Tag Archives: Ron Johnson

Business, Finance, Occupation & Industry

The 4 Favorite Stocks for Short-Sellers

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By Dan Caplinger, The Motley Fool

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Most investors own stocks in the hopes of seeing them rise in value over the years. But for short-sellers, betting against stocks is the name of the game, and profits come when share prices fall.

Short-selling has always had a somewhat questionable reputation among mainstream investors, with many companies prevailing on those negative attitudes to blame short-sellers for share-price declines. But often, short-sellers direct their efforts at companies that are fundamentally weak, and as a result, watching the short-interest figures that stock exchanges provide can clue you in to stocks that are especially risky or are facing major obstacles.

With that in mind, let’s look at the four S&P 500 stocks that have the highest percentage of their available share-float sold short, according to the latest available figures from S&P Capital IQ.

J.C. Penney , short position: 55.5% of float and 25.6% of outstanding shares
This retailer’s recent travails are well known, as J.C. Penney tried and failed to transform itself from a coupon-driven discount retailer to a more attractive destination for shoppers. With the Ron Johnson experiment having backfired, the company has recently started to move back toward its original focus, albeit trying to hang onto some of the progress it has made with store renovations and in-store specialty shops. Despite recent news that George Soros has taken a substantial position in the stock, short-sellers think that the retailer is doomed to eventual failure as its competitors have already taken advantage of its weakness.

GameStop , short position: 38.1% of float and 37.2% of outstanding shares
GameStop has seen its stock rise sharply recently, hitting five-year highs as bullish investors look forward to a new wave of video game consoles expected to hit the market in the near future. Yet even though new consoles will drive sales for GameStop in the short run, short-sellers are focused on longer-term challenges to the retailer’s business model. With increased digital distribution from gamemakers and other measures that make reselling old unwanted games more difficult, GameStop could lose a big portion of its used-game inventory, which is a major profit center for the company.

First Solar , short position: 30.4% of float and 21% of outstanding shares
The solar industry has been hit hard by overcapacity, but First Solar shocked bears earlier this month with guidance on sales and earnings that was far above what industry analysts were expecting. Moreover, its purchase of TetraSun will help First Solar boost the efficiency of its solar modules, an area in which the company has long lagged some of its competitors. Short-sellers are feeling the squeeze as a result of much higher share prices recently, although the stock still trades well below its levels from early 2011. It’ll be interesting to see whether they’ll give in and cover their positions in light of the news.

U.S. Steel , short position: 29.4% of float and 29.3% of outstanding shares
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Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Ron Johnson, Marissa Mayer, and the Risks of Hiring a Celebrity CEO

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By Jonathan Salem Baskin, Contributor

2013 Cadillac Escalade ESV Hybrid revealed at 2013 Shanghai Motor Show

American public companies have long relied on recruiting top executives in hopes they’ll replicate the success they’ve achieved in the past. Such “celebrity CEOs” have been fun for the media to cover, stock analysts to value, and employees to dish upon. They’ve also almost routinely failed, at least in recent memory.

From: http://www.forbes.com/sites/jonathansalembaskin/2013/04/20/ron-johnson-marissa-mayer-and-the-risks-of-hiring-a-celebrity-ceo/

Business, Finance, Occupation & Industry

Can Returning CEO Ullman Revive Penney's Fortunes?

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By The Associated Press

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NEW YORK — The return of the old guard at J.C. Penney have sent shares higher this week, even with major U.S. indexes suffering one of the worst downturns this year.

J.C. Penney brought back former CEO Mike Ullman to lead the company last week and he has already rehired one of his former executives forced out under Ron Johnson.

Johnson, the former Apple Inc. (AAPL) executive, was ousted himself last week after a disastrous 17 months at the helm.

The familiar faces have received a positive response on Wall Street, which has driven the stock up nearly 4 percent this week even as the S&P 500 slumped 3 percent.

At least one analyst that follows the company sees a precedent for Ullman’s second act.

Citigroup’s Deborah Weinswig said that bringing back old-hands worked successfully for BJ’s Wholesale Club in 2007, when Herb Zarkin as put back in the CEO‘s chair.

