Not Buying JCPenney's Optimism
JCPenney (JCP) surged to $40.72 on Thursday, gaining $6.40, after the company announced that it is changing from a highly promotional, advertising flyer business plan to an everyday-low-pricing policy. Volume was huge at almost 47 million shares, compared with an average daily volume of 3.7 million. Short-covering could have been the biggest driver for the sharp upturn.
Management hopes to sell most goods at about 40% off their current list prices and expects that to draw in more business. I'm skeptical that this will work out well. In recent years, the average sale at JCPenney has been for about 50% under list....243 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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