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After Q3 Results, Is J.C. Penney Company, Inc. (NYSE:JCP) Dying Or Regaining Ground?

Boston, MA 11/25/2013 (wallstreetpr) – Retail business can be complex. But retailers often have better opportunities to rebound compared to players in other industries. We have the struggling J.C. Penney Company, Inc. (NYSE:JCP), but we can look at Best Buy for instance to see just how quickly a turnaround can occur in retail business. Moreover, there have been a lot of amazing turnarounds lately in stocks which average investors had declared dead. Look at Fannie Mae, Nokia and Bank of America just to mention a few. These companies may not be in their best position before the financial crisis, but it is interesting how they have managed to gain investor confidence just when almost every thought they were done in competitive business.

Turnaround investors who have made it their nature to pick up stocks at their lowest prices when pessimism occupies most minds and confidence evaporating have nothing to be worried about the present predicaments of J.C. Penney Company, Inc. (NYSE:JCP). A look at the retailer’s latest quarter data may not reveal much about its underlying strengths. You find that in the most recent quarter, the company reported a loss of $1.94 per share compared to a loss of $0.56 per share the year before. Sales also went down more than 5% in the quarter. Performance of comparable stores has nor been good either. However, a look beyond these figures reveals a totally deferent JCP.

The company in October reported a tick in sales for the first time since 2011. And as for the seemingly big loss, J.C. Penney Company, Inc. (NYSE:JCP) in the just reported quarter run heavily discounted merchandizes purchased under the former management and such discounts were sure to impact on its earnings. The company is not going to do this forever, so it means that whatever negative thing that happened in Q3 is just short-lived, or stepping stone to a solid ground.

To cap it all, the company’s success secondary offering validates a base of investors that still believe in the ticker, and this belief is not based on thin air, but huge potentials which J.C. Penney Company, Inc. (NYSE:JCP) possesses.

Published by Duncan Oleinic

Duncan Oleinic is from New Yourk. After graduating with a degree in physics, he began his career as an analyst in a broking firm. Through this experience he was able to advance to the role of correspondent for a U.S based financial news provider, where he worked from 2001 to 2007. He subsequently joined a merchant banking firm as a financial analyst focused on valuing unlisted companies in the sub-continent. Over the course of his two years here, he performed valuations of several media companies which were later acquired by peers.

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