JPMorgan warms up to long-term outlook on J.C. Penney


JPMorgan tees up J.C. Penney (NYSE:JCP) as a Long Trade Idea.

The investment firm thinks JCP will announce a restructuring this fall that will spark a rally as earnings projections starts to look more manageable.

JP was cautious heading into J.C. Penney's Q2 report, but emerged confident on the other side and with Q3 channel checks looking promising.

JCP +2.4% premarket

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Comments (7)
  • Fast Lane
    , contributor
    Comments (837) | Send Message
     
    B-I-N-G-O !!!
    25 Aug 2014, 08:42 AM Reply Like
  • techy46
    , contributor
    Comments (11417) | Send Message
     
    Gee you think JPM loaded up on JCP before issuing their trade idea?
    25 Aug 2014, 12:15 PM Reply Like
  • Fast Lane
    , contributor
    Comments (837) | Send Message
     
    JPM also supported the refinancing of JCP's debt along with WFC, BofA. So, Gee, let's watch and see if the next neutral / upgrade helps carry the stock to $12.
    25 Aug 2014, 02:16 PM Reply Like
  • ron427z06
    , contributor
    Comments (15) | Send Message
     
    I sold my JCP today to collect profits. Will get back in if it drops again. I'm really suspicious of all the so called analytics who publish articles on SA with no long term skin in the game. It is the opinions of the commenters that keep me interested in SA. Us little guys that invest and make a little money.

     

    Know what I mean Vern?
    25 Aug 2014, 10:18 PM Reply Like
  • Jim Ryan
    , contributor
    Comments (19) | Send Message
     
    This really is a long term investment. Following Buffett's admonition to buy when there's "blood in the streets" I took a deep breath and purchased at $5 - 7. I am holding a large position long. My investment banker friends were all positive it was going bankrupt ("Goldman says..."). Common sense told me that the Johnson's poor management, tanking a 100 year old company in 17 months (-25% revenues) had an upside. It's funny that Goldman was part of the new refinancing of JCP's debt. Go figure.
    26 Aug 2014, 09:00 AM Reply Like
  • jsijimmy
    , contributor
    Comments (556) | Send Message
     
    JC Penney's will (apparently) be closing more non-performing stores (e.g., stores that lose money). Have no idea how many, or exactly where, but that can only help earnings 12 months down the road. As far as price, seems to have spiked up here - I'm looking for a modest downturn (back to $10) prior to next earnings....as for Halloween/Thanksgiving... and New Years time frame - who knows?! Holding position through New Years.
    27 Aug 2014, 06:07 PM Reply Like
  • Fast Lane
    , contributor
    Comments (837) | Send Message
     
    you missed $10, even options market is moving upward with the stock price closer to eleven. if the momentum keeps rolling and more tv personalities / analyst speak and support the movement, $15 is not far off.
    FastMoney Tim Seymor bought it and Guy Adami used $18 on tonights show.

     

    JPM and Piper Jaffry are $11-12 and will need to adjust after next earnings call.

     

    Who will be the next upgrade, Citi??

     

    27 Aug 2014, 08:54 PM Reply Like
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