Don't get hung up on all that interest many people don't pay interest they pay in full and they pay in full to who gives the best price. Also those same competitors have cards of their own they can give the price and get the interest. A fool pays ridiculous interests rates when banks are giving you nothing on your savings. Also look at delinquency rates before you get excited about someone willing to pay 20% or higher interest rates for a refrigerator. Now ask yourself this, why did they get out of that business before why get back now. Is it good business or are they reaching for straws, sometimes what worked before doesn't have the same appeal when competition is so much greater today. Sometimes it's like throwing stuff against a wall to see what sticks. That then comes down to is it a good management decision to get back in.
Correct one other thing you left out Appliances are high ticket low profit margin. Someone shopping for a refrigerator or stove etc. that is what they want they don't need a dress, or a suit or a tea pot they want a refrigerator. Then they as you say shop price and those retailers who live and breath off of those items will not let a JC Penney undercut them.
You also left out PC Richards and Best Buy. People can go to other places for appliances, names that roll off the tongue quicker than J C Penney. I previously was condemned for suggesting that holders should also consider watching out for a reverse stock split and was attacked as not knowing what I was talking about. Two things, a company in trouble that wants to remain listed shouldn't want to worry about flirting with a $5.00 price price. As I type this they are at $7.34 many mutual fund will not or cannot own a stock below $5.00. So what is the solution a reverse split how do I know I had one a long time ago a 9 for 1 reverse split after the split they concentrated on correcting mistakes didn't have to worry daily about dipping below $5.00 and became a viable company again. That company was Price Line.
So, for people who want to roll the dice and double down on the dips great if you can afford to do that not everyone can and when your dealing in real money and not monopoly money it matters. Never say never to a reversed stock split. It also pays to have a management team you believe in. Either they make it or they don't but you have to believe in those with the responsibility of getting the job done. Those of you who sleep with one eye open this isn't the stock for you there are other stocks with better returns that you can sleep peacefully at night, your choice,
EBITDA created by one of the biggest crooks on Wall Street, Micheal Milkin. So when you look at EBITDA did Uncle Sam have their hand out?....yes and it was greased. Did the banks have their hands out...yes, and it was greased, but investors, you have to ignore that because Milkin said so. Some of the biggest bankruptcies ever had great EBITDA's. Welcome to Milkin's world.
Please lets not disgrace Journalism with the NY Times they have set back that profession about 200 years with their "Unbiased" reporting.
If they maintain credibility in the market place you need to consider this, either this two week sales slip was so dramatic they were forced to act or their finances are as fragile as they look on paper. In addition if they do manage to survive yet again and they want to maintain their listing, start thinking about reverse stock splits. If you enjoy the thrill of the hunt play it out, but at some point it has to make sense. This is real money your gambling with not monopoly money. I use the term gambling as an accurate discription because to be honest management has shot themselves in the foot so many times it is exactly that at this point.
Correct but LBJ used more direct flowery words to describe what the democrat party was to unleash, and the rest as they say is history.