J.C. Penney Co. (NYSE:JCP) — This retailer is the leading mall-based family department store operator in the United States with over 1,100 retail locations and online shopping.
But earnings have been slipping despite management’s introduction of “Fair and Square,” an “every day pricing policy” where prices have been lowered by about 40% and promotions have been stopped. The new strategy apparently has not been very well received by shoppers, and earnings in FY 2013 (ended Jan. 31) are expected to fall to $1.05 versus $1.25 in FY 2012.
The long-term chart of JCP clearly illustrates a breakdown through a bullish support line at under $30 on very high volume. The stock is trading in a narrow bearish channel, which indicates a lack of support. Investors and speculators alike should sell JCP at the market.