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    • Former retail titan JCPenney (JCP) is in trouble. The 1,100 store mall staple is in the middle of a radical redesign under CEO Ron Johnson, who led the roll-out of Apple's wildly successful retail locations prior to coming to JCP. In an investor presentation at the beginning of 2012, Johnson promised to do nothing short of re-invent the department store concept. But it hasn't worked out that way.

      JCP stock is down more than 40% in 2012, sales are collapsing, and employee enthusiasm has deteriorated to the point that the company was forced to announce in an SEC filing that morale was an actual threat to operations. It doesn't have to end this way, however. JCP can save itself, but only if it acts fast and with a decisiveness that has so far eluded the chain during its revamp.

      In the attached clip, OptionMonster.com co-founder Jon Najarian and I discuss the future of JCP and whether or not Ron Johnson is the right man to lead a rebirth of the venerable chain. Here's a three step process that gives JCP its last, best chance to save itself:

      1. Clearly Define What JCPenney Is

      As evidenced by JCP's early ad campaigns, communicating Johnson's vision to the consumer was an immediate challenge. Beyond being arguably the most grating advertisement in television history, JCP's foray into national TV spots was notable only for promising shoppers a non-promotional strategy the company quickly ditched.

      Read More »from JCPenney’s 3-Step Survival Plan
    • If you look up the word ''progress" it is defined as movement toward a goal. But if you take that same word and use it within the context of the tax-and-spend talks we call the fiscal cliff negotiations, it takes on an entirely different meaning. If something is standing still or going nowhere, even the slightest movement could technically be considered progress.

      To make things more confusing, the normal way that lawmakers would inform the public and gauge support for a proposed budget cut or tax increase (whether incremental or monumental) would be to float a so-called trial balloon of information through the media and then gauge reaction. But even that is gone now that the President and Congressional leadership have signed a "strict moratorium on public commentary concerning the negotiations" — a development that will make it increasingly difficult, if not impossible, to assess the merits and drawbacks of a deal before it is actually reached.

      Welcome to progress, Washington style!

      Not to mention comment moratorium, Washington style,  This as House Speaker John Boehner opened the day's legislative session by voicing optimism while posing questions.

      "Where are the president's spending cuts? The longer the White House slow-walks this process the closer our economy gets to the fiscal cliff," Boehner remarked.

      To help fill this informational gap, my co-host Jeff Macke and I discuss the probability of reaching a deal, and if a deal is reached, what effect (if any) it would have on the stock market.

      "Anything is an upside surprise," Macke says in the attached video, likening the alleged movement by a "confederacy of dunces" as the first step toward a solution that will see the Republicans buckle.

      Read More »from Does Fiscal Cliff Silence Really Mean Progress?
    • Facebook (FB) officially joins the ranks of the tech elite tomorrow when it's added to the Nasdaq 100 (^NDX).

      The widely watched index is comprised of the top 100 non-financial stocks by market cap that trade on the Nasdaq (^IXIC), including heavyweights like Apple (AAPL), Google (GOOG), Microsoft (MSFT) and Oracle (ORCL). With a $60+ billion market cap, Facebook replaces Infosys (INFY), which is moving to the New York Stock Exchange (NYX).

      Facebook's inclusion is largely seen as a positive due to the popularity of the NDX among ETFs and mutual funds. "The question that has to be asked though, is that given the corporate governance practices in place at Facebook -- namely Zuckerberg's totalitarian control of the company and the ability to appoint his own successor and the risk that puts on minority shareholders -- are other indices like the S&P 500 going to follow suit?" asks David Garrity, principal at GVA Research. "That is very much an open question because there have been doubts raised about Facebook."

      Facebook shares have seen plenty of ups and downs since the initial public offering on May 18. The stock debuted at $38 a share and was more than cut in half after a series of insider share lockup periods began expiring.

      The first expiration in mid-August set off a downward spiral that took the stock to its all-time low of $17.55 on Sept. 4. Facebook has since recovered 55% from the low despite expirations in October and November that put a combined 1 billion shares on the market.

      Read More »from Nasdaq 100 to Friend Facebook: Should You Too?
    • After posting staggering gains over the last 12 months, shares of gun makers Sturm, Ruger & Company (RGR) and Smith & Wesson Holding Corporation (SWHC) are suddenly shooting blanks for investors.

      In the last five trading days, going into Tuesday Ruger is down about 18% while Smith & Wesson has seen a greater than 10% decline despite reporting earnings growth of 48% in the second quarter. For the year, Smith & Wesson is still up a stunning 115% compared to a 45% gain for Ruger.

      Leaving moral concerns and preferences aside, the question for stock market investors is whether or not to jump aboard the gun trade. Jon Najarian says yes. Referring to the double-digit gains both companies saw immediately after the presidential election, Najarian says government action may be priced in the stocks but not the growing unrest fostered by societal tensions.

      Najarian points to Ruger's roughly 800% gains from 2009 to the recent highs as evidence of the sectors' staying power. From the beginning of 2009 through the end of November Ruger was up some 840%. "That absolutely blows Apple (AAPL) away, it blows Priceline (PCLN) away, the out-performance of this stock," Najarian shouts in the attached video.

      The rational investor should note that there is little if any enthusiasm for increased handgun control in America, and suggesting a flood of gun buying in reaction to the re-election of the President is something short of rational. "Government action is priced in," responds Najarian, "but I don't think we can dispute or discount enough the fear factor that people have."

      Read More »from Gun Stocks Are Money-Making Machines, Buy the Dip! Says Najarian

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