Even though JCP’s management seem to be making the right moves, its share price has grown too quickly relatively to the amount of underlying growth ( Over 10% in the last ten days).
Let’s look at the condition of the broad markets (many think we’re due for a pull back). In recent days markets have risen on hopes of conflicts cooling. However, as we all know, “FEAR” will most likely rise again, and it only takes a small amount of fear and investors will start jumping ship. In my assessment, there is little chance JCP will live up to JP Morgan’s expectations and turn profitable fast enough to justify current valuations.
This isn’t necessarily a bad thing. Once JCP corrects itself to a more fundamentally sound trajectory, that would be the time to be a buyer. Unfortunately, we have no way of knowing exactly when a correction will occur (It usually happens over a few weeks, but it could also occur over a few months). This makes it darn near impossible to sell stocks at exactly the right moment, which is why sophisticated investors may be using this recent jump to exit, while retail investors keep buying…Remember you’re supposed to buy low and sell high. And buying JCP at $10.70 is simply buying high…
Meanwhile your ok with the shorts gaining 40% in less than 3 wks. This should have bottom @14 and were not even back there yet. Again buying JCP @10 is like buying HPQ @16. I heard that #$%$ I don't know how many times saying PC were dead. Guess what....I still prefer a BOX and a key board while the market goes through the IPAD fad. BTW....come post next year when JCP trades @ 16 and tell us how we screwed up buying @11.
That might be true if there weren't such things as short sellers who GROSSLY distort the speed and depth at which a stock falls on the downside. Without shorts this stock would be higher yet. Pay for all the stock you shorts stole and then let's talk about true price.