JCP

J.C. Penney Company Inc.

Consumer


Presented:03/03/2014
Price:$7.96
Cap:$2.42B
Current Price:$0.13
Cap:$0.04B

Presented

Date03/03/2014
Price$7.96
Market Cap$2.42B
Ent Value$6.51B
P/E RatioN/A
Book Value$6.28
Div YieldN/A
Shares O/S304.62M
Ave Daily Vol29,900,000
Short Int42.19%

Current

Price$0.13
Market Cap$0.04B
J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores. It sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. The company also provides various services, such as styling salon, optical, portrait photography, and custom decorating. As of February 6, 2014, it operated 1,100 stores. The company also sells its products through its Internet Website, jcp.com. J. C. Penney Company, Inc. was founded in 1902 and is based in Plano, Texas.

Please note, this idea was updated on 9/10/2014 and can be read here: Short – J. C. Penney Company, Inc. (JCP). As well, this idea was updated again on 3/20/2015 and can be read here: Short – J. C. Penney Company, Inc. (JCP).

Highlights

The presenter is short shares of JC Penney, anticipating that the company will likely be forced to equitize some of its debt load and eventually raise equity given its continued cash burn. Moreover, JCP’s condition could get worse before it gets any better, with the presenter anticipating a poor retail spring given the persistent cold weather and winter-heavy inventory. Inventories were up 25% at year end - signaling the potential for further discounting - yet the company is guiding to higher gross margins.

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Idea Discussion

Commentor 1 - 2 weeks ago

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