Gyroscopic Investing

I have been toying with the idea of purchasing some stock in JCP. It has plummeted over the past months but now seems to have stabilized (and even is having some very good days...e.g. was up 5.5% today on a terrible market day). I'm thinking along the lines of what Sears stock did a while ago, dropping by 65% before rebounding by 100%. JCP has brought back their old, more successful management group over the last few months and they do have some prime shopping real estate locations. I took a walk through a JC Penney store recently and noticed better shopper traffic and much better merchandise.

http://online.wsj.com/article/HUG1741329.html?dsk=y

If you invest, what's your exit plan?

I hadn't thought about it much. How about for every 10% it rises I remove 20% of my original investment?

Reub wrote:up 5.5% today on a terrible market day

I have not investigated, but in general stocks that do well on a bad market day are heavy shorted.
Playing the bounce then often fails on the next market up day.

(But if you can catch a short squeeze... wow)

Why JCP? 

It seems like they're just another mediocre department store.  Do you really think it's a company worth the speculation? 

I'm remembering what happened with Sears not that long ago. They have similarities in that they are old department store-type businesses with excellent real estate locations that went afoul, profits fell, and their stock plummeted. Sears rebounded by 100% and I think that JCP has turned the corner on their management issues by restoring the team that was in place when they were doing well. It is just really a hunch and one that I have not yet acted on.

Everything I have heard about JCP is bad. If I were going to do anything speculative with that stock (I'm not), it would be a short sell.

Appaloosa Management, run by David Tepper and having, I believe, a 10 year return of something like 25% per annum disclosed today that they have recently purchased close to 750,000 shares of JCP.

http://www.businessinsider.com/tepper-b ... fa-2013-11

Reub wrote: I'm thinking along the lines of what Sears stock did a while ago, dropping by 65% before rebounding by 100%.

I remember buying some Sears Holdings stock after reading about how great Eddie Lampert was, and how he was touted as the next Warren Buffett. I held on for several years and then finally gave up. I guess I missed most of the rebound.

JCP up another 8.5% today! Now if only I had bought some.

Reub wrote: JCP up another 8.5% today! Now if only I had bought some.

That will teach you for paying attention to me. With that kind of advice I should have been a mutual fund manager.

Up another 7.69% today! This ship has sailed.

Christmas sales must be looking good.

JC Penney is like a dinosaur that is trying to find a plastic surgeon to make it look more like a mammal.

It better find a Park Avenue plastic surgeon after retreating close to 20% last week. Up 4% today, though.

Reub wrote: It better find a Park Avenue plastic surgeon after retreating close to 20% last week. Up 4% today, though.

Even if it finds one, it's still a dinosaur.

Reub wrote: Up 4% today, though.

I ordered some pants from JCP yesterday, that might have done it.  (Though I got to use a 25% off coupon and a $10 reward coupon on an already-discounted price, so not sure...)

flyingpylon wrote:

Reub wrote: Up 4% today, though.

I ordered some pants from JCP yesterday, that might have done it.  (Though I got to use a 25% off coupon and a $10 reward coupon on an already-discounted price, so not sure...)

Haha! That definitely did it without a doubt!

The stock is sky-rocketing on great earnings results. Up about 20% today after market closed. Why did I let all of you naysayers talk me out of purchasing it?

Reub wrote: The stock is sky-rocketing on great earnings results. Up about 20% today after market closed. Why did I let all of you naysayers talk me out of purchasing it?

JC Penney's headquarters is about three miles from my house (they have a very nice campus).  I drive by it almost every day.  I'm sure everyone there is happy right now.