Three Reasons to Buy JC Penney
| Aug 26, 2013 | 7:02 PM EDT |
Yes, I would buy some JC Penney (JCP) on the deal. Here's why: first, they have the money to get through Christmas season. We know that.
Second who is to say that Mike Ullman can't restore some of the luster that was lost, I mean people did shop at JC Penney.
Third, if you haven't sold it by now you probably don't care anymore. Finally, hedge fund manager William Ackman was a huge distraction and now the distraction is gone.
Retail's been very funky of late, particularly apparel which his real bad news for Penney. But that's not something we didn't know, In the meantime Ullman is fixing housewares which is a segment that could be terrific.
It's worth buying half of what you want on the print and then the other half if it breaks price because of some exogenous event that seems to be a mainstay since we hit the peak of this market not all that long ago.