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7 Highly Shorted Stocks Set for a Big Move

The bears are circling these stocks, but some could escape

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J.C. Penney (NYSE:JCP)Short Interest: 25.2%
2013 Return: -32.6%

It’s not difficult to imagine why someone would be betting against JCPenney (JCP) right now. Even if you look beyond the recent rumor of a lender tapping the brakes — a rumor that was subsequently discounted, I must add — there are serious issues to this retail stock.

A spiral of same-store sales declines under the ill-advised scheming of former Apple (AAPL) retail honcho Ron Johnson have not been reversed as of yet.

And broadly, the pressures on big-box mall retail remain crushing in the age of e-commerce — with JCP struggling to find a way to connect with customers online as well as in person.

There are some times the bears are dead wrong with their short assessments, but in 2013 this has been a pretty profitable trade for the bears … and I expect it to continue to be one.

JCP is slated to report earnings Aug. 20.

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