Well that depends on your timeframe and upside target. On Monday it could easily rise by 10%, and have further gains in the days and weeks to come. But if it doesn't stop burning cash at a furious rate, then it will need to raise further debt or equity in 2015 (or earlier) if it is to avoid bankruptcy. In which case, $8.90 would be very expensive.
Tuesday 15 October JCP declines 8.89% to $7.17 on heavy volume of over 72 million shares. The most likely catalyst was a bearish report from JP Morgan: http://finance.yahoo.com/news/j-c-penney-last-long-172242811.html http://247wallst.com/retail/2013/10/15/will-j-c-penney-last-long-enough-to-turn-around/ http://blogs.barrons.com/stockstowa...rm-viability-trumping-short-term-share-price/
I personally believe in 3 years JCP is either worth $0 or $30..I also would very much like to get long right here but can't get myself to pull the trigger. It's these kind of moves that can make a career.
Buying fundamentally sound and/or technically strong companies during market corrections can make a career. Attempting to pick bottom in fundamentally and technically troubled companies isn't worth the risk. http://www.elitetrader.com/vb/showthread.php?s=&threadid=126492&perpage=10&pagenumber=30
Thought is was going to start out on a positive note this morning and went south. Being open Thanksgiving sounds like a positive. Flier advertisement was in today's paper. The big question is bankruptcy or turnaround situation.
Monday 21 October J. C. Penney (JCP) Price Target Cut to $1 at Imperial Capital http://www.streetinsider.com/Analys...et+Cut+to+$1+at+Imperial+Capital/8792540.html Pre-capital raising, the company had 220.40 million shares outstanding. With the sale of another 84 million shares, the total share count is now 304.40 million. So a $1 price target gives a market cap of over $300 million. If JCP filed for Chapter 11 protection, then a $1 stock price would probably still be quite high.
More information on the JCP downgrade: https://twitter.com/thenotablecalls/status/392259299042271232 https://twitter.com/thenotablecalls/status/392259349499760640 https://twitter.com/thenotablecalls/status/392259432471470081 "Restructuring Risk in 2014 Grows Without Deep Pocketed Investor(s) and Despite Strong Traction in âTurnaround.â - Imperial Capital" "Imperial Capital's Gilbert J.C. Penney target to $1/share - cuts '15-'18 bonds to SELL;" "the co may strategically file for bankruptcy protection to conserve cash while it continues to execute a turnaround in '14 and 15'" *****
More details on the Imperial Capital downgrade: "JC Penney: Shares Worth a Buck?" http://blogs.barrons.com/stockstowatchtoday/2013/10/21/jc-penney-shares-worth-a-buck/ snippet: "Our new $1 price target is based on the notional âoptionâ value of the shares, given our increasing concerns the company may engage in a financial restructuring in 2014."