Is JCPenny's 2013-14's Wonder Stock of the Year?
If you have invested for any period of time like myself, you can recall almost from memory what each year means to the stock market. You could say that 2009 was the year of banks. Any bank that didn't go bankrupt soared. So did the infamous SIRI that at once on a Friday before the famous capital investment by Liberty Media was going for $0.05/share. Do the math. I know it hurts looking at today's price.
However, in that time frame there were also some big losers. One of the popular ones was Old GM. The one that went bankrupt and shareholders lost it all. The New GM probably doesn't have many Old GM shareholders. And then there the dozens of other financials that didn't turn out so well.
In recent years you have the TSLAs, CMGs, and NFLX. NFLX in particular is funny in that it gave shareholders not 1 try, but 2. Almost in back-to-back years precisely to get in. The original shareholders made a larger multiple for obvious reasons since NFLX never fell down to $20/share range. But still. The multiple with today's price is still a 5-6 bagger.
And the funny or sick thing is is that these aren't unknowns. They aren't penny stocks. They are actually talked about weekly if not daily. SIRI isn't talked about so much because buying a $4/share stock isn't so attractive based on where it was trading.
So back to JCPenny. It is a $7/share stock and falling. You will have some investors believing it can bounce back. Others say it is doomed to bankruptcy. Then what happens to all there hundreds of owned-locations?
The reality is that no one knows and any shocking news can make this stock soar or tumble in a single day. It really comes down to risk/reward. In an investing world where shareholders are always asking for the next "IT" stock that will turn there small fortunes into larger fortunes, they turn a blind eye to stocks like JCP.
I'm not saying JCP is a must-buy. I'm just saying that opportunities like this come around once a year - maybe twice.
Could it be 2013-14's Wonder Stock of the Year?
You decide! Comment Below!!!