In fact, shorts do exactly what you and long term investors do: They BUY LOW and SELL HIGH.
If they did not sell, you would have to buy those shares at a higher price.
In 2008 the S.E.C. banded short selling on 19 financial institutions. On average, those 19 stocks had short-interest ratios that were no higher than those of other financial stocks in the year leading up to the S.E.C. policy change. And here is another telling statistic: While the S.E.C. restrictions were in place, these stocks, on average, actually performed worse than the rest of the market without shorting the shares.
Consider, for example, what short-sellers did on Sept. 9, a day that rumors circulated widely about a possible bankruptcy at Lehman Brothers and Lehman’s stock fell 45 percent, to $7.79 from $14.15. The average price at which short-sellers sold Lehman stock that day was $9.29, significantly closer to the day’s low than to the high. That implies that they were reacting TO the downward momentum, NOT causing it.
And Timmy didn't make any money selling shares short JCP. He made his money BUYING shares of JCP at a lower price. That is the same goal of long term investors: BUY shares at a lower price and sell at a higher price.
Next time you have a quarter in your hand, look to see if it has two sides.
16:26:51 $ 4.56 4,973,935 Talk about Mucho Grande!....Did JCP work with the market maker to arrange this closing price swap?...Could this be the start of a share repurchase? Or is it just an Institutional to Institutional swap? Lets see, that one block = 22.7 million bucks and TOTAL shares after hours = 8.8 million shares! . Whoa.... Need to keep an I on this, for sure..
Here is whats killing JCP in a nutshell. I stopped there Tuesday for a pair of khaki casual pants. 1 pair 60 bucks! But wait, there is a sign that says iif I am stupid enough to buy 1 pair at regular price, the 2nd pair is 40% off! What a deal! my total bill is 96 plus tax. So here's what I did. I drove over to the outlet mall where the Van Heusen store is. I bought the exact same pair for 21,99. In fact, I bought 2 dress shirts while I was there for 20 bucks each. You want to know why Penney is dying? #$%$ pricing, #$%$ marketing, and outrageous markups.
JCP is testing the bottom now. With all the initiatives JCP has taken, new products, selling assets, refinance, Sears closing & a whopping 35% of outstanding shares short sold, there is no logical direction for this stock but to snap back up. It will not double but will rise significantly. I understand Amazon has hurt brick stores but JCP is at least fighting much much harder than any other brick retailer & has taken so many steps, instead of just blaming Amazon. The days of short selling this stock are over & it will burn many greedy short sellers.
Can the shorts try a little harder to get this price down some more?
JCP has until 2022 5 long years, and with 2.35 billion at their disposal I'm thinking what a great way to get that Mother of all Squeezes started. How many shares off the market would a $900M repurchase be? What impact on the shorts? Think about it.
"J.C. Penney $900M Stock Buyback: Driven by Management's Personal Interests"? Happened before, why not now? Check out the CEO and Bod's JCP holdings. What an incentive for a like repurchase. Will history repeat?
Tired of Washington
Is this really a surprise? SEC Cracks Down on Fake Stock News by Ben Popken
"Fake news" can sway not just elections, but the stock market. Now the SEC is cracking down. The stocks and securities regulator charged 27 firms and individuals Monday with fraudulently promoting stocks through secretly paid-for articles on top financial websites. The sites included Forbes.com, YAHOO FINANCE, Seeking Alpha, Motley Fool, Benzinga, and Wall Street Cheat Sheet. None of the sites were named in the complaint.
Traders work on the floor of the New York Stock Exchange. REUTERS/Lucas Jackson REUTERS According to the SEC complaint, companies hired PR and communication firms to drive publicity for their stocks, and those companies in turned hired writers who didn't disclose to readers or publishers they'd been paid to write the articles. The authors submitted them to the financial information sites. It's illegal for a company that pays someone to write or publish articles about its stocks to not disclose the payments. More than 250 of the articles were accompanied by disclosures that falsely declared the writer hadn't been compensated to write them, the SEC said in its complaint. Authors sometimes used pseudonyms, like "Christine Andrews," "Equity Options Guru," "Kingmaker," "Matt Levy" and "Wonderful Wizard." A single writer used as many as nine pseudonyms, the SEC said. One of the fake profiles listed himself as "an analyst and fund manager with almost 20 years of investment experience." The bullish articles focused on biotech firms, with headlines like "Another Revival Could Be In Store For ImmunoCellular Therapeutic," "A Small Canadian Health Care Provider With Potential," and "3 Companies Developing The Future Of Cancer Therapy." Security promotion schemes have been around for years, from boiler room operations to spam email hawking penny stocks. But the incursion of deceptive investment advice into mainstream financial websites represents something of a new frontier for SEC action, prompting the agency to also issue an investor alert. “Stock promotion schemes may be conducted through investment research websites,” said Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy in a press release. “Investors looking for objective investment information should be aware that fraudsters may use these websites to profit at investors’ expense.” Mike Taylor, a Seeking Alpha managing editor, said in an email that its policies "act as a strong deterrent against potential promotions," including documenting "all authors' claims to not having been compensated by third parties." Benzinga said in an email that it uses a disclaimer to identify articles from outside contributors, and that each "does not represent the opinion of Benzinga and has not been edited." Of the firms and individuals charged, 17 have agreed to settlements calling for penalties ranging from $2,200 to about $3 million, the SEC said. Cases are pending against the remaining 10.
