3 Winners, 3 Losers Since the Shutdown

Booze is doing fine; homebuilders are starting to feel the pinch

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Loser: JCPenney

JCPenney185 3 Winners, 3 Losers Since the ShutdownReturn Since Shutdown: -15%

Last but not least, we have to mention JCPenney (JCP) — even though the struggles of this failing stock have absolutely nothing to do with the federal government’s recess. Since Oct. 1, JCP stock has lost around 15% of its value. And since Jan. 1, shares have slid roughly 60%.

The recent implosion of the near-dead department store began thanks to chatter that JCP was looking to raise more money, followed by a secondary offering that did just that.

Unfortunately for investors in JCP stock, the damage from the secondary offering isn’t done. Instead, JCPenney is facing a class-action lawsuit saying it knowingly misrepresented its liquidity — which caused the the stock to trade at an inflated level and thus plummet when the truth came to light.

JCPenney probably wishes its struggles were caused by the government. Then, at least, they would be solved when the shutdown ends.

As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/3-winners-3-losers-since-the-shutdown/.

©2014 InvestorPlace Media, LLC

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