Brian Sozzi: 'Say Hello To The New CEO Of Your Mom's J.C. Penney'

Brian Sozzi of Belus Capital Advisers commented on

appointment of Marvin Ellison as the company's next CEO in a note to clients on Monday. Ellison, who currently serves as

Executive Vice President of stores will replace outgoing CEO Mike Ullman. Sozzi attended J.C. Penney's recent analyst presentation and commented in a note to clients on Monday that Ullman “dropped the ball” by not updating the market on a succession plan and that the company could have saved a “great deal” of investor headache by offering the Street a timetable on a new CEO announcement. Sozzi suggests that Monday's announcement indicates that the “CEO search was nearing completion.” “Having had coverage on Home Depot for eight years, we can tell you that Ellison is very strong operationally,” Sozzi wrote. Ellison's accomplishments at Home Depot include expanding its appliance section, improving customer service and introducing a ship from store, buy online pick up in store concepts. According to Sozzi, Ellison's operational background “is needed” as J.C. Penney's operational execution is “critical” at this point. Sozzi shrugs off concern that Ellison isn't an “apparel guy” and notes that “the market is right in sending the stock higher.”