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$HENC picked as the #StockChart pick of the week!
https://twitter.com/shall1432/status/1285007735331917824?s=
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=157009279
Cheers!!!
$HENC picked as the #StockChart pick of the week!
https://twitter.com/shall1432/status/1285007735331917824?s=
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=157009279
Cheers!!!
$HENC picked as the #StockChart pick of the week!
https://twitter.com/shall1432/status/1285007735331917824?s=
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=157009279
Cheers!
$TTCM ARknet Version 1.5.7 is now out!
Cheers!
I1: Another insightful and hopeful DD Post for all of us $JCPNQ Shareholders! ...
Thanks again! ...
Cheers!
You said ...
I would also remind everyone they( the Informal EC) are representing us who intern has put in force both a forensic accountant and attorneys representing the EC committee and us stockholders.
Utilizing less than $250,000 given to them by the judge which is unprecedented !
Of which we have not been currently asked to pay any of these very expensive cost which I believe the council believes they would not have taken on unless they knew the outcome would be to their favor
That being said we should all have a great deal of gratitude for all the work that is going on behind the scenes in our behalf
And at the end of the day this comes down to the integrity of those that are representing us !
Nobody likes to work for free especially attorneys and nobody likes having their integrity question !
And I believe all those involved including the EC committee would not be doing any of this if it did not have the outcome we are all looking for
As JCPNQ moves much higher !
I1
$HENC Up 39+%! at .092!
Maybe that Reverse Merger
News has leaked out! ...
Nice Volume too! ...
Cheers!
LG: What a detailed and thoughtful Letter!
Cheers to the Author!
JCPNQ Shareholder Letter to Judge Jones
July 4, 2020
The Honorable David R. Jones
c/o Jeannie Andersen
US Bankruptcy Court
Southern District of Texas
515 Rusk Street
Houston, Texas 77002
Re: JC Penny, Inc.
Chapter 11 Filing
Case # 20-20182
Honorable Judge Jones:
Thank you in advance for reviewing my comments as a concerned shareholder of JC Penny. The purpose of my writing being to provide my thoughts on the current bankruptcy proceedings and advocate for shareholders who could be unjustly discarded by the hastily submitted and premature Chapter 11 filing by the company and its Advisors.
Investment Thesis and Background
My family and I have been investors in the company for over 3 years and like many shareholders, have had a long affiliation and appreciation for JC Penny – and admire the brand and level of service this American icon stands for. While a few years ago the company appeared to have lost its focus on the core JC Penny customer, I have been particularly impressed with the operational improvements implemented by CEO Jill Soltau and the executive team she assembled, including CFO Bill Wafford. This team has a strong knowledge of fashion, retail operations and merchandising, and prior to the COVID19 pandemic, was efficiently executing against its key goals and objectives. Observing the company’s 2019 performance, CEO Soltau referenced the company had “exceeded all five financial guidance metrics for the year” and provided additional encouraging remarks regarding the company’s promising future.
Given the company’s progress at the conclusion of 2019, many shareholders were very optimistic and anxious to learn more regarding future plans for growth and improvement. Despite the progress, the JCP stock price remained well under $1 with a 2nd delisting notification from the NYSE. Absent other shareholder communications, Ms. Soltau referenced in the company’s Q4 earnings call on February 28th that JC Penney’s performance would bring the company back into compliance, implying the stock would trade over $1 in the allotted time frame. In addition, CFO Wafford mentioned “very manageable near-term debt maturities” and the company was “incredibly comfortable with where our capital structure sits, the relationship we have with our creditors, which has been very strong and very supportive and how we think about kind of maintaining liquidity position and capital structure for many years to come.” The company went on to further articulate that additional progress and plans would be discussed in the April time frame with an Analyst Day in New York City. The progress, when combined with encouraging remarks from the executive team certainly buttressed my confidence as an investor. Like many, I was truly looking forward to JC Penny finally addressing shareholders and was hopeful additional comments from key officers would both provide a broader vision for the future and hopefully curtail the relentless shorting of the company’s stock.
