Much has been written about the fall of JCP but what's evident is that is hasn't been a profitable enterprise for many moons. Last quarter it lost nearly 300 million real U.S. dollars for the quarter with remodeling costs backed out.The hedge funds continue their games while individual speculators and investors can just watch the madness. A reasonable person sees JCP as a ridicules side show to a investable business. Take a terrific business that has been making a great deal of money for many moons like Ford trending lower on the secondary market than JCP and a reasonable person can just sigh a shake his head. To a reasonable investors eyes the two enterprises could be compared to two automobiles at a stop light. One is Ford , one is JCP, only a passenger in the Ford is sitting in a safe powerful automobile that sure to get to it's destination while the JCP vehicle is only a jalopy with the hood removed with a associate sitting on the fender squirting ether down the carburetor to keep the motor firing even a the new CEO behind the wheel cannot change that scenario with the clock ticking on resources not already in hock. One enterprise is growing its revenues while the other mired in bad decisions and sunk costs.
The funny aspect is investors that see borrowed money on the balance sheet and see "value" and investors that see a slow down in the cash burn rate as a reason to bid it to the moon. When will this jalopy run on it's own power? A reasonable investor wants to know. It obviously has zero value on the secondary market.