Well - it had been beaten up pretty well for several sessions and was due for a bounce.
But - RJ leaving *will* be good news for this stock in the short term - it will cause many shorts to cover, and there is probably a very hefty bad management discount in the current stock price. That management discount may go away when RJ is booted.
There are lots of cliches that spring to mind here
Even a dead cat will bounce when you drop it
When there is smoke there is fire
Buy the rumor sell the news
People are buying and covering shorts based on the rumor that Johnson is leaving. When, not if, Johnson (and his CFO) are booted out it is a good bet that there will be a pop in the stock price. This pop should be sold in my view. Sadly it is looking like JCP is terminal and probably wont recover.
I think Johnson will leave during Q1 - I simply can't imagine that anybody has the stomach for yet another of his painful quarterly con calls.
Right now his only hope is that he has stuck pay dirt with a Canadian fashion brand.
Yes I did say Canadian and Fashion in the same sentence.
"Canadian Fashion" is as doomed as "Yoga in the town square" and "gifts in lieu of discounts"