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"Mike has been working tirelessly to save the company. He's a world class CEO and leader," he said. "I just can't sit by and be a bystander. It's unfair and unjust." Shares of Penney jumped 87 cents, or 6.8 percent, to close Thursday trading at $13.67. That is still down about 31 percent since the start of the year, and remains close to the low end of the stock's 52-week range of $12.50 to $32.55. Penney is trying to win back customers who fled during a transformation plan spearheaded by Johnson that backfired and led to massive losses and sales declines. Penney amassed nearly a billion dollars in losses and its revenue dropped 25 percent for the fiscal year that ended Feb. 2 in the first year of the failed transformation strategy, which included decluttering stores, revamping merchandise and doing away with most discounts. Losses and sales drops continued into the first quarter, as the shadow of Johnson's legacy remained. Ullman has been working to stabilize the business by bringing back basic merchandise and more frequent sales that were eliminated by Johnson in a bid to attract younger, hipper customers. But some analysts believe that while traffic is improving as a result of stepped-up discounts and the return of brands like St. John's Bay, there has been no evidence of a turnaround yet as the company heads into the bulk of the critical back-to-school shopping period. Moreover, concerns are growing about Penney's financial liquidity. Deborah Weinswig of Citi Investment Research, published a note Tuesday saying that Penney has ample cash for this year but 2014 is still in question and Penney could "face a cash crunch in 2015." Weinswig, once an advocate for the company, lowered her rating on Penney's stock to "Sell" from "Neutral" last week. Dan Hess, CEO of Merchant Forecast, an independent research firm that monitors the retail sector, said he believes that Ullman has done a good job in stabilizing sales even though the improvement on the selling floor isn't reflected in the share price. "A lot of things are working, but it takes time," he said. He said he couldn't guess the names of candidates for the CEO job Penney is considering. Penney is expected to issue its second-quarter report Aug. 20.
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