Trading has a lot to do with time intervals. The delay enables market forces to push people through their stop loss limits which means the big money gets the best prices.
The big number here is $3.00. They'll wipe so many oppositions out if they press it through $3 on the downside. The question is whether they will do so or be happy with what they've done already.
I've got half of my end position on right now and am waiting. Bothering me to not put it on here but prudent to wait. Not much they can possibly do on the downside below $3.
Agree, this should be and I think will be, a $22 stock in 18 months.
JCP is doomed as evidenced by the cash hemorrhage last year. It has so much working against it at this point. We reached a tipping point where online shopping is hurting retail shopping in a very real way. The number of options, between Kohl's, Target, WalMart are overwhelming when added to the online trend.
To me, the real clear factor here is Ullman's media blitz when he returned ended up bringing back less than 1% of the business that was lost. The old customer isn't coming back. I do think JCP survives as a brand but with far less stores and a reorganization of the debt.
Folks, this is what going into bankruptcy looks like and feels like. We had a barely profitable company turned upside down by one guy and then the old guy returned and cut no costs and failed to get the consumer back. Those two things happen and it ends badly. There is no way out, might as well give your money to charity.
LOADED up on the recent drop.
Can't believe the pricing the market is giving anyone with a year or so to stay invested. Very excited to be in such a big position invested in a market that needs the C-Series. Going to be a great ride.
Yes, if it goes lower, I buy more.
Think you're right on the new low. Stocks lose 90% of their value because there is real sickness at the core. Just because a bunch of people want to find a home run turnaround trade, doesn't change the fact that the stock is trading below $7 for a very real reason.
You think JCP is going to $22.00 to $45.00? SMH. It won't see $8.50 before 2016. Mark it down.
Investors have tried to pick the bottom four or five times since RJ killed the company. Each time' it's ended in tears. This time, same thing.
Look at the downward channel in the chart. Goes back a year and a half. If this is a bounce up, it will not go above $7.80 and the next move down will be below $5.
Looking forward to the bottom picking rhetoric when we get there, it's always amusing.
Ullman hates laying off people. Sees himself as the protector of the JCP employee. It's why the cuts weren't deeper. Truth is, anyone can go find another job in retail, same money. The people really getting hurt here are the stock holders. You longs need to start making noise about a change at the top, nothing good will come until Ullman is gone.
Next up is another round of financing. Price target now $5.
Until they close 200 stores or more, I'm short.
1. Restructuring plan leaked, more deep than expected. Odds: 30%
2. Earning worse than projected, cash to go from $2billion to $1.3 billion. 25% chance.
3. Vendors cutting off credit line forcing more capital raise. Odds 25%
4. SEC investigation news. Odds 15%
5. Something I'm not think of. Odds 5%
Either way, retail longs getting screwed. News went out to big money first. Hope SEC takes note. Whatever it is, it's bad…very bad. It's trading like the house is on fire and people are trampling others to get out.
This is a company that lost well over a $billion last year.
It has proven it can increase sales by selling merchandise at price points that ensure they keep losing money. What it hasn't proven is whoever is buying the $6 jeans will now start paying $35-$40.
It's not going to happen. They haven't gotten the old customer back, they simply attracted the people who buy the lowest possible price. The old customer isn't coming back. If they were, they would have responded to the apology and the giant ad campaign launched in the spring/summer.
Ullman is days away from announcing a giant cost reduction with many store closings. He should have done it before wasting all of this money. Stock goes to $3, then it's a buy below that.
I am in buy mode. Hoping it goes even lower, short term. Market using this time period to test resolve. CSeries will be a bullseye in the end.
Because you're buying all the good stuff Ron Johnson created and they're not replacing. Back to Worthington and Stratford Prep you go...or not.
The biggest problem JCP has...among many, many, many problems, is vendors require huge liquidity. They start losing hundreds of millions a quarter again, starting right now. Long before the $2 billion runs out, vendors will require more or they will put them out of business.
Price to Book is meaningless. It's all about the money losing, liquidity and vendors.