J C Penney Company Inc (NYSE:JCP) is flushing again today, following Friday’s poor earnings report. The stock is down over 26% in the last week as all retailers are collapsing. Today, the stock hit a low of the day at $4.17 and I am here to say it may be a strong buy. In fact, I am here to say that it is possible that today’s flush from $4.53 to $4.17 has nothing to do with poor earnings and is a result of certain funds not being able to hold stocks that are below $5.00.
Please be aware, this is not all funds, definitely not hedge funds and such. However, it is enough to create added selling pressure today. What does it mean? It may mean that this selling today is just a result of these funds selling and once it has concluded, it will snap back quickly. Earnings, while not great, were alright. In my opinion, not worth a 26% selloff. I think J C Penney Company Inc is extremely interesting down in this sub $4.35 range if my thesis is correct. Just something to ponder.
Swing traders listen up! The Research Center is proven to be the ONLY service on the web for serious, smart investors who are looking to learn while earning from the swings in the markets! Take a look at years of documented performance here, the results do all the talking. Step inside and get the next trade now!