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View Diary: Overnight News Digest: Deceased Ex-Prime Minister Baroness Edition (52 comments)

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  •  J.C. Penney ousts CEO, Mike Ullman returns (6+ / 0-)

    (Reuters) - Attention J.C. Penney (JCP.N) shoppers: Meet the new boss. Same as the old boss.

    The struggling department store chain parted ways with Chief Executive Ron Johnson, who failed to win over shoppers and investors with his everyday-low-price strategy, and rehired former CEO Mike Ullman to revive the company.

    Shares in J.C. Penney rose nearly 11 percent in afterhours trade after a CNBC report that Johnson was out, but then fell 7 percent after the company disclosed full details of the move, including Ullman's return.

    William Frohnhoefer, an analyst at BTIG, said that while "certain investors had beaten the drum saying that a change was needed and Johnson wasn't the guy," he believed Ullman would not please the company's critics.

    "Investors are concerned about Ullman," Frohnhoefer said, adding that Penney's sales notched "a decline, on a relative basis to other retailers, while he was at the helm."

    Meg Whitman must be nervous

    HP shakeup points to more "shareholder friendly" board

    (Reuters) - Wall Street's psycho-analysis of Hewlett-Packard's latest board room shuffle has begun.

    The stepping-down of Hewlett-Packard Co Chairman Ray Lane and appointment of activist investor Ralph Whitworth as his interim replacement has raised hopes for a more "shareholder friendly" board at the flailing PC maker.

    But investors aren't buying it just yet, and HP shares fell more than 2 percent in morning trading on Friday.

    Wells Fargo analyst Maynard Um said the shakeup at HP, which follows a series of missteps including the messy acquisition of UK software firm Autonomy, could result in longer-term "shareholder friendly" actions "potentially from a capital allocation perspective."

    But he said that while he now had more comfort about HP's ability to fix its foundation, the company needed new products and initiatives to offset a general downturn in the personal computer market. And any changes are likely to take time to formulate and materialize, Um said.

    I want 1 less Tiny Coffin, Why Don't You? Support The President's Gun Violence Plan.

    by JML9999 on Mon Apr 08, 2013 at 09:24:25 PM PDT

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