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New Carmel company to boot J.C. Penney off S&P 500

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A new Carmel-based company will replace struggling retailer J.C. Penney Co. on the Standard & Poor’s 500 index, according to a statement released Friday by S&P Dow Jones Indices, which runs the benchmark stock index.

J.C. Penney, which is trying to bounce back from its worst sales year in two decades, will be replaced by electronic security company Allegion, which is being spun off by Irish industrial conglomerate Ingersoll-Rand Plc.

Allegion will have its North American headquarters and most of its executive team in Carmel. Shares in the new company will begin regular trading Dec. 2.

J.C. Penney’s market value fell 37 percent this year, to $2.7 billion, making it “more representative of the mid-cap market,” S&P said.

Allegion, which makes residential and commercial door locks, has a market capitalization of $4.2 billion.

The S&P 500 change will take place after the close of trading on Nov. 29, S&P said. The revisions in the benchmark equity index may prompt money managers to shift holdings to match it. About $5.14 trillion was benchmarked to the gauge, according to the S&P website.

J.C. Penney will bump Aeropostale Inc. from the S&P MidCap 400 Index, and Aeropostale will displace Corinthian Colleges Inc. from the S&P SmallCap 600.

Shares of Plano, Texas-based J.C. Penney have fallen 55 percent this year as the retailer reported quarterly losses in each period since mid-2011, including $489 million last quarter. J.C. Penney was up 32 cents Monday afternoon, to $9.19 a share.

J.C. Penney CEO Mike Ullman, who returned as CEO in April to replace Ron Johnson, has restored promotions and popular private-label brands while ending his predecessor’s remodeling plan. He also raised about $4 billion to try to give the company enough cash to complete a turnaround.

Revenue declines slowed in the quarter ended Nov. 2 and the department-store chain said sales and profit margins would improve during the holiday shopping season.
 

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  • Will JCP rise again?
    I have some stock in JCP and my will says my children will share it. I wonder if there will be anything for them to share. What happened? Just a few short years ago my the stock was jumping by leaps and it was so nice.

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  1. If what you stated is true, then this article is entirely inaccurate. "State sells bonds" is same as "State borrows money". Supposedly the company will "pay for them". But since we are paying the company, we are still paying for this road with borrowed money, even though the state has $2 billion in the bank.

  2. Andrew hit the nail on the head. AMTRAK provides terrible service and that is why the state has found a contractor to improve the service. More trips, on-time performance, better times, cleanliness and adequate or better restrooms. WI-FI and food service will also be provided. Transit from outlying areas will also be provided. I wouldn't take it the way it is but with the above services and marketing of the service,ridership will improve and more folks will explore Indy and may even want to move here.

  3. They could take the property using eminent domain and save money by not paying the church or building a soccer field and a new driveway. Ctrwd has monthly meetings open to all customers of the district. The meetings are listed and if the customers really cared that much they would show. Ctrwd works hard in every way they can to make sure the customer is put first. Overflows damage the surrounding environment and cost a lot of money every year. There have been many upgrades done through the years to help not send flow to Carmel. Even with the upgrades ctrwd cannot always keep up. I understand how a storage tank could be an eye sore, but has anyone thought to look at other lift stations or storage tanks. Most lift stations are right in the middle of neighborhoods. Some close to schools and soccer fields, and some right in back yards, or at least next to a back yard. We all have to work together to come up with a proper solution. The proposed solution by ctrwd is the best one offered so far.

  4. Fox has comments from several people that seem to have some inside information. I would refer to their website. Changed my whole opionion of this story.

  5. This place is great! I'm piggy backing and saying the Cobb salad is great. But the ribs are awesome. $6.49 for ribs and 2 sides?! They're delicious. If you work downtown, head over there.

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