Shares of J.C. Penney Co. Inc. (NYSE: JCP) were down sharply in premarket trading this morning following a report that commercial and retail real-estate REIT Vornado Realty Trust (NYSE: VNO) has sold nearly half its reported 10.7% stake in the struggling retailer. Bloomberg News cites “two people familiar with the offering … who asked not to be identified citing lack of authorization to speak publicly.”
According to the report, Vornado sold a block of 10 million shares through Deutsche Bank. The real estate firm said last week that it took a loss of nearly $225 million last year on its investment in J.C. Penney. Vornado’s chairman, Steven Roth, is a member of J.C. Penney’s board of directors.
J.C. Penney shares have taken a horrific beating in the past year or so, down 44% in 2012 and another 15% so far in 2013. The company’s sales have fallen through the floor as CEO Ron Johnson discontinued J.C. Penney’s long-time strategy of weekly sales and discounts in favor of raising the store’s image in an effort to attract more customers. To be fair, Johnson took over a leaky boat, but his leadership has made the leaks worse not better.
Shares are down about 4.4% at $16.00 in premarket trading this morning, in a 52-week range of $15.69 to $39.73.
“The Next NVIDIA” Could Change Your Life
NVIDIA has returned 250-fold in the past 10 years as artificial intelligence took off.
But if you missed out on NVIDIA’s historic run, your chance to see life-changing profits from AI isn’t over.
The 24/7 Wall Street Analyst who first called NVIDIA’s AI-fueled rise in 2009 just published a brand-new research report named “The Next NVIDIA.”
The report outlines key breakthroughs in AI and the stocks ready to dominate the next wave of growth. The report is absolutely free. Simply enter your email below
By providing your email address, you agree to receive communications from us regarding website updates and other offerings that may be of interest to you.
You have the option to opt-out of these emails at any moment. For more information, please review our Disclaimer and Terms of Use.