What do you guys think of JCP after all?

Quote from traderman101:

This has to be close to a bottom at $8.90!!
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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.
 
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.
 
Quote from Took2Summit:

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.
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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 “Turnaround.” - 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'"

*****
 
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