What can you say about JCPenney (JCP) other than this is a stock on its last legs? the decline of big box retail in general played a role in the stock’s troubles, but utter mismanagement has pushed JCP to the brink.
The retail giant started 2013 with hopes of a turnaround under former Apple (AAPL) retail exec Ron Johnson, which included ambitious “store within a store” kiosks and the end to a long history of one-time sales and coupons. But loyal shoppers weren’t buying it, and a steady and dramatic bleed in sales ultimately led in the ousting of Johnson and the re-installation of Mike Ullman — the CEO who presided over JCPenney’s slow decline, as opposed to its more recent flame-out.
Sales still are slipping, losses are huge and there are rumors that JCP won’t be able to make its debt payments — which, if true, could signal a complete collapse of the stock.
If you think JCP can’t go any lower, remember stocks that go bankrupt go to zero.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he had no positions in the stocks mentioned. Write him firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP.