Is J.C. Penney Co. Inc (NYSE:JCP) Most Oversold Company on NYSE?

Posted by admin September 25, 2013 0 Comment 1516 views

J.C. Penney Co. Inc (NYSE: JCP) stock sunk over 14% from its previous close to $10.22. This loss in share value will take the stock to the top of the loser’s roaster among the stocks which are listed on S&P500. This is the lowest price J.C. Penney Co. Inc (NYSE: JCP) stock has plummeted to in the last decade. Today’s dip will take the company shares to previously uncharted territories. At current valuations, the share price indicates a dip of 62% and 13% from its 52-week high and 52-week low respectively.

The key driver behind this bear embrace of J.C. Penney Co. Inc (NYSE: JCP) is the prevailing uncertainty around the company’s ability to raise capital from new sources to continue its operations. Shares of the company tanked after Goldman Sachs raised questions around the liquidity position of the company and said that it doesn’t expect J.C. Penney Co. Inc (NYSE:JCP) to improve sales in third quarter.

J.C. Penney Co. Inc (NYSE: JCP) has seen a huge build of selling pressure today with over 76 million shares already traded in current session. Its average daily trade volume is around 26.51 million shares per day with 220.46 million shares outstanding. At current valuations, the company market capitalization is down to $2.62 million. The company has 116,000 full time employees.

J.C. Penney Co. Inc (NYSE: JCP) stock has struggled to show growth in value over the past year. It has been showing negative growth of close to 60% since past one year and is down close to 39% for the year till date. It has recorded a loss of $1609 million in the past 12 months trailing period. The sales figures for the just concluded quarter are down 11% and its earnings per share are down by a staggering 297% in comparison to same quarter last year. Both its operations margin and profit margins were down by 10% and 13% respectively for the trailing 12 months period.

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