Some observers view the move as a vote of confidence in new CEO Myron Ullman, who replaced Ron Johnson, who was fired earlier this month. Johnson had tried to eliminate the company’s long-time strategy of offering coupons and sales. J.C. Penney customers stayed away in droves and sales plunged more than 25%. Ullman already has begun a return to the old discount strategy.
Soros joins William Ackman and his Pershing Square Capital Management as a major holder of J.C. Penney stock. Ackman owns about 17.8% of the company’s shares.
J.C. Penney has borrowed $850 million on its revolving credit facility to implement the discount strategy and also has hired financial advisory firm Blackstone Group L.P. (NYSE: BX) to help it figure out how to turn the ailing retailer around. Finding more investors like Soros is not a bad place to start.
Shares of J.C. Penney are up nearly 7.5% in premarket trading this morning at $16.37 in a 52-week range of $13.55 to $36.89.
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
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