Bad gets worse

[The beef 675] [I'm an image] “I’d say pour one out for retail but you would have to use the whole bottle...” - Jeff Hey there carnivores, Markets were up on Friday marking a two day streak. And today we’re talking about another retailer filing for bankruptcy. Keep raging, Jeff & Jason [Image] [I'm an image] Another one bites the dust J.C. Penney filed for bankruptcy on Friday, following the lead of Neiman Marcus, J.Crew, and Stage (a department store), as the coronavirus claimed another victim. Turns out JCP did have some pre-existing conditions. The retailer has been in business for 118 years and was able to survive the Great Depression, two World Wars, and the fashion trends of the eighties... but not COVID-19. So what happened? The Chapter 11 filing, which will allow the retailer to stay afloat while it figures out how to pay its bills, started long before March. JCP hasn’t seen an annual profit in over a decade (is that bad?) and its sales, which were $10.7B last fiscal year, have fallen each of the past five years. Not ideal! It certainly didn’t help that it failed to shore up its finances like others. Retailers like Gap and Nordstrom raised cash through debt offerings to get through these shutdowns. JCP currently has [$8B in debt]( (compared to $8.6B in assets) that it owes to 100k+ creditors, and hopes to reduce its debt total by $7B through the bankruptcy. If JCP doesn’t hit certain milestones and finalize a business plan by July 15, it won’t receive its full bankruptcy package and must put itself up for sale. The plan JCP raised $900M via a restructuring package, of which $450M will come from existing lenders. It plans to use the fresh capital to close and sell off an unknown number of its 850 stores (our early estimates are between 1 and 850). As a part of the financing agreement, it will look at ‘strategic alternatives’, such as a third-party asset sale. Part of the bankruptcy proposal [is to spin its real estate]( (which is valued at $1.4B) into a publicly-traded real estate investment trust (REIT). The REIT would collect rent checks from the retail business… which is a similar strategy SEARS used in 2015. And look how well that’s gone... The bottom line... But JCP isn't alone... [Retail sales fell 16.4%]( in April, which is the kind of record you don't want to be setting. Clothing stores fell the furthest, down 78.8%, beating an already dead horse. If this shutdown continues, JCP certainly won’t be the last to fall. Younger shoppers (cue the ‘blame millennials’ headline) have chosen to shop elsewhere, like on the interwebs at Amazon and at bargain stores like TJ Maxx and Nordstrom Rack. [Image] Last Week, Jeff Bishop Made $250K In Trading Profits. He’s Releasing His Highest Conviction Trade Idea... In Just A Few Hours [Get It Now]( [I'm an image] ☑️Passed out. On Friday night, the House passed the $3T stimulus package that it was working through last week by a narrow margin of 208 to 199. The bill includes $1T of aid directly to states and localities. No, Harvard, you are not a “locality.” And some good news for the unemployed (well, kinda)... the new bill includes another one-time stimulus payment and extended unemployment benefits. Now it’s off to the Senate, and Mitch McConnell where things are likely to [come to a dead stop](... Gotta love politics in the face of a crisis. ☑️I love goooooold…. But Warren Buffett does not, apparently. The Oracle’s Berkshire Hathaway sold off most of its stake in Goldman Sachs *gasp* after the investment bank shed 33% of its share price during Q1. In total, Berkshire cut its GS [stake by 84%](, worth roughly $330M. And when the Oracle loses faith in you, you lose faith in yourself. It doesn’t appear to be personal as much as it was Berkshire cutting some fat. The conglomerate also sold off 3% of its stake in JPMorgan and even took some of its Amazon holding off the table (only .7%, but still). The one investment Berkshire increased? PNC Bank… which Goldman was rumored to be interested in buying last week. We see you Warren... ☑️Conn artist. Unfortunately for suppliers, sh*t flows downhill. Foxconn, the largest manufacturer of goods for Apple saw its [revenue fall 90%]( year-over-year for Q1. Anybody ever heard of customer diversification? Most of Foxconn’s production sites, which are based in China, have gotten back to normal operations. Now, the company has to hope the demand returns. ☑️Let's get high. Aurora Cannabis’s stock price [jumped nearly 70%](. Aurora announced that its revenue in fiscal Q3 reached C$75.5M topping analyst estimates of C$66.7M. Canadian weed is one hell of a drug, apparently. Analysts attribute the jump to Aurora’s dismal expectations from analysts as the stock is down 89% within the past 12 months. Some analysts are making upgrades now, hoping the stoner gets its act together. Shares closed at C$15.35 in Toronto on Friday (or $11.20 in America). RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 Neither Raging Bull nor RagingBull.com, LLC (publisher of Raging Bull) is registered as an investment adviser nor a broker/dealer with either the U. S. Securities & Exchange Commission or any state securities regulatory authority. Users of this website are advised that all information presented on this website is solely for informational purposes, is not intended to be used as a personalized investment recommendation, and is not attuned to any specific portfolio or to any user's particular investment needs or objectives. Past performance is NOT indicative of future results. Furthermore, such information is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All users of this website must determine for themselves what specific investments to make or not make and are urged to consult with their own independent financial advisors with respect to any investment decision. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. All opinions, analyses and information included on this website are based on sources believed to be reliable and written in good faith, but should be independently verified, and no representation or warranty of any kind, express or implied, is made, including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we undertake no responsibility to notify such opinions, analyses or information or to keep such opinions, analyses or information current. Also be aware that owners, employees and writers of and for RagingBull.com, LLC may have long or short positions in securities that may be discussed on this website or newsletter. Past results are not indicative of future profits. This table is accurate, though not every trade is represented. Profits and losses reported are actual figures from the portfolios Raging Bull manages on behalf of RagingBull.com, LLC. If you no longer wish to receive our emails, click the link below: [Click Here to stop receiving emails from support@ragingbull.com]( [Unsubscribe from all RagingBull emails](