Pershing Square Capital Management President Bill Ackman addressed the elephant in the room at the Ira Sohn investment conference on Wednesday: JC Penney (JCP). Ackman, a board member of the company and a fierce backer of new CEO Ron Johnson, only seemed emboldened by the stock’s record 20% drop today on a weak earnings report.
Ackman said his average cost per share for JCP was $26 a share. “Today you can buy the stock at our price a year and a half later,” he said to chuckles from the audience.
“We don’t think the company’s fundamentally broken,” he said, before running through the company’s attributes, including a a very well-known brand, dominance in small markets, and strong real estate. He also reiterated his strong backing for Johnson.
“We’re going through an extreme makeover.”
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