Zarkin rehired three key members of his former team to run merchandising, marketing and store operations. Over the next 12 months, revenue at comparable stores rose 3.7 percent, compared with the modest 1.2 percent increase in the prior-year period.

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One of Ullman’s first actions was to rehire Ken Mangone as executive vice president of product development, design and sourcing. He had left in December 2012. Nick Wooster, fashion blogger and a former executive at luxury stores such as Neiman Marcus who had taken on his role, is now out. Penney also announced this week that two other Johnson hires — Michael Kramer, chief operating officer, and Ken Walker, chief talent officer — are now gone.

Penney’s shares are still down 65 percent since early last year but investors appear to embrace an old familiarity.

Weinswig points out that Ullman had a deep bench that he could exploit.

“As of now, it’s a two-man band, but there are other former JCP executives available who could come to work for their former band leader,” Weinswig said.

Weinswig believes the merchandising, planning and allocation and store organization remains in good shape.

Liz Sweney, Penney’s chief merchandising officer and the head merchants in women’s, accessories, men’s and home were all with Penney during Ullman’s previous tenure. But she says the areas of marketing, finance, human resources and operations are lacking talent.

“We further suspect that there could be additional vacancies at lower levels of the organization, which JCP will need to fill,” Weinswig wrote. She says of utmost importance is finding a president or chief operating officer to serve as Ullman’s right hand man.

J.C. Penney Co. (JCP), based in Plano, Texas, is in a cash crunch and is exploring ways to bolster its cash reserves.

Johnson had planned to reinvent the company by getting rid of coupons, bringing in new brands and

From: http://www.dailyfinance.com/2013/04/20/mike-ullman-revive-penneys/

Business, Finance, Occupation & Industry

What is Supply and Demand?

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By Selena Maranjian

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April is Financial Literacy Month, and our goal is to help you raise your money IQ. In this series, we’ll tackle key economic concepts — ones that affect your everyday finances and investments — to help you make smarter choices with every dollar decision you face.

Today’s concept: supply and demand.

Most folks are familiar with the concept of supply and demand, but most of us also don’t give it much thought, which is a mistake. That’s because it applies to much more than just business.

First, to review. In basic economics, the law of supply and demand influences prices. If supply of an item is abundant, that will pressure the price downward, and vice versa. In practice, imagine that you’re the only one in town selling shoehorns. Because consumers don’t have any other places to buy the product, that gives you some pricing power. But if other stores in town start carrying shoehorns, you may have to drop your price to keep customers coming.

In the Stock Market

Similar principles are at work in the stock market. Once stocks are launched into the market via an initial public offering, or IPO, their prices aren’t set by the companies behind the stocks, or even the brokerages processing the trading. Instead, they reflect the shares’ supply and demand.

As an example, think of retailer J.C. Penney (JCP). Its stock closed at $15.87 per share on April 8. But on April 9, it closed around $13.92, down more than 12 percent in a single day.

What happened? Well, the struggling company’s CEO, Ron Johnson, was dismissed, replaced by a former CEO, Mike Ullman. The fact that the stock price sank reflects a lack of confidence in the company — or a lack of demand for its shares. If investors were more optimistic about the company and Ullman’s leadership potential, demand for its shares would have risen, driving the price up.

Meanwhile, shares of Yahoo (YHOO) have surged more than 50 percent since Marissa Mayer took the reins of the company. That increase reflects confidence in her leadership and the company’s future — via an increased demand for shares.

In Our Lives

Shortages and surpluses affect other areas of our lives, too, such as careers. There’s a good case to be made for pursuing the career that most excites you, but you would also do well to factor in the supply and demand for that occupation and others.

There are many lists of jobs that are expected to be in great demand in the coming years. The folks at Randstad, for example, a major global staffing company, have listed “13 Hot Jobs for 2013.” They include registered nurses, physicians (specializing in urgent care and anti-aging medicine), drug safety specialists, mortgage underwriters, loan documentation specialists, accountants, manufacturing production specialists, industrial

From: http://www.dailyfinance.com/2013/04/16/supply-and-demand-definition/

Business, Finance, Occupation & Industry

Competition Gets Pantsed by Kmart

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By Rich Duprey, The Motley Fool

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I’ll admit that when it comes to Sears Holdings , I’m not a big fan of the company. I see its death spiral as a slow, painful one for investors. It’s too bad a new marketing campaign for its new Kmart shipping services isn’t the norm, because it’s the type of promo that makes the once venerable retailer seem relevant again.

