J.C. Penney shares hit a 31-year low
You have to go all the way back to 1982 to find the last time investors were this discouraged.
J.C. Penney (JCP) has certainly seen better days, but just how bad has the stock become?
Would you believe shares have reached a 31-year low?
The stock hit a low of $8.59 Monday, though it had recovered to about $8.88 at midday. To find a price below that low, you'd have to go all the way back to April 1982, when the stock dropped to $8.50 per share.
J.C. Penney approached this territory in December 2000, but stopped at $8.62. For those who haven't watched the retailer stumble over the years, it's almost shocking that shares were as high as $84 back in February 2007.
Penney has had quite a rough run since activist investor Bill Ackman pushed the company to hire visionary former Apple (AAPL) executive Ron Johnson. When Johnson's policies didn't succeed in turning around the company, he was fired and replaced with former CEO Mike Ullman -- a move that came as a relief to some, but was seen as backpedaling by others.
Setback after setback forced the company to raise a $2.25 billion round of debt through Goldman Sachs (GS) earlier this year, and soon after Ackman sold the stock for a loss at around $13 per share.
Early last week, traders speculated the company would raise debt once again, perhaps using its large real estate portfolio as leverage. Shocking the Street, the company dumped a massive 82 million-share offering on the market, comprising nearly 40% of its float at the time.
On Sept. 24, Dow Jones reported that J.C. Penney planned to hire 35,000 holiday workers, giving some traders hope that the company may be anticipating a strong fourth quarter. Despite the hopeful news, shares are down almost 55% this year, and almost 75% over the last five years.
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They need to get Mr. and Mrs. Middle America in those stores to tell them what to do. I agree - all their sales help were Somalis that take prayer breaks every hour, or someone you can't understand. The foreigners are the smart ones - shop at the dollar stores and hoard their money.
All the clothes are geared for 12 year old stick figures who don't/won't shop JCP ever. Obviously they need someone that understands Joe the Plumber tastes. Not these idiots in Charge. I have stock left to me by my Mother that worked there for years. Older worker that took care of her customers. Called them when something came in they wanted. Nope, no more at JCP - same as Sears for service and geared toward middle schoolers. Wake up JCP - your target customer should be middle class, middle age - they have the money. Dah.........
Three things hurt Penny's in the rural area where I live. The first thing was when so many people were fired and replaced by younger employees. These people had worked for Penny's for twenty to thirty years. This infuriated those older employees' neighbors, relatives, and the churches where they attended. Then Penny's went all out for the support of gays. This hurt them in the rural areas also. Finally Penny's started dropping some of their main good quality merchandise and then their boat started to sink.
I quit shopping at J.C. Penny when I went into a
Dillard's Store and compared the difference in quality .
Franklymydear, We don't give a damn....You could try "Omar The Tentmaker."
One size fits all Fattys...
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