I'll second this and actually say this is a great entrance, better than when the stock was lower in the 6s. The reason being this move is on worries over the SEC inquiry. But we already have visibility that sales -are- recovering and the worst cashflow risks are gone. I'll admit I was scratching my head (as the SEC was) when they did the offering after 2 days prior reputedly professing they wouldn't need to do a fund raise in the near future. The company denied they explicitly said this at the time though ... I'm not sure what actually happened, and I assume the SEC isn't either. But besides slaps on the wrist resulting if the worst case happened (intentional deception) / etc, this isn't material to the company like the uncertainty of sales were just 2 months ago. CEO's on his way out anyway (and wall street well knows this), so the operational risks that could result discretely from the SEC inquiry alone are kind of non-existent. The stock will be above $11 within 1 month (and $15 within 6). One time minor hits (worst case to come from the SEC move) will quickly be digested by the markets ... For a few months, I've been in and out of JCP on the position that this is the BBY of 2012 ... Look where that is now.
Thanks for your response. now, both of you, go visit JCP and tell us if u still think the comparison to bby is valid..
It depends on the JCP you visit, just as it depended on the BBY you visit. The sales numbers speak for themselves, no doubt they have a lot of work to do. But that only tells you the upside.
Recent JCP coupons plus if you go to any gift card sellers, asking discount is just 8 % while few months ago it was close to 20 to 25 %. more demand i guess.