Laden with innuendo, Kmart’s “Ship My Pants” commercial highlighting the ability of shoppers to get items shipped for free from the company’s website if it can’t be found in stores is actually a pretty funny spot. It’s gone viral, too, serving up more than 5 million hits at this writing, even though it was posted to YouTube just last week.

One actor remarks how excited he is that he can “ship my pants,” while a woman notes that she “shipped my drawers” and a third person can’t believe he “shipped my bed.”

It’s the kind of advertising that’s fresh, despite being tinged with bawdiness. Contrast that with an out-of-touch and out-of-fashion decision by Sears to launch clothing lines by pop stars Nicki Minaj and Adam Levine — an all too reminiscent retread of its Kim Kardashian clothing line — and you have to give them props for going a different route here.

Not that the actual service Kmart is providing is unique, mind you. Wal-Mart offers a free ship-to-store feature, as do J.C. Penney, Radio Shack, Toys R Us, Nordstrom , and a number of other retailers. Actually, so committed to customer service is Nordstrom that it’s even had employees drive items to a customer’s house at no charge to ensure they get it. 

Yet the service does set Kmart apart from some of its top rivals, such as Target , which offers only a standard free shipping option if you use your Target credit card for the purchase. Macy’s doesn’t offer it at all.

Yet for those that do provide a free ship-to-store option, Kmart has separated itself by promoting it in a fun, memorable way. But let’s see just how many customers decide to avail themselves of the opportunity and whether it can have an impact on a steadily declining retail base. As the Pets.com sock puppet made clear, a clever advertising campaign doesn’t always translate into sales.

Out of stock
J.C. Penney’s stock cratered under Ron Johnson‘s leadership, but could new CEO Mike Ullman present the opportunity investors have been waiting for? If you’re wondering whether J.C. Penney is a buy today, you’re invited to claim a copy of The Motley Fool’s must-read report on the company. Learn everything you need to know about Penney’s turnaround — or lack thereof. Simply click here now for instant access.

From: http://www.dailyfinance.com/2013/04/14/competition-gets-pantsed-by-kmart/

Business, Finance, Occupation & Industry

3 Stocks on My Sell List

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By Matt Thalman, The Motley Fool

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From time to time during your search for the next stock to buy, you’re likely to come across stocks that you want absolutely nothing to do with. Today, Fool contributor Matt Thalman discusses three stocks he feels that way about, and although he doesn’t own shares of any of them, he still considers them to be on his sell list — or, in this case, his “stay as far away from these as you can” list.

Click on the video to find out which stocks Matt believes have no place in your portfolio, and why.

More Foolish insight
J.C. Penney‘s stock cratered under Ron Johnson‘s leadership, but could new CEO Mike Ullman present the opportunity investors have been waiting for? If you’re wondering whether J.C. Penney is a buy today, you’re invited to claim a copy of The Motley Fool’s must-read report on the company. Learn everything you need to know about Penney’s turnaround — or lack thereof. Simply click here now for instant access.

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From: http://www.dailyfinance.com/2013/04/13/3-stocks-on-my-sell-list/

Business, Finance, Occupation & Industry

J.C. Penney Gets a Rare Win

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By Andrew Marder, The Motley Fool

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Like seeing a horse named Paste winning the Kentucky Derby, J.C. Penney surprised everyone yesterday by winning one of the little battles in its ongoing war with Macy’s . On Friday, a judge ruled that the struggling retailer could sell its Martha Stewart Living -designed — but not Martha Stewart-branded — merchandise while its legal proceedings continue to unfold. The good news came the day after J.C. Penney failed to have the case thrown out .

The twist in Friday’s ruling was that J.C. Penney will be allowed only to sell the items presented under the J.C. Penney Everyday brand, not those labeled as Martha Stewart designs. The ruling seemed, at least in part, to stem from Judge Jeffery Oing‘s sympathy for J.C. Penney’s plight, and his belief that the company is where it is because of former CEO Ron Johnson‘s meddling.

