Penney's Troubles Are Clear as Day

Vornado (VNO) and Bill Ackman may not have timed their buys right for J.C. Penney (JCP), but it does look like the company's sales aren't so terrible. Today the stock's really breaking down -- and, more important, the preferred is being hammered. This means the situation may call for a raising of more cash, somehow, in order to shore up the situation.

People want to know what's ailing J.C. Penney now. I think the answer is pretty clear from looking at all of the retailers: J.C. Penney sells apparel, and apparel sales are horrendous right now. The company's chief competitor, Macy's (M), which goes head to head with J.C. Penney, keeps having numbers trimmed on the basis of apparel. PVH (PVH), which is an excellent apparel company, has said that September started off weak after a bummer of a summer. Nordstrom (JWN) has indicated that apparel sales aren't strong. Even J. Crew, the best merchant out there, is having a hard time....236 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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