Category Archives: $JCP

$JCP (JC Penney) what retail investors dont see and why you should avoid..

Retail investors are at huge disadvantage when deciding whether to buy a household name stock like $JCP.They make their decisions on the basis they may like the store – the stock has sold off from recent high of $11 and this could be a bottom…and the fact that Equity Analyst do not give insight into the debt side of the company.

Professional investors and hedge funds look at short interest, credit default swaps (debt situation) and earnings over the next 5 years..
ALL these 3 indicate the market is not convinced right now $JCP has future – the default swaps have widened 200bp since the Sep 2nd high of $11, short interest has been increasing gradually and future EPS forecasts show EPS being negative for the next 5 years….

If CDS continues to widen then this could indicate $JCP could be another $RSH — 2CentView is stay clear of it for now…and wait for the Credit market to become bullish first…