Adrian Gomez Investments

As I've mentioned in previous articles I believe the Company will go lower in the next few months. I have backed my words with some of my money on PUT options in the mid-single digits expiring in July 2018 and January 2019 as you can see on the picture of my position. I've explained how the company is expecting to be more levered in the next coming months and how their financials are deteriorating as presented in their most recent 10-K filing. I have also given you my personal opinion on why I believe the company will experience lower margins during this fiscal year and an my overall thesis on why I think there's more trouble ahead for the company. However, I am only human and my fears get to me. Market sentiment is on the rise, companies have been beating expectations and I can't do but wonder if my research will hold true. I still believe that the company still has to clear some hurdles before a turnaround is in place. Interest expense is a clear exampl...

The first quarter for 2018 is gone and an earnings date has been announced for UA 's on May 1. I have been reading their latest 10-K filing and trying to find a clue on where the Company is headed. My findings are nowhere near pleasant but I assure you I've given this my best case scenario on everything and even then the numbers don't look good. Let me start with " Net Revenue " , the Company has been showing signs of deceleration in that area. It had been expanding at an average rate of 21.2 % annually over the last 4 years but with the slowest of them being last year at only 3.2%. Being generous, I will give this area an estimated 10% increase to an expected $1,229M when compared to same quarter last year of $1.12B . I said I am being generous because not only the company has shown signs of deceleration when it comes to Net Revenue but it has actually decreased in the sales here in North America where it lost 5.1% during 2017 (the equivalent to al...

Today, November 20, 2013 JC Penney announced its third quarter results with a press release followed by a conference call before the markets opened for business. Overall, I believe that it was good news for the longs (such as myself). However, skepticism is still hanging in there as the material results were disappointing and the only good news are the trends that seem to be improving but are yet to show on the quarterly results. As promised, I will give you, what I believe are the most important things from the conference call and quarterly results for your review. Mike Ullman the CEO mentioned that "the turnaround for J.C. Penney is beginning to take hold" He also said that during the third quarter "we began generating positive sales momentum". Nevertheless, those positive sales trends are not yet materialized and reflected into this quarter results. Margins on sales are not yet improving. In fact, they are deteriorating based on the same period last yea...

It has been almost a year since I started following JC Penney and their turnaround effort. I have to admit that supporting them back then was just a little too early and I have paid the price, losing close to half of my original investment on shares of this company. Having said that, I still think this company can and will be turned around. Though I still think some of the changes that Ron Johnson introduced are good for the company (e.g. uncluttered stores), It is also true that taking away the coupons were a major mistake that resulted in a precipitated decline on sales. Now that Mike Ullman is back on the reign and coupons have been reinstated I think customers will come back. JC Penney is scheduled to release earnings this upcoming Wednesday, and based on the latest events and releases from the company, I expect it to give positive news that will give the stock a much needed boost and at the same time scare some short sellers away from it. I will listen to the conferenc...

Image of one of the "shops" we'll see at J.C. Penney There have been many critics of the strategy that the CEO of J. C. Penney (NYSE: JCP) Ron Johnson is implementing to turn things around in a compelling effort to revive the old department store and take it back to a profitable position it once had. Herb Greenberg, an analyst for CNBC placed Mr. Johnson as the 3 rd worst CEO of 2012 saying “…over promising and under delivering” was the main reason for this uncomfortable award. If we take in consideration the fact that Mr. Johnson had said that a turnaround was not a one year deal but one that will come in different stages taking up to three years and that 2012 was the very first one for this effort, then, that statement of under delivering seems inadequate, at least for now. As I wrote in an article that was published on December 10 th we have to give management the time to get everything in place before we judge their performance. I know that JCP...