Ron Johnson was brought into JC Penney(JCP) by Bill Ackman to be CEO. He was a rockstar on his entrance in 2011, coming off the success of the Apple(AAPL) Store and, previously, success at Target(TGT). Ackman thought he was getting Steve Jobs but he got Gil Amelio. Seventeen months later, Johnson was out, his reputation more like Vanilla… Read More »
There is no doubt that the wide moat stands as one of the most durable metaphors of investing. It’s important to remember, however, that a moat will only repel a ground assault. The invention of aircraft pretty much made moats and trenches worthless in warfare. Similarly, moats around businesses can give investors and management a false sense of… Read More »
Though its influence has finally waned somewhat in recent years, for over a century, the Dow Jones Industrial Average has been, and, for many, remains, synonymous with the stock market. News reports continue to proclaim “the market” is up or down, referring to this index. Yet, the index consists of a mere 30 stocks, not particularly representative of… Read More »
Eastman Kodak(EK) surged 35% today, building on yesterday’s gains. Investors were reacting positively to two pieces of news released by the company. On Tuesday morning the company announced it was restructuring from three reporting segments to two. Under the new structure, Kodak has reduced its number of segments from three to two – the Commercial Segment and the… Read More »