Will JCP last for 5 years?

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Chris
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Joined: Thu Jul 22, 2010 2:44 pm

Will JCP last for 5 years?

Post by Chris » Thu Oct 11, 2018 10:38 am

With Sears' bankruptcy looming, there may soon be $14B in department store revenue up for grabs for JCP, KSS, and the like.

I have no appetite for the stock of dying retail brands, but some of JCP's debentures trade as KTP, currently yielding > 20%. Assuming they can avoid bankruptcy for the next several years, KTP could be an interesting investment.

Some other factors of the underlying business:
  1. price-to-book < 0.50 (less than half of that is inventory, and zero goodwill or intangibles)
  2. $2.1B in tax loss carryforwards (valuable to an acquirer?)
  3. next significant debt comes due in 2023

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