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  • J. C. Penney, Coach Joining The Losers In The Retail Sector? 0 comments
    Oct 24, 2013 9:19 AM

    The retail sector is fierce and competitive, and the reality is that in this sector, a bad move or investment strategy could set a company up for continued miscalculations down the road. Of course, Blockbuster is a classic example.

    However, my modern-day example of a total screw-up in the retail sector is J. C. Penney Company, Inc. (NYSE/JCP). The company is a perfect case of continued miscalculations and just horrible decision-making that could inevitably bankrupt this century-old American retail icon, sending it in the direction of Blockbuster to settle in the retail graveyard.

    The chart of J. C. Penney below shows the horrific damage caused by its poor execution in the retail sector, which makes the events in Congress seem trivial in comparison.

    The crossing of the 50-day moving average (NYSE:MA) below its 200-day MA in December 2012 (as shown by the shaded sideways oval on the chart below) was a good indication that the worst was yet to come, based on my technical analysis.

    Just take a look at the subsequent decline following the "death cross" on the chart, especially the major fallout from the $15.00 to the $6.00 level in just a matter of weeks.

    Full Story : J. C. Penney, Coach Joining The Losers In The Retail Sector?

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