What’s on the line
The ruling was a breath of fresh air for J.C. Penney, which is sitting on an estimated $100 million worth of inventory that it’s been unable to sell. J.C. Penney argues that even if it can’t sell Martha Stewart-branded merchandise in its shop-within-a-store concepts, it should be allowed to sell non-branded merchandise. That’s a claim Macy’s clearly disputes, arguing that the exclusivity of its agreement with Stewart prohibits the company from selling in any other stores, period.

As things stand, the shop idea may go out the window with Johnson’s departure. That would leave J.C. Penney with Everyday-branded merchandise as its only real avenue to Martha Stewart products.

J.C. Penney on the ropes
The market was unimpressed by the ruling, and J.C. Penney’s stock fell slightly on the day. The company is now reportedly looking for new ways to raise some cash to get it through the downturn. The company has received interest from private-equity firms, according to The Wall Street Journal, and has retained Blackstone Group to help it sort things out. 

Other analysts have theorized that the company may sell itself off, or at least a piece of itself, to stay alive. While the company is currently sitting on a decent pile of cash and very little immediate debt, that situation is changing quickly. J.C. Penney is burning through cash, because of a decrease in sales, and it has $200 million in bonds due in 2015.

The bottom line
This is a win for J.C. Penney, but it’s a very small one. The company desperately needs to get out of court and move on to the business of selling the merchandise it already has. As has been the case for the entire proceeding, Macy’s is still in a comfortable position to sit back and watch the drama unfold, while J.C. Penney twists in the wind. The best J.C. Penney investors can manage now is cautious optimism — and that’s not a great place to be.

J.C. Penney’s stock cratered under Ron Johnson‘s leadership, but could new CEO Mike Ullman present the opportunity

From: http://www.dailyfinance.com/2013/04/13/jc-penney-gets-a-rare-win/

Business, Finance, Occupation & Industry

Sears Is Out of Fashion

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By Rich Duprey, The Motley Fool

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If Kim Kardashian couldn’t help Sears Holdings turn its retail operations around, what makes it think singer Adam Levine, or rapper-turned-American Idol judge Nikki Minaj, will do any better? The diminished stature of the once-venerable retailer is simply taken down yet another notch as it slaps a new pop icon face across its banner.

Sears is developing a new business unit called Shop Your Way Brands that focuses on entertainment-driven fashion and lifestyle brands, and the Levine-Minaj tag team duo represent the first two also-rans to populate the stage. I’m just not sure the “authentic personal style of iconic artists” is exactly what the typical Sears shopper is looking for.

Levine’s t-shirt and jeans might carry over, but exactly how that differentiates what Sears offers from the clothes found at Target and Wal-Mart is beyond me. And the big curves of Minaj seems to have already been tried with the Karadashian line, though perhaps the pink hair might be a new draw.

It’s easy to understand why Sears might want to hitch its wagon to celebrities, as revenues at the retailer continue to ebb away, dropping more than 4% in 2012, and down 25% since 2007, the last year it recorded a gain. The ShopYourWay social shopping experience drove over half of its revenues at Sears and Kmart in the fourth quarter and for all of last year. But its half of a quickly dwindling pie. In contrast, Wal-Mart sales grew 4% in the fourth quarter, to $127 billion while Target’s sales were almost 7% higher, and neither had to rely upon pop stars to achieve the growth.

It’s true that every retailer has a stable of personalities it relies upon, though more often than not, they’re related to true fashion designers rather than the latest popular reality TV star. But Sears is making an art form out of trying any new shtick to see if it can reverse course and, by this point, you’d think it would realize it’s making some horrible choices.

At this point, I’d be willing to bet J.C. Penney has a better shot at making a viable comeback than does Sears. Perhaps it was done tongue-in-cheek, but a blog yesterday speculated about the chances of Sears buying out Penney, though it concluded adding yet another wounded retailer to its mix of dying brands would probably not serve anyone’s interests.

