J.C. Penney's a Bad Apple

J.C. Penney (JCP) CEO Ron Johnson shook the retail tree Jan. 26 when he announced deep expense cuts and a new pricing strategy for the venerable department-store chain. Wall Street analysts fell over each other upgrading the company's shares, but they'll regret it because the strategic shift is unlikely to change deeply ingrained consumer habits, which don't include big purchases at the mall anchor.

The company also raised yearly guidance well over estimates, said they'd no longer provide quarterly sales or earnings guidance, and would stop reporting monthly same-store sales data. Instead, they're asking shareholders to trust the reputation of the new CEO, who arrived as a golden boy after launching Apple's (AAPL) highly successful retail stores....432 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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