Icahn builds stake in J.C. Penney

Struggling retailer J.C. Penney Company, Inc. (NYSE: JCP) has reportedly attracted the interest of renowned bottom-feeder (I mean that as a compliment!) Carl Icahn.

According (subscription required) to the Wall Street Journal, "While the exact size of the stake in the 105-year-old retailer is unclear, one person said it is among Mr. Icahn's top five holdings, which could mean it runs into the hundreds of millions of dollars."

It's unknown whether Icahn will agitate for change at the company -- While he's made his name as a "raider" and activist investor, Icahn frequently buys and holds stocks simply because he thinks they're undervalued.

Earlier this week, Mr. Icahn said that retail stocks were "very cheap" but also sounded a cautious note, saying that he was not bullish on the economy and that retail stocks may well go lower before they go up again. But Icahn has never claimed to be a market timer: he buys stuff when he thinks it's a compelling value, and isn't easily shaken by short-term fluctuations.

Shares of J.C. Penney are up more than 1.5% today.