From Christmas in July to being your quick cash-for-gold broker,  financial gimmicks like total return swaps to calving off divisions like Orchard Supply and Sears Hometown, the retailer has thrown a lot at the wall over the years to try and return value to shareholders, but hardly anything has worked.

Despite what it heralds as a new entertainment-driven fashion business, Sears isn’t singing any new tune that shoppers — or investors, for that matter — are likely to want to hear.

J.C. Penney’s stock cratered under Ron Johnson‘s leadership, but could new CEO Mike Ullman present the opportunity investors have been waiting for?

From: http://www.dailyfinance.com/2013/04/11/sears-is-out-of-fashion/

Business, Finance, Occupation & Industry

Apple, Go Get Ron Johnson Back. Now.

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By Evan Niu, CFA, The Motley Fool

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Way back in June 2011 when Apple lost retail chief Ron Johnson to J.C. Penney , it was seen as a huge loss for Apple and a big win for J.C. Penney. Johnson accepted the promotion, becoming CEO of the struggling department store chain. Nearly two years later, it would seem that Johnson wasn’t such a victory for J.C. Penney after all.

JCP data by YCharts.

Shares lost 55% of their value under his tenure (not including the 12% drop the following day after Johnson’s predecessor, Mike Ullman, was rehired). J.C. Penney is an entirely different breed of retailer compared to the Mac maker. Johnson’s strategy of removing discounts, coupons, and sales in favor of more transparent pricing didn’t resonate with consumers, and J.C. Penney’s sales suffered for it.

Well, as luck would have it, Johnson’s former position at Apple is still up for grabs, following John Browett’s departure in October. Since then, Apple has been searching for a new retail chief, with retail operations falling under CEO Tim Cook’s jurisdiction in the interim. Browett came from the U.K.’s Dixons chain, and the British exec later said that he simply “just didn’t fit” at Apple, maintaining that he wasn’t rejected for a lack of competency. Browett failed to see the big picture, trying to save costs without realizing that cost cutting is the last thing that Apple should do, especially if the customer experience is the thing getting shortchanged.

Apple Retail has been doing just fine
Since Johnson’s departure, it’s not as if Apple’s retail operations have struggled. Far from it — Apple retail has grown and has now generated $19.2 billion in trailing-12-month sales.

Source: SEC filings. Calendar quarters shown. TTM = trailing 12 months.

The company has also expanded its total store count by 74 stores to 401, up from 327 when he left. Most of this expansion has been internationally, as Apple’s domestic retail footprint is rather mature and the company is rightly focusing abroad.

Source: Apple conference calls. Calendar quarters shown.

Foot traffic is also up, with record 120 million visitors last quarter. Average quarterly revenue per store is also flirting with all-time highs at $16.3 million in the fourth quarter.

Source: Apple conference calls. Calendar quarters shown.

Clearly, Apple isn’t in dire need of Johnson to return. But at the same time, Apple Retail lacks dedicated leadership right now, and Johnson gets Apple. This is the guy that launched Apple Retail in the first place, promptly silencing critics that initially derided the move as misguided and doomed to fail. The Genius Bar is now the paragon of modern customer tech support, the type of notion that’s mostly lost in a department store environment.

Other tech giants have since tried to emulate Apple’s retail strategy, most notably Microsoft and Samsung. Microsoft Retail stores bear more than a passing resemblance to

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

1 Great Stock That's Still Pretty Cheap

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By Andrew Marder, The Motley Fool

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Everyone loves a bargain, and in the world of retail, Macy’s is one of the best bargains out there. The company has had strong growth over the past four years, and its plan for the future is solid. Management seems to understand the consumer environment, and takes customers into account when it builds the business. On top of that, Macy’s is on the cheaper side, no matter how you slice it. Here’s a rundown of why you should consider this solid American brand.

Then and now
We won’t dwell on the past, since it’s not going to help us predict the future, but it would be silly not to hit the highlights. Starting at the top, Macy’s has increased its revenue for four years running, and it hit $27 billion in 2012. Earnings per share have kept up as well, rising from $0.78 in 2009 to $3.29 last year. That’s a 321% increase over four years. To put some context around that, Nordstrom has grown earnings per share by 78% over the same period.

