Is JC Penney truly a turnaround stock or are its prospects dim?
JC Penney is getting kicked out of the S&P 500 Index.
The 111 year-old retail institution will be leaving the index after losing half its value in the past year. Instead, it will be relegated to the S&P 400 MidCap Index, joining the likes of Green Mountain Coffee Roasters and 3D Systems. It will also be in the company of retailers like Big Lots, and Foot Locker.
While the stock is trading at a quarter of where it was in 2012, it's up 35% from its October lows. And, the stock got a big vote of confidence Monday when it was revealed CEO Mike Ullman purchased 112,000 shares – a little over $1 million worth – the week before. Ullman was the CEO famously canned two years ago by the company under pressure by then-board member Bill Ackman, the activist investor head of Pershing Square Capital Management.
Ullman was brought back in April of this year after his replacement,Read More »from This retailer’s 35% rally could be just the beginning