J.C. Penney Company Inc. (NYSE:JCP) Plunges Sharply
J.C. Penney Company, Inc. (NYSE:JCP) stock went down by a staggering 10 percent during trading on January 9. One of the main reasons for the investors in this stock to get spooked was an unclear announcement from the $2.25 billion market capped retailer about the sales figures from the recently concluded holiday sales period.
Statement With Out Numbers Scares Market
Analysts and investors alike have looked at the brief and bland statement released by J.C. Penney Company, Inc. (NYSE:JCP) stating that the management is “pleased” with the sales turnover during the holiday period without any specific mention of the volumes or percentages with scepticism. The investors exit from the stock yesterday tells us that they believe the retailer is not coming out clean with the actual state of the business and is hiding behind opaque statements. The sceptics have pointed out that contrary to yesterdays details lacking statement, over the past two months, J.C. Penney Company, Inc. (NYSE:JCP) had released detailed sales and corresponding growth figures as part of its monthly updates on the general status of its business.
Reading between the lines, the investors seem to have arrived at a conclusion that the December sales figures are probably disappointing and hence the departmental store has failed to share the full numbers as part of its monthly update.
The analyst community seems to agree with the knee jerk reaction of the markets. Analyst Charles Grom of Sterne Agee gave his take on J.C. Penney Company, Inc. (NYSE:JCP) announcement in these following words, “The length of JCP’s holiday update tells you everything you need to know about the company’s performance during the five-week December period. Said differently our gut tells us that if JCP had a good print in their back pocket–they would have disclosed it…in far greater detail.”