Beware Ron Johnson's Silver Tongue (JCP)
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Price: $17.50 -0.17%
Rating Summary:
6 Buy, 13 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 21
Rating Summary:
6 Buy, 13 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 21
Trade JCP Now!
Ron Johnson paints an enticing picture of a "new" J.C. Penney (NYSE: JCP) transforming itself to become America's Favorite Store, but Gildford Securities analyst Bernard Sosnick is recommending that investors resist any temptation to become bullish at this time.
"As [Johnson] spoke last week in Dallas the stock price rose, until reality struck—when he said sales headed lower in September and to expect that 2H/12 would be similar to that of 1H/12—which was horrible," said Sosnick.
"What to expect for 2H/12 was left to the imagination, based on guessing about what might happen to Penney’s sales during the holiday season. Another damaging revelation was about the performance of new shops, except that it was presented in terms that caused many investors to conclude incorrectly that sales of new shops were up—when that was not the case," warned Sosnick.
Gilford Securities has a Hold rating on J.C. Penny.
For an analyst ratings summary and ratings history on J. C. Penney click here. For more ratings news on J. C. Penney click here.
Shares of J. C. Penney closed at $24.65 yesterday, with a 52 week range of $19.06-$43.18.
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"As [Johnson] spoke last week in Dallas the stock price rose, until reality struck—when he said sales headed lower in September and to expect that 2H/12 would be similar to that of 1H/12—which was horrible," said Sosnick.
"What to expect for 2H/12 was left to the imagination, based on guessing about what might happen to Penney’s sales during the holiday season. Another damaging revelation was about the performance of new shops, except that it was presented in terms that caused many investors to conclude incorrectly that sales of new shops were up—when that was not the case," warned Sosnick.
Gilford Securities has a Hold rating on J.C. Penny.
For an analyst ratings summary and ratings history on J. C. Penney click here. For more ratings news on J. C. Penney click here.
Shares of J. C. Penney closed at $24.65 yesterday, with a 52 week range of $19.06-$43.18.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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