JC Penney (JCP, Financial) made a big move this week bringing in a new CEO who Bill Ackman calls "the most impressive CEO he has ever seen."
Tilson was on CNBC and went into some detail including a chat he had with Ackman.
Key point on valuation is that JCP is trading at 5.5X EBITA while most retailers are closer to 8X. Now they also have the optionality that a great CEO might bring.
http://www.cnbc.com/id/43396074
”Bringing in the best retailing guy on the planet bar none is a nice surprise,” says Tilson.
”Apple sales $4,355 per square foot," he explains. That's 28 times JC Penney’s $153 per square foot. “They’ve really got a superstar.”
And top JCP shareholder and hedge fund manager Bill Ackman contacted Tilson from Europe to tell him, “Ron Johnson is the most impressive CEO [he has] ever seen.”
And that leads to the obvious question – is the stock a buy at current levels?
”I think it’s a better buy today then yesterday,” says Tilson. “I hate buying into big rallies but I’m looking hard at adding to my position.”
Tilson was on CNBC and went into some detail including a chat he had with Ackman.
Key point on valuation is that JCP is trading at 5.5X EBITA while most retailers are closer to 8X. Now they also have the optionality that a great CEO might bring.
http://www.cnbc.com/id/43396074
”Bringing in the best retailing guy on the planet bar none is a nice surprise,” says Tilson.
”Apple sales $4,355 per square foot," he explains. That's 28 times JC Penney’s $153 per square foot. “They’ve really got a superstar.”
And top JCP shareholder and hedge fund manager Bill Ackman contacted Tilson from Europe to tell him, “Ron Johnson is the most impressive CEO [he has] ever seen.”
And that leads to the obvious question – is the stock a buy at current levels?
”I think it’s a better buy today then yesterday,” says Tilson. “I hate buying into big rallies but I’m looking hard at adding to my position.”
