Do J.C. Penney’s Creditors Think the Turnaround Is For Real?

Shareholders may or may not be bullish, but what do J.C. Penney's lenders have to say?

Jun 26, 2014 at 5:30PM

Struggling department store retailer J.C. Penney (NYSE:JCP) was recently able to not only renew its credit line with Wells Fargo and Bank of America, but it was also able to actually INCREASE it from $1.85 billion to a cool $2.35 billion. It's not terribly surprising that the company was able to renew its credit line, but to have actually increased it by an eye-popping $500 million appears to be generous at first glance. Might its lenders have an inside glimpse into the retailers turnaround, which has made them increasingly bullish on J.C. Penney's ability to bring back customers? Motley Fool consumer goods analyst Sean O'Reilly walks Foolish viewers through the facts and gives insight into just what J.C. Penney's lenders are thinking.

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Sean O'Reilly owns shares of J.C. Penney Company. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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