It’s very early in the JCP story. However, one thing is for certain, they will draw down on all of their cash by the end of 2013. This company is going to recapitalize, whether it be through private financing or a large, dilutive secondary, or bond offering.  It’s not in any danger of going bankrupt, just yet, since they have a credit facility to fall back on. But the trends in retail are the very worst ever witnessed by a big box store, including SHLD.

If forced to liquidate their real estate to raise capital, they are likely to receive “distressed bids” from prospective buyers, nowhere close to $200-250 per sq ft.

The vultures will be circling their wagons until they nail down some financing.

Ron Johnson made a huge mistake, thinking the old horse faced– sea hag crowd– at JCP was hip like the AAPL dork-a-tron line slaves. Clearly, he struck lightening in the bottle with the Apple stores and is now comically lost at JCP.

Being that Bill Ackman is getting “barbelled” on both JCP and HLF, I suspect there might be an exaggerated run on both positions, to further weaken “Montauk Bill” and his scurrilous ways.

Other positions of Bill’s to keep an eye on, in case he needs to raise money, are BEAM, CP, GGP, TGT and LOW.

Ackman owns good, liquid stocks, but these two (JCP, HLF) are going dreadfully wrong for him and I am obliged to kick him down a few flights of spiked steps–as I sashay (no homo) to my next destination.