one...
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In this market, you may not be able to have quality and service to fall back on.  It most likely is just price.....period.
Apr 9, 2013 8:25PM
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I'm actually sorry to see him go. While he scuttled that iconic retailer, arbitragers were able to buy up the good stock at dollar store prices, far less than wholesale!
Apr 9, 2013 5:48PM
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Who the heck really cares about this continuing JCPenny story.  They failed already, let's move on.
Apr 9, 2013 6:27PM
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Let's see, we (JCP) is a family store, so lets have a lesbian be our spokesperson.  The public will relate to that, if not we'll get Jerry Sandusky to be our spokesperson for the boys department and if that doesnt work we'll have Rosie ODonnell for our childrens department.  Yeah, that's the way to build market share us the complete opposite of the customer we want to promote our products.  We'll have that one model with the eating discorder promote our cookware too.
Apr 9, 2013 6:15PM
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just sell fresh pecan pies.  that is what the public wants.  not stupid clothing and shoes.  pecan pies are the answer.
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