Cramer's Stop Trading! Raining on Macy's Parade (2/2/09)

Includes: JCP, M, X
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV show, Monday February 2.

Macy’s (NYSE:M), J.C. Penney (NYSE:JCP), U.S. Steel (NYSE:X)

Macy’s troubles are not surprising, because it has “been in trouble literally for years” and its business model of big department stores is a losing one. Macy’s announced it is letting go 4% of its workforce and cutting its dividend 5 cents. JC Penney, also a high-yielding retailer, may be in trouble too.

Even with domestic steel production cut in half, and U.S. Steel is seeing slow earnings and has a $5 billion pension problem, he questions the logic of a Goldman Sachs analyst who put it U.S. Steel on the conviction sell list at $26 when the stock was once as high as $196.

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