% | $
Quotes you view appear here for quick access.

J. C. Penney Company, Inc. Message Board

  • chase07470 chase07470 Oct 22, 2013 6:59 AM Flag

    At best, JCP returns to $9 per share

    With $3 Billion in inventory, the company relies on credit to keep inventory moving in and out. We already saw the CIT Group force dilution and that came just a couple of months after they raised $2.25 Billion.

    There is no way now to raise more money, at least not the kind of money they need to stay in business in 2014. So the move will be to close 500 stores, maybe more and that will come soon. Only when they do this will they be able to show vendors a profitable company and only then would I consider buying this stock.

    Of course then you can kiss the days of $20 or higher share prices goodbye, forever. Between the reduction in revenue that comes with closing a 1/3 to 1/2 of your business and the already 1/3 dilution, not to mention the enormous debt, people hoping for a Best Buy sort of turnaround are kidding themselves. At best, this stock may return to $9.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
8.84+0.18(+2.08%)Oct 21 4:00 PMEDT