Tuesday, May 22, 2012

Stocks DD Cites: Ackman's JC Penny Pitch


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http://www.scribd.com/doc/94486317/AckmanJCP

Keep in mind while Ackman always makes a strong case and looks for big rewards, he has been unsuccessful in many picks. Eg: Borders (he was betting on survival of Brick & mortar book store, Corrections Corp of America- not much gains for him there, etc).  Also, investing in JCP requires much bigger leap of faith as it as to be turned around. As always, he makes strong arguments for his thesis

2 comments:

  1. he made a similar bullish claim for Canadian Tire in 2007. I wasted one-hour of my analyst life going through his 100+ page presentation with the CFO of Cdn Tire and basically picked apart his ridiculous "analysis" and valuation for CTC.

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  2. interesting. I have seen make 1 great investment which was ggp. I have also seen make disaster investments like Borders, JCP and Herbalife. All the 3 were not great investments to begin with esp Borders and Herbalife. JCP Ackman's strategy was deeply flawed

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