Why did JCPenney stock go up so much today? investing?

Question

it went up 8.44% is now the time to buy this stock?

Answer 1

http://www.marketwatch.com/news/story/jc...

Answer 2

Well, honestly, There is no reason that JCP moved upwards of 8% today.

Investors sighted positive "inventory control" figures in the earnings release as a possible reason for todays rally. However, any way you look at this mornings quarterly report of JCPenny, it looks really, really bad. They Missed estimates, said that 3rd quarter estimates will come below expectations, and then refused to issue full year guidance because the extent of the declining economy is so unpredictable. They Actually beat EPS numbers, but they were numbers that were revised down twice in the last quarter....big deal.  Basically investors were happy that they did a "pathetic" job instead of a "terribly pathetic" job this quarter. Period.

So, from a fundamental or psychological standpoint, the answer is NO, you would be out of your mind to buy this stock right now.

Retail is still getting crushed and will continue to for at least another year. Only companies with strong international presence have been able to sustain year over year growth. Ask yourself this, If it cost you $100 a week in gas, $100 in groceries, record high energy/electric/heating oil prices, unemployment rates approaching 6%, are you going to run right out to JCP and buy those new pair of jeans? The Answer is no. People cannot afford to buy anything other than food and energy in America right now. When I say "people", Im not saying this specifically applies to you, but it applies to the majority of small and middle class America, the people that make up the largest percentage of GDP and consumption figures. Once that starts to change, you can start looking at retailers again, especially ones who don't have a strong international presence.

LoL, somebody thumbs-downed me. Obviously someone who has NO clue about what they are talking about, and is probably losing fist loads of money as we speak. I only made 13 grand this week alone....guess thats from years of not knowing what im talking about.

Email me in a few weeks, so you can thank me for not losing money on this company.

Cheers.