JC Penney (NYSE:JCP) releases numbers in a few hours. The stock is on discount. Everyone is pointing to Ronald B Johnson because we all need a scapegoat. OK the CEO counts for a lot. Just like quarterbacks in the NFL.
But take a look at the board which is off course heavily influenced by Pershing Capital and Bill Ackman. The current chairman is Thomas J. Engibous. Not a traditional retailer or merchant. He is the former chairman of Texas Instruments, Incorporated and is also an independent director of Taiwan Semiconductor Manufacturing Co., Ltd.
How does a guy like that end up trying to sell shirts, coats, sweaters and engage consumers in the highly fickle game of fashion.
When you look at the rest of the board no else really has a retail perspective. Only Javier G Terul has one other directorship which is good at engaging customers Starbucks.
The earnings report will be as much about assessing the fundamentals and ensuring the conditions for a win are moving into place. If that argument cannot be made Bill Ackman has a problem. Bill Ackman may be the problem and that is why Ronald B Johnson will stay in place.