After the drop in volume last Friday JP Morgan releases a positive analytical statement on Monday, yet they DO NOT upgrade their rating on JCP. I realize some of you are feeling a bit euphoric over a 50 cent gap up, but the question you want to keep asking yourself is if JPM feels that JCP is really going to be such a great buy, they why are they not changing their rating from a neutral to a buy? I've seen this before, they release a statement such as they did all the while telling their bigger clients to sell into the gap up. Once the buying volume starts to wane the price will drop down fast.
I found the comments by the JP Morgan analyst to be quite idiotic, and think the pullback you forecast may arise from market recognition of just that fact.
Regarding your suggestion that JPM orchestrated volatility in the stock price to enable a few, large investors to benefit, how exactly does that happen? Do they send out emails about when to buy and when to sell, or do it by phone? Wouldn't the SEC take a dim view of such, especially since they are likely to do this frequently? If you read Machiavelli, he says that the big problem with orchestrating a conspiracy is keeping it a secret.
a) gap will almost close every time, especially in trash stocks like this.
b) now the big boys are unloading the truck while retailer buy now ad ridiculous high levels.
Look. This company is burning cash as it would be jailhouse confetti.
Make no mistake, the turnaround is or may be starting, this company is still in deep trouble and if nothing changes significantly they have to go bankrupt in the worst case.
They have one more dilution in their hand stock price is nearing it's high might go a little
higher but earnings are about what they'll be from here on out so that means they
continue to lose money just not as fast.