JC Penny?
Tell me what you think of JCP.. It's down to an all time low of $1.64 a share at the moment.. I mean can this stock go any more down? I don't see how this isn't a buy at this point. I personally just bought a load of this stock at an average of $1.88. What do you guys think? Thanks.
It doesnt even have a ceo right?
Price doesn't equate to value
Nope, it doesn't have a CEO, and everything points to the company being shit. But, the only way I see this stock plummeting even more - is if it goes bankrupt(which is not going to happen anytime soon). Therefore, I'm buying as many shares as I can while it's this low, I got my last lot at $1.63. But, I'm just hoping someone can give me an extremely good reason why I shouldn't be long in this, so I can dump all my shares.
Idk, just want other opinions.
Well it's currently at $1.72, so I made 10c off my last order so far I guess, but still down cause my initial purchase was $2.20 - I've just been adding and adding, and ultimately my cost is $1.88.
I don't know enough about JC Penny to comment in any real detail. Although anything Ackman seems to touch turns to shit (at least recently).
I wish you luck in your exploits though. Have you used any technical analysis to find support / residence. Maybe its worth ranging but some firms take a long time to die. Look at STEINHOFF INTERNATIONAL HOLDINGS.
It's gonna go to zero and you are fucked bro.
You've looked at price, great. Have you done any due diligence on the actual value of this business? If it's in the shitter, it might be there for a good reason.
Flat to negative SSS and negative EPS guidance for the last several years... ya, great investment.
Your best bet is some major restructuring as this is a melting iceberg
I did a little bit of looking into it, and I see that they're in massive debt - but I read somewhere that that debt doesn't mature until 2023 or 2025 or something like that, so I figured they have 4-5 years at minimum to re-structure or re-start this company. I'm not saying they're going to turn around and become a $50 per share company, but I'm just hoping that it doesn't go any LOWER or stay stagnant for 4-5 years. I'm thinking it goes to the $3-4 range where I'll gladly pull out. Either way, if this goes to zero, I won't get destroyed because it's not like I put everything I have into it.
I do appreciate your comments though. Thanks.
But why would it go to $3-4 a share? What will drive 2x growth in value? It's likely overvalued at its current price.
It's a brick-n-mortar retailer of highly discretionary assets. During a very strong bull market it has performed poorly, what would happen in a theoretical recession in 2/3/4 years? Inability to repay its debt and ultimately bankruptcy.
I'm not trying to be a dick, just want to highlight the diligence you want to do when making an investment. Build an investment thesis on why they will grow and how feasible it is for them to actually meet these targets/goals.
Thanks.
Well, to answer your question - taking Sear's situation into consideration and being a direct competitor of JCP, I believe sales will increase for JCP if/when Sears shuts down(which I believe is inevitable). Also, I guess what I'm MAINLY hoping for, is some sort of buy out or merger. I'm not a professional at this, I invest on the side in about 7 companies and I had them all equal until yesterday where I started buying more and more of JCP(literally don't know what made me do this, just a feeling). You're definitely right about the doing poorly in a strong bull market, and it would be devastating if in a theoretical recession, but I don't think I'll have a position in JCP 2-4 years from now.
On a positive note, 1.62 was my last purchase -- it's at 1.81 right now.
725m debt matures by 2020 .
https://www.fool.com/investing/2018/03/12/jc-penney-buys-time-for-turna…
This is where I read, that they paid some of that off - and refinanced the rest to be paid by 2025. Was I mistaken?
Stock goes to $0. The internet is killing these legacy retailers.
Do you really think the stock will go to $0? Essentially, you're saying they're going to file bankruptcy. I don't see that for at least another 3-4 years - can you elaborate?
Tell that to my investments in Macy's and Dick's Sporting Goods. Purchased both in December and Macy's is up ~40% and Dick's is up ~20%
Is anyone here short it?
I'm still long JCP.. I'm actually in the + now, because I kept purchasing more as it went down to $1.62, so my break even cost changed from $1.88 to $1.80. And now it's at $1.84
Negative 3 billion dollars of retained earnings and bonds are trading at 75 cents on the dollar. Rising interest rates will also make their debt more expensive and profitability impossible. That's all you need to know right there... a high probability of bankruptcy is priced in.
Not sure how long this turd takes to go to $0 but it is circling around the toilet bowl. Shorting at this point could be risky because of a high cost to borrow shares and a potential short squeeze.
So, you see no way that JCP goes to $3? And when are you estimating bankruptcy(time frame).
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