Most recently, Macy’s has come off a strong start to the year. The end of the first quarter, which finished in January, saw a great deal of foot traffic, and comparable sales grew 3.9%. That growth should push through into 2013, and has boosted the growth that the company has seen through its websites. Online sales were up 48% last quarter, due to the strength of Macys.com and Bloomingdales.com.

The company has guided 3.5% comparable growth for the coming year , which would make four years in a row of growth — a first for Macy’s. One of the key initiatives in place for Macy’s is its training program, which is helping turn the shopping experience into a two-way conversation. That not only helps sales, but it helps deter showrooming, where customers browse in-store then buy online somewhere else. The long-term prospects for Macy’s look very sound.

Good value
The strength of the business is the most important part of the equation, but there are plenty of other strong businesses. Nordstrom, for instance, has seen fantastic growth and has some cutting-edge omnichannel plans in place. The reason I like Macy’s so much is that it encompasses a lot of the good things that Nordstrom is doing, but it costs less.

In fact, with a P/E of 14, Macy’s comes in comfortably under the department store average of 16. It’s also kicked out a sustainable 2.2% average dividend over the past five years, which is in line with the average for department stores.

Overall, Macy’s is a cheap, solid business with an incredibly strong brand. As more chains fall by the wayside, Macy’s should be in line for even more business in the coming years. I love the long-term outlook for this company, and I love the price.

Another department store stock to consider?
J.C. Penney’s stock cratered under Ron Johnson‘s leadership, but could new CEO Mike

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

J.C. Penney Stock Saved From Golden Parachutes

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By Rich Duprey, The Motley Fool

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Despite the disaster that is its sales strategy, not to mention the apparent confusion that reigns in the C-suite, J.C. Penney stock is at least protected by one lesson learned: Don’t give your CEO a golden parachute.

Even though ex-CEO Ron Johnson was unceremoniously dumped by the board of directors in favor of once-and-future chief executive Myron Ullman, he didn’t have any special clauses that would make his landing especially cushy should he separate from the company. Not that we need to cry over his pay package, either, but unlike with Penney’s former president Michael Francis, the board didn’t encrust Johnson’s severance pay with gold and diamonds.

Francis, you may recall, was hired in October 2011 and left a mere eight months later, but took with him a fairly rich deal: He got $4.7 million in termination pay, $3.6 million in severance, kept his $12 million signing bonus (which was supposed to be prorated if he left early), and $2 million in stock awards. That certainly eases any anguish he might have felt for presiding over the dismal retailer for less than a year.

Johnson was not so lucky. As the Fool’s Adam Levine-Weinberg detailed, Johnson got paid for Penney’s performance, which was dismal, therefore so was the pay he received. Hey, when you’re getting a base salary of $1.5 million, you don’t go scrounging in the seat cushions looking for nickels and dimes, but by CEO standards it was a stingy package he got, too.

He still owns about $12 million worth of J.C. Penney stock, some 893,000 shares received when he was hired because of what he left behind at Apple — 250,000 restricted shares today worth about $107 million. With J.C. Penney’s stock trading below $14 a share at yesterday’s close, that is less than half what the shares were worth when he received them. Ouch.

JCP data by YCharts.

Johnson also owns around 7.3 million warrants that he purchased with $50 million of his own money when he was hired, but with an exercise price of $29.92, it’s unlikely they’ll be touched anytime soon. Just as unlikely, though, is that they’ll even approach breakeven, let alone the $35.37 price he bought them at, unless Ullman performs some kind of miracle.

Certainly Johnson‘s willingness to agree to such a pay-for-performance scheme indicates he thought consumers would buy into J.C. Penney’s everyday-low-pricing strategy, and it’s commendable that a CEO was willing to put his money where his mouth is. Unfortunately, other executives will likely look at his experience and opt to forgo having to actually perform for investors before getting a rich payout as they’re kicked out the door.

