NEW YORK, NY / ACCESSWIRE / March 30, 2017 / The two famous retailers have found supporters among the investment community to make their stocks worth a second look as both companies struggle to keep in the black. Sears found believers from within, while JC Penney, a stock that somehow always seems it is on the ropes, gained interest.
RDI Initiates Coverage:
Sears Holdings Corp. https://ub.rdinvesting.com/news/?ticker=SHLD
JC Penney Company Inc. https://ub.rdinvesting.com/news/?ticker=JCP
Sears Holdings Corp. advanced 1.77% to close at $11.50 on Wednesday. The stock traded between $12.67 and $11.01 on volume of 5.2 million shares traded. Recent advances in this week took investors by surprise, as the company announced as recently as last week that unless its sales would dramatically improve or that reorganization of its debt by its creditors could be arranged, the company would have to file for bankruptcy. Only a few days ago the company essentially admitted it would close down 150 stores.
The Company's biggest shareholders Edward Lampert and Fairholme Capital stepped in to increase their stakes in the business, contrary to the justified concerns over the retailer's future. The insider buying after the 12% drop the company took on March 22nd, is a sign investors should pay close attention to. A point that was not given much press in the same filing with the SEC stated that, "The Company said in the filing, however, that it believed the actions it has been taking would likely mitigate that substantial doubt." While a mitigation may not equal a resolution, the stock may be a bargain for the short term.
Access RDI's Sears Holdings Research Report at: https://ub.rdinvesting.com/news/?ticker=SHLD
JC Penney advanced 5.35% to close at $6.10 on Wednesday. The stock traded between $6.30 and $5.76 on volume of 34.85 million shares traded. What can be described as "Sears in Reverse," the company had announced in February its first annual profit since 2010 along with the closure of underperforming stores. The combination of moving into the blank spaces vacated by Sears and reducing expenses can be attributed in part to the day's price rise. Yet investors, perhaps with good reason, avoided committing to the company.
Standard & Poor's upgraded the credit rating of JC Penney on Monday, March 13th. Its new rating is B-plus. The price of the stock on that date fell 5.82% to $5.99 a share. The company currently has over 1,000 operational stores. Given the current status of the retail industry, the question that still remains in the minds of investors is whether JC Penney is a bargain or a long term loss.
Access RDI's JC Penney Research Report at: https://ub.rdinvesting.com/news/?ticker=JCP
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