Seeking Alpha

J.C. Penney on the $5 and below rack

  • Shares of J.C. Penney (JCP -10.9%) fall below $5 on extremely heavy volume after the company's report on sales causes a selling panic.
  • Though the comp came in positive for a change, it was only about half the rate that analysts forecast.
  • The company declined on delivering a portion of the bad news (November and December) when it updated guidance on January 4 with a terse 38-word PR, but had to deliver the goods today.
  • Previous: Analysts warn on JCP.
Comments (10)
  • LYogi
    , contributor
    Comments (1991) | Send Message
     
    you guys should have went with the Blackberry turnaround play!
    4 Feb, 01:46 PM Reply Like
  • Qniform
    , contributor
    Comments (2458) | Send Message
     
    Basic arithmetic seems to escape the news. With the reported November number included, a 2% overall Q4 means a negative holiday period. And what was the margin?
    4 Feb, 01:53 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8145) | Send Message
     
    Point blank:
    Is JCP in any liquidity danger over the next 6 quarters?
    If not, this stock price doesn't make a lot of sense.
    The operating metrics puts JCP @ ~$7 or so.
    They are struggling mightily but even Radio Shack is getting more of a benefit of the doubt.

     

    JCP doesn't sell typewriters or rotary phones...they sell clothes.

     

    If the old brands are coming back why would the customers that held on during the Johnson era suddenly up and leave now?
    The rate of sales deterioration seems to be slowing considerably.
    4 Feb, 03:35 PM Reply Like
  • Qniform
    , contributor
    Comments (2458) | Send Message
     
    Liquidity danger? Just read the articles that analyze that in depth (EA & Distressed Debt offer the most detail). Of course, you will need to process the info dispassionately.
    4 Feb, 06:52 PM Reply Like
  • Newbie trader
    , contributor
    Comments (171) | Send Message
     
    It's because of a fear of bankruptcy. Many seems to think JCP would go under within a year. That's what I got from reading those articles Qniform is talking about.
    5 Feb, 01:04 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8145) | Send Message
     
    Anyone who thinks JCP will go under this year need only remember two words:

     

    Radio

     

    Shack

     

    (RSH)

     

    Retailer operability can stay irrational far longer than you can stay solvent (if you are a short and to borrow a phrase).
    5 Feb, 01:23 PM Reply Like
  • retailgirl
    , contributor
    Comments (123) | Send Message
     
    Haaaaaaaa....they're on Clearance.
    4 Feb, 06:39 PM Reply Like
  • SA_Member_11523241
    , contributor
    Comments (83) | Send Message
     
    retailgirl, with due respect for your work, your past comments are quite amusing. You should take your experiences and write a book. Thanks for the candid remarks and insight. :-)
    4 Feb, 10:04 PM Reply Like
  • Newbie trader
    , contributor
    Comments (171) | Send Message
     
    LOL!!! Yep, they are on clearance again.
    5 Feb, 12:59 AM Reply Like
  • CK uses common sense
    , contributor
    Comments (23) | Send Message
     
    I think there a turnaround is coming this year. JCP can easily top what Best Buy and Blackberry did last year & they were in much more trouble. Due to the 4 season Clothes will always sell.. its starting to move to online once people figure out their likes and dislikes, but online has the problem of sizing and never feeling the texture before buying. The upside is there is other users reviews to compensate. But when buying clothes the store experience is still preferable to many. Especially when it comes to kids clothes. Sizing of different brands are hard to nail online and children size change all the time. Coupons are working hard for kohl's and it drives a lot of return customers (my mother would have nothing to buy but she have kohl's cash so she goes to spend it & end up spending a lot more cash) if JCP can do accomplish this they can get out of the reds. I buying on this clearance.
    6 Feb, 02:12 PM Reply Like
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