J.C. Penney Company, Inc. (JCP)…Higher?

The best thing going for interim CEO Mike Ullman is that he’s not Ron Johnson. Johnson was a divisive figure at J.C. Penney’s and damaged employee morale. He was living at the Ritz in Dallas and commuting home every weekend to California on a private jet. That upset employees who were not sure if they would have a job the next day due to Johnson’s restructuring and layoffs.

Ullman will likely bring back many of the sales and coupon tactics that Johnson did away with. Penney’s core customers loved them. Hopefully, they will bring these people back into J.C. Penney stores.

Ullman will also likely work to resolve the costly litigation with Macy’s over Martha Stewart branded merchandise. Macy’s had an exclusive deal with Stewart, who then signed a contract with J.C. Penney Company, Inc. (NYSE:JCP). The two have been in litigation since. It’s a distraction the company doesn’t need right now as it looks to return to profitability.

J.C. Penney will continue with the revamping of its stores and expanding its Joe Fresh line of apparel. The brand is reportedly selling well in the stores and online as well. There’s no denying that J.C. Penney needed to revamp its stores. But by doing the store-within-a-store concept, all J.C. Penney did was showcase how unappealing the rest of the J.C. Penney store is. The stores desperately needed new lighting and a total revamp to make the stores less dreary.

Johnson had alienated many vendors, so Ullman will also have to restore Penney’s reputation with suppliers, who are critical to J.C. Penney’s survival. The company’s relationships with its vendors are critical to ensuring that the supply chain functions smoothly and stores remain stocked.

There are three billionaires that have a lot at stake when it comes to the future of J.C. Penney. Besides Soros and Ackman, Steve Roth’s Vornado is the second largest shareholder after Ackman, but Vornado sold off a large piece of its stake before Johnson was fired (check out Ackman’s top picks).

New CEO Ullman can now focus on restoring the company to profitability, as well as building Johnson’s vision for J.C. Penney Company, Inc. (NYSE:JCP). Johnson may not have been the right man for the job, but his instinct to redesign the stores was correct. Only time will tell how Penney’s will fare, but I think the stock can easily get back into the $20s, which will make for a nice return.