Has J.C. Penney (JCP) Given Up?

February 5, 2013 3:57 PM EST
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Price: $6.69 -1.76%

Rating Summary:
    12 Buy, 14 Hold, 8 Sell

Rating Trend: = Flat

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    Up: 23 | Down: 34 | New: 34
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If J.C. Penney (NYSE: JCP) is in the middle of 'turnaround' you wouldn't know it by visiting the stores. In a research note today, analyst Bernard Sosnick of Golford Securities blasted the retailer for not showing up for the game.

"No work was being done to prepare for new shops in stores we visited in January and yesterday. We had expected activity because this is slack time when retailers are typically at their highest point with cash. CFO Hannah said earlier that shops would not roll out unless cash flow permits. Since nothing is happening, does that suggest JCP has a cash problem?" pondered the analyst.

Also troubling, the company has not made sufficient preparations for Valentine's day. In Sosnick's words, there was "not one heart in sight".

If investors want more reason to be pessimistic, aside from fears of a cash crunch and lack of preparation, Johnson will not be making his next appearance live in front of investors. Instead he will be hiding behind a computer.

Sosnick's report suggests that J.C Penney is a "no show".

"If there is a paucity of evidence of success, it may be hard to pull off on video from Plano to a skeptical audience," pointed out the analyst.

Gilford Securities has a Hold rating on J. C. Penney.

For an analyst ratings summary and ratings history on J. C. Penney (NYSE: JCP) click here. For more ratings news on J. C. Penney click here.

Shares of J. C. Penney closed at $19.34 yesterday.

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