J.C. Penney -1.6% pre-market, Craig-Hallum sees $0/share

Shares of J.C. Penney (JCP) continue to slide, -1.6% pre-market. Hurting their cause is an initiation at Sell by Craig-Hallum, which believes the equity is worth a big fat goose egg.

The firm thinks the retailer will never recover and expects it to burn through half its market cap in cash this year given the secular headwinds its department stores face.

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Comments (8)
  • Heinz Doofenshmirtz
    , contributor
    Comments (308) | Send Message
    The thing is, it's already trading at near a big fat goose egg, and so saying they expect JCP "to burn through half its market cap in cash" is a rather manipulative choice of words designed to spread FUD, IMO.
    17 Jan 2014, 10:13 AM Reply Like
  • johnac97
    , contributor
    Comments (4) | Send Message
    Thank you Craig-Hallum for showing up late to the party. I take all of the pessimism from analysts as a time to buy. Seen it over and over again. On the flip side when they all say buy it will be time to move on...
    17 Jan 2014, 10:28 AM Reply Like
  • The Linch Scale
    , contributor
    Comments (92) | Send Message
    Last huge rally started the day after the downgrade to $1 a month or so ago. This will be the start of next rally. The analyst are only trying to get you to move in the direction they want you to move. Buy low, Sell high... that's what they do... but they have the forum to get their message out while the minions do not. Don't be suckered.
    17 Jan 2014, 10:37 AM Reply Like
  • eldindo
    , contributor
    Comments (7) | Send Message
    Just like Goldman Sachs "Conviction" Buy / Sell list. They put up the stock name and they do just opposite what they publicly say. What do you think how they make money? Buy Low Sell High. Spread panic or spread optimism, the name of the game :-) Best Buy was going out of business, BP was going bankrupt, Sprint was dead, GM was done. Be smart, guys, time is to buy small stake in JCP and wait, it will pay off
    17 Jan 2014, 04:27 PM Reply Like
  • danceprometheus
    , contributor
    Comments (27) | Send Message
    It is sad to see a lack of sincerity with trading firms. Nauseating.
    17 Jan 2014, 05:19 PM Reply Like
  • salternewsletter
    , contributor
    Comments (40) | Send Message
    I find it amazing that any would even commit 1$ of risk capital to JCP this Equity is headed for Zero!!!!
    19 Jan 2014, 02:20 AM Reply Like
  • User 15210262
    , contributor
    Comment (1) | Send Message
    I have to agree. I mean. Sell..really...where were you at $18 douche. And Goldman Sachs bought 84 million shares at $13...you think they may know a thing or two.
    19 Jan 2014, 10:48 AM Reply Like
  • loudano
    , contributor
    Comments (710) | Send Message
    Full disclosure, I'm long JCP and might not be totally objective. I Just came back from a JCP store. After reading all the negative remarks here on SA I expected to be stepping on clothes as I walked the isles like Woolworths was at the end. However I witnessed a bright, inviting space with nicely defined areas and friendly sales people. I estimated about 100 people in the store at the time (3PM on Sunday) and received 4 upbeat answers when I asked the employees about recent sales. They also volunteered information about future plans for the store that would further appeal to their customers. Management must have engaged them as they realize that they have to do better and no one that I saw was just going through the motions. All this is anecdotal but couple it with a recent new issue of stock, stronger bond prices and a recent move to close some underperforming stores and it begins to feel very positive. Also if JCP does go to zero as this author expects then Goldman Sachs will have a big black eye as the underwriter of a worthless stock. I'm sure that their fee will not compensate them for a major blunder. Also what does Mr. Ullman have to gain by coming back? He was safe on the sidelines and blameless if JCP failed. I'm sure that he knows the company better than anyone writing about it so if it's really curtains then why be at the helm (and lose a million) while the ship goes down? Please explain this to me "Shorts".
    20 Jan 2014, 02:52 AM Reply Like
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