Strong Reaction After Bill Ackman Note on JCP

Shares of JC Penney JCP spiked higher at noon when a letter from Bill Ackman was released, expressing his urgency to find a new CEO.

It is no new news that Bill Ackman doesn’t like current CEO Mike Ullman, after he stated intent to find a replacement shortly after Ullman took the position.

Bill Ackman’s letter also claimed that a former Chief Executive, Allen Questrom has agreed to rejoin JC Penney as chairman. During a CNBC interview, Questrom pointed out that he will only return if the conditions are right, especially a lack of hostility from the board.

Related: Brian Sozzi Tweets Comments On JC Penney

Share of the company spiked more than ten percent on Ackman’s iteration of finding a new CEO within 30-45 days. This movement is similar to the ousting of the previous leader, Ron Johnson. On the announcement of Johnson leaving the company, shares spiked before pulling back to close up more than three percent for the day.

Part of today’s big jump may be attributed to a eight day sell off with shares traveling from $16.62 to $12.84. The jump may also be attributed in part to a short squeeze; more than 37 percent of the float was sold short as of mid July.

Despite today’s buying, shares are significantly below the 20, 50, and 200 day moving averages at $13.65.