J.C. Penney’s stock cratered under Ron Johnson‘s leadership, but could new CEO Mike Ullman present the opportunity investors have been waiting for? If you’re wondering whether J.C. Penney is a buy today, you’re invited to claim a copy of The Motley Fool’s must-read report on the company. Learn everything you need

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dow Keeps On Keeping On

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By Jeremy Bowman, The Motley Fool

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The Dow Jones Industrial Average hit yet another record high today, as stocks had a late-day run for the second session in a row today. The buying activity seems to indicate increased optimism about earnings season as the blue chips finished at 14.673, up 60 points or 0.4%, momentarily climbing above 14,700. Investors have now had a two-day breather from any significant economic reports or macroeconomic events, and stocks have made solid gains both days. Despite the continuing bull run, however, there have been 4.7 times as many negative pre-announcements as positive ones, the worst proportion since 2001, according to Thomson Reuters, indicating that there may be reason to fear earnings season.

Tech stocks led the Dow today, as Microsoft and Intel both moved up more than 3%. The Windows maker joined a group of tech companies including Oracle and Nokia filing a complaint against Google in the European Union, which accused the search giant of anti-competitive behavior in its Android strategy. One of the group’s lawyers called Android “a Trojan horse used to deceive partners, monopolize the mobile marketplace, and control consumer data.” Google has become a major rival of Microsoft’s in recent years, as Google vies for dominance in software with its Chrome Internet browser and Google Docs office products. Microsoft, on the other hand, has challenged Google’s search leadership with Bing and is also gunning for a piece of the smartphone and tablet market.

Intel, meanwhile, finished up 3.1% after it unveiled its new Thunderbolt interface technology yesterday, which runs at twice the speed of the previous model. The top chipmaker also said that it had begun shipping samples of a system-in-a-chip, known as “Avoton,” to Hewlett-Packard to be used in its new Moonshot servers. HP also finished the day up 1.5%.

One other sector flying high today was solar as First Solar jumped 46% after acquiring TetraSun, a Silicon Valley start-up, and providing an outlook way above Wall Street‘s estimates. The TetraSun acquisition, for an undisclosed amount, gives First Solar access to the higher-efficiency solar-panel market that its own panels are not suited for. The company also estimated EPS for the year to come in between $4 and $4.50, while Wall Street had projected just $3.51. The rally led other solar stocks up as well, as Yingli Green Energy finished up 21% and Trina Solar gained 15%.

On the other side of the spectrum, J.C. Penney dropped 12% as investors reacted to Ron Johnson‘s dismissal and replacement with Mike Ullman, the retailer’s former CEO. Johnson’s termination marks the end of a misadventure that included a new shops-within-the-shop strategy as well as the elimination of discounts that caused sales to drop by more than 25% last year. First-quarter same-store sales are also down 10% at Penney so far, according to The Wall Street Journal, indicating that the pain is far from over. What Mike Ullman‘s plans for the department-store …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

J.C. Penney's Big Move

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By Chris Hill, The Motley Fool

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The following video is from Tuesday’s Investor Beat, in which host Chris Hill and analysts Jason Moser and Bill Barker dissect the hardest-hitting investing stories of the day.

In today’s edition, shares of J.C. Penney fell more than 12% on Tuesday. On Monday, the retailer announced that CEO Ron Johnson will be replaced by former CEO Myron E. “Mike” Ullman III. What can Ullman do to reverse the retailer’s fortunes? Should investors buy stock in J.C. Penney? This story, plus a recap of the Dow’s performance today, the four biggest movers and shakers on today’s market, and two stocks we’ll be watching closely this week.

J.C. Penney’s stock cratered under Ron Johnson‘s leadership, but could new CEO Mike Ullman present the opportunity investors have been waiting for? If you’re wondering whether J.C. Penney is a buy today, you’re invited to claim a copy of The Motley Fool’s must-read report on the company. Learn everything you need to know about Penney’s turnaround — or lack thereof. Simply click here now for instant access.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Is J.C. Penney on Sale?

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By Chris Hill, The Motley Fool

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The following video is from Tuesday’s Investor Beat, in which host Chris Hill and analysts Jason Moser and Bill Barker dissect the hardest-hitting investing stories of the day.

