From Buybacks To Growth;JC Penney Improves

We're forecasting about a 10% upside for the year-closer to an average return than the past few years,said Savita Subramanian,head of US equity and quantitative strategy at Bank of America/Merrill Lynch.Once we get a better sense of the economy as improving,there's no better place to be than the stock market.The market is actually rewarding the companies that spend on growth,whether through acquisition or capex.Investors want growth,not necessarily buybacks to return cash.
We really want to look at company spoecifics.It's less about picking the right asset class,and more about picking the right stocks.
It just doesn't make sense anymore to buy back stock,when prices have returned to more normal levels.Companies have not been spending on economic growth,but I think that's what we're gonna see this year,Ms.Subramanian projected.
She likes the technology,industrial and energy sectors.*
In the retail sector,it's been a big improvement for JC Penney,according to Chad Green of Sterne Agee.It looks a lot better for them than it did 12 months ago.Their store looks a lot better.It looks like the old JC Penney.
The big question for them is getting their traffic back,clearing through former CEO Don Johnson's mistakes,Mr.Green noted.*
JC Penney(JCP)

Investing Today:The Promise of the Mega Caps

The biggest bargains right now are the mega caps,said thought leader Joel Greenblatt of Gotham Asset Management.Google has huge cash flow and growing.Over time,it's gonna pay out a lot of money.So is Apple.
We put together portfolios of hundreds of stocks on the short and long side.If you own a bucket of Apples,you're gonna make a lot of money.The company is incredibly cheap right now,trading at only seven times free cash flow.It hides in the market in plain sight.
I can't really tell you if Apple itself is gonna work out,but if you own a bucket of Apple-type bets,you're gonna do very well.
We short about 300 stocks.At the top is JC Penney.It's eating through lots of cash,and it's doing it quickly.History would say this is gonna be a tough one to turn around.If you're gonna short a bucket of JC Penneys,you're gonna make a lot of money.I wish JC Penney well,but the odds are against them.It's possible to turn it around,but it's a tough road.
We're basically underwriting good bets and bad bets.On the straight numbers,Herbal Life is cheap,but we can't trust the numbers,so we don't play.We have no opinion on it.
We're in about the 68th percentile toward cheap.The expected return for large caps is 13-15%.You have to invest someplace.
I'd like to hide in a business that spins out a certain amount of cash every year and can adjust to what's happening in the economy.On average,companies don't spend their cash very well.If they either buy back stock below fair value or increase dividends,it might be better than going out and spending it,Mr.Greenblatt suggested.
Founder of hedge fund company Gotham Capital Management,Joel Greenblatt is the former chairman of Alliant Techsystems and is currently an adjunct professor at Columbia University Graduate School of Business.He holds an MBA from The Wharton School,and is the author of "The Little Book That Beats the Market" and "The Big Secret for the Small Investor:A New Route to Long Term Investment Success."
Google,Inc(GOOG),Apple Computer(AAPL),JC Penney(JCP),Herbal Life(HLF)

Warren Buffett and Common Sense in Business

In retail,your competition is always moving,said Berkshire Hathaway CEO and noted billionaire Warren Buffett,referring to JC Penney's current difficulties.
I do not care whether Berkshire Vice Chairman Charlie Munger's in the office or not.He's always got Berkshire on his mind.I only talk to him about once a week.
I feel very good about my three children.
Low interest rates could pose a problem for insurance companies down the road.When you roll over bonds,you're getting a lower rate.The profitability is going down because of that.They own a lot of bonds.
Of all my companies,I would keep GEICO because of sentimental reasons.It goes back early in my life.
Airlines have all the ingredients of a bad business.
People can buy a low cost index fund and participate in the future of America and they should forget about it for five years,and they should be fine.You can own index funds for a very low cost and get the same performance as people who charge you a whole lot more.
I think we live in the best country in the world and we will solve our problems.
Buffett represents American industry and American business,according to CNBC's Jim Cramer.The common sense in his annual letter is so much fun.
If Apple don't do anything with their cash,they are becoming the anti-Buffett.He'd rather buy a business than keep cash.He's a thoughtful man for many years.I like him.
Berkshire Hathaway(BRKb)

Should You Buy JC Penney Shares

Brian Nagel,CFA,Managing Director at Oppenheimer,said we launched coverage of JC Penney with an outperform rating.Many of the concerns about the company are already priced into the stock.As I look out,I think JC Penney is headed in the right direction.
Over the next few years,I see earnings of 3-5 dollars a share.They're finding a new store format that's gonna resonate with consumers in this environment.Their balance sheet will buy them some time as they do this.We've given the stock a price target of 30 dollars.
The Q2 results,which will be reported on Friday,will be messy.I think this is another transitional quarter as their turnaround begins to take hold,Mr.Nagel added.
Mr.Nagel is a Senior Analyst in Hardlines and Broadlines Retail.He has a BSBA from Creighton University.Oppenheimer is a full line brokerage,investment banking and wealth management firm.
JC Penney(JCP),Oppenheimer(OPY)

JC Penney Career Fair

JC Penney is holding a career fair in Northern Virginia.You are invited to explore career growth opportunities with the new Penney's store in Woodbridge.There are full and part time openings.Flexible hours,benefits and a generous merchandise discount are being offered.The fair will be held on
Thursday,Jan. 5,8am-6pm
Friday,Jan. 6,8am-8pm
Saturday,Jan. 7,8am-6pm at
Spring Hill Suites Potomac Mills
14325 Crossing Place
Woodbridge,VA 22192
You may also apply at www.jcpenneycareerss.com
JC Penney&Y0U...A Perfect Fit
JC Penney(JCP)

Retailers Ramp Up Seasonal Hiring

Macy's continues seasonal hiring at its Tysons Corner,Virginia store and other locations.Apply online at macysJOBS.com or visit the website to find Holiday Hiring Events in your area.
Macy's is hiring 78,000 seasonal workers.That is up 4% from last year.
Macy's:Discover the Magic
JC Penney is also hiring at multiple locations.Apply online at www.jcpenneycareers.com
JC Penney:Every Day Matters