We’ve traded JCP on and off for years…
While its down considerably from recent highs, there’s still an opportunity.
Months after Sterne Agee foolishly upgraded JC Penney (JCP) from a neutral rating to a buy rating with a $13 price target shares of the stock ran as high as $10.09.
Then, reality struck… and the stock began its descent to $6.93. Nowadays, as consumers remain uneasy in a volatile economy, shares are referred to as an oversold overreaction… as the CEO remains upbeat about the holiday season.
Others believe the company could achieve profitability by 2017…
I don’t believe JCP will last that long. In fact, with decreasing capital, high debt, and discouraged investors, the only thing I’m confident in is further JCP downside. We can trade this by buying to open the JCP February 2016 7 put up to 90 cents and / or the JCP May 2016 7 put up to $1.45.
Ian L. Cooper
Forgotten Profits