Shares of J.C. Penney fell more than 12% on Tuesday. On Monday, the retailer announced that CEO Ron Johnson will be replaced by former CEO Myron E. “Mike” Ullman III. What can Ullman do to reverse the retailer’s fortunes? Should investors buy stock in J.C. Penney? In this installment of Investor Beat, our analysts discuss the future of J.C. Penney. That story, plus a recap of today’s Dow performance.

J.C. Penney’s stock cratered under Ron Johnson‘s leadership, but could new CEO Mike Ullman present the opportunity investors have been waiting for? If you’re wondering whether J.C. Penney is a buy today, you’re invited to claim a copy of The Motley Fool’s must-read report on the company. Learn everything you need to know about Penney’s turnaround — or lack thereof. Simply click here now for instant access.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

J.C. Penney's Best Hope

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By Chris Hill, The Motley Fool

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The following video is from Tuesday’s MarketFoolery podcast, in which host Chris Hill and analysts Jason Moser and Bill Barker discuss the top business and investing stories of the day.

After 17 months as the CEO of J.C. Penney , Ron Johnson has stepped down from his post at the struggling retailer. Johnson will be replaced by former CEO Myron E. “Mike” Ullman III. Was Johnson dealt a bad hand or did he just play it poorly? What can J.C. Penney do to reverse its fortunes? In this installment of MarketFoolery, our analysts discuss the company’s future.

J.C. Penney’s stock cratered under Ron Johnson‘s leadership, but could new CEO Mike Ullman present the opportunity investors have been waiting for? If you’re wondering whether J.C. Penney is a buy today, you’re invited to claim a copy of The Motley Fool’s must-read report on the company. Learn everything you need to know about Penney’s turnaround — or lack thereof. Simply click here now for instant access.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

After J.C. Penney, Should Ron Johnson Head Back to Apple?

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By Austin Smith and Eric Bleeker, CFA, The Motley Fool

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With Ron Johnson, the “wunderkind” of the Apple retail experience, out of work and Apple in need of some new retail muscle for international expansion and potentially new product launches, it may make sense for Tim Cook to recruit him back to the mothership right now.

Ron Johnson has long been regarded as a critical player in the smash sucess of Apple’s iPhone and iPad products, both of which took off after he created a clean and highly interactive retail experience for customers to sample Apple’s latest gadgets. 

With the rumor mill spilling over about Apple’s newest potential product launches, a new version of the Apple TV (iTV?) and the iWatch, not to mention a crucial big expansion into China, Apple may need Ron Johnson more than ever.

After Apple has fallen about 30% while the market has rallied, it would seem that Wall Street has made up its mind about the company, but for everyday investors the debate still rages as to whether Apple remains a buy. The Motley Fool’s senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

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Source: FULL ARTICLE at DailyFinance

Science & Technology

J.C.Penney: Was Ron Johnson's Strategy Wrong?

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By Steve Denning J.C. Penney Co. has ousted its CEO, Ron Johnson, the chief executive who reinvented retail at Apple Inc. and who arrived JCPenney just 17 months ago. Mr. Johnson had a bold vision for the JCPenney. On joining the firm, he said, ?In the U.S., the department store has a chance to regain its status as the leader in style, the leader in excitement. It will be a period of true innovation for this company.? …read more

Source: FULL ARTICLE at Forbes Technology

News, Politics, Government

J.C. Penney: Mike Ullman's Next 100 Days

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By Walter Loeb, Contributor

It is a tough assignment to follow the arrogance of Ron Johnson, the former CEO of J.C.Penney. Ron thought he had the mantle of Steve Jobs and could execute a strategy that would bring in a new class of customers to the stores. He failed because the core customer stopped shopping at J.C.Penney and new customers thought the merchandise was too shoddy. …read more

Source: FULL ARTICLE at Forbes Latest

News, Politics, Government

J.C. Penney: What Mike Ullman Should Do In The Next 100 Days

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By Walter Loeb, Contributor

It is a tough assignment to follow the arrogance of Ron Johnson, the former CEO of J.C. Penney. Ron thought he had the mantle of Steve Jobs and could execute a strategy that would bring in a new class of customers to the stores. He failed because the core customer stopped shopping at J.C. Penney and new customers thought the merchandise was too shoddy. …read more

Source: FULL ARTICLE at Forbes Latest