23000 shares -all in today cost basis$5.30
"short squeeze" is fantasy. It's rare phenomenon.These are the smartest guys on the block They protect themselves with arbitrage.The main thing is co. survival, time it takes for turnaround & debt reduction. Sub store concept seems to be working. Maybe test luncheonettes in select locations
Problem with these dept store chains is at least 30 yrs old because of misguided policy of if some is good more is better.Colossal waste. Should have focused on customer experience like they're finally doing
Get ready for another down day. JCP being removed from Russell 1000 index which means many index funds and index ETFs will have to sell.
JC Penney and Dillard's are about to be kicked out of this big index
Friday is set to be the year's heaviest volume day as the Russell indexes get rebalanced, meaning some stocks will be added and others demoted.
I wonder if anyone has ever done a professional study on just how much damage is being done to our country's economy by malicious short trading?
Just out of curiosity I checked with another browser where I am not logged in on this site to see if Ocul is still playing his tricks. I was surprised to see he is. What a stamina and how dismaying it must be to know that everybody has muted him and he is just yakking his nonsense to no audience. However on a serious note, it comes across as profoundly weird that somebody has the time and energy to spend all day writing nonsensical posts every 2 minutes. Weird, weird, weird and a bit sad.
IMO even some fund managers are lazy and prone to herd mentality. It is fashionable to trash retail and often JCP in particular. The thinking, if you call it that, is that I heard retail is bad and have seen a lot of JCP stories so it must be bad, I will just repeat what I heard. Think Cramer got it right when he ranked retailers on survivability in current market. JCP came out near the top at 2nd position behind JWN. JCP was ahead of M, KSS and 7-8 others. They ignore that JCP trends are moving in right direction relative to all their peers. JCPs Same Store sales while negative last Q were better than most of their competitors. JCps credit rating has improved 3-4 notches over last few years. JCP refinanced credit facility with better terms definitely giving them at least another 5 years of runway in a tough market. JCP diversifying away from retail into appliance and home goods.
Hundreds Crowd Sunset Mall for Sephora Grand Opening
Around seven in the morning on June 23, close to 100 people crowded the Sunset Mall doors for the grand opening of Sephora inside J.C. Penny's.
Looking at "Daily Slow Stochastics" chart. I think it is very interesting. There are 2 lines and they are black and red. Both lines are below 20 which means is oversold. The most interesting part is the black line is shooting up and touch the red line. The question now is ...is this the beginning of uptrend again? Another thing is today's volume is high and July 4 is coming. What do you guys think?
is it True that Markit made a bet then reneged when he lost? Why would you make a bet in the first place if you didn't intend to honor it?
Ellison could not have timed the 70 Sephora opening any better... in the middle of summer when all those young women will be shopping for clothes and dorm stuff.
There is nothing wrong with JCP people, it is desperate shorts trying find something to cover a 37% short position.
JC Penney, which is down to only $1.4 billion market cap, and Dillard's, which is down to $1.5 billion, are both getting kicked out of the Russell 1000.
Easy to forget sometimes about the company other than the stock price. Went into the local store a few days ago here in Ohio and talked to the appliance salesman. They did great business in May. Over $100k just at that store. Apparently men's suits are being moved to make way for mattresses and furniture. Also saw JCP Home Services is now being advertised on the website's front page. The guy I talked to said they will be starting that at our store in the coming months. Love the company. Hate WS's valuation.
It's up 9 cents!! Time for day traders to Sell. Then buy back in when it down 10 cents