Wednesday, 23 May 2012


I always get a little bit nervous when a value investor falls in love with a retailer. I don't know much about JCP, I don't even think I have set foot in one. I do however remember Akman's involvement in Target, and the ongoing ulcer that SHLD is for Eddie Lampert. Both smart guys and good investors; both lacerated by concentrated retailer investments.

Perhaps JCP is different. I do worry about the fawning over management. AAPL is a different proposition to JCP. I also don't particularly think much of plans to make efficiency savings with the ad budget, that always seems like a false proposition to me and a short term attempt to increase the spreadsheet value of a business.

My biggest concern is that Akman will get frustrated and sell his shares, also not too sure who the marginal buyer really is, or more precisely when it'll be. Looking at the pricing of the stock, I just don't think there is enough margin of safety in there for me, maybe at $19 if the chart looks a bit better it might be worth a 'placeholder'.

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