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Business, Finance, Occupation & Industry

21 Reasons No One May Be Selling J.C. Penney Stock

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By 24/7 Wall St.

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CNBC reported a rumor that a block of J.C. Penney Co. Inc. (NYSE: JPC) stock was for sale, with the transaction represented by Deutsche Bank. The Wall Street Journal claims the seller is Vornado Realty Trust. Its chief, Steve Roth, sits on the J.C. Penney board. But the facts have not been confirmed and may be wrong for several reasons.

The first set of potential mistakes centers around which shareholder may be the seller. Apparently seven shareholders have enough stock to dump the 10 million shares in question. These include Vornado, Pershing Square — which is J.C. Penney’s largest shareholder and a firm controlled by J.C. Penney board member Bill Ackman — and Dodge & Cox. Under any circumstance, it would be odd that a board member, in this case Roth, would so publicly break with the company and continue to be a board member.

What also may or may not be true is the price at which the shares are being sold. Media reports put that amount at $16.40 to $16.60 a share. That number could be off for a number of reasons, not the least of which that J.C. Penney shares dropped below $16 after hours yesterday. If Vornado, or any other shareholder, wants to dump a large block, it will not be at $16.60

Finally, Deutsche Bank may not represent the seller of the shares. Journalists covering the rumor may have missed the fact that several investment banks have may have joined in an effort to peddle the shares. Or, if the shares are not for sale, no investment bank is involved at all.

The J.C. Penney rumor is similar to others that race around Wall St. fueled by the media. News outlets want to be early to market with “news” which, in the haste, may turn out to be no story at all. Perhaps some portion of the story is correct, but most of the facts are not.

Filed under: 24/7 Wall St. Wire, Corporate Governance, Rumors Tagged: JCP

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Who Owns SunTrust Banks?

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By John Maxfield, The Motley Fool

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When it comes to investing, going with the crowd will rarely — if ever — make you rich. If your objective is to buy low and sell high, then, in the words of Warren Buffett, you must be “greedy when others are fearful and fearful when others are greedy.” This is the foundation of contrarian investing.

But there’s a twist. To be a contrarian investor, you must first know what to be contrary to. And this is where the SEC‘s invaluable EDGAR database comes in. Every quarter, companies and large institutional investors are required to disclose their equity holdings. By patching these together, we can get a fuller picture of a particular stock‘s popularity.

What follows, in turn, is a look at the principal owners of SunTrust Banks‘ outstanding common stock.

A broad overview
As you can see in the following chart, the majority of SunTrust’s 532 million shares are held by institutional investors. Company insiders, including board members and corporate executives, own a further 0.35% of the outstanding common stock. And the public at large owns the remaining 16%.

Source: S&P’s Capital IQ.

Institutional investors
Digging in a big further, the largest institutional stakeholders in SunTrust are bond giant BlackRock, the asset management division of State Street, T. Rowe Price Group, The Vanguard Group, and Dodge & Cox.

Source: S&P’s Capital IQ.

The largest buyers have been Franklin Resources and Cramer Rosenthal McGlynn, which have recently acquired 6.8 million and 3.2 million shares of common stock, respectively. Meanwhile, the two largest sellers of late have been Goldman Sachs and T. Rowe Price Group, which have disposed of 5.7 million and 3.7 million shares, respectively.

Biggest insiders
Turning to inside investors, the largest inside owner is James Wells III, the former CEO, followed by a pair of directors. The bank’s current CEO, William Henry Rogers Jr., is fourth on the list with 111,245 shares.

Source: S&P’s Capital IQ.

The Foolish bottom line
While insider and institutional ownership together represent only one metric, it’s nevertheless an important one. Beyond hinting at the overall market‘s sentiment toward a stock, it also gives investors insight into the confidence of the people best positioned to predict a company’s current state and future success.

Discover the “only big bank built to last”
Many investors are scared about investing in big banking stocks after the crash, but the sector has one notable stand out. In a sea of mismanaged and dangerous peers, it stands out as “The Only Big Bank Built to Last.” You can uncover the top pick that Warren Buffett loves in The Motley Fool’s new report. It’s free, so click here to access it now.

The article Who Owns SunTrust Banks? originally appeared on Fool.com.


John Maxfield has no position in any stocks mentioned. The …read more
Source: FULL ARTICLE at DailyFinance