It was clear to this point however that JC Penny did not have strong relationships with its shareholder base and from my perspective, the company did not implement the needed communication efforts in cultivating shareholder associations. Time and again, opportunities were missed to be more open and transparent with shareholders, with what appears to be little effort internally applied to shareholder initiatives and communications. Phone calls went unreturned, e-mail inquiries unanswered and a general lack of concern emanated from the company’s Investor Relations team. Much energy seemed to be focused on current creditors, potentially creating an ecosystem where further interactions could be more creditor favorable.
COVID 19 Pandemic
With the company beginning to hit a stride and achieving key milestone objectives, the COVID 19 pandemic created a dramatic and unforeseen set of circumstances to work through. My sense being Ms. Soltau and her team managed though this crisis from an operational perspective as efficiently as possible, safeguarding customers and employees and preparing for the eventual reopening of stores in June.
Obviously, the near 2-month government-mandated closure of retail operations had a significant impact on the company’s operating performance and cash flow. However, an analysis of the Balance Sheet at the time of filing showed ample cash to continue to persist much deeper into the year, especially given the company’s debt schedule with the more significant debt instruments due in further out years. It was also very clear the company had the short-term liquidity and resources to buy more time to affect a turnaround with the reopening of stores. In addition, it is perplexing that if JC Penny had the “very strong and very supportive” relationships with its creditors as alluded to by Mr. Wafford, that cooler heads could not prevail in managing through this unforeseen crisis.
Given the above, it is equally confusing why the company choose to move to Chapter 11 process so quickly, and it appears a Chapter 11 filing may have been long contemplated by the company’s Board and Advisors. One could also infer that given the hasty timeline laid out by the company that it would be easier to leave existing shareholders behind and simply recapitalize the two new operating entities with the prevailing debt holders as new owners.
With the company’s stock price depressed, and what appears to, unfortunately, be an executive team less experienced in shareholder management and communications, the towel was easily tossed into the Chapter 11 ring. Executives were compensated handsomely to be retained,
Debtors were onboard and the assumption being it would simply be tough love for everyone else. Obviously, any go-forward plan would include a new set of financial incentives for key officers and directors, in addition to the substantial bonus payments that were approved by the Board days before the Chapter 11 filing. This decision by the Debtor and their Advisors appeared to be easily made, with little to no concern for shareholders as stated in filing documentation. It is unfortunate JC Penny did not have similar “very strong and very supportive” relationships with its shareholders – of which it owed an equal fiduciary responsibility too, yet easily discarded as witnessed in the company’s filings.
Government Support
Nonetheless, JC Penny has chosen a fast track Chapter 11 filing but has done so in unprecedented times not seen in over a century – during a systemic global pandemic. While the Federal government has stepped in with extraordinary support for consumers, additional offerings, and support (Bond purchases and another corporate stimulus as examples) continue to unfold daily. It is not clear to what extent the company has tracked these supplements, but what is clear is that there has been no shareholder communications regarding the pursuit of nontraditional pandemic-based options to create ongoing operational runway and continued value creation for all stakeholders.
In these unprecedented times, it is hard to comprehend that the company had no other available paths to forestall a filing, especially given their Balance Sheet liquidity at the time. Simply falling back to a traditional debt waterfall payment structure in a hurried and unwarranted default driven filing is a failure of fiduciary responsibility to shareholders. While the pandemic has caused
unimaginable change and hardship for our country, for the Debtors to not consider every angle possible to preserve shareholder value is unconscionable. Many shareholders were investing into a great turnaround story led by a management team that was executing, not a poorly run
operation where shareholder judgment could be questioned in continuing to invest. Even if the bankruptcy filing was not rushed and unnecessarily filed, a more balanced approach would be to consider all constituents in any restructuring efforts given the unforeseen consequences of the pandemic.
Inconsistent Communications
While I believe Ms. Soltau and her team deserve much credit for the operational progress the company has made, JC Penny’s communication and candor with shareholders have been confusing and misleading during the Chapter 11 process. For example, when the company filed with the courts, Attorney’s drafting documents made it very clear that there would be no current JCP shares carrying over to the two new entities being formed – affirming the shares would have no value. Yet, the JC Penny restructuring website stated it was “too early to tell” what may happen with existing shares, a disingenuous pretense designed to confuse intent. Further, the company’s posturing in May of a $17 Million debt payment to creditors only to be followed by a bankruptcy filing the same day (with ample cash on hand) was both misleading to shareholders and hard to comprehend, strategically or otherwise.
In addition, relationships between company Advisors, counter parties and the company itself appear to be confusing and opaque. While understanding that industries and Advisors overlap, the Dockett is full of speculation and concern on this toxic, adding to the perception that this has been a very rushed, ill-conceived process. It is clear all available options were simply not adequately explored prior to filing – especially given the company’s cash position at filing, the supposed exceptional relationship with its creditors and a debt schedule where the majority of payments are not due for years. This point is further exemplified by the fact that JC Penny deliberately skipped debt payments to put the company in default when the company had the available cash – plus several months of working capital to continue operations, even considering the pandemic’s impact to the company’s cash position.
Understanding that there are a small handful of outside entities potentially looking to acquire some or all of JC Penny’s assets, one can only hope that the proper governance and oversight is in place to ensure that the correct value is ascribed for all stakeholders. I am hopeful that disclosures and communications – where feasible – can be transparent and above board versus what has appeared to be cloudy and mystifying relationships given the above issues.
Balance Sheet Posturing
Given the company had over $500 Million is cash reserves and approximately $1 billion in unencumbered real estate at filing, it is clear JC Penny had other options prior to its accelerated filing. Certainly, cash flow estimates can vary by the beholder, but many view the company having a much greater runway than even the most conservative estimates, leaving one to believe that this filing had long been contemplated by the company, its Debtors and Advisors.
Many shareholders I have spoken with are also flummoxed that the Debtors and their advisors have articulated that the company’s Book Value does not match Economic Value. One could argue that this posturing is misleading and designed to understate the true value of JC Penny. It is quite odd that the company has no goodwill on its balance sheet given the infrastructure and presence of a 100-year-old business. In addition, valuations across specific assets can vary widely depending on the filter one applies. An expanded Shareholders Committee could offer another detailed view of the underlying value (both reported and understated) of such assets. Curiously, the Debtors also do not offer much insight to the Net Operating Loss carry-forward value of the
company, currently over $2 Billion gross and approximately $750 Million net value to future operating income.
Furthermore, there is tremendous value in JC Penny private brands, supply chain, customer base, ecommerce website, distribution network, infrastructure, real estate, underlying real estate rights (including mineral rights) and other intangibles. To down play these assets in the face of a bankruptcy filing is not in the best interest of all constituents. While Balance Sheets of course represent a snap shot in time of a company’s financial position, it is very clear the Debtors have taken the opportunity to position the company’s assets in an unflattering light in order to expedite the pending Chapter 11 process.
Summary
While I give Ms. Soltau and Mr. Wafford high marks for their operational efforts in restoring JC Penny’s potential, something has gone terribly astray during this bankruptcy process. Given long standing relationship with current Advisors, it appears this process has been conceived long
before the bankruptcy filing and Debtors have collaborated to most likely participate in the balance of ownership in the two contemplated go forward entities. Again, with all due respect to JC Penny’s management team’s progress, it is no secret that this team will more than likely come out unscathed in any new entity moving forward – with everyone having a chance to start over and prosper with the exception of existing shareholders. Given all the above, this is not a right nor is it a just outcome, yet more akin to insider self-dealing between parties excluding shareholders.
In summary:
1. The company had other options prior to a hastily filed bankruptcy. This bankruptcy was filed early and well in advance of the company being close to an insolvent position.
2. Communications to shareholders has been inconsistent and at times misleading through this recent filing.
3. The company’s Balance Sheet and net worth appear to be purposely understated and such understatements warrant an in-depth review by independent Analysts across many facets of JC Penny’s operations.
4. The COVID 19 pandemic is unprecedented and a shareholder cram down by Debtors is unwarranted and lacks judgmental balance considering the corporation's fiduciary duty to all stakeholders.
In closing, I would respectfully suggest that should the company not find a suitable acquirer by July 15th, that the existing Shareholder Committee is expanded and funded to market terms to ensure shareholders have the appropriate and ample representation to protect their rightful
value. Absent an acquisition, all stakeholders – including shareholders – should participate in a meaningful way in the two new entities being formed.
Given all the above, I am hopeful justice and balance prevail for all – not just well-funded Debtors with exceptional Advisors and Counsel.
It is apparent these talented Advisors want to move quickly to avoid further diligence undermining their plan. In reviewing Docket submissions, it is clear the Debtors and their Advisors are simply indifferent to shareholder value and have significantly downplayed their
fiduciary responsibility to equity holders despite the unprecedented world circumstances, as well inadequately pursuing available options prior to filing.
Respectfully submitted,
R. Edward Heinz, Jr.
I1: Thanks for all your contributions with https://jcpshareholders.com ...
Cheers!
LG: Great Post and DD! Cheers!
$TTCM ARknet Version 1.5.6 is now out!
Cheers!
$NDYN Reverse Merger News soon! ...
Then, we'll see the new 200 for 1 Forward Split Shares in our Accounts!
$138 is the PPS Target!
$HENC Reverse Merger News due by End Of June. Cheers!
MM: Great DD and ARknet History Post!
Cheers!
Hi Geek. Why was I removed as a NDYN Board Moderator? ...
I was on there and have aided by the iHub Rules.
Please put me back on. There is only ONE Mod on NDYN right now.
Also, there seems to be an issue with my recent reinstatement request. Please approve it and lets all be fair and balanced.
Also, I keep getting this iHub Error Message that has continuing changing and increasing dates! And, I get No Response from any iHub Admin so far!
It has been less than 30 days since your last application to moderate this board, or the date your last request was closed.
You will be eligible to re-apply on 07/10/2020 10:36:10 PM.
Thanks!
J2030: Another Very Interesting DD Post with other past BK's History! ...
Thanks and Cheers! ...
You said ...
J2030: Very Interesting Post on that other BK! ...
Here's hoping those Facts and Guidance are repeated here with JCPNQ! ...
Thanks and Cheers! ...
You said ...
A420: Another great DD Post with verifiable Facts and Guidance! ...
Thanks and Cheers! ...
You said ...
A420: Wow! Outstanding Post, DD and Effort on your behalf for all of us here! ...
Thanks and Cheers! ...
You said ...
$HENC Up 47+%! at .09! ...
Heavy Volume!
Reverse Merger News due soon!
Cheers!!!
$HENC Up 47+%! at .09! ...
Heavy Volume!
Reverse Merger News due soon!
Cheers!!!
$HENC Up 47+%! at .09! ...
Heavy Volume!
Reverse Merger News due soon!
Cheers!
$JCPNQ Low Volume Consolidation and Accumulation today!
Cheers!
$HENC Up 36+%! at .083! ...
Reverse Merger News Leak?!
Cheers!!!
$HENC Up 36+%! at .083! ...
Reverse Merger News Leak?!
Cheers!!!
$HENC Up 36+%! at .083! ...
Reverse Merger News Leak?!
Cheers!
$HENC Reverse Merger News due by End Of June. Cheers!!!
$HENC Reverse Merger News due by End Of June. Cheers!
$HENC Reverse Merger News due by End Of June. Cheers!
LG: Will the $JCPNQ Common Shareholders Stock survive this BK Chap. 11? Or, will we be Reverse Split or worse yet, be voided out and made worthless? ...
When will we know for sure? ...
Thanks.
D28: Very Interesting DD and Future Guidance Post! Cheers! ...
You said ...
$$$$Why JCPNQ will make investors Rich in only 30 short days! $$$
JCPN-Q had the Q added immediately after filing for bankruptcy because they are fast tracking Chapter 11 reorganization. JC Penny management simply used the COVID-19 shutdowns as an excuse to renegotiate old leases and exit unprofitable locations without any penalties or lump sum payments.
JC Penny’s is scheduled to exit Bankruptcy with all debts renegotiated by July 15th. At that time they will ask to be re-listed coming off the otc market.
Just as court documents reveal, JCPNQ’s assets far exceed its liabilities. This is not a Bankrupt company but rather smart management move taking advantage of the markets situation. Opposing attorneys have argued in court that the bankruptcy should be expunged immediately as it has assets that far exceed its liabilities.
There are currently 4 different bidders involved in bidding for JC Penny’s through bankruptcy court. The largest entity is Amazon, and they have already taken over one of JC Penny’s locations and are planning on using it as a distribution hub. On June 1st Amazon offered $10 Billion in bonds on the open market to raise cash. The last time Amazon offered bonds was in 2017 to raise cash to buy Whole Foods. Buy out rumors are swirling all over the media. The only problem is all bidders are operating under Non-Disclosure Agreements so the bids have not been released to shareholders.
In a wild move through bankruptcy court, the judge actually granted shareholders an Equity Committee on June 9th protecting shareholder assets/ value. In the link below you can see where attorneys argued that shareholders currently have assets in the amount of $11.85 per share! This was just released to shareholders.
https://img1.wsimg.com/blobby/go/e52e137b-92af-4273-a367-58417f136f9d/downloads/Shareholders_Objection_Petition_Docket_Final.pdf?ver=1591920095315
Scroll down to the bottom of page 14.
Monday offers an opportunity for an epic SHORT squeeze!
As always jmho
Pure Gold after the Reverse Merger!
Cheers!
Hi Geek. Why was I removed as a NDYN Board Moderator? ...
I was on there and have aided by the iHub Rules.
Please put me back on.
Also, there seems to be an issue with my recent reinstatement request. Please approve it and lets all be fair and balanced.
Thanks!
$NDYN Reverse Merger News soon! ...
Then, we'll see the new 200 for 1 Forward Split Shares in our Accounts!
$138 is the PPS Target!
$NDYN Up 21.5+%! at .0045! ...
Waiting on Reverse Merger News and New Stock Shares issued to Present Shareholders!
Cheers!
P.S. You have written 2 posts today and have 13 remaining.
Hi Shelly. Why was I removed as a NDYN Board Moderator? ...
I was on there and have aided by the iHub Rules.
Please put me back on.
Also, there seems to be an issue with my recent reinstatement request. Please approve it and lets all be fair and balanced.
Thanks!
$TTCM Arknet Version 1.5.5 is now out!
Cheers!
Skil: What will be the legal future relationship between the parent company Holloman Corp and HENC?
Please explain the "A lot of moving pieces." ...
You said ...
I’m certainly expecting 2020. That’s my best estimate. Sooner rather then later. A lot of moving pieces.
M1: Interesting Post and I agree ...
We Shareholders deserve to be timely informed by a verified SEC Filing and News Release just exactly what is legally going on here ...
You said ...
Little pullback. Need to see what company is merging into the shell. Could be Holloman or maybe not? Should get a PR and/or 8K very soon! We received the PR on 5/13 about the resignation of Directors and Officers and new management. Usually from past experience, RM information is communicated within a month...maybe a little more or less. In any way...I'm not selling. Waiting like the Longs. GLTA!
SJ: Holloman Corp and HENC are to have what future legal relationship? What's really happening here? Without a veritable SEC Filing or News Release we are still speculating ...
You said ...
Been in this for many years we hear very little pR. How long have you been here? I hope you do not think that holloman corp is HENC.
Skil: When is the Reverse Merger News going to be PR'ed by the Company? Your